5TH LEAD EU trade deal «impossible,» Canada says after last-ditch talks By Helen Maguire and Alvise Armellini, dpa

Brussels (dpa) - Last-ditch efforts to salvage a landmark trade deal between the European Union and Canada appeared to have failed Friday, after a Canadian minister said it was "impossible" to overcome opposition from the Belgian region of Wallonia.The Comprehensive Economic and Trade Agreement (CETA) is supposed to be signed at an EU-Canada summit next week. However, unless the Belgian region of Wallonia gives its go-ahead to the deal, the country cannot approve it and the ceremony cannot proceed."It is now evident to me, evident to Canada, that the EU is incapable of reaching an agreement, even with a country with European values such as Canada," Trade Minister Chrystia Freeland said in a statement issued after talks with Walloon Prime Minister Paul Magnette."Canada is disappointed and I personally am disappointed, but I think it is impossible. We are returning home," she added. In footage broadcast by Belgian TV VRT, Freeland appeared emotional and close to tears.Despite the setback, EU Trade Commissioner Cecilia Malmstrom remained optimistic. "I sincerely believe this is not the end of the process," she wrote Twitter.After Wallonia said last week it would not back the deal, Freeland flew over to Belgium in an attempt to win over Magnette. On Friday, she met him in the Walloon capital of Namur along with European Commission representatives."We worked well in a very constructive spirit for several hours," Wallonia‘s Magnette said of his discussions with Canadian Trade Minister Chrystia Freeland told Belgian broadcaster VRT."I simply asked for a bit more time. That was manifestly not possible for our Canadian partners," Magnette added. "I regret it," he said.He said he could understand that the Canadians were running out of patience after seven years of negotiations, adding: "For us Walloons, we have only been across the issue for 15 days.""We are not just talking about a treaty with Canada, we are talking about all the future bilateral trade treaties, that is why this so important," the Belgian Socialist politician told the Walloon parliament. "What kind of globalization do we want?" he asked.The main remaining obstacle to Wallonia‘s consent is the legal mechanism in CETA to settle disputes between companies and governments, Magnette said, appealing for the October 27 EU-Canada summit to be postponed so as to resolve deadlock.The EU‘s meeting schedule for the coming week, published late Friday, does not include a reference to the planned summit.CETA is designed to ease the flow of goods by removing tariffs and trade barriers between Canada and EU member states. It is also seen as a blueprint for a bigger, and more controversial, agreement being negotiated with the United States, known as TTIP.Opponents of CETA and TTIP fear that they give undue power to corporations and weaken the ability of governments to set labour, consumer and environmental standards. Supporters say they would boost growth and create jobs."There is deep, widespread opposition to CETA and many millions of people agree with Wallonia‘s stance. Thousands across Europe and Canada spoke up and took action to make this happen," Maude Barlow, leader of the campaign group Council of Canadians, said in a statement.European Council President Donald Tusk, who chaired an EU summit in Brussels overshadowed by CETA, said the dispute was not only ideological, but rather hinged more on "the internal politics in Belgium than international affairs."At the summit, EU leaders agreed on the need to adopt measures by the end of the year against unfairly cheap imports from countries such as China, but left it to trade ministers to find a balance between free trade advocates and those who want to protect domestic industries.The issue is pressing as a change in Beijing‘s trading status from 2017 will make it harder to act against Chinese cheap imports. The country has been accused of dumping a range of goods on the European market and of exacerbating a glut in the global steel industry.