WOLFSBURG, Germany, Sept 19 (Reuters) – Germany appeared set on Monday to back an ambitious trade accord between the European Union and Canada after the leader of the Social Democrats (SPD), junior partner in the ruling coalition, overcame left-wing resistance to the deal within his party.

The SPD decision paves the way for EU member states to approve the Comprehensive Economic Trade Agreement (CETA) next month before Brussels signs the accord with Ottawa on Oct. 27.

Left-wing SPD members had argued that CETA would undermine workers’ rights and environmental standards, but party leader Sigmar Gabriel said it represented the EU’s best chance to shape globalisation in the interests of ordinary people.

ADVERTISEMENT

“It’s a really good day for the SPD but especially for the implementation of rules for globalisation,” Gabriel told a news conference after two thirds of delegates at an SPD congress backed a compromise deal over CETA.

“Until now globalisation only served economic interests. Now we are finally beginning to take the interests of people and citizens into consideration.”

Gabriel, who is also vice chancellor and economy minister in Chancellor Angela Merkel’s conservative-led coalition, has staked his political future on securing SPD backing for CETA.

Failure at Monday’s congress, held in the carmaking city of Wolfsburg in northern Germany, would have likely scuppered Gabriel’s chances of standing as the SPD candidate for chancellor in national elections due in October 2017.

This might have unleashed a damaging power struggle within the SPD at a time when it is badly trailing Merkel’s conservatives in opinion polls. The coalition’s popularity has also suffered following Merkel’s decision last year to open Germany’s borders to more than one million migrants.

ADVERTISEMENT

The compromise forged to win over left-wing critics in the SPD envisages allowing the European Parliament to launch a consultation process before a decision is taken on what parts of CETA should be applied provisionally.

CETA aims to eliminate tariffs on 98 percent of goods immediately and also encompasses regulatory cooperation, shipping, sustainable development and access to government tenders.

It will still require the approval of the European Parliament before taking effect, prior to ratifications by national parliaments which could take five years or more.

In a joint statement, EU Trade Commissioner Cecilia Malmstrom and Canada’s Trade Minister Chrystia Freeland said they were committed to making “formal clarifications” on parts of the accord where there are still concerns.

This includes areas such as the delivery of public services, labour rights, environmental protection and an investment dispute settlement mechanism.

SPD critics of CETA see it as a blueprint for a parallel trade deal the EU is trying to negotiate with the United States, which is known as TTIP.

Around 180,000 people took part in rallies on Saturday in seven German cities against both trade deals, police said.