Merkel aide: We’ll do everything to conclude US trade deal

A deal was supposed to be concluded before US President Barack Obama leaves office in January, but the talks have become bogged down amid widespread suspicion in the European Union that a deal would undercut the bloc’s health, consumer safety and environmental standards. During an interview with ZDF TV, Gabriel, who is also Germany’s Vice-Chancellor, considered the talks have failed and that as Europeans, they should not relinquish to the USA demands.

Already in May, French President Francoise Hollande said he would “never accept” the deal in its current guise because of the rules it enforces on France and the rest of Europe.

With or without TTIP, Czech trade with the U.S. has already strengthened considerably over the past year or two to something like the level it should be with the world’s biggest economy.

Three years of TTIP negotiations have failed to resolve multiple differences, including over food and environmental safety, but the USTR’s spokesman told German magazine Der Spiegel the negotiations “are in fact making steady progress”. As a result, the Obama administration’s vision of a new global trade architecture appears to have failed, even if the U.S. Congress ends up ratifying the Trans-Pacific Partnership-that vision’s other pillar.

Chief EU negotiator Ignacio Garcia Bercero played down Mr Gabriel’s talk of failure, and in Washington, Matt McAlvanah, assistant USA trade representative for public affairs, insisted the negotiations “are in fact making steady progress”. And that is clearly on hold now given what has been said on the United States side. France´s Prime Minister Manuel Valls has said it would be “impossible” for the two sides to conclude negotiations on a trade deal by the end of 2016.

He also said his country is prepared to walk away if progress is not made.

“It would be a big boost for economies, jobs, trade”.

Paris announced on Tuesday that it would launch a call with the EU Commission in September aimed at ending negotiations for the TTIP free trade agreement with the United States. The protectionist Front national, which could come in second in next year’s presidential election, opposes the pact outright.

Fekl’s comments show how skepticism of trade deals is surging on both sides of the Atlantic. I wouldn’t bet on TTIP definitely happening, but I also think these comments mean it’s not happening.

U.S. president Barrack Obama previously stated that if TTIP is not completed now it will be years before a trade deal can be negotiated, given a schedule of elections in the USA and across Europe.

That prospect looks less likely now, and Britain’s June vote to leave the European Union has further clouded the picture, even though the Commission has a mandate to finalise TTIP talks on behalf of all European Union 28 members.