How German Opposition Could Sink a Major Canadian Trade Pact

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By Scott Sinclair, The Tyee Jun 23, 2014

Editor's note: The Canadian Centre for Policy Alternative's trade policy analyst Scott Sinclair visited Berlin recently to testify on the Canada-EU Comprehensive Economic and Trade Agreement (CETA) before the Food, Agriculture and Consumer Protection committee of the German Bundestag (federal parliament). While in Berlin, he discussed CETA issues with parliamentarians, NGOs, trade policy experts and media analysts. Here's what he found.

After many delays, the CETA text could be finalized by negotiators within weeks. But in Europe, a messy fight over its ratification is just beginning. Germany, in particular, is in the midst of a lively public debate over another economic treaty, the EU-U.S. Transatlantic Trade and Investment Partnership (TTIP). The formerly low-profile CETA is now being drawn into the controversy swirling around the TTIP.

One of the most controversial elements in the TTIP, and the CETA, is its investor-state dispute settlement (ISDS) mechanism, which allows foreign investors to bypass the domestic courts to directly challenge government measures before unaccountable arbitration tribunals.

The German government has long been a solid supporter of investment protection treaties with developing countries. But recently Germany itself has been sued by foreign investors using ISDS. The most controversial dispute is a 2012 claim by the Swedish energy company Vatenfall which seeks compensation for Germany's phase-out of nuclear power.

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