Flexibility can iron out CETA, TTIP discord

There were demonstrations and rallies on Sunday in France, Spain and Poland against the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and EU-US Transatlantic Trade and Investment Partnership (TTIP). While TTIP is in limbo, CETA is to be signed on October 27. But it can only be struck when all 28 EU member states back it. Tuesday (October 18) is crucial as trade ministers from all EU countries will hold a meeting and take a decision on CETA.
The top German court has provisionally cleared the EU-Canada trade deal. The conditional approval is being seen as a partial victory by the pact’s staunch critics, who want it to be abolished fully. The small Belgian region of Wallonia has blocked CETA, while opposition to the pact mounts in other European countries.
Most of the opponents are apprehensive that giving a go-ahead to the CETA will set a dangerous precedent for TTIP. Both CETA and TTIP have been dubbed as anti-consumer. These pacts are believed to give sweeping powers to the multinational companies and compromise on public and environmental safety. The
anti-free trade campaigners are demanding legal clauses so that there are no
conflicts between companies and states.
While globalization is taking roots in most of South Asia, the trend of protectionism is growing in Europe. Rejecting the CETA and TTIP would send across the wrong message that Europe has built walls around itself. Rather than killing and burying these agreements, Europe should choose the path of renegotiation. There are provisions in both these contentious trade agreements that need to be relooked into. However, a protectionist approach would mean that Europe has become too inflexible and unproductive. Of course, Canada and the US too will have to show flexibility. It is trust deficit that lies at the bottom of the disagreement. This needs to be removed by making the treaties more transparent and dispel the ignorance among the masses about the potential trade irritants.
CETA supporters say that the deal will boost trade in goods and services
between Europe and Canada by over 20 percent and the total EU GDP by €12
billion annually. Similarly, the TTIP backers feel it may spike Europe’s per capita GDP by 0.4 percent. However, the detractors of these deals rubbish these claims while weighing the benefits with the losses. They point to the loopholes in both the pacts.
As the rift widens and the suspicion deepens over free trade agreements, it is imperative that a global regulatory body is set up which can mediate between the warring groups and bring them together to take a reconciliatory path. Fairness and harmonizing of standards will help salvage many such deals which are
hanging fire.
The EU is Canada’s second largest trading partner and hence, it is calling the shots today. But if it continues to face hurdles in ratifying agreements, the bloc’s existence to bring about consensus among its members will be questioned. Disintegration within the EU will send an unfortunate signal to the world and pose existential threat to it.
As EU trade ministers meet on Tuesday, it will not only be CETA that should be discussed but also the growing discord that has started affecting Europe’s economy. Minus Britain, it is a big challenge for the EU to keep its flock together. CETA is a testing ground for this challenge.