Canada Hails Belgian Breakthrough on Trade Deal

Canada's Foreign Minister Stephane Dion on Thursday hailed a deal reached by Belgian political leaders to break the logjam over a landmark trade deal between the EU and his country.

Resistance from Belgium's French-speaking Wallonia region had held up and threatened to derail the pact between the 28-member bloc and Canada, the world's 10th biggest economy.

But Belgian Prime Minister Charles Michel on Thursday announced an agreement had been reached with Walloon leaders in support of the CETA deal.

"If it materializes, it's excellent news," Dion said during a visit to Paris, adding he was "cautiously optimistic".

His French counterpart Jean-Marc Ayrault added: "If it is confirmed, we are very happy about it."

The CETA pact would link the EU's single market of 500 million people -- the world's biggest -- with Canada, the world's 10th largest economy.

"I am cautiously optimistic -- once bitten, twice shy," said Dion.

"We will show it is possible to trade and have progressive policies for the environment, health and social policies."

The leaders of Wallonia, a 3.5 million-strong region south of Brussels, had demanded guarantees that CETA will not harm local farming and other interests.