German concerns over allowing companies to sue government could scupper a EU-Canada free trade pact.<br /><br />It would allow firms to take legal action against countries perceived to have breached the treaty.<br /><br />EU and Canadian officials marked the end of negotiations in Ottawa by underlining the supposed benefits.<br /><br />“By giving Canadian exporters a privileged access to 500 million prosperous consumers in the EU, this agreement will reinvent the business relationship with the biggest market of the world,” said Canadian PM Stephen Harper.<br /><br />The pact will boost two way trade by 20 percent to an estimated 26 billion euros a year, according to the European Commission.<br /><br />“It is about generating more trade and investment for both sides, about creating growth and jobs. These are key interests and concerns for both of us.”<br /><br />Germany is worried that major multinationals could use the proposed deal to bully EU governments into watering down environmental and labour laws.<br /><br />“It is completely clear that we reject these investment protection agreements,” said German Economy Minister Sigmar Gabriel on Thursday.<br /><br />Any deal would need to be approved by all 28 EU parliament and MEPs before it can become law.
