German top court backs EU-Canada trade deal CETA

BBC — Germany’s Constitutional Court has rejected a legal challenge to the EU-Canada free trade deal (Ceta) from campaigners who call it undemocratic.

The campaigners object to the fact that parts of Ceta will be implemented before all national parliaments in the EU have voted on it.

EU trade ministers are to decide on Ceta next Tuesday. If they all approve it, the deal can be signed with Canada on 27 October.

Ceta  would be the EU’s most comprehensive trade deal to date, and the negotiations have taken seven years.

More than 125,000 people signed a petition organised by three activist groups aimed at blocking Ceta, the Comprehensive Economic and Trade Agreement. The groups are Compact, Foodwatch and More Democracy.

“Not a single parliament elected by me – neither the Bundestag nor the European Parliament – was given a mandate to negotiate for Ceta,” says Roman Huber of More Democracy.

The activists argue that Ceta and similar deals put job security and social welfare at risk, in a global “race to the bottom” that serves the interests of a wealthy elite.

Canadian Prime Minister Justin Trudeau warned on Thursday that “if Europe cannot manage to sign this agreement, then that sends a very clear message not just to Europeans but to the whole world that Europe is choosing a path that is not productive, either for its citizens or for the world, and that would be a shame”.

German Economy Minister and Vice-Chancellor Sigmar Gabriel has battled to win his Social Democrats (SPD) round to Ceta. The SPD is in government with Chancellor Angela Merkel’s Christian Democrats (CDU), who strongly support Ceta.

 

What’s the problem with the deal?

Activists fear that the deals could water down European standards in the key areas of workers’ rights, public health and the environment. They say it will open up new areas for privatisation and give corporations new powers to make profits.

They say it would give corporations the ability to sue governments through a special corporate court if they try to implement policies or regulations that could reduce the profits a company is expecting to make – for example, by increasing the minimum wage.

Opponents also point to the complexity of the deal – suggesting that many deputies won’t have read the 1,500-page document in full.

Some argue that Ceta will allow many of the provisions in TTIP – the controversial Transatlantic Trade and Investment Partnership deal between the US and Europe – in through the back door.

In August, Mr Gabriel was among leading European politicians who acknowledged that opposition meant the TTIP deal was effectively dead in the water.

There is opposition to the deal in other parts of Europe too.  Wallonia, a region of southern Belgium looks to set to block the CETA deal.

Andre Antoine,  president of the  Belgian regional Walloon Parliament said :

“This treaty is, in essence, for multinationals. When we make a law to protect our fellow citizens, to improve their situation, for example social or environmental conditions, we will have to compensate the multinationals. Between the government proposing, and the parliament deciding we have the multinationals interfering.”

As well as the unanimous agreement of member states, both regions of Belgium must back the deal before it can go ahead.

The European Parliament would also need to vote to allow parts of it to go into force.

Support from Slovenia also remains uncertain.

CETA

  • Negotiations began in 2009 and ended in August 2014;
  • The deal aims to eliminate 98% of tariffs between Canada and EU, making it the EU’s most comprehensive trade deal to date;
  • Signing is expected on 27 October, after which it requires ratification by the European Parliament and national parliaments;
  • It includes: the new Investment Court System (ICS); harmonised regulations; sustainable development clauses; and access to public sector tenders;
  • The deal is opposed by various groups, including environmental activists, trade unionists, and Austrian Socialists.