AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.00 Decreased By ▼ -0.53 (-0.41%)
BOP 6.76 Increased By ▲ 0.08 (1.2%)
CNERGY 4.50 Decreased By ▼ -0.13 (-2.81%)
DCL 8.70 Decreased By ▼ -0.24 (-2.68%)
DFML 41.00 Decreased By ▼ -0.69 (-1.66%)
DGKC 81.30 Decreased By ▼ -2.47 (-2.95%)
FCCL 32.68 Decreased By ▼ -0.09 (-0.27%)
FFBL 74.25 Decreased By ▼ -1.22 (-1.62%)
FFL 11.75 Increased By ▲ 0.28 (2.44%)
HUBC 110.03 Decreased By ▼ -0.52 (-0.47%)
HUMNL 13.80 Decreased By ▼ -0.76 (-5.22%)
KEL 5.29 Decreased By ▼ -0.10 (-1.86%)
KOSM 7.63 Decreased By ▼ -0.77 (-9.17%)
MLCF 38.35 Decreased By ▼ -1.44 (-3.62%)
NBP 63.70 Increased By ▲ 3.41 (5.66%)
OGDC 194.88 Decreased By ▼ -4.78 (-2.39%)
PAEL 25.75 Decreased By ▼ -0.90 (-3.38%)
PIBTL 7.37 Decreased By ▼ -0.29 (-3.79%)
PPL 155.74 Decreased By ▼ -2.18 (-1.38%)
PRL 25.70 Decreased By ▼ -1.03 (-3.85%)
PTC 17.56 Decreased By ▼ -0.90 (-4.88%)
SEARL 78.71 Decreased By ▼ -3.73 (-4.52%)
TELE 7.88 Decreased By ▼ -0.43 (-5.17%)
TOMCL 33.61 Decreased By ▼ -0.90 (-2.61%)
TPLP 8.41 Decreased By ▼ -0.65 (-7.17%)
TREET 16.26 Decreased By ▼ -1.21 (-6.93%)
TRG 58.60 Decreased By ▼ -2.72 (-4.44%)
UNITY 27.51 Increased By ▲ 0.08 (0.29%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,450 Increased By 43.4 (0.42%)
BR30 31,209 Decreased By -504.2 (-1.59%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

Martina Roemmelt-Fella, who owns a small, family-run turbine manufacturer in Bavaria, should be a cheerleader for a trade deal between Europe and the United States that promises to ease the flow of goods and services across the Atlantic. But instead she fears the Trans Atlantic Trade and Investment Partnership (TTIP) being hammered out between Brussels and Washington will give too much power to big multinationals at the expense of small companies like hers.
"The proposals are being negotiated behind closed doors with the help of 50 or 60 big corporates," said Roemmelt-Fella, whose firm is one of the thousands of small and medium-sized companies known as the 'Mittelstand' that account for 89 percent of Germany's exporters and form the backbone of the economy.
"TTIP may bring significant benefits for big multinationals, but I don't think there are big advantages for the Mittelstand," she added.
Her opposition underscores the depth of scepticism towards TTIP in Germany, Europe's largest economy, where media coverage has focused largely on protests from anti-globalisation groups and labour unions. It also highlights the challenge facing.
German Chancellor Angela Merkel as she tries to overturn entrenched suspicion of the pact.
While Merkel and big businesses, such as industrial group Siemens and car parts supplier Robert Bosch , remain strongly in favour of a deal, public support has fallen sharply over the past year, according to a recent opinion poll. Such widespread German mistrust could mean a deal has to be diluted or is even blocked.
Hurdles are also growing in Brussels, where as negotiators prepare for their 10th meeting next month, the European Parliament is so split on the subject that it cannot even agree to debate it.
Earlier this month, Economy Minister Sigmar Gabriel declared that the talks might fail.
"I am far from certain that there will be an agreement in the end," Gabriel told a meeting of German booksellers. They fret that TTIP will sound the death knell for a German law that fixes the price of books, despite repeated government reassurances.
Gabriel came out in favour of TTIP last year, but faces opposition from others in his party, the centre-left Social Democrats (SPD). Several local SPD associations have called for an immediate suspension of the trade negotiations. Proponents say an accord will create a market of 800 million people, boost economic output and serve as a counterweight to China's increasing economic clout.
The German unease is remarkable because it is one of the few developed nations to have increased its share of trade in the past 15 years.
"I've been in this business for 30 years and the Germans have never been a problem," Pascal Lamy, former director of the World Trade Organisation, told Reuters.
"The Germans were pushing the French in the right direction. Now, I have to go and tell the French to go and help the Germans," he said.
Roemmelt-Fella, whose company specialises in making turbines for hydropower plants, is not the only exporter with misgivings.
A Commerzbank study last year found only 15 percent of Mittlestand companies believe TTIP would be a good thing for their business.
A separate survey by the BVMW Mittelstand association, showed more than 80 percent of its members believe the government is not doing enough to represent their interests in the negotiations.
Much of their concern focuses on how companies settle disputes under the pact. They worry US multinationals will use an Investor-State Dispute Settlement (ISDS) clause to bypass national courts and bully governments into doing their bidding.
The Organisation for Economic Co-operation and Development (OECD) estimates the average legal and arbitration costs of ISDS cases to be around $8 million (7.1 million euros), an amount that is far beyond the means of the average Mittelstand firm.
A further gripe is the proposed creation of a regulation council, designed to smooth the consultation process on new laws, but which opponents say will make the legislative process more susceptible to manipulation.
Mittelstand companies are not against free trade and many welcome TTIP's aim to eliminate tariffs and create common technical standards, which would lower the cost of entering the US market.

Copyright Reuters, 2015

Comments

Comments are closed.