Chief economist at the Conference Board of Canada has raised concerns of the current economic conditions in Canada. If you weren’t to include the current economic stimulus that has been implemented in Canada, then the economies only growing at 1.5%. Whilst this isn’t surprising when global growth is struggling, it does raise some concerns as previously 4-5% would be considered a healthy level.
CETA Agreement Could Boost Economy
The final negotiations surrounding the Canada and European Trade Agreement have hit a wall in the form of 3.5million people in Belgium. Belgium’s socialist Wallonia region is unhappy with the amount of power the new agreement could potentially give to multinational businesses.
Supporters of the trade agreement have suggested there could be up to 20% increase in trade volumes between the regions with small businesses being some of the biggest benefactors. Under CETA there would be 98% less tariffs than already in place between the EU and Canada. Considering the troubles faced by the Canadian economy this deal could really help to try and improve the level of growth. Canada is already a major exporter of Oil with already over 20% of its exports coming from the pumps.
The cynical argument here may suggest that we suddenly see a huge amount of EU investment in the Wallonia area with loads of jobs created. When it comes to EU agreements there has been several examples of this in the past. As it stands half a percent of the population in the EU are stopping the other 500 million along with 27 other governments from entering into the agreement.
The main question it might raise is how is the UK going to negotiate their agreement when every single governing body in the EU has to agree.