Trade Off

SPD Quells Revolt Over U.S. Transatlantic Trade Pact

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Demonstrations against TTIP in Berlin last week in front of the Reichstag.
  • Why it matters

    Why it matters

    The junior party in Chancellor Angela Merkel’s ruling coalition has the power to veto Europe’s proposed trade agreement with the United States.

  • Facts


    • The SPD left wing fears German environmental, labor and consumer protections could be undermined through the pact.
    • SPD leader Sigmar Gabriel convinced his party to back the deal, promising it would not undermine existing laws.
    • The CDU, winner in the last German election, largely supports the trade treaty for its job-creation benefits.
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Germany’s Social Democratic Party, a partner in the ruling coalition with conservative Chancellor Angela Merkel, held a contentious meeting over the weekend on the proposed transatlantic trade treaty with the United States which some had feared would undermine European health and safety laws.

At a raucous meeting over the Transatlantic Trade and Investment Partnership, during which the SPD’s left wing threatened to scuttle the pact, the party’s leader, Sigmar Gabriel, hammered out a compromise that appeased both sides — for now.

“The decision is a success for the SPD,” said Ralf Stegner, a leader of the party’s left-wing and strong critic of TTIP and Mr. Gabriel, who is vice chancellor and Germany’s economics minister.

“We drew a clear red line,” Mr. Stegner told Handelsblatt.

Mr. Gabriel, who has favored a more moderate approach and is seen as pro-TTIP, was also pleased. Each of the 28 countries in the European Union must approve the agreement with the United States in order for it to proceed.

“We are very happy and thankful” that top SPD decision makers decided to continue with the trade talks, Mr. Gabriel said. Backers of the proposed trade agreement, which would eliminate customs duties and simplify export and import of goods across the Atlantic, say the agreement will create millions of new jobs.

The left wing of the SPD, led by Mr. Stegner, had initally threatened to suspend TTIP negotiations. Critics are wary of a clause in TTIP that would empower arbiters, not national courts, to decide differences in trade disputes. Critics have also charged that TTIP negotiations have been opaque and done outside the public eye, which participants dispute.  Some have also charged that European labor and consumer rights would be watered down, which backers deny.

On Saturday, party leaders voted to continue trade talks with the United States by a huge majority – a move supported by Mr. Gabriel.

Mr. Stegner, the regional SPD leader in the northern state of Schleswig-Holstein and his followers came on board after the party agreed to reject any treaty weakening German workers’ rights, consumer protection, social and environmental standards.

The restrictions were backed by the German Federation of Trade Unions and the German Economics Ministry.

“There shouldn’t be any special laws between democratic states. It’s good that we have stated this,” Mr. Stegner said.

The SPD’s left wing also pushed through a demand that the Bundestag and the upper chamber, the Bundesrat – as well as the European Parliament — be required to approve the treaty. SPD members said there was a very lively discussion surrounding TTIP. Mr. Gabriel cornered left wing members to work out the details.

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