Comprehensive economic and trade agreement

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Comprehensive EU-Canada economic and trade agreement

Title (engl.): Comprehensive Economic and Trade Agreement
Abbreviation: CETA
Date: September 21, 2017
Reference: Contract text see below
Contract type: Bilateral (EU, Canada)
Legal matter: International trade law ( free trade agreement )
Signing: October 30, 2016
Ratification : - (15 of 30 partners)

Participant in the Comprehensive Economic and Trade Agreement Canada European Union (EU)
Participant in the Comprehensive Economic and Trade Agreement
  • Canada
  • European Union (EU)
  • Please note the note on the applicable contract version .

    The EU-Canada Comprehensive Economic and Trade Agreement , or CETA for short (from English Comprehensive Economic and Trade Agreement , also read as Canada-EU Trade Agreement , French Accord économique et commercial global (AECG) ), is an EU-Canadian free trade agreement . The treaty contains numerous trade and customs facilities.

    For his critics, it is particularly controversial when it comes to investment protection , which should enable companies to claim damages from states if the legal situation changes ( investor-state dispute settlement ).

    The comprehensive CETA agreement was negotiated from 2009 and published on September 26, 2014 to conclude the negotiations. It was signed by the European Council, the European Commission and the Canadian government on October 30, 2016, with re-negotiated amendments that received criticism, after all 28 European governments had approved.

    The European Parliament approved the agreement on February 15, 2017 with a large majority. Subsequently, parts of CETA have provisionally come into force since September 21, 2017. For full entry into force, the agreement still needs ratification by the national parliaments in the EU, Canada and the EU itself. As of July 2020, 15 EU member states have ratified the agreement.

    history

    2004 EU and Canada have a voluntary Framework on Regulatory Cooperation and Transparency agreed (in German: framework agreement on regulatory cooperation and transparency ) as in 2007 and its implementation in EU-Canada Roadmap for Regulatory Cooperation (in German: Roadmap of EU-Canada Regulatory Cooperation ), the was adopted at the EU-Canada summit in Berlin on June 4, 2007. At this meeting, the heads of state and government also commissioned a joint study to “examine and assess the costs and benefits of a closer economic partnership”.

    2008 was the study Assessing the costs and benefits of a closer EU-Canada economic partnership (in German: assessment of the costs and benefits of closer economic EU-Canada Partnership ) on the EU-Canada summit in Montreal on 17 October 2008 adopted by "a pursue balanced and closer future economic integration between the EU and Canada ”. The heads of state and government also agreed to “step up cooperation in the area of ​​regulation”. According to the 2007 summit declaration, the authors of the study examined “the existing and in particular non-tariff barriers on the movement of goods, services and capital” and “assessed the potential costs and benefits of removing such barriers”. They also highlighted "how such a partnership could complement ongoing efforts to improve bilateral cooperation in areas such as science, technology, energy and the environment".

    negotiations

    The agreement has been negotiated behind closed doors since June 10, 2009. On October 18, 2013, the negotiating partners of the European Commission and the Canadian government announced that they had agreed on the main points. The negotiations were concluded on August 1, 2014.

    On September 26, 2014, the then Canadian Prime Minister Stephen Harper , the then EU Commission President José Manuel Barroso and the then EU Council President Herman Van Rompuy signed a declaration during an EU- Canada summit in Ottawa to conclude the five-year negotiations on the free trade agreement.

    Publications

    The content of the agreement was kept secret for a long time, initially only some key data such as the removal of tariffs , access of European companies to public tenders in Canada and the protection of intellectual property and regional designations of origin for agricultural products were confirmed. These were only announced when EU Trade Commissioner Karel De Gucht and Canadian Trade Minister Ed Fast reached an agreement on October 18, 2013. Technical details would supposedly only be known when the agreement is presented to the Council and Parliament of the EU.

    In December 2009, a chapter of the secret agreement was published on WikiLeaks , which deals with the protection of intellectual property. On October 18, 2013, heise.de published part of the contract text with analysis on Telepolis . The ARD capital studio had the 519-page long negotiated contract on August 14, 2014 as a PDF file on the Internet.

    On the occasion of the conclusion of the negotiations, the EU Commission followed suit on September 26, 2014 and published the consolidated CETA text.

    Final version

    On February 29, 2016, the EU Commission published the official final version of the CETA contract text after the Commission and Canada had completed the legal formality check and improved some points:

    "This means in detail z. B. the stronger anchoring of the 'right to regulate', the establishment of a permanent court of justice, the choice of arbitrators by the contracting parties themselves, transparent procedures and an appeal body. "

    - Federal Ministry for Economic Affairs and Energy (BMWI), February 29, 2016, 5:15 pm

    signing

    After Belgium gave its approval (see Belgian policy below) on October 28, 2016, the EU states made the necessary decisions in writing . On October 30th, the for 28.10. scheduled and canceled EU-Canada summit, at which the agreement was signed by both sides. After signing, CETA was presented to the EU Parliament. Once approved, large parts of the contract can be applied provisionally (see provisional applicability below). However, CETA will only come into force fully and definitively when all national - and sometimes regional - parliaments have ratified the treaty on the part of the EU.

    Speaking of the signing, Justin Trudeau said:

    "The fact that people were asking tough questions on a deal that will have a significant impact on our economies, giving us the opportunity to demonstrate that that impact will be positive, is a good thing."

    - Justin Trudeau : Brussels, October 30, 2016

    But the EU representatives had less understanding:

    "Belgium should think about how it functions at the international level."

    - Jean-Claude Juncker : Brussels, October 30, 2016

    “[The negotiations] showed how important impressions and emotions are in the modern world (...) It showed that facts and figures won't stand up for themselves alone. That post-factual reality and post-truth politics pose a great challenge on both sides of the Atlantic (...) We should be able to convince our citizens that free trade is in their interest, and not just big companies and corporations. "

    - Donald Tusk : Brussels, October 30, 2016

    ratification

    Political decision

    EU Trade Commissioner Cecilia Malmström announced on the afternoon of July 5, 2016 that - contrary to a different legal opinion - the trade agreement with Canada would not be classified by the Commission as a purely EU matter and the national parliaments would also have to vote on the agreement so that this comes into force for the EU.

    On February 15, 2017, the European Parliament approved the controversial CETA agreement with 408 votes in favor, 254 against and 33 abstentions. Mutual trade is expected to increase by 20 percent when the deal is fully in place.

    Currently (as of February 18, 2020) 14 countries, namely Denmark , Estonia , Finland , Croatia , Latvia , Lithuania , Malta , Austria , Portugal , Sweden , Slovakia , Spain and the Czech Republic as well as that which has since left the European Union, have United Kingdom ratified the agreement.

    mode

    For some time it was unclear whether the approval of the national parliaments of the individual EU member states was necessary. In the opinion of the EU Commission, this was an agreement that fell purely within the competence of the EU and CETA therefore did not have to be ratified by the member states. The EU trade ministers disagreed with this view on the grounds that parts of the agreement fell within the remit of the member states, which is why it is a so-called mixed agreement , the contracting partner of which would have to be the member states as well as the EU. The member states could also enforce a mixed status against the will of the European Commission. The decision would have to be unanimous.

    In Germany, the assessment of CETA as a mixed agreement is shared by the Scientific Service of the German Bundestag and the German Federal Ministry for Economic Affairs and Energy .

    However, Italy supported the view of the EU Commission.

    Come into effect

    All 28 member states now have to ratify the agreement at national level before it can enter into force.

    Provisional applicability

    CETA provisionally came into force on September 21, 2017. EU Commission President Juncker and Canadian Prime Minister Trudeau agreed on this date on the sidelines of the Hamburg G20 summit. The provisional application can only be decided by the European Council with a qualified majority.

    Large parts of the agreement are provisionally applied. The investment protection part as well as individual chapters and sections in the areas of financial services, taxes and intellectual property are excluded.

    In March 2016, the EU Commission asked the national economics ministries to comment on the question of whether CETA should be applied provisionally before ratification by all national parliaments . This would mean that at least in those areas that are the sole responsibility of the EU, the agreement would already be in force after ratification by the EU Parliament.

    Neither the German nor the Austrian ministry initially raised concerns. On 11 May 2016, however, the Austrian provinces 23d para gave in the Federal 'Conference, ie as a federal committee, a binding "single opinion" in accordance with Art.. 2 B-VG from the Economy Minister and Vice Chancellor Reinhold Mitterlehner asking not to approve CETA, as long as u. a. provisional applicability is envisaged. Mitterlehner pointed this out to the EU Council of Ministers on May 13, 2016. Whether the practice of provisional applicability is at all constitutional is controversial.

    In Germany, a constitutional complaint filed by more than 125,000 people had the Federal Constitutional Court reviewed on October 13, 2016, to determine whether the provisional applicability was compatible with the German Basic Law. The Federal Constitutional Court basically affirmed this; however, the federal government must ensure

    • that a Council decision on the provisional application will only cover those areas of CETA that are undisputedly within the competence of the European Union,
    • that until a decision by the Federal Constitutional Court on the main issue is reached, the decisions made in the CETA Joint Committee are sufficiently democratically linked and
    • that the interpretation of Art. 30.7 para. 3 letter c CETA enables a unilateral termination of the provisional application by Germany.

    A ratification vote by the Bundestag and Bundesrat will only take place after the judgment of the Federal Constitutional Court. As of January 2020, it was not known when this decision will be made.

    Content

    Removal of trade barriers

    According to the EU Commission, "more than 99%" of the tariffs are eliminated by the agreement. Standards and regulations (so-called non - tariff trade barriers ) should be mutually recognized or harmonized. a. should have a positive impact on the automotive industry. When awarding public contracts, European companies should also be able to apply in Canada at all administrative levels. Furthermore, it should be made easier for companies to transfer employees temporarily to a partner country, and professional qualifications should be mutually recognized. Environmental and social rights are also to be taken into account under the heading of "sustainable development".

    Agriculture and fishing

    The EU's agricultural exports to Canada amount to 2.9 billion euros annually, which means that the EU has an export surplus with Canada. Almost all tariffs on agricultural products are to be removed and trade in so-called "sensitive goods", i.e. H. especially the export of dairy products to Canada and the import of pork and beef into the EU are to be expanded. Specifically, Canada will abolish 90.9% of tariffs on agricultural imports from the EU, after seven years 91.7%. For its part, the EU will abolish 92.2% of all tariffs on imports of agricultural products from Canada, 93.8% after seven years. The most important quotas are the cheese quota for the EU (the EU is allowed to export an additional 18,500 tonnes, according to the EU exports will increase by 128% and the market share of cheese from the EU in Canada will rise to 4%), the beef quota (45,853 tonnes for beef from Canada) and the pork quota (an additional 75,000 tonnes for Canadian pork). Poultry and eggs are expressly excluded from liberalization. The abolition of tariffs plays a special role from an agricultural point of view: Canada imposed an average tariff of only 3.5% on imports from the EU in 2007, while the EU imposed tariffs of 2.2% on imports from Canada in 2007. For certain agricultural products, however, the tariffs are particularly high, for example Canada levies tariffs of 245.6% on cheese, while the EU in turn levies tariffs on beef from Canada of 407.8%. The wine and spirits sector also forms an important part of exports to Canada and is expected to grow as a result of the agreement. Wine and spirits accounted for 40% of the EU's agricultural exports to Canada in 2016. The EU has a trade surplus in wine and spirits, with CETA various trade barriers for wine and spirits (including the requirement to mix bottled imported spirits with Canadian spirits) and a joint forum are being set up. Canadian fish should be able to enter the European market more easily and fisheries controls should be improved. Geographical indications for food from the EU are also protected in Canada by the agreement.

    Criticism here refers to the different manufacturing standards and regulations in the EU and Canada. For example, cattle are allowed to be treated with hormones in Canada, but not in the EU, which leads to fears that previously unauthorized meat could be sold on the European market. Both sides are trying to protect their local farmers, so according to a newspaper report, even export quotas were discussed. However, the CETA free trade agreement does not affect the EU's food standards, and products from Canada must continue to meet the same requirements as before.

    Intellectual property protection

    The agreement aims to improve intellectual property protection in relation to patents, trademarks, designs, models and copyright, with particular emphasis on improving the protection of pharmaceutical rights in Canada and the geographical designation of origin of food.

    In December 2009, the chapter on intellectual property from the CETA negotiations became known and overlaps with ACTA were found, which has led to a wave of criticism. In response to the 2009 leak, the Commission declared in October 2013 that the rejection of the ACTA agreement by the EU Parliament in July 2012 would be taken into account. Specifically, it says that the three strikes principle and the right to information on the identification of IP addresses of infringers (Articles 27.3. And 27.4.), Which were provided for in ACTA, were excluded from the CETA negotiations. According to an expert opinion on behalf of the Greens, the negotiated version of the agreement no longer contains any provisions that were specifically taken from ACTA.

    Investments and investment protection

    According to the EU Commission, foreign investments are to be made easier and the investment protection obligations contained in CETA "supported by a modern and effective mechanism for settling disputes between investors and states".

    To protect investments, the agreement provides for the possibility of referring to publicly legitimized arbitration tribunals , which are manned by non-state judges and can make binding decisions on compensation payments for the defendant state. The courts replace the traditional non-public arbitration tribunals, which are appointed ad hoc by the respective parties to the dispute. Many other trade agreements (e.g. the currently negotiated TTIP ) also contain investment protection clauses and provide for the use of arbitration tribunals to settle disputes between companies and states, which has led to severe criticism of TTIP. At CETA, misuse of this system should be prevented by:

    • a precise definition of the facts that can make a host state liable for damages
    • the exclusion of claims for market access
    • the exclusion of lawsuits by pure letterbox companies
    • a binding code of conduct for referees
    • "Unrestricted transparency" of the procedures by applying the UNCITRAL transparency rules
    • the possibility of a binding interpretation of the agreement by the contracting parties

    The DGB considered these measures to be inadequate: the arbitrators could still restrict the transparency of the proceedings in whole or in part, the arbitrators' conflicts of interest were not effectively excluded and both the definition of “investment” and the applicable protection standards were not clearly outlined. The NGO Power Shift sees in the revised CETA text, despite some positive approaches, largely only cosmetic corrections to the existing ISDS system.

    In a version from the beginning of 2016, CETA provided for a permanent “investment court” with 15 members, who are appointed by Canada and the EU, as well as public proceedings with an appeal body . In the version from mid-2018, which Austria approved, one point was changed: there will be a third European, Canadian and independent judges. The term of office of these judges is five years, during which time they can only rule on a single dispute between the investor and the state. This should promote the independence of the court. There is the intention to later transform the bilateral investment court into a multilateral investment court (English: Multilateral Investment Court), in which procedures of other free trade agreements can then also be negotiated, e.g. the EU-Vietnam free trade agreement.

    Economic background

    According to the EU Commission, Canada was the EU’s twelfth most important trading partner in 2012, with a share of 1.8% in total EU foreign trade. Based on 2011 figures, the EU accounted for 10.4% of total Canada's foreign trade, making it Canada's second largest trading partner after the US. The bilateral trade in goods between the EU and Canada in 2012 amounted to 61.8 billion euros. Most of the goods exported from the EU to Canada were machinery, vehicles and chemicals. In 2011, EU investments in Canada amounted to around 220 billion euros and Canadian investments in the EU amounted to almost 140 billion euros.

    Historical data on trade in goods between Canada and the EU:

    The EU Commission predicts that the “bilateral trade volume for goods and services will increase by 22.9%, that is to say 25.7 billion euros”. The tariff savings for exporters from the EU amount to a total of around 500 million euros per year. The agreement will increase employment in Europe and result in growth of up to EUR 11.6 billion per year, including EUR 5.8 billion in services.

    In addition, the commission assumes that around 14,000 jobs will be created with every additional billion growth, i.e. around 160,000 more jobs per year than without the agreement.

    The consumer advice centers assume that there will be a larger selection of products at lower prices in the long term .

    Connection with NAFTA

    The North American Free Trade Agreement (NAFTA) already exists between Canada, the USA and Mexico . The new agreement should now allow EU countries to compete with US companies on the Canadian market. On the other hand, it is feared that companies from the three North American countries will also gain influence on the European market.

    Connection with TTIP

    CETA is seen as the blueprint for the Transatlantic Free Trade Agreement (TTIP). Regarding the function of CETA for TTIP and other free trade agreements, in the EU Council Committee of TPC members the Austrian delegation stated in February 2013 that “the better the outcome, the greater the exemplary effect for future negotiations (USA, Japan, China, ASEAN) 'with Canada. "

    In May 2014, the same stated that "a conclusion of the CETA negotiations before the end of the public consultations on investment protection within the framework of the TTIP negotiations would undermine the credibility of the consultation process."

    politics

    European politics

    The EU needs the unanimity of its member states, since they all have the CETA agreement - as well as similar agreements, etc. a. also TTIP - have to sign individually. After signing, it is ratified by the EU Parliament and all national and in some cases regional parliaments. After the approval of the EU Parliament, large parts of the treaty are to be applied provisionally until ratification has been completed.

    After Belgium gave its approval on October 28, 2016, the EU states made the necessary decisions in writing. The EU-Canada summit took place on October 30th. After the signature (as of October 30, 2016) CETA will be presented to the EU Parliament. After its approval, large parts of the contract can be applied provisionally. However, CETA will only come into force fully and definitively when all national - and sometimes regional - parliaments have ratified the treaty on the part of the EU.

    Belgian politics

    Sources, references:
    Involvement of the regions and communities

    In mid-October 2016, shortly before the planned signing of the agreement by the EU and Canada on October 27, 2016, Belgium announced that the country could not agree to the agreement. The Belgian federal government was in favor of the CETA agreement, but in such cases it also needs the consent of the governments of all Belgian regions and language communities . (see also Political System of Belgium: Overview .. )

    Domestic agreement - before the eyes of the EU and Canada

    The Dutch -speaking Flemings and their government , as well as the German-speaking community , supported the agreement - but the German-speaking community "held up to their approval". On the other hand, the Parliament of the French Community , the Parliament and the Government of Wallonia , the Parliament and the Government of the Brussels Capital Region rejected it.

    The government of French-speaking Wallonia in office from 2014 under Prime Minister Paul Magnette ( PS ) refused to do so until the end of October 2016. Among other things, it raised concerns about lowering environmental and social standards and deficiencies in the regulation of the arbitral tribunals. The regional parliament of the French-speaking Wallonia, the southern part of the country, passed a motion against CETA with a large majority on October 14, 2016. In it it asked the regional government to refuse the federal government to consent to the signing of the agreement and to demand renegotiations. To justify this, the MPs referred, among other things, to the dangers for agriculture and environmental and social protection. The parliament of the Fédération Bruxelles-Wallonie , the francophone language community in Belgium , approved a similar resolution on October 12, 2016. The parliament of the bilingual capital region of Brussels also spoke out against CETA on July 8, 2016, followed by your government .

    When the agreement was rejected, domestic political reasons came to light, including the still unresolved conflicts in Belgium . Wallonia and the capital region of Brussels form the economically weaker part of Belgium with above-average unemployment. To this day, Wallonia has not really recovered from the decline of what was once important heavy industry. In the federal center-right government of Prime Minister Charles Michel ( MR ), which was in office from 2014 and is unpopular in Wallonia , the Walloons are only represented by the liberals (the francofone Mouvement Réformateur (MR)). In the parliament of the Wallonia region, however, the liberals are in the opposition and were the only ones to reject the CETA motion of October 14, 2016. The strongest force here are the francophone socialists (the francophone Parti Socialiste (PS) ), who are not involved in government at the federal level.

    On October 27, 2016, after days of negotiations, the Prime Ministers of the Belgian regions and language communities reached an agreement with the federal government - among other things, they agreed on a declaration by the Belgian state that addressed Wallonia's concerns about the planned investment jurisdiction and the effects of CETA includes agriculture. On this basis, the parliaments also approved. On October 28, the regional parliament of Wallonia in Belgium approved the trade agreement, with 58 MPs voting for CETA, while 5 voted against the agreement. The regional parliament of the Brussels capital region also approved CETA.

    Bulgaria, Romania, Czech Republic

    Sources, references:

    Bulgaria and Romania announced their reservation on CETA - they are demanding that Canada liberalize visa regulations for their citizens. Canada promised them this, but subject to the EU's approval of CETA.

    The government in the Czech Republic supports the agreement. In 2012, the Czech Republic - together with Bulgaria and Romania - threatened to blockade if Canada did not introduce the visa-free regime for its citizens, which it had taken from the Czech Republic in 2009. But what Canada did immediately at the end of 2013 - for the Czech Republic.

    At the start of the CETA negotiations, Bulgaria, Romania and the Czech Republic were the only EU member states that were excluded from access to Canada's visitor visas ( Temporary Resident Visas / Visas de résidence temporaire ).

    German politics

    The Left Party as well as the Green Party criticize the special rights and privileges in the judicial right of action for the corporations. According to the Greens, the German government should immediately work to remove the mechanism for out-of-court investor-state arbitration.

    On September 25, 2014, Sigmar Gabriel , Federal Minister for Economic Affairs and Energy, spoke out in favor of CETA in a Bundestag debate, but described the negotiated investment protection as “not necessary” between “developed legal systems” such as those of Canada and the EU. In any case, from the German point of view, the conditions would have to be improved in important areas. The chapter on investment protection in the current version of the EU could not be approved for Germany.

    Gabriel quoted the new EU Commission President Jean-Claude Juncker approvingly :

    “We cannot lower our standards in the health sector. We cannot lower our standards in the social field. We cannot lower our data protection standards. I don't want data protection to be part of the negotiations at all. I don't want us to create a parallel secret jurisdiction. [...] That is the negotiating position of the new Commission President. I think it's the right negotiating position; we want to join her. "

    Gabriel said in September 2016 that he thought TTIP had failed. Since then, the Federal Minister of Economics has made greater efforts to enforce the CETA agreement. On September 19, 2016, the SPD party convention (small party convention) in Wolfsburg authorized Sigmar Gabriel to approve CETA within the federal government with 2/3 of 220 votes.

    The majority of the SPD delegates could thus be convinced for the trade agreement with Canada. However, some state associations such as Bavaria or Bremen as well as party links have so far positioned themselves against CETA. The AfD also takes a negative attitude towards the agreement.

    The CDU and FDP, on the other hand, support the trade agreement. Both Peter Tauber, CDU General Secretary, and Nicola Beer, FDP General Secretary, emphasize that the CETA agreement made it possible to actively shape globalization. In addition, links to international trade and jobs are named as reasons for the agreement.

    For full ratification, CETA must also be accepted by the Federal Council , according to an expert opinion by constitutional lawyer Prof. Martin Nettesheim .

    An application by the FDP to ratify CETA was rejected by the Bundestag on June 14, 2018 . Andreas G. Lämmel (Member of the Bundestag) referred to an ongoing procedure at the Federal Constitutional Court. The Bundestag quotes him: "This draft law could not be successful, because it was necessary to wait for the constitutional court ruling."

    Austrian politics

    On September 24, 2014, CETA was discussed in the National Council after the Greens submitted an urgent request to Minister of Economics, Reinhold Mitterlehner . All political groups were critical of various aspects of the agreement, with the governing parties as well as NEOS and Team Stronach defending it in principle. Finally, with the votes of the SPÖ , ÖVP and the Greens, a motion for a resolution was adopted in which it is demanded that

    • European social, data protection and environmental standards and the level of protection of public services are maintained.
    • the negotiations on CETA and similar agreements will be more transparent in the future and the public will be involved.
    • for the agreement to come into force, it must be ratified by the national parliaments.
    • no ISDS is included in the contract.

    In September 2016, the holding of a referendum was approved, which includes a mandatory treatment of the two agreements CETA and TTIP by Parliament. The initiative was initiated by several SPÖ mayors from Lower Austria. Christian Kern (SPÖ), Federal Chancellor since May 2016, rejects CETA and had the SPÖ members questioned.

    Although the majority of the Austrians were against CETA, the controversial agreement that the FPÖ had opposed in the past was ratified by the Austrian National Council in June 2018. The signature required for ratification by the Federal President of the Republic of Austria has not yet taken place. Van der Bellen explained: “I have carefully and carefully examined the CETA treaty, as it corresponds to my task as head of state. The result of this test was positive with one reservation. There are doubts as to whether the arbitral tribunals comply with EU law. Should the ECJ decide that CETA is compatible with Union law, I will sign the international treaty immediately. "

    On April 30, 2019, Van der Bellen stated on Twitter that he wanted to sign the State Treaty on CETA after the ECJ ruled that CETA was compatible with EU law. On May 23, the European Council was informed of the ratification.

    France

    The national assembly of the country approved the agreement on July 23, 2019 with 266 votes to 213, thus completing the first stage of the legislative process. When the "upper house" of the French two-chamber parliament will deal with the treaty is still open. Criticism of CETA (French AECG) was expressed primarily by representatives of farmers and winegrowers. When fully EU-wide, the agreement will bring trade facilitation, in particular tariff reductions, to 98% of goods exchanged between Canada and the EU.

    Netherlands

    On February 18, 2020, the lower house of the Dutch parliament approved the ratification. However, the necessary further approval in the House of Lords is considered uncertain.

    Canadian politics

    CETA is advocated in Canada by the Trudeau cabinet , as is the ruling Harper cabinet from 2006 to 2015 , during whose reign the agreement was largely negotiated.

    The agreement is signed by the government and ratified by parliament . It is not necessary for the provinces and territories to participate ; however, they have to adapt their own laws to implement the treaty provisions. However, due to the fact that they participated in the negotiations at an early stage, resistance comparable to the objections of individual EU states is not to be expected.

    Civil society

    Proposals from NGOs

    Europe

    In addition to criticism and protests from parts of civil society, a few of the NGOs also suggest how CETA and other trade and international agreements should be designed - focused on the essentials, more flexible and more democratic, with early involvement of those involved and more transparency.

    Foodwatch suggests:

    "To conclude trade agreements only for the dismantling of tariffs (preferably on a global level), but to outsource the rest to industry agreements and more flexible regulations."


    More Democracy states in its paper Demands for the Democratization of EU Trade Treaties (April 2016) that “proposals for how trade policy should work differently in the future are very rare” and brings its “demands into the discussion (...) like trade contracts of the EU can be democratized ", which the author divides into two areas - with and without changes to the EU treaties :

    A. Improvements without changing the EU Treaties

    1. Negotiation texts from all sides are to be published
    2. The mandate must be published
    3. Comprehensive information from the European Parliament
    4. Equal participation of stakeholders
    5. No non-terminable contracts and no contracts with very long terms
    6. No provisional application

    B. Improvements that make changes to the EU treaties necessary

    1. [EU] Parliament decides (together with the [EU] Council ) on the [negotiating] mandate
    2. [EU] Parliament can enforce renegotiations
    3. Direct democratic control of trade contracts is made possible

    In the next paper by More Democracy the authors ask: “Why is CETA a democracy problem?” (July 2016) and list “seven reasons” “why parliaments have to reject CETA” - “undemocratic mandate; Lack of transparency; undemocratic ratification; weak role of parliaments; Arbitration courts as parallel justice; bodies not democratically legitimized; hardly possible exit, prevented democratic corrections ”. And they demand that in negotiations, conclusions and adjustments to international treaties, the "democratic room for maneuver [to] be maintained and [to] expanded":

    "If international treaties are planned in the future, (...) the EU Parliament and the national parliaments must be involved in the decision-making processes at an early stage and be fully informed about the prerequisites and the course of the negotiations."

    Criticism, protests

    Europe

    On October 10, 2015, up to 250,000 people (police: 150,000) protested against TTIP and CETA in Berlin

    CETA is rejected by a number of non-governmental organizations . In Germany this includes attac , the BUND , Campact , and Mehr Demokratie .

    An attempt by a coalition of over 300 European NGOs to initiate a European citizens 'initiative against CETA was rejected by the European Commission in 2014 on the grounds that the negotiations on free trade agreements were not a legal act that could be attacked with a citizens' initiative. The initiative brought an action against this at the European Court of Justice . The European Court of Justice ruled that it was illegal for the EU Commission not to allow the citizens' initiative. This is not an “impermissible interference”, but rather a “legitimate political debate”. The alliance of the NGO started a signature campaign. By October 6, 2015, over 3.28 million signatures had been collected across Europe under the slogan Stop-TTIP . According to the organizers, 250,000 people spoke out against CETA and TTIP at a demonstration in Berlin on October 10, 2015.

    By Marianne Grimm stone of was supported by legal scholar Andreas Fisahn in Germany a constitutional complaint drawn up against CETA and change.org advertised who had joined up to the closing date on 14 August 2016, 100,000 people.

    On September 17, 2016 protested in Germany , the organizer, according to up to 320,000 people - according to authorities and police 198,000 - simultaneously in seven cities against CETA and TTIP, significantly exceeded the expected by the organizers and the police 100,000 participants. According to the organizers: Berlin (70,000, confirmed by the police), Hamburg (65,000), Cologne (55,000), Frankfurt am Main (50,000), Stuttgart (40,000), Munich (25,000) and Leipzig (15,000). In Cologne z. For example, the route for the demonstration train could be extended twice by the police, as they had only expected 30,000 participants. In Austria , too , the organizers counted around 25,000 participants on the day of action, mainly in Vienna , but also in other provincial capitals.

    Canada

    On the Canadian side, several civil society organizations have come together in the Trade Justice Network and criticized the agreement in a joint declaration. They accuse the Canadian government of deliberately deceiving the public about the content and consequences of the agreement.

    Canadian organizations criticize the equal treatment of European companies in public tenders because it undermines the possibility of promoting local companies. "Ratchet" clauses would enshrine current and future privatizations, the final list of exceptions could prevent governments from introducing new public services.

    The investment protection chapter is also controversial: there is no guarantee that new regulatory measures for the financial market cannot be challenged before arbitration tribunals. The corresponding exception clause is much weaker than under NAFTA . Existing and future environmental protection laws are also threatened by the possibility of investor-state lawsuits (see section on investment protection ).

    In Canada, the change in drug law is also controversial, as the extension of patent protection for drugs is feared to increase the cost of the national health system. It is estimated that the Canadian healthcare system will have at least $ 850 million in additional costs per year.

    In economic terms, CETA would increase Canada's existing foreign trade deficit with the EU and increase Canada's dependence on raw material exports.

    The Canadian government has filed a lawsuit against the Canadian government's signature, ratification and implementation of CETA.

    Criticism by topic

    Investment arbitration

    The provisions for the Investor-State Dispute Settlement  (ISDS) are particularly criticized . According to critics, corporations could e.g. For example, sue national states for unpopular clauses in patent or copyright law and take action against more extensive freedom of use. The critics see this as the establishment of a "parallel justice system" dependent on the corporations. According to a report by the former judge at the Federal Constitutional Court, Siegfried Broß , commissioned by the Hans Böckler Foundation , such investment arbitration tribunals are unconstitutional.

    In a joint statement, several civil society organizations from Canada and Europe criticized the investment protection part of CETA as undermining democracy.

    The minimum requirement is often that

    • the arbitral tribunals would have to meet in public,
    • can only be called in very limited cases and
    • the sued states should be able to appeal.

    The first requirement also corresponds to the optional UNCITRAL rules published in April 2014 on transparency in investment arbitration proceedings, which also provide for transparency of documents and hearings with regard to such arbitration proceedings. According to the currently published version of the agreement, these rules are applicable in all arbitration proceedings based on it.

    In February 2015, EU social democratic trade and economy ministers passed a resolution calling for an improvement in the investment protection regime in CETA. Among other things, it was demanded that states must continue to be able to restructure their national debt, liquidate banks and protect human rights, culture and the environment. The establishment of an appeal mechanism and a permanent secretariat was also advocated, which could lead to the creation of an investment court . The proposal was rejected by Andreas Fischer-Lescano as a strengthening of the "institutions of free trade ideology". Investment disputes are better off before human rights courts, where a more balanced protection of property can be expected. Chancellor Angela Merkel , on the other hand, sees little scope for changes to CETA.

    After the point of arbitration in TTIP was renegotiated and presumably weakened after protests in Europe, while the old version was still in the already negotiated CETA, Canadian activists in particular feared that Canada would become a "back door" for arbitration by US or European Instead of TTIP, companies implemented these with subsidiaries in Canada via CETA or the Canadian-American-Mexican NAFTA .

    In September 2015 it was reported that Trade Commissioner Cecilia Malmström would like to carry out the ratification process after the legal review and only want to negotiate changes after CETA has come into force. At the end of February 2016, however, the EU Commission announced that it had agreed with Canada to provide for an institutionalized international dispute settlement body with the possibility of appeal in CETA instead of arbitration courts.

    In the CETA final version dated February 29, 2016, the following wording can be found in Art. 8.9 Investment and regulatory :

    "It is also explicitly foreseen that Governments can change their laws, including in a way that affects investors' expectations of profit and that the application of EU's state aid law does not constitute a breach of investment protection standards."

    An "indirect expropriation" subject to compensation exists if

    "(...) [the investor] is substantially deprived of the fundamental attributes of property such as the right to use, enjoy and dispose of its investment (...) The sole fact that a measure increases costs for investors cannot give rise in itself to a finding of expropriation "

    In April 2019, the European Court of Justice ruled in an opinion requested by Belgium in 2017 that the proposed mechanism for settling disputes between investors and states was compatible with EU law.

    Lock-in clauses

    Campact criticized so-called lock-in or ratchet clauses, with which the EU and Canada mutually undertake to never reverse deregulations and privatizations that have already been carried out. The EU Commission points out that the ratchet clause is not applicable in “critical or sensitive” sectors such as waste disposal and public transport.

    Network policy aspects

    Netzpolitik.org names the following network political points of criticism with the conclusion that the 519 pages of the contract text still need to be analyzed:

    • Copyright ( DRM obligation - prohibition of circumvention etc.)
    • Liability privilege of intermediaries
    • "May" clause to criminalize the making of movies
    • Enforcement of intellectual property rights
    • Obligations to provide information when enforcing intellectual property rights, including bank data
    • any quick-freeze -obligation in the IPR chapter, Article 16

    Violation of international law

    In the opinion of the American international lawyer Alfred de Zayas, free trade agreements such as TPP, TTIP, TiSA and thus also CETA violate international law. There are no free trade agreements, but "political agreements that should abolish our democratic system".

    Nature and environmental protection

    In an expert report commissioned by WWF Germany , the economist and political scientist Christoph Scherrer identified numerous dangers of CETA for nature and environmental protection. The proposed dispute settlement procedures between the state and private investors pose a particular risk. Sustainability, environmental protection and occupational safety are "institutionally weak and without effective sanctioning or enforcement mechanisms."

    See also

    Web links

    Commons : Pictures from demonstrations against free trade agreements in Berlin  - Collection of pictures, videos and audio files

    EU Commission and Canadian Government

    "Assessing the costs and benefits of a closer EU-Canada economic partnership - A Joint Study by the European Commission and the Government of Canada (...) in response to a request formulated by Leaders at the 2007 EU-Canada Summit"

    "Assessment of the costs and advantages of closer economic partnership EU-Canada - Joint study by the European Commission and the government of Canada (...) at the request of the heads of state and government at the EU-Canada summit [in Berlin, June 4th] 2007"

    Text of the CETA agreement

    “Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union [and its member states, The Kingdom of Belgium, The Republic of Bulgaria, The Czech Republic, The Kingdom of Denmark, The Federal Republic of Germany, The Republic of Estonia, Ireland, The Hellenic Republic, The Kingdom of Spain, The French Republic, The Republic of Croatia, The Italian Republic, The Republic of Cyprus, The Republic of Latvia, The Republic of Lithuania, The Grand Duchy of Luxembourg, Hungary, The Republic of Malta, The Kingdom of the Netherlands, The Republic of Austria, The Republic of Poland, The Portuguese Republic, Romania, The Republic of Slovenia, The Slovak Republic, The Republic of Finland, The Kingdom of Sweden, The United Kingdom of Great Britain and Northern Ireland]. of the other part. "

    EU Commission

    Directorate-General for Trade - detailed explanations on CETA, which were made available without a date of publication. These are the following explanations:

    Info / memos / press releases

    Federal government

    Further

    Info (neutral)

    Critic, opponent

    Articles, media

    Media - CETA theme

    Individual evidence

    1. a b c d Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part. In: Council of the European Union. Retrieved July 15, 2020 .
    2. a b c d see web links > EU Commission, Canadian Government .
    3. EU and Canada seal CETA. (No longer available online.) In: MDR aktuell. October 30, 2016, archived from the original on February 18, 2017 ; accessed on February 17, 2017 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.mdr.de
    4. Ceta: European Parliament approves free trade agreement with Canada. In: Spiegel Online. February 15, 2017. Retrieved February 17, 2017 .
    5. Trade agreement concluded: 408 votes for CETA. In: tagesschau.de. February 15, 2017. Retrieved February 17, 2017 .
    6. The EU and Canada start negotiations on an economic and trade agreement.
    7. ^ Trade: Countries and regions: Canada. European Commission, accessed September 1, 2014 .
    8. Negotiations on free trade agreements with Canada concluded. August 6, 2012, accessed August 6, 2012 .
    9. Canada-EU Summit - A new era in Canada-EU relations: Declaration by the Prime Minister of Canada and the Presidents of the European Council and the European Commission . European Commission - Statement / 14/288 26/09/2014, Europa Press Release Database
    10. a b EU and Canada end negotiations on free trade agreements , press release of the European Commission, October 18, 2013.
    11. European Commission: Trade negotiations step by step. (PDF)
    12. a b Investment without a reasonable profit can be classified as "indirect expropriation". Walter Gröh, August 18, 2014, accessed on August 18, 2014 .
    13. a b heise.de: Consolidated EU trade agreement with Canada is online.
    14. a b tagesschau.de: Free trade agreement with Canada - On the way to parallel justice
    15. Comprehensive Trade and Economic Agreement (CETA): Outcomes of the CETA negotiations . ec.europa.eu
    16. EU announces reversal in TTIP. September 28, 2014, accessed October 1, 2014 .
    17. ^ BMWI: CETA contract text published
    18. a b René Höltschi: Belgian regional parliaments agree: Ceta will be signed on Sunday - And suddenly things move quickly: the Wallonia Parliament has given the "green light" to sign the Ceta trade agreement, the EU has taken the necessary decisions and will take place on Sunday the EU-Canada summit took place, NZZ , October 28, 2016
    19. Ceta Agreement signed. In: ZEIT Online . October 30, 2016, accessed on February 18, 2020 : “Canada and the EU signed the joint trade agreement in Brussels. [...] The EU-Canada summit should actually have taken place on Thursday. "
    20. a b c Aleksandra Eriksson: EU signs Canada trade pact, rejects 'post-truth' critics . EUobserver , October 31, 2016 (English)
    21. a b Markus Becker: Trade agreement with Canada: Parliaments of the EU states are allowed to approve Ceta after all - Jean-Claude Juncker recently stated that Ceta is an "EU only" project. Now the trade agreement is apparently supposed to be presented to the parliaments of the EU countries. The treaty would then hardly have a chance (…) 28 national (…) 14 regional parliaments (…). Der Spiegel , July 5, 2016
    22. Commission gives in: Parliaments are allowed to vote on Ceta . The press , July 5, 2016
    23. a b René Höltschi: Inclusion of the national parliaments in Ceta: U-turn in the EU trade dispute - Brussels is now offering a hand to have the EU-Canada free trade agreement approved by the national parliaments. In return, the capitals should campaign for the agreement. NZZ , July 5, 2016
    24. CETA: Parliament approves trade agreement between EU and Canada. In: europarl.europa.eu . February 15, 2017. Retrieved February 15, 2017 .
    25. Hendrik Kafsack: Free trade agreement: Bundestag should not have a say in Ceta - How much say do the national parliaments have in the ratification of free trade agreements? The EU Commission could incite the dispute further . In: Frankfurter Allgemeine Zeitung . June 10, 2016, ISSN  0174-4909 ( faz.net ).
    26. Malte Kreutzfeldt: A dangerous blueprint , taz , March 10, 2014
    27. BMWi: Frequently asked questions about the EU-Canada Economic and Trade Agreement (CETA), answer to question 5.
    28. Free trade agreement: EU could pass Ceta without parliaments - The European Commission is reportedly planning not to let national parliaments vote on the free trade agreement with Canada. Italy thinks that's good. In: The time . June 10, 2016 ( zeit.de ).
    29. BMWi: Current status of CETA
    30. CETA - Protocol on Rules and Regulations of Origin. Hamburg Chamber of Commerce (hk24.de), accessed on September 17, 2017 .
    31. ^ IHK Munich: Provisional application - customs and rules of origin. Retrieved July 8, 2017 .
    32. spoe.at (PDF)
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    34. Ceta temporarily without democracy. In: taz.de. March 28, 2016, accessed April 6, 2016 .
    35. ^ Günther Strobl: Trade pact with Canada should come into force without a sanctuary of the National Council. In: derStandard.at. April 6, 2016, accessed April 6, 2016 .
    36. Wolfgang Weiß: Legal problems of the current commission planning for the conclusion and preliminary application of CETA. (PDF) In: mehr-demokratie.de. August 11, 2016, accessed September 7, 2016 .
    37. Bernhard Kempen: Complaint to the citizens' lawsuit "No to CETA". (PDF) In: mehr-demokratie.de. August 29, 2016. Retrieved September 7, 2016 .
    38. ^ Federal Constitutional Court - Press - Urgent motions in the matter of "CETA" unsuccessful. In: Federal Constitutional Court. October 13, 2016, accessed February 4, 2020 .
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    40. a b c d e f European Commission: Facts and figures on the free trade agreement between the EU and Canada.
    41. European Commission - PRESS RELEASES - Press release - Facts and figures on the free trade agreement between the EU and Canada. Retrieved December 7, 2018 .
    42. CETA - Summary of the final negotiation results. (PDF) Retrieved December 7, 2018 .
    43. Effects on agriculture - focus on milk and meat. (PDF) Retrieved December 7, 2018 .
    44. European Commission - PRESS RELEASES - Press release - Facts and figures on the free trade agreement between the EU and Canada. Retrieved December 7, 2018 .
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    47. a b hormone problems. Free trade agreement with Canada. In: Tagesspiegel.de. 14th of June 2013.
    48. Canada-EU Comprehensive Economic and Trade Agreement (CETA) Intellectual Property chapter, 22 Sep 2009 , 16 December 2009
    49. Beyond ACTA: Proposed EU - Canada Trade Agreement Intellectual Property Chapter Leaks.
    50. Judith Horchert: Controversial Trade Agreement: On Acta follows Ceta. In: Spiegel Online. July 11, 2012.
    51. ^ "The EU's Free Trade Agreement with Canada and its Intellectual Property Rights Provisions", October 18, 2013 (PDF)
    52. irights.info
    53. BMWI: Current status - Where do we stand at CETA - and what's next? , accessed September 17, 2016
    54. European Commission: Investment provisions in the EU-Canada Free Trade Agreement (CETA) (PDF)
    55. ^ Position of the German Federation of Trade Unions on the free trade agreement between the EU and Canada of December 2, 2014 , p. 4 f.
    56. Peter Fuchs, Powershift: The Investment Protection Chapter in the EU-Canada Free Trade Agreement (CETA): A critical analysis. (PDF) April 23, 2016, accessed April 27, 2016 .
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    64. Officially there is pure bliss. The free trade agreement between Europe and Canada has been concluded. It is intended to serve as a blueprint for the treaty with the United States. In: Salzburger Nachrichten . September 26, 2014, world politics.
    65. EU Trade Commissioner de Gucht confirms: CETA is the blueprint for TTIP , Netzpolitik.org, September 25, 2014
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    67. to Belgian politics :
    68. on Bulgaria, Romania, the Czech Republic :
    69. (en) Temporary Resident Visas (Visitor Visas) For Canada . / (fr) Visas de résidence temporaire pour le Canada (visa visiteur) . on Campbell Cohen, canadavisa.com
    70. n-tv: Greens and Left: Gabriel must stop special rights for corporations
    71. ^ Bundestag.de: Against arbitration courts in trade with Canada.
    72. Plenary minutes 18/54, German Bundestag, stenographic report, 54th session, Berlin, Thursday, September 25, 2014. (PDF) pp. 4907–4910 , accessed on October 1, 2014 .
    73. ZEIT-Online: Gabriel brings SPD behind him in the CETA dispute: “Yes, but” to agreement. (No longer available online.) In: ZEIT-Online. September 19, 2016, archived from the original on September 20, 2016 ; accessed on September 20, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.zeit.de
    74. Florian Gathmann: SPD vote for Ceta: Now (almost) nobody can stop Gabriel. In: September 19, 2016. Spiegel-Online, accessed on September 20, 2016 .
    75. ^ Party convention Wolfsburg on September 19, 2016: CETA resolution SPD party convention. (PDF) Retrieved September 24, 2016 .
    76. SPD votes by majority for the Ceta Agreement, taz, September 19, 2016, accessed on October 28, 2016
    77. ^ Free trade with Canada: BayernSPD party conference rejects Ceta. ( Memento of the original from October 29, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Website of the SPD Bavaria, July 16, 2016, accessed on October 28, 2016. @1@ 2Template: Webachiv / IABot / bayernspd.de
    78. Bremen SPD rejects Ceta. ( Memento of the original from November 12, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Radio Bremen website, July 1, 2016, accessed October 28, 2016. @1@ 2Template: Webachiv / IABot / www.radiobremen.de
    79. SPD mutinies against Ceta. ( Memento of the original from November 12, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , taz, August 17, 2016, accessed October 28, 2016 @1@ 2Template: Webachiv / IABot / www.radiobremen.de
    80. Federal Constitutional Court rejects urgent application against CETA. The controversial Ceta trade agreement is coming. ( Memento of the original from October 28, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. AfD Nordsachsen website, October 14, 2016, accessed on October 28, 2016. @1@ 2Template: Webachiv / IABot / www.afdnordsachsen.de
    81. CETA gets collateral damage. ( Memento of the original from October 28, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. FDPNRW website, accessed on October 28, 2016. @1@ 2Template: Webachiv / IABot / www.fdp.nrw
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    99. "Trudeau's cabinet ratifies the agreement in Canada. Parliament, as well as provincial legislatures, need to pass implementation legislation to make the necessary changes to various laws affected by CETA's measures. Because the provinces were at the table with the federal government throughout the negotiations, and signed off on the final text, regional objections are not expected to derail the deal the way they did in Belgium. " Cbc.ca
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    117. Police: 20,000 demonstrators at a demonstration against TTIP and Ceta ( memento of the original from September 19, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / hessenschau.de
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    123. ^ Council of Canadians: The CETA Deception. How the Harper government's public relations campaign misrepresents the Canada-European Union Comprehensive Economic and Trade Agreement (PDF) Report written by Stuart Trew, Trade Campaigner, The Council of Canadians, July 17, 2012.
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