The planned free trade deal between Canada and the European Union received backing from a committee of the European Parliament and from Germany’s top court on Thursday, boosting its chances of entering force later this year.
The European Union and Canada signed the Comprehensive Economic and Trade Agreement (CETA) in October, but only after opposition from a region of Belgium and hesitation in Austria as well as other countries.
CETA, along with the larger planned EU-U.S. Transatlantic Trade and Investment Partnership (TTIP), has proved contentious and drawn criticism from trade unions and environmental and other groups.
More than two years since the negotiations concluded, CETA still needs approval from the European Parliament. It is expected to give its verdict in February.
The parliament’s environment, public health and food safety committee voted 40 to 24 for a motion saying the 751-seat parliament should back the deal.
The employment committee in December recommended rejection of the deal, saying it risked job losses and increased inequality.
Even after the European Parliament vote, CETA would only enter force provisionally, most likely in the form of import tariff removal, as it also needs approval from the parliaments of the EU’s 28 member states and Belgium’s regions.
On the other hand, supporters say CETA will increase Canadian-EU trade by 20% and boost the EU economy by €12 billion ($12.8 billion) a year and Canada’s by $12 billion.
