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CETA free trade agreement: Traffic light coalition agrees on ratification

2022-06-23T17:18:53.135Z


The controversial free trade agreement with Canada has been in force for the time being since 2017. To be fully effective, it must be ratified by all EU members. That should happen in Germany now.


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Containers in the port of Hamburg: Twelve EU countries have not yet ratified Ceta, including Germany

Photo:

Daniel Reinhardt / dpa

The parliamentary groups of SPD, Greens and FDP want to get the Ceta free trade agreement between the EU and Canada through the Bundestag.

This was announced by representatives of the three coalition groups.

To do this, however, they want to make improvements to the agreement that has already been negotiated.

According to Green Party leader Katharina Dröge, this is about the regulations on investor arbitration courts, which should be "defused".

These bodies are designed to deal with complaints from investors.

However, corporations should not be able to use these instruments in such a way that they could put pressure on environmental regulations, said Dröge.

Parts of Ceta have been in force for the time being since September 2017, but twelve member states – including Germany – have not yet ratified the agreement.

For this reason, the clauses on investment protection, among other things, are not applied.

In the coalition agreement, the Ampel parties had declared that they were committed to trade agreements "that focus on protecting investments for companies abroad on direct expropriation and discrimination."

The “misuse of the instrument” should be prevented.

Canada and the EU themselves have yet to ratify Ceta.

Therefore, nothing will change with the agreement between the traffic light factions for the time being.

The Greens in particular had previously had concerns, for example about a special right of corporations to take legal action provided for in the agreement.

According to Green Party leader Dröge, the planned changes would not mean that the entire ratification process would have to be rolled out.

"The ratification process does not have to be interrupted," she said.

All that is needed is a majority among the EU states and the consent of the EU as a whole and of Canada.

The cabinet is to pass the ratification law before the summer break, and the Bundestag is also expected to have a say soon.

However, Parliament should only give its final approval once the amendments discussed have been approved by the EU and Canada, which is expected to be in the autumn.

The Greens in particular had previously had concerns, for example about a special right of corporations to take legal action provided for in the agreement.

The fear was that this could be to the detriment of consumers and states.

These rights are not yet in force.

In the election program, the Greens had declared that they would not ratify the Ceta agreement in its current version.

"For years, the FDP has wanted Ceta to finally be ratified," said FDP parliamentary group leader Dürr.

He referred to the Russian war in Ukraine: "Free trade with the democracies of the world is more important than ever, the free trade agreement with Canada is an important first step."

Ceta is intended to facilitate trade between the European Union and Canada and regulates, among other things, the elimination of almost all customs duties.

The main criticism is that companies should be able to sue states before a new court.

Critics are also concerned that German environmental or occupational safety regulations are in danger.

Agreement on a common »trade agenda«

In addition to the improvements to Ceta, the traffic light factions have also agreed on a common “trade agenda”.

Among other things, it provides for a commitment to “free and fair world trade” and alignment with the Paris Climate Agreement and the UN Sustainable Development Goals.

Climate and labor rights should play an important role in EU trade agreements.

"Sustainability is the essence of trade and not a nice thing to have," said the Parliamentary State Secretary in the Federal Ministry of Economics, Franziska Brantner.

sol/dpa/AFP

Source: spiegel

All business articles on 2022-06-23

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