The free trade agreement between Canada and the European Union has been applied on a provisional basis for years, although not all member states have yet given the go-ahead. Germany also refused to give its consent for a long time. Now the Bundestag is making a U-turn.
After years of hesitation, Germany has ratified the EU’s CETA free trade agreement with Canada. 559 MPs voted in favor of the corresponding law in the Bundestag. 110 MPs voted against. The economy is hoping for a boost in trade with the North American country and further agreements with other countries such as Chile and Mexico. Activists and social organizations had already made critical comments beforehand. The agreement would create special rights for foreign investors and put corporate profits ahead of climate and environmental needs, according to the accusation.
CETA can only come into force once all 27 EU member states have given the green light. However, many countries are still missing, including Italy and France. Both sides concluded negotiations on the agreement in 2016. It has been provisionally applied since September 2017. This means that 98 percent of all goods traded between the EU and Canada are no longer subject to customs duties. Canada itself has already completed ratification.
In 2021, German goods worth ten billion euros were exported to Canada, while imports totaled 6.2 billion. However, this is only 0.6 percent of the total German trade volume. According to trade associations, however, the volume has already increased by around a fifth since the provisional application of CETA. The traffic light coalition had recently made it clear in a position paper that it wanted to anchor sustainability standards – such as climate requirements and minimum working conditions – in future trade agreements.
According to critics, this makes negotiations with many countries more difficult. Nevertheless, the traffic light parties SPD, Greens and FDP want to work to ratify the Mercosur agreement with the South American countries Argentina, Brazil, Paraguay and Uruguay. A speedy conclusion to the negotiations with Chile and Mexico is also being sought. Trade relations between the EU and the USA, which are currently being overshadowed by huge subsidies for companies manufacturing in the USA, are also to be deepened.