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Australia Free trade: Bundestag says yes to Ceta

23:43  01 december  2022
23:43  01 december  2022 Source:   dw.com

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The Bundestag has decided to ratify the CETA trade agreement between the EU and Canada. However, other EU countries have to agree to the agreement.

Provided by Deutsche Welle © Picture Alliance/dpa/m. Gambarini Provided by Deutsche Welle

Germany has ratified the CETA free trade agreement with Canada after years of hesitation. The majority of the Bundestag voted for this. However, Ceta can only finally come into force if have given the green light of all 27 EU member states . Many countries are still missing .

at Ceta there is broad criticism. The Greenpeace trading expert Lis Cunha said: "The agreement protects fossil corporations instead of the climate." The agreement would create special rights for foreign investors.

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Negotiations on Agreement had both sides in 2016. It has been used temporarily since September 2017. This means that there are no more tariffs for 98 percent of all goods that are traded between the EU and Canada. Canada has already completed the ratification. According to the DIHK industrial association, around 500 million euros in customs fees for European companies per year.

Kanadas Regierungschef Justin Trudeau - sein Land hat die Ratifizierung bereits abgeschlossen © Adrian Wyld/Empic/The Canadian Press/Picture Alliance Canada's Prime Minister Justin Trudeau - his country has already completed the ratification Handel with Canada on the right track

"We owe the Agreement that exports to Canada in the last five Years of more than a quarter have increased, "said the President of the BGA wholesale association, Dirk Jandura. "Despite the Corona pandemic, there was an increase of over 15 percent. Ceta in particular helped small and medium-sized companies to export to Canada and establish themselves there." According to Canada,

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2021 German goods worth ten billion euros were exported, and imports added up to 6.2 billion. However, this is only 0.6 percent of the entire German trading volume. According to the business associations, the volume has increased by around a fifth since CETA.

"Only a first step"

The German economy penetrates further agreements in this direction. The President of the BDI industrial association, Siegfried Russwurm, spoke of an overdue step. "It now has to give the EU new impetus in trade policy. Germany and the EU need open markets, especially in times of increasing protectionism."

was similar to the VDA automotive association: "We have to expand and intensify our cooperation with other countries," said VDA President Hildegard Müller. More investment and trade agreements as well as more energy and raw material partnerships are needed. According to information from the Reuters agency, the carmaker VW plans to build its North American battery cell factory in Canada.

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The Chemical Association VCI cited the Mercosur states of Argentina, Brazil, Paraguay and Uruguay as well as Australia, Southeast Asia, India, Africa and the USA. "Ceta should only be a first step on the way to free trade."

Freihandelsabkommen sind oft umstritten - hier eine Demonstrantin in Straßburg © Getty Images/AFP/f. Florin free trade agreements are often controversial - here a demonstrator in Strasbourg further towards America

The traffic light coalition had recently made it clear in a position paper that sustainability standards - such as climate requirements and work measurements - wanted to anchor in future trade agreements. According to critics, this complicates negotiations with many countries.

Nevertheless, the traffic light parties SPD, Greens and FDP want to work to ratify the

Mercosur agreement with the South American states of Argentina, Brazil, Paraguay and Uruguay. In addition, a rapid conclusion of the negotiations with Chile and Mexico is sought. The trade relationships of the EU and the United States, which is currently being overshadowed by huge subsidies for companies producing in the USA, are also to be deepened. and what about TTIP?

The EU and the United States trade relationships are currently being overshadowed by huge subsidies for companies that produce in the United States. Here, top politicians of the traffic light coalition are skeptical about whether a new edition of the negotiations is now appropriate. "In Washington, I have been signaled that a trade agreement with the EU is currently not an issue," said SPD-Co boss Lars Klingbeil.

until the presidential election in 2024, the focus is now on the USA itself. "Nevertheless, we should make this offer to stretch the hand towards Washington." Green co-co-boss Omid Nouripour also does not believe in renewed negotiations with the United States, as he said RTL/NTV.

DK/HB (RTR, AFP, dpa)

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