Germany Objects To Canada-EU FTA
The outcome of negotiations on a free trade agreement (FTA) between the European Union and Canada has been cast into doubt following objections raised by Germany.
According to German newspaper Suddeutsche Zeitung, German government officials said that they could not agree to the EU-Canada Comprehensive Economic and Trade Agreement (CETA) “as it has been negotiated now.” In particular Germany objected to investor protection clauses in the treaty which would increase the ability of multinational companies to sue EU states.
Suddeutsche Zeitung quoted a senior European Commission official as saying that the free trade treaty with Canada is a test for the FTA between the EU and the United States, known as the Transatlantic Trade and Investment Parnership (TTIP). If Germany rejects the agreement with Canada, it will likely block the one with the US also.
Last October, the Canadian Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso announced that an agreement in principle had been reached on the core elements of CETA. The Canadian Government said it anticipates a CAD12bn (USD10.9bn) boost to its economy from the agreement.
Source: tax-news
