What the Walloons of Wallonia might mean for Brexit

Wallonia, a region of Belgium, is blocking the EU trade deal with Canada. Credit: Reuters/Francois Lenoir

So how is it that the Walloons of Wallonia are suddenly so important to world trade?

Wallonia (population 3.5 million) is preventing the EU (population 500 million) from signing the free trade deal with Canada (culmination of 7 years work).

The Walloons can do that because all regions in Belgium must give their permission before the national government can sign it off.

27 EU countries have agreed to the EU-Canada trade deal, known as CETA, but the 28th, Belgium, still hasn't.

And so Canada's trade minister flew back home today, with nothing to show for her work.

Canada's International Trade Minister Chrystia Freeland has gone home empty handed. Credit: Gregor Fischer / PA Images

She was meant to come back next Thursday with the Canadian Prime Minister Justin Trudeau to sign on the dotted line.

Unusually, for a dispute of this kind, both sides agree that the problem is Europe's to solve - which basically means Canada ain't gonna budge any further.

So today, the President of the European Parliament Martin Schulz tried to bang some heads together.

In Brussels, he urged the Canadian minister to delay her flight home and then he met the Prime Minister of Wallonia.

And while today's talks were positive, there was no sign of any breakthrough.

The deal removes tariffs on most goods traded between the EU and Canada but Wallonia, in the south of Belgium, has big concerns over food imports and the impact on its public services.

PM of Wallonia, Paul Magnette, is not happy with the Canadian trade agreement. Credit: Reuters/Francois Lenoir

And don't think for a moment, this doesn't have an impact on the UK.

While we remain members of the union, UK exports and imports will be affected by CETA.

But perhaps the bigger issue is what this means for Brexit.

Theresa May will have just two years to work out the UK's new trading arrangements with the EU from the moment the divorce papers (Article 50) are triggered in March.

It took seven years to get this far with the Canadians and now a small region in Belgium is blocking the whole thing.

What objections might there be to a deal with the UK - from where - and on what?

Remember the UK's trade deal with the EU will also have to include the service sector (CETA doesn't) which is 80% of our economy.

So the last minute crisis currently being suffered by Canada's trade minister might, by comparison, look like a walk in the park by the time we get to Brexit in 2019.