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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

30 Oct 2016

Canada's Trade Agreement with the EU

Canada and the EU have now completed the Comprehensive Economic and Trade Agreement known as CETA, requiring all EU member states to endorse it.
The UK can see this as a positive endorsement of the soft exit approach where a trade agreement can be reached without having to give any 'sovereignty' away.

The down-side here is that this deal took seven years of negotiation, nevertheless people are now asking if this could be a template for trade between the EU and BREXIT UK.
The deal with Canada means that most trade tariffs will be waived, allowing the EU to trade freely with Canadian businesses. The cost of the deal will have been some concessions made to the French-speaking Belgian region of Wallonia, who had concerns about competition for their farmers. The details of the deal don't seem to be public yet, but apparently the deal in temporary format will be signed off by all 28 member states over this weekend. Subsequently 38 national assemblies will have to ratify the agreement for it to be come a permanent legal document.

Although in some quarters, this is being heralded as a sign that the UK will be able to negotiate in the same way, the process will be lengthy and we don't know what obstacles will have to be overcome, and what compromises we might have to make.

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