The Greens politician doesn’t think much of a TTIP condition, as proposed by the FDP leader.
(Photo: imago images/photothek)
Berlin, Brussels The initiative by Federal Finance Minister Christian Lindner (FDP) to negotiate a new free trade agreement with the USA met with mixed responses. While the Union, business and economists support the proposal, the traffic light coalition partners reject a new transatlantic free trade agreement.
Federal Economics Minister Robert Habeck (Greens) said on Monday during a visit to Abu Dhabi that the Americans were not expecting the start of new negotiations and that it would not lead to anything in the short term.
The Vice Chancellor pointed out that he also spoke to US Secretary of Commerce Gina Raimondo during a recent visit to Washington. There is a better, simpler and more successful element, namely the Trade and Technology Council. According to Habeck, the “interaction in trading and in technical regulation” should be expanded. “This is what we need. But we’ve been there for a long time.”
The transatlantic partnership, which is emerging with renewed vigour, has found its instrument. “Using and protecting and expanding this instrument is the order of the day. And that is exactly what the Americans expect,” said Habeck. “We should not now engage in an ideological debate that blocks the way for the cooperative understanding we are building.”
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In the Handelsblatt, Lindner had called for a new attempt at a free trade agreement with the USA. Referring to Russia’s attack on Ukraine, he said: “Especially now, the crisis shows how important free trade is with partners in the world who share our values. We should learn from the experiences of the TTIP talks.”
The SPD is also skeptical about the advance
The European-American free trade agreement TTIP (“Transatlantic Trade and Investment Partnership”) was put on hold in 2016. In Europe in particular, there were major protests against it, partly because environmental and consumer advocates feared that high EU standards could be watered down.
The SPD is also critical of Linder’s initiative. Bernd Lange, chairman of the trade committee in the European Parliament, told the Handelsblatt that one naturally had to cooperate with the Americans where it was possible and sensible. “In considering these considerations, however, one should honestly state that Washington is currently unable to negotiate or even ratify any comprehensive trade agreements – the political situation does not allow for that,” said the Social Democrat.
The Union, on the other hand, supports Lindner’s proposal. Gitta Connemann, federal chairwoman of the Mittelstands- und Wirtschaftsunion (MIT), told the Handelsblatt: “The failure of TTIP was a serious mistake and setback. Especially now, at a time when supply chains are breaking, the importance of this free trade zone is becoming apparent.”
Europe and the USA must seize this opportunity. “TTIP needs a fresh start,” Connemann demanded.
Foreign Trade Association: proposal “overdue”
The initiative of the Federal Minister of Finance is also well received by business associations. Foreign Trade President Dirk Jandura described it as “overdue”. Germany must go into possible new TTIP talks with different expectations. “The claim that only our position is an acceptable negotiation result must end,” said the President of the Federal Association of Wholesale, Foreign Trade and Services (BGA).
“The USA is an indispensable trading partner of Germany and the EU,” said Reiner Hoffmann, chairman of the German Trade Union Confederation (DGB). However, trade should not be an end in itself, but must be fair. “Clear conditions must be met for this: transparent negotiations, a rejection of investment protection clauses and high, binding and enforceable labor and social standards, violations of which can also be sanctioned,” demands Hoffmann
The proposal also met with great approval among economists. Economics Veronika Grimm wrote on Twitter, in the current situation “you can’t just pull suggestions out of your pocket that you’ve always found good”. However, a new edition of TTIP is “extremely sensible”.
The proposal was also received abroad. “We also have to have the discussion in Austria,” said Monika Köppl-Turyna, head of the Institute for Economic Research EcoAustria. “We need more trading partners, especially with democracies. Canada, USA, South America.”
This is also the view of the FDP, which defended its party leader’s initiative against criticism from the SPD and the Greens. “In view of the escalating conflict with totalitarian regimes, democracies must move even closer together,” said FDP parliamentary group leader Lukas Köhler. “Therefore, Christian Lindner is absolutely right to suggest a new initiative for TTIP.”
More: Commentary on Lindner’s advance: Bring on the chlorine chicken!