EU's Juncker promises tough stance on arbitration in U.S. talks
STRASBOURG France (Reuters) - The European Commission's incoming president promised on Wednesday a tough stance on the most divisive part of a proposed EU-U.S. free-trade deal, appointing his deputy to ensure the final deal limits the power of multinationals.
Investment protection has emerged as a highly sensitive issue in talks towards the world's biggest trade deal and EU lawmakers say they will reject an agreement that contains a clause allowing companies to bring claims against a government seen to breach the trade treaty.
European consumer and environmental groups say the mechanism for settling disputes would allow multinationals to bully the EU's 28 governments into doing their bidding regardless of environmental, labour and food laws.
Germany's economy minister also opposes the inclusion of special provisions to protect investors.
Jean-Claude Juncker, who will lead a new EU executive from next month, said his deputy Frans Timmermans will have the last word on the investor-state dispute settlement clause, not the EU's new trade commissioner, who is considered more sympathetic to it.
"There will be no investor-to-state dispute clause (in the trade deal) if Frans does not agree with it too," Juncker told the European Parliament on Wednesday before his Commission was approved.
"There will be nothing that limits for the parties the access to national courts or that will allow secret courts to have the final say in disputes between investors and States," Juncker said, switching to English from French to make his point.
Negotiators concluded the seventh round of talks in Washington earlier this month and are hoping to clinch a deal next year. Many companies say it could bring major economic benefits and create jobs over the long term.
But negotiations on the issue of investor protection have been frozen until a public consultation on the issue in the European Union is digested by the Commision, which handles trade on behalf the EU's countries.
The Commission expects to comment by the end of the year.
(Reporting by Robin Emmott; editing by Philip Blenkinsop)
