Germany’s Constitutional Court cleared the government yesterday to approve a free trade accord between the European Union and Canada under defined conditions, boosting the agreement’s chances of passing an EU vote next week.
The court in Karlsruhe rejected emergency appeals by activists to prevent the government from endorsing the Comprehensive Economic and Trade Agreement (CETA) before it has been ratified by national parliaments.
The court — Germany’s highest — said the government must ensure that only parts of CETA within the competence of the European Union, such as the removal of tariffs, should be allowed to apply provisionally — meaning before it is ratified by EU member states.
This means that a system of investor protection also envisaged in the accord — which opponents say will hand too much power to multinationals — may come into force only after ratification by national parliaments.
Court president Andreas Vosskuhle also said it must be possible for Germany to unilaterally terminate the provisional application of the accord — effectively inserting a safety clause allowing the government to back out of the deal if it contravened Germany’s constitution.
Economy Minister Sigmar Gabriel, who has championed the pact as Europe’s best chance to shape the changing rules of global trade, said the ruling paved the way towards ratifying CETA.
“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 in the world,” he said.
Widely seen as a possible blueprint for TTIP, a bigger trade deal the EU has been negotiating with the United States, CETA aims to eliminate tariffs on 98% of goods immediately.
CETA also encompasses regulatory cooperation, shipping, sustainable development and access to government tenders.
EU trade ministers are due to vote on the accord next week and Brussels and Ottawa then hope to sign it on October 27.
But its final approval is far from certain, as the ministers have signalled they want unanimous support from the 28 member states to allow it to enter force.
The European Parliament will also have to vote on the deal.
The parliament of the French-speaking community in Belgium backed a motion late on Wednesday to prevent the country signing up to CETA.
Belgium’s federal government favours the pact, but needs the support of the country’s regions and linguistic communities to give its formal approval.
Activists also welcomed the German court’s ruling, calling it “a slap in the face” for the government.
“The court is not simply waving through the provisional application but has formulated strict requirements.
This shows that the government has taken the implications of the agreement for democracy far too lightly,” said Thilo Bode of consumer rights organisation foodwatch.
Opponents argue that CETA is undemocratic and will undermine workers’ rights and worsen standards for consumers.
Slovenia’s government, whose position had been uncertain, said in a tweet on Thursday that it backed CETA, while a final decision would be made by parliament in coming weeks.
Austria’s chancellor, who has expressed strong objections to CETA, said his decision on whether to back the deal would depend to a large extent on the German court’s ruling.
Earlier yesterday he struck a conciliatory tone, saying many of his concerns had been addressed in an additional declaration.