Germany’s finance minister has called for fresh talks over the controversial Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States.
Negotiations between the US and EU commenced under the Obama administration but were halted by President Trump in 2018, and were declared “obsolete and no longer relevant” by the European Commission in 2019.
Even prior to the break-off in negotiations though, the proposed deal had faced fierce opposition on both sides of the Atlantic, particularly in Europe where large protests were organized in a number of countries. Several prominent European politicians had warned they would reject any proposed deal unless a controversial investor protection clause, known as Investor-state dispute settlement (ISDS), was removed.
The Russian invasion of Ukraine has changed attitudes amongst many in the Western world though, particularly in Germany, where decades of foreign and defense policy have been unraveled in a matter of weeks in response to the Kremlin’s attack on its neighbor.
The latest indication of this comes in the form of comments by German finance minister Christian Lindner, who said in an interview with newspaper Handelsblatt that talks over the free trade agreement should be resumed.
“We should resume negotiations on a transatlantic free trade agreement. Especially now in the (Ukraine) crisis, it is becoming clear how important free trade is with partners around the world who share our values,” said Mr. Lindner. He did not make it clear whether these were his personal beliefs or the position of the Free Democratic Party he has led since 2013.
Whilst there is certainly an increased desire for cooperation amongst western democracies, it is unclear whether a new trade deal would prove any more popular than the original proposed TTIP. The inclusion of the ISDS clause prevents a major barrier to negotiations moving forward, with supporters of the clause saying it is necessary to overcome the complications of conflicting legal systems whilst opponents insist that it weakens sovereignty.
A statement by the US embassy in Berlin didn’t address Lindner’s proposal directly, but appeared to pour water on the idea by praising systems currently in place. The statement did acknowledge the need for unity though, adding that “the current crisis shows the United States and Germany, and the European Union, are indispensable partners”.