Volkswagen Scandal Undermines EU Credibility in TTIP Negotiations With US

BERLIN (Sputnik) — The ongoing emission scandal at German carmaker Volkswagen undermines the credibility of the European Union in its negotiations with the United States on establishing the Trans-Atlantic Trade and Investment Partnership (TTIP), EU Trade Commissioner Cecilia Malmstrom said Monday.

Earlier in September, the US Environmental Protection Agency accused Volkswagen of knowingly installing defective software in cars with diesel engines to mask emission results tests. According to the Volkswagen Group, over 648,000 vehicles are affected. The carmaker could pay fines of up to $18 billion.

"I spent a lot of time trying to explain to the Americans that we in Europe have the highest eco-standards. Now it turns out that we are not that perfect," the commissioner told German Sueddeutsche Zeitung newspaper.

She added that "this scandal affects multiple sectors of the economy and it is really unpleasant.”

TTIP seeks to liberalize trade between the United States and the European Union, creating the world's largest free trade zone and accounting for 60 percent of global production.

The strict secrecy of its negotiations and subsequent leaks of the deal's texts detailing undue benefits for multinational corporations have drawn criticism from activists and lawmakers.