[Ip-health] Reuters: Germany to reject EU-Canada trade deal

Thiru Balasubramaniam thiru at keionline.org
Sat Jul 26 08:33:20 PDT 2014


http://www.reuters.com/article/2014/07/26/germany-canada-trade-idUSL6N0Q10CS20140726


<SNIP>

Citing diplomats in Brussels, the Sueddeutsche Zeitung reported that Berlin
objects to clauses outlining the legal protection offered to firms
investing in the 28-member bloc. Critics say they could allow investors to
stop or reverse laws.

The German government could not sign the agreement with Canada "as it has
been negotiated now", reported the paper quoting German diplomats in
Brussels.

It also said that the clauses in the Canada deal were similar to those in
the U.S. agreement which is still under negotiation.

"The free trade treaty with Canada is a test for the agreement with the
United States," said one senior official at the Commission in Brussels,
according to the paper.

If the deal with Canada is rejected "then the one with the United States is
also dead", added the official.

--



Germany to reject EU-Canada trade deal - Sueddeutsche newspaper

BERLIN, July 26 Sat Jul 26, 2014 8:05am EDT

(Reuters) - Germany <http://www.reuters.com/places/germany?lc=int_mb_1001> is
to reject a multi-billion free trade deal between the European Union and
Canada which is widely seen as a template for a bigger agreement with the
United States, a leading German paper reported on Saturday.

Citing diplomats in Brussels, the Sueddeutsche Zeitung reported that Berlin
objects to clauses outlining the legal protection offered to firms
investing in the 28-member bloc. Critics say they could allow investors to
stop or reverse laws.

The German government could not sign the agreement with Canada "as it has
been negotiated now", reported the paper quoting German diplomats in
Brussels.

It also said that the clauses in the Canada deal were similar to those in
the U.S. agreement which is still under negotiation.

"The free trade treaty with Canada is a test for the agreement with the
United States," said one senior official at the Commission in Brussels,
according to the paper.

If the deal with Canada is rejected "then the one with the United States is
also dead", added the official.

Asked about the report, a spokesman for Germany's Economy
<http://www.reuters.com/finance/economy?lc=int_mb_1001> Ministry referred
to correspondence which outlined Germany's concerns about investor
protection in talks with both countries.

"The German government does not view as necessary stipulations on investor
protection, including on arbitration cases between investors and the state
with states that guarantee a resilient legal system and sufficient legal
protection from independent national courts," Deputy Economy
<http://www.reuters.com/finance/economy?lc=int_mb_1001> Minister Stefan
Kapferer wrote in response to an enquiry from a Greens lawmaker.

In the letter, dated June 26, Kapferer took a similar position on investor
protection in the still-to-be-agreed Transatlantic Trade and Investment
Partnership (TTIP) agreement with the United States.

Brussels argues that without these clauses companies from Canada will not
invest in Europe.

The Sueddeutsche said that EU states will this week receive the treaty for
officials to examine in detail before it is signed. All 28 members of the
EU have to sign the agreement for it to take effect.

The deal with Canada could increase bilateral trade by a fifth to 26
billion euros a year and the more ambitious one with the United States, if
agreed, could encompass a third of world trade and almost half the global
economy.

Both accords seek to go far beyond tariff cuts and to reduce transatlantic
barriers to business, but the talks are extremely complicated. (Reporting
by Hans-Edzard Busemann; Writing by Madeline Chambers; Editing by Stephen
Powell)



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