Merkel, Obama want Trans-Atlantic Trade and Investment Partnership done

Berlin - Deal a 'win-win situation' - but not everyone is convinced

German Chancellor Angela Merkel and US President Barack Obama said on Saturday they favoured sealing a United States-European free trade agreement as it would fuel growth on both sides of the Atlantic.
Merkel is expected to discuss the Trans-Atlantic Trade and Investment Partnership, or TTIP, with Obama when he visits a trade show in Hanover today and tomorrow. Support for the TTIP has plunged in both their countries, however.
"The Trans-Atlantic Trade and Investment Partnership is one of the best ways to promote growth and create jobs," Obama told the mass-selling newspaper Bild in an interview.
Merkel said in her weekly podcast that wrapping up a deal would be a "win-win situation", adding that "it is good for us as we will be able to appraise our competitors".
The US is Germany's biggest trading partner. Advocates of the trade deal say it would unleash further growth while critics warn it could undermine consumer rights and environmental protection.
Speaking separately in London on Saturday, Obama said the trade deal had run up against "parochial interests" of individual countries but would create millions of jobs and billions of dollars of benefits.
But this rosy view of the TTIP hasn't caught the public's imagination, particularly in Germany, where more than 100,000 people marched through the streets of Berlin in November to protest the proposed pact.
Trade unions, nationalists and green groups have lobbied hard against the deal, claiming that it will drive down wages, erode consumer protection and environmental standards.
The discussions, due to resume tomorrow in New York, have come under criticism for the secretive manner in which they've been conducted. National lawmakers are only allowed to view draft documents in special reading rooms and are forbidden from talking about the documents with experts, the media or their constituents.
Proposals to create dispute settlement tribunals have also stoked fears.
EU trade chief Cecilia Malmstrom envisages special investment courts that would rule in disputes between governments and companies that feel they face undue legal hurdles to their business.
Critics say such courts could place the interests of corporations above those of democratically elected governments, citing a recent case where tobacco giant Philip Morris sued Uruguay over a law requiring graphic warnings on cigarette packages.
Alfred de Zayas, an American law professor and UN human rights expert, argues that such courts are unnecessary in countries that abide by the rule of law, such as the United States or the EU's 28 nations.
Backers of the special courts say they would prevent cases from being heard by American jurors who don't understand the complexities of international trade law, and ensure that US companies don't face discrimination in European countries with high rates of corruption.
Juergen Hardt, a German lawmaker and the government's coordinator for trans-Atlantic cooperation, believes some of those leading the fight against the TTIP "have other motivations" beyond trade.
"They also want to incite anti-American feelings," he said.
The EU's executive branch is trying to promote the benefits of a deal. On its website, it suggests that the TTIP will boost demand for European delicacies like cheese, hams, wine, olive oil, spirits, and chocolate.
"High tariffs at US customs - up to 30 per cent - make some of these hard for Americans to afford - and difficult for European farmers and firms to export," it says.
The TTIP's backers hoped images of Obama in Europe - where his popularity remains high - will counter the tens of thousands of protesters expected to march against the deal in Hanover on Saturday.
"One of the main misunderstandings is that we'd be doing the Americans a big favour," said Hardt. "As an export nation, where more jobs depend on export than in any other country, Germany has the greatest interest in free trade. So I think the Americans would be doing us more of a favour agreeing to such a pact than the other way around."
Time may be running out. A spokesman for Germany's Economy Ministry told The Associated Press that no draft proposals have been exchanged about numerous areas of negotiation. The two sides are also divided about the issue of tariff reductions and the opening up of the markets for services and procurement.
"In order to achieve negotiating success this year, it will be crucial to make significant progress by the summer on technical questions, so that the final negotiations are restricted to a few, politically sensitive areas," said Andreas Audretsch, the ministry spokesman.