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| - German Chancellor Angela Merkel said Wednesday she remained convinced that the EU-China investment deal was an "important undertaking" even as strained relations complicate the agreement's ratification. "Despite all the difficulties that will surely arise with the ratification, it is a very important undertaking," Merkel said in a speech to her conservative CDU/CSU alliance. The massive investment pact laid the foundations for "mutually beneficial" trade, she said, citing more reciprocity on market access, compliance with international labour standards and the brand protection of regional products as some of the deal's advantages. To the surprise of many, the European Union and China in late December approved a major investment pact, wrapping up seven years of painstaking negotiations thanks to a final push by Germany. The pact has been defended as a much-needed opening to China's economy for European companies, but is sure to face a difficult ratification amongst the 27 member states as well as the European Parliament. Ties between the EU and China are at a low point after an angry exchange of tit-for-tat sanctions over human rights concerns. EU Executive Vice President Valdis Dombrovskis told AFP on Tuesday that the efforts to win EU approval for the deal were effectively on ice. "It's clear in the current situation with the EU sanctions in place against China and Chinese counter sanctions in place, including against members of European Parliament (that) the environment is not conducive for ratification of the agreement," Dombrovskis said. The EU sanctioned four Chinese officials in March over suspected human rights violations in China's far western region of Xinjiang. China responded by imposing its own sanctions against European politicians, scholars and research groups. bur-mfp/hmn/jv
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