Four letters arouse plenty of anger from critics: Ceta. This is the abbreviation of the trade agreement between the EU and Canada, parts of which came into force five years ago. Only in part because some EU countries, including Germany, have still not ratified the treaty. The traffic light coalition wants to make up for that in the fall – finally. But environmental groups and trade unionists are now taking the trip to Canada by Chancellor Olaf Scholz and his deputy Robert Habeck as an opportunity to protest against these plans.
But such resistance is completely out of date. Despite all the justified criticism of the details of the agreement, it is clear that the EU will have to conclude significantly more trade agreements again. Russia is largely absent as a business partner, and China is more isolated. Therefore, Europe’s industry, especially the export-dependent German one, needs a replacement: in the form of better access to other markets.
Trade agreements are the method of choice here: they eliminate tariffs and other hurdles, simplify exports and secure access to raw materials. Consumers benefit from lower prices. In addition, these agreements are one of the EU’s most effective instruments for exerting influence on other continents – and for pushing back on China’s influence in many places. Governments in Asia, Africa or America can give their companies and farmers better access to the huge EU single market thanks to these contracts, but they have to be on good terms with Brussels to do so. These agreements also specify environmental and social standards.
Critics complain that violations of these clauses have no serious consequences. In the case of the Ceta agreement with Canada, the skeptics also dislike the planned arbitration courts, with which investors – according to the accusation – can attack unpopular decisions by parliaments. However, the federal government is responding to this fear and will only ratify Ceta if additional declarations on the interpretation of the contract set narrow limits for the courts.
The EU must quickly conclude the treaty with South America
The fact that there are still protests is shocking. Canada is a liberal democracy that takes climate protection seriously. In addition, the country is to become an important energy supplier. Anyone who rejects a trade treaty with Canada will therefore probably reject treaties with all countries. This fundamental opposition is not only senseless and harmful, but also unfair. Because the EU Commission takes the criticism of its trade agreements seriously and wants to make the chapters on environmental and social standards easier to enforce in the future. Violations then threaten the reintroduction of customs duties.
The anger over Ceta could provide a foretaste of the debates to come if the EU does sign the trade deal with Mercosur. This agreement with Brazil, Argentina, Uruguay and Paraguay is on hold because Brazil’s right-wing populist president does not stop the burning of the Amazon. But that Jair Bolsonaro could be voted out in October. If that happens, the EU should conclude the treaty very quickly. Brussels must have no regard for the perpetual whiners who are themselves fighting agreements with the prudent Canadians. The EU can no longer afford that.