Szijjártó comments CETA, TTIP in talks with EU trade commissioner

Budapest, September 26 (MTI) – Hungary’s government will seek parliament’s position on the subject of a free trade agreement with Canada (CETA) before deciding on whether to support it, Foreign Minister Péter Szijjártó said on Monday after talks with Cecilia Malstrom, the European Union’s trade commissioner.

Brussels must formulate an official position on this issue by October 18, he noted at a press conference. He said Canada is an important trading partner for Hungary and Canadian investments play an important role in the national economy, too.

On the subject of a free trade agreement with the United States (TTIP), Szijjártó said it was premature to talk about “something which only exists in negotiations”.

Hungary is an open economy which depends heavily on exports and its ability to attract investments, Szijjártó said. The EU currently has 37 free trade agreements and it is negotiating 20 others, he said, adding that it was welcome that the EU is open to attracting external partners.

Hungary has a few “red lines”, namely staying free of GMO products, which is laid down in its constitution. Hungary’s GMO-free stance has been made clear in connection with negotiations on the TTIP and the CETA, and the latter would guarantee that GMO-free status can be maintained, he said.

Because of NAFTA (the US-Canada-Mexico trade pact), European companies are at a disadvantage on North American markets, he said. It is in Hungary’s interest to compete there on equal terms, he added. Another agreement, the TPP, between 12 Pacific countries under the leadership of the United States, also excludes Europe, Szijjártó noted.

A decline in European competitiveness affects Hungary’s open economy acutely, but some national interests are key, such as the GMO issue. he said.

Malstrom said she trusted Hungary would support CETA as this would bring “immediate economic benefits” for Hungary. She said there is a growing consensus on the pact and it is hoped it can be signed in October. As for the TTIP, she said efforts were being made to speed up negotiations which would be continued under the next US presidency.