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EU-Canada CETA Trade Deal Stalls as Relations Deepen Beyond Trade

Almost a decade after the Comprehensive Economic and Trade Agreement (CETA) was signed, the EU-Canada trade deal remains not fully ratified despite provisional enforcement since 2017. The agreement, which eliminates most tariffs and has boosted EU-Canada trade by 80 percent since 2016, faces delays because several EU member states, including Cyprus and Greece, have yet to complete national ratification procedures.

While CETA underpins a flourishing trade relationship valued at €130 billion in 2025, the EU and Canada are now seeking closer cooperation beyond trade. European Commission President Ursula von der Leyen proposed an "Alliance for the Future," encompassing defense, critical minerals, energy, and digital trade, with discussions about Canada becoming the EU’s first associate member.

The ongoing ratification impasse highlights a political hurdle amid deepening strategic ties. As the EU and Canada work towards a broader partnership, the stalled CETA agreement serves as a litmus test for the EU's ability to legally formalize expanding international alliances.

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