The International Trade Council is pleased to announce that the Comprehensive Economic and Trade Agreement (CETA) has received a significant boost from Germany’s Constitutional Court.

 

The court has cleared the path for the German government to endorse the trade agreement between the EU and Canada, which bolsters the deal’s chances of obtaining approval in the EU vote scheduled for next week.

 

Germany’s top court denied emergency appeals by activists aimed at preventing the government from supporting CETA. Nonetheless, the court ruled that the government must ensure only the parts of CETA within the EU’s competence, such as tariff removal, are implemented before it is ratified by member states.

 

The court has also stipulated that Germany must retain the right to terminate the provisional application of the agreement unilaterally. This provision effectively introduces a safeguard, allowing the government to withdraw from the deal if it contravenes Germany’s constitution.

 

The proposed CETA is viewed as a potential model for TTIP, a larger trade agreement currently under negotiation between the EU and the US. CETA’s primary aim is the immediate removal of tariffs on 98% of goods, with further focus on regulatory cooperation, shipping, sustainable development, and access to government tenders.

 

Germany’s Economy Minister, Sigmar Gabriel, has praised the agreement, stating, “I am very pleased that we have made a first, big step because if Europe were not able to deal with Canada, this would send a difficult signal to the world.” However, some critics argue that the agreement could undermine democratic principles, workers’ rights, and consumer standards.

 

EU trade ministers will cast their votes on the accord next week. Brussels and Ottawa then aim to sign the agreement on October 27, provided it achieves unanimous support from member states and approval from the European Parliament for parts of it to be enacted.

 

While southern Belgium is anticipated to oppose the deal, Slovenia’s stance remains uncertain. Conversely, Austria’s Chancellor expressed optimism, stating that many of his concerns have been addressed.