PowerShift statement on the publication of the ex-post evaluation of CETA by the European Commission
Berlin, 7 July: The European Commission's recent evaluation of the EU-Canada trade agreement (CETA) paints a far too positive picture and hides the significant climate and environmental shortcomings of the agreement. Our independent study “Assessing the climate impact of trade policy and trade agreements – A case study on CETA” provides clear evidence that CETA in its current form is incompatible with the EU’s climate objectives and undermines efforts for a just socio-ecological transformation.
Alessa Hartmann, trade expert at PowerShift and co-author of the study, criticizes: “The Commission continues to sell CETA as a success story without seriously addressing climate and environmental damage. A fair and sustainable trade policy must put climate, human rights and local economies ahead of corporate profits.”
Thomas Fritz, trading expert at PowerShift and co-author of the study, adds: “The EU evaluation paints a one-sided picture and ignores the real impact of CETA on people and the environment. We urgently need a trade policy that puts people and the planet at the centre – not the profit interests of large corporations.”
In their Press release on ex-post evaluation highlights greater trade flows and the reduction of regulatory hurdles as successes, without taking into account the climate impact of these developments. CETA specifically promotes the development of emission-intensive sectors, in particular in agriculture and the extractive industries, by intensifying transatlantic trade. This leads to increasing greenhouse gas emissions in transport and production – without any effective mitigation measures being foreseen.
The climate-damaging effects of CETA are particularly evident in the increasing bilateral trade in crude oil, beef, wood and plastics, all of which are emission-intensive goods. Nor can this sobering result be offset by the slight increase in trade in environmentally friendly products, as the share of these goods never exceeds the threshold of 10. % It has exceeded all bilateral trade.
In addition, CETA's Investment Court System (ICS) continues to pose a serious threat to ambitious climate policy. The group rights will not enter into force until all EU member states have ratified the agreement. As this ratification process is still ongoing, CETA is currently only applied on a provisional basis. ICS grants special rights to foreign investors if they want to sue states for compensation for regulations that could affect their profits. It thus has a deterrent effect on urgently needed climate policy measures. Our study shows: This instrument prioritises corporate interests over climate protection and democratic decision-making processes.
The European Commission's evaluation also does not sufficiently recognise that CETA exacerbates structural imbalances, in particular with regard to raw material extraction in partner countries such as Canada, where indigenous community rights and environmental protection are often pushed into the background.
If the EU takes its climate goals from the European Green Deal and the Paris Climate Agreement seriously, trade agreements such as CETA need to be fundamentally revised. Trade policy must not remain a blind spot in the EU's climate strategy. A climate-friendly trade policy must focus on reducing material and energy consumption and strengthening local value chains. Investor-state lawsuit mechanisms that endanger environmental regulations must be excluded.
PowerShift calls on the European Parliament, national governments and civil society to critically question the results of this evaluation and to advocate for a climate-friendly trade policy that serves people and the planet.
Our CETA case study can be found here: https://power-shift.de/ceta-bewertung-klimaauswirkungen/
If you have any questions, please do not hesitate to contact:
- Alessa Hartmann, Trade and Investment Policy Officer, alessa.hartmann@power-shift.de, +49 (0)30 278 756 32
- Thomas Fritz, Trade and Investment Policy Officer, thomas.fritz@power-shift.de, +49 (0)30 275 937 38
- Adrian Bornmann, Press and Public Relations Officer, adrian.bornmann@power-shift.de, 030-27590497
