Controversial CETA deal signed as protesters storm European Council

RT
Sun, 30 Oct 2016 15:28 UTC

© Eric Vidal / Reuters

Canada's Prime Minister Justin Trudeau arrives with European Council President Donald Tusk (R) and European Commission President Jean-Claude Juncker (L) to sign the Comprehensive Economic and Trade Agreement (CETA) at the European Council in Brussels, Belgium, October 30, 2016.

The European Union and Canada signed a long-delayed free trade deal, which has triggered massive protests over concerns that it will harm European local businesses and agriculture and create a "dictatorship of corporations."

The Comprehensive Economic and Trade Agreement's (CETA) stated goal is to create new jobs and promote economic growth.

During the signing, protesters wearing all-white boiler suits attempted to break through police barricades and the security fence at the European Council building in Brussels. The demonstration then escalated into violent clashes with Council security guards.

Protesters threw red paint at the officers who had to pin down those who managed to vault over the barriers surrounding the building. A number of people were detained before they managed to reach the European Council.

Security guards used pepper spray and batons in an attempt to disperse the crowd. An armed squad could soon be seen at the site.

Donald Tusk, the president of the European Union, said he welcomed the free trade agreement, speaking at a press conference that came after the deal was officially signed.

The treaty was signed by Canadian Prime Minister Justin Trudeau and the heads of EU institutions. The pact is to come into full force in early 2017, when most import duties are to be lifted.

The path to the agreement was rather thorny, with massive protests breaking out in a number of European countries, including France, Germany, Poland, Spain, and others.

The CETA deal is believed to pave way for a larger EU deal with the United States, known as the Transatlantic Trade and Investment Treaty (TTIP), which has long been objected to by labor unions and environmental activists.

CETA supporters claim the treaty will boost Canadian-EU trade by 20 percent, with Canada's economy increasing its performance by $9 billion, and the bloc by $13 billion.

At the same time, Canada is hoping to reduce the degree it depends on the export market of its neighbor, the US.

Critics of both CETA and TTIP focus their attention on the mechanism designed to protect foreign companies' investments, pointing out its flaws. Multinational companies are likely to abuse the deals' provision for arbitration panels to rule on disputes, and start dictating public policy, including environmental standards.

The EU and Canada, however, shrugged off the objections, saying that the investment protection system stipulates the governments' right to regulate, turn to independent judges, and be more transparent.

Comment: More on the CETA shenanigans: People didn't vote for it: EU Council decides to sign CETA trade agreement and celebrate with Canada

This is clearly a prelude to TTIP.

The EU's 'Donald' may not realize it yet, but this deal could ultimately pave the way for China's takeover of the US.

Why? Because Chinese companies are buying up key assets in Europe at an incredible rate...

so far in 2016, 47 deals worth a total of €10.3 billion ($11.3 billion) have been secured by Chinese investors "shopping" in Germany, according to Thomson Reuters data. The numbers show a steep increase from 2015, when 29 deals worth a combined €263 million were inked.

The trend has so disturbed the German official that he has warned Beijing might not gain important World Trade Organization (WTO) "market economy status." China expects to be granted the status after its 15 years of WTO membership this year, but the German politician said in an interview with national media it "has to act accordingly."

If they don't grant China WTO status, China may do what it did in response to being repeatedly blocked in the IMF and World Bank; set up a parallel WTO and drive another nail in the US-led international finance system. If the Chinese continue buying up European assets, by the time TTIP is in place, they could have backdoor market access to go shopping in the US!