The EU-Canada Comprehensive Trade Agreement (CETA) went into effect today, eliminating customs duties on 98 percent of products, which will affect 510 million European and 35 million Canadian consumers.
The agreement was signed in October 2016, and will now be implemented in large parts pending approval by the EU's more than 30 national and regional parliaments, which could take several more years. Only five parliaments have ratified the agreement thus far.
An essential aspect of the deal to be finalized at the end of the ratification process is a controversial investment protection scheme. Under it, companies have recourse to legal arbitration if they believe their rights have been violated by a change in government policy. The differences fall largely under concern of diminished EU regulation on the environment and health.
Other bilateral deals in the EU pipeline include those with Japan, Australia and New Zealand.