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CETA: Wallonia says it can’t meet deadline for Canada-EU trade deal

Click to play video: 'Why is Wallonia against CETA?'
Why is Wallonia against CETA?
WATCH ABOVE: Hoping is fading fast for any chance of salvaging this Thursday's summit in Brussels, when Canada and the European Union were scheduled to sign a landmark free trade agreement. Wallonia, the rebel region of Belgium that’s blocking the CETA deal, is refusing to back down. But who are these Walloons, as they’re called, and why do they consider CETA such a big threat? Jeff Semple reports. – Oct 25, 2016

BRUSSELS – The Belgian government says that it cannot yet give the necessary backing to the European Union’s free trade deal with Canada, making it unlikely that the bloc can sign the deal officially on Thursday as planned.

WATCH: Belgian, Wallonia leaders react to failed EU-Canada trade deal

Click to play video: 'CETA: Belgian, Wallonia leaders react to failed EU-Canada trade deal'
CETA: Belgian, Wallonia leaders react to failed EU-Canada trade deal

Belgian Prime Minister Charles Michel said Monday that EU leaders and Canada had asked for a clear commitment on Monday, “and the clear answer, at this stage, is no.”

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WATCH: Canada-EU trade talks fall apart in Belgium as Trade Minister Freeland walks out

It left it open to what extent the EU and Belgium could continue negotiating over the next days and weeks with the southern Belgian region of Wallonia, which needs to approve the deal before it can become official. The deal needs unanimity among the 28 EU nations and Belgium is the only approval lacking since it needs the backing of all its regions.

The EU’s executive called for patience in an attempt to save a free trade deal and had already dismissed a Monday night deadline as counterproductive.

The EU and Canada want to sign the deal at a summit on Thursday in Brussels, for which Prime Minister Justin Trudeau would fly in. But the meeting will be cancelled if the Belgian region of Wallonia, the lone holdout, withholds its approval.

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READ MORE: Here’s why a region of Belgium is blocking the Canada-EU trade deal

On Monday, Wallonia President Paul Magnette insisted he would agree to nothing under the threat of an ultimatum.

“Each time they put forward such an ultimatum it make a serene discussion and a democratic debate impossible,” Magnette said.

As Thursday’s summit draws near, pressure has increased on Wallonia, population 3.5 million, to drop its objections over a deal covering over 500 million EU citizens and 35 million Canadians.

The EU Commission, which has negotiated the deal on behalf of the 28 nations, insisted that this week’s summit was not the final deadline.

“Now, we need patience,” said EU Commission spokesman Margaritis Schinas. “The Commission traditionally does not set deadlines or ultimatums.”

WATCH: Chrystia Freeland fights back tears as she explains why Canada is walking out of EU trade talks

Click to play video: 'An emotional Chrystia Freeland fights back tears as she explains why Canada is walking out of EU trade talks'
An emotional Chrystia Freeland fights back tears as she explains why Canada is walking out of EU trade talks

Andre Antoine, the head of the Wallonia legislature, said on RTL network that “no, it will not be possible” to back the deal on Monday, arguing there are too many outstanding issues.

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Even if Thursday’s EU-Canada summit has to be called off, it could always be rescheduled when Wallonia has signed on to the agreement, Schinas indicated.

Over the past week, Belgium missed two deadlines to agree to the deal and Canada briefly walked out of the trade talks before returning the next day.

WATCH: Parliamentary secretary to the Minister of International Trade, David Lametti, and Conservative trade critic Gerry Ritz join Tom Clark to discuss why trade talks with Europe collapsed late last week and what lies ahead on the Trans-Pacific Partnership trade deal.

Click to play video: 'The fate of the Canada-Europe trade deal is up to Europeans'
The fate of the Canada-Europe trade deal is up to Europeans

EU officials said that without guarantees that the EU is ready to finalize the deal, there would be no reason to have a summit on Thursday with Trudeau.

Politicians in Wallonia, which is smaller than the U.S. state of New Jersey, argue that the proposed CETA accord – short for Comprehensive Economic and Trade Agreement – would undermine labour, environment and consumer standards.

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“And we do not want private arbitration in which multinationals can attack nations, Magnette said.

Magnette said Wallonia still saw many difficulties and said a better deal would bolster EU standards and set a strong precedent for future trade talks between Europe and trading partners like the United States or Japan.

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