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Belgian response to CETA treaty casts doubt on EU-UK trade deals after Brexit

The failure of talks to agree a free trade deal between Canada and the EU has cast doubt on whether the UK can achieve the same after Brexit.

The trade agreement, which is supposed to allow Canada access to EU markets and vice versa, has been held up after a regional parliament in Belgium wanted more guarantees to protect its farmers.

Wallonia, which has to ratify the CETA treaty if it is to be adopted by the EU, fears the agreement will allow huge multinationals to crush small Walloon enterprises and the country's way of life.

Canadian free trade minister Chrystia Freeland walked out of the talks, which have been going on for seven years, after they broke down.

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Supporters of Brexit said during the referendum campaign that the EU would be keen to strike trade deals after the UK left the bloc.

But the stumbling block that has hit the CETA deal has the potential to expose a flaw in the Brexiteers' arguments.

:: Sky Views: Theresa May needs 'smooth' Brexit

In order for an agreement to stick, the EU needs unanimity, not just in the bloc, but also unanimity across the various regions of linguistically-split Belgium.

Wallonia's Minister-President hinted that his region's vetoing of the deal was potentially the first of many.

Paul Magnette said: "I said this already and I say it again to our Canadian friends - we are sorry that your treaty is the first one to go under such attention.

"But if we pay so much attention here on this treaty, it is because we are going to create a precedent."

Prime Minister Theresa May told reporters after her first EU summit it was "important" that the bloc concludes the deal with Canada.

:: Has Britain left the EU yet?

But Mrs May was keen to stress that the UK's potential deal with the EU would not be based on the Canadian model.

Answering questions at a news conference following the summit, she said: "On CETA, obviously, as you're aware, the Walloon Parliament has been looking at this particular issue.

"I understand that discussions are continuing and negotiations are continuing. I think that it's important that the EU is able to sign this trade deal with Canada.

"As you say, it's been a long time in the making, and I think that it can be signed. But the discussions, as I understand it, are continuing on that particular issue.

:: Half of Britons fear Theresa May has no Brexit plan - Sky (Frankfurt: 893517 - news) poll

"From the UK's point of view, we're not looking to replicate a model that another country has. We're not looking to adopt another model that somebody else has in relation to their trade with the European Union.

"What we want is to develop what is a new relationship for the UK when we're outside the EU. What we want is to ensure that we have the right deal for the United Kingdom.

"And I'm optimistic about that. Obviously, we've got negotiations ahead of ourselves. Those negotiations will take time, as I say, there will be some difficult moments.

"It will need some give and take. But I'm optimistic that we can achieve a deal that is right for the UK because I actually think the deal that's right for the UK will also be right for the European Union."