HANOVER: US President Barack Obama and German Chancellor Angela Merkel made a joint pitch Sunday for more transatlantic trade in the face of mounting opposition, vowing to complete a vast US-EU pact that could spur much-needed economic growth.
After talks in the northern city of Hanover where tens of thousands marched Saturday against the planned deal, Obama said the world’s largest trade pact could be finalised by the end of the year, reports AFP.
“Angela and I agree that the United States and the European Union need to keep moving forward with the Transatlantic Trade and Investment Partnership (TTIP) negotiations,” Obama said.
“I don’t anticipate that we will be able to have completed ratification of a deal by the end of the year, but I do anticipate that we can have completed the agreement.”
Both sides hope the pact will provide a shot in the arm to Western economies.
“As you see other markets like China beginning to develop and Asia beginning to develop and Africa growing fast, we have to make sure our businesses can compete,” Obama said.
Merkel echoed that sentiment, saying the deal would be “extremely helpful” for growth in Europe.
“It is good for the German economy, it is good for the European economy,” she said.
But Obama acknowledged there was popular opposition.
“People are unsettled by globalisation,” he said. “People visibly see a plant moving and jobs lost and the narrative develops that this is weakening rather than strengthening the position of ordinary people and ordinary workers.
“The benefits often times are diffused.” Ahead of the meeting there was a sign of the significant hurdles that remain.
Merkel’s Economy Minister Sigmar Gabriel warned the deal “will fail” if the United States refused to make concessions in “buy American” clauses.
Merkel and Obama also discussed world crises including Syria and Libya.
On Syria, Obama defended his decision not to impose a safe zone that could help stem flows of migrants and refugees into Europe that have hurt Merkel politically.
“Sadly, it is very difficult to see how it would operate short of us essentially being willing to militarily take over a big chunk of that country.”
But he rushed to Merkel’s defence in the refugee crisis, saying she was on “the right side of history”.
Obama’s trip—perhaps his last official visit to Germany before leaving office in January—coincides with the Hanover Messe, billed as the world’s largest industrial technology fair and demonstrating German engineering prowess.
Merkel said later in a speech to open the fair that she would throw her weight behind the TTIP talks “so that Europe can speed up the negotiations”, as Obama pledged that the pact would lift common environmental and labour standards.