Belgium reaches agreement on EU-Canada free trade deal

The Belgian government will back a free trade deal between the European Union and Canada after initially blocking the agreement.

Prime minister Charles Michel made the announcement on Thursday after negotiations with the Belgian region of Wallonia, which had blocked the deal using its veto power in the country.

The treay was initially scheduled to be officially signed on Thursday, but that will now be rescheduled, after the last-minute talks amongst the Belgian lawmakers.

The Comprehensive Economic Trade Agreement (CETA) required unanimity from all EU member states, and had been threatened by Wallonia's veto, but the regional government's chief Paul Magnette said that their requests had been met.

"We have finally found an agreement among the Belgians that will now be submitted to European institutions and our European partners," Magnette said.

"Wallonia is extremely happy that our demands were heard," he added.

Representatives from Wallonia were adamant that they had been given guarantees surrounding the effect the deal would have on local industries such as agriculture.

Josh Mahony, market analyst at IG, has said that although the quick turnaround from Belgium came as a shock, the news will come as a show of strength for a European Union that many say is struggling to hold itself together.

"There is a perception that the EU is incapable of signing off free-trade agreements, but apparently that isn’t the case. Today’s deal will reduce the likeliness of any future Brexits, as the EU proves that it can get all members to agree on something for the good of the group," Mahony said.