US and Germany clash on trade pact standards

Americans and Germans are broadly supportive of a US-EU free-trade pact, but differ over details, especially forging similar goods and services standards, according to a survey released on Wednesday.

US and Germany clash on trade pact standards
Protests outside the EU Commission HQ in Brussels in March 2014 during the fourth round of TTIP negotiations. Photo: DPA

Common regulatory standards are perhaps the most ambitious objective of the bilateral talks that began last July to create the world's biggest free-trade zone between the European Union and United States.

The Transatlantic Trade and Investment Partnership (TTIP) would vastly expand the US-EU economic relationship, already the world's largest, through a multipronged approach that includes tariff cuts and improved market access.
But hopes to conclude a deal by the end of 2014 have faded as talks bogged down, particularly over agricultural, food and environmental issues, with the US and EU at odds over regulations to protect people and the environment.
The Pew Research Center, in partnership with the Bertelsmann Foundation, the North American arm of the Germany-based private non-profit foundation, took a look at how residents of the world's largest economy and Europe's main powerhouse view the prospect of the new pact.
In 2013, the US was Germany's fourth biggest export market and source of imports. And Germany was the fifth-largest trading partner of the United States. US-EU trade totaled $649 billion, according to US government data.
The survey found that roughly the same number, 53 percent of Americans, and 55 percent of Germans, think that TTIP will be a "good thing" for their country.
But the respondents diverged over details of what would be the most economically significant regional free-trade agreement in history, especially disagreeing on harmonizing regulatory standards.
While 76 percent of the Americans surveyed supported making American and European standards for products and services similar, only 45 percent of Germans felt that way.
"On a range of consumer issues, Germans simply trust European regulatory norms more than American ones," the Pew report said. 
Americans, on the other hand, were supportive of US standards but not as strongly.
The longstanding US-EU dispute over the safety of genetically modified organisms used in US crops, including soybeans and corn, and US poultry and meat, stood out clearly in the survey findings.
Ninety-four percent of Germans said they trusted EU food-safety standards and only two percent trusted US regulations, the survey found.
A tepid two in three Americans (67 percent) trusted US food-safety standards and 22 percent of Americans trusted European standards.
Similar lopsided trust was found in auto and environmental safety standards on both sides of the Atlantic.

Data privacy

Standards for data privacy, a sensitive issue exacerbated by the revelations of US National Security Agency spying, including listening in on phone calls made by Chancellor Angela Merkel, stirred widely divergent views.
A large majority – 85 percent – of Germans trust European rather than US data privacy standards.
And not quite half of Americans – 49 percent – trusted the US standards, while 23 percent did not trust either the US or EU standards or had no opinion.
The data was compiled from national telephone surveys in the US and Germany. In the US, 1,002 adults were surveyed from February 27th to March 2nd. In Germany, 953 were polled on February 25th-26th.
The margin of sampling error for the survey was 4.2 percentage points.

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‘Exports have steadily sunk’: Brexit sends Britain sliding down German trade rankings

Britain is slipping down the list of Germany's most important trade partners, official data showed Monday, after its 2016 vote to quit the EU marked an end to growth in exchanges.

'Exports have steadily sunk': Brexit sends Britain sliding down German trade rankings
A Eurotunnel employee checks a truck with a British flag sticker. Photo: DPA

Between January and July, Britain was only Germany's seventh-most important partner with combined imports and exports of almost €68.5 billion, federal statistics authority Destatis said.

Exports to Britain fell back 4.6 percent compared with a year earlier, to 47.1 billion, while imports shed 3.7 percent, to 21.3 billion. In 2015, Britain was fifth in the ranking.

Ahead of the island nation were China, the Netherlands, the US, France Italy and Poland, while Britain outstripped Austria, Switzerland and the Czech Republic among the top 10.

“Before the referendum, German exports to Britain rose continually from 2010 to 2015,” the statisticians noted.

“Since the referendum in 2016, exports have steadily sunk.”

For all The Local Germany's Brexit coverage CLICK HERE

The picture is different in imports, with Germany buying slightly more from Britain since the Brexit referendum.

But the gap between the two figures remains wide.

In the year to July, Britain bought €25.8 billion more of German goods than it sold in the opposite direction.

Auto industry woes made a strong contribution to weaker business between Germany and Britain, with cars and parts accounting for just below 25 percent of trade volume.

German auto exports to Britain fell 9.7 percent in January to July, while imports fell 9.1 percent.

READ ALSO: Brits face residence permit costs of up to €150 in no-deal Brexit

'Massive tariffs overnight'

As The Local reported in July, European trade association Business Europe warned against a no-deal Brexit. The consequence of a no-deal would be “massive tariffs overnight”, said the General Director of Business Europe, Markus Beyrer, to Funke Media Group newspapers.

Even if Boris Johnson claims the opposite, he is mistaken, Beyrer said, adding: “Yes, there will be customs duties.”

Beyrer said without a withdrawal agreement, the UK would move from fully integrated EU country status to absolute non-status. “There is hardly a country in the world, perhaps apart from North Korea, that would have an even worse level of agreements with the EU,” he said at the time.