Transatlantic Trade and Investment Partnership

Chapter IV, Articles 24 to 28 would allow free movement of business managers, and other employees of a corporation, for temporary work purposes among all countries party to the agreement.[42] Article 1(2) makes it clear, however, that no more general free movement of workers and citizens is allowed.

Chapter V contains eight sections with particular rules for different economic sectors. Section I, articles 29 to 31, set out principles that states must follow in licensing private corporations, and state that requirements that are not proportionate to a reviewable public policy objective are contrary to the treaty. Section II contains general provisions. Section III covers computer services. Section IV, articles 35 to 39, cover liberalisation of

"Improved regulatory coherence and cooperation by dismantling unnecessary regulatory barriers such as bureaucratic duplication of effort".[39]

Specific heads for discussion include:^[34][35]

• Horizontal chapters:
  • Regulatory coherence^[48][49]
  • Technical barriers to trade^[50]
• Specific sectoral agreements:
  • Textiles^[51]
  • Chemicals^[52]
  • Pharmaceuticals^[53]
  • Cosmetics^[54]
  • Medical devices
  • Cars^[55]
  • Electronics and information technology
  • Machinery and engineering
  • Pesticides
  • Sanitary and phytosanitary measures (SPS)^[56]—i.e., barriers to trade in food and agricultural products

Broader rules and principles and modes of co-operation

"Improved cooperation when it comes to setting international standards".^[39]

Specific heads for discussion include:^[34][35]

• Energy and raw materials^[57][58]
• Trade and Sustainable Development / Labour and Environment^[59]
• Public procurement^[60]
• Intellectual property[61]
  • Geographical indications
• mergers
  • Treatment of state-owned or subsidised companies vis-a-vis private companies
• Small and medium-sized enterprises (SMEs)
• Trade remedies: e.g., anti-dumping practices
• Customs and
  Trade Facilitation

Implementation

• Dispute settlement (between the parties, not
  investor-state dispute settlement
  )

Negotiations

Procedure

The TTIP Agreement texts were developed by 24 joint EU-US working groups, each considering a separate aspect of the agreement. Development typically progresses through a number of phases. Broad position papers are first exchanged, introducing each side's aims and ambitions for each aspect. These are followed by textual proposals from each side, accompanied (in areas such as tariffs, and market access) by each side's "initial offer". These negotiations and draft documents can evolve (change) through the various stages of their development. When both sides are ready, a consolidated text is prepared, with remaining differences for discussion expressed in square brackets. These texts are then provisionally closed topic by topic as a working consensus is reached. However the agreement is negotiated as a whole, so no topic's text is finalised until full consensus is reached.^[62]

Negotiation rounds

Negotiations are held in week-long cycles alternating between Brussels and the US.^[63] The negotiators were hoping to conclude their work by the end of 2016.^[64]

• The 1st round of negotiations: 7–12 July 2013 in Washington, DC
• The 2nd round of negotiations: 11–15 November 2013 in Brussels
• The 3rd round of negotiations: 16–21 December 2013 in Washington, DC
• The 4th round of negotiations: 10–14 March 2014 in Brussels
• The 5th round of negotiations: 19–23 May 2014 in Arlington, Virginia
• The 6th round of negotiations: 13–18 July 2014 in Brussels
• The 7th round of negotiations: 29 September – 3 October 2014 in Chevy Chase, Maryland
• The 8th round of negotiations: 2–6 February 2015 in Brussels
• The 9th round of negotiations: 20–24 April 2015 in New York
• The 10th round of negotiations: 13–17 July 2015 in Brussels
• The 11th round of negotiations: 19–23 October 2015 in Miami
• The 12th round of negotiations: 22–26 February 2016 in Brussels
• The 13th round of negotiations: 25–29 April 2016 in New York
• The 14th round of negotiations: 11–15 July 2016 in Brussels
• The 15th round of negotiations: 3–7 October 2016 in New York

Confidentiality measures

Only a few people could access the documents known as "consolidated texts", the drafts containing the most recent results of the negotiations. On the European side, authorised readers included the European Commission negotiators (most of them from the

They were only available in secure rooms at the European Commission HQ in Brussels, in a number of US embassies,[12] and at the offices of member states' trade ministries.^[65] In all the secured rooms phones or other types of scanning device are forbidden.^[12] Blank sheets of paper, marked with the reader's names, are provided on which visitors can jot down their notes.^[65] On the US side, the procedure was similar: only Senators and USTR negotiators could access the documents and had to comply with similar conditions.^[12] The United States insisted on the same security arrangements for the drafts of the Trans-Pacific Partnership proposal.^[12]

Hurdles

The negotiations were planned to be finalized by the end of 2014, but according to economist Hosuk Lee-Makiyama, at least another four or five years of negotiations remained at the end of that year.^[66] In November 2014 the Bulgarian government announced that it will not ratify the agreement unless the United States lifted visa requirements for Bulgarian citizens.^[67]

German Vice Chancellor and Economy Minister

Negotiation progress as of 27 April 2016:[64]^[69]

Failed ratification

The 27 European Union-member governments would have had to approve of the partnership, via unanimous voting under TFEU Articles 207 and 218, on the negotiated agreement in the Council of the European Union, at which point the European Parliament will also be asked for its endorsement. The European Parliament is empowered to approve or reject the agreement. In case the Council of the European Union, following a proposal from the European Commission, designates TTIP to be a "mixed agreement", approval from all Parliaments of the EU Member States in accordance with individual constitutional procedures is necessary before the agreement can enter into force.

In the United States, both houses of the Congress would have had to pass the agreement for it to be ratified.^[70] Negotiations were halted by United States president Donald Trump,^[71] who then initiated a trade conflict with the EU. Trump and the EU declared a truce of sorts in July 2018, resuming talks that appeared similar to TTIP.^[72] On 15 April 2019, the negotiations were declared "obsolete and no longer relevant" by the European Commission.^[73]

Proposed benefits

TTIP aimed for a formal agreement that would "liberalize one-third of global trade" and, proponents argued, would create millions of new paid jobs.^[6] "With tariffs between the United States and the European Union already low, the London-based Centre for Economic Policy Research estimates that 80 percent of the potential economic gains from the TTIP agreement depend on reducing the conflicts of duplication between EU and US rules on those and other regulatory issues, ranging from food safety to automobile parts."^[6] A successful strategy (according to Thomas Bollyky at the Council on Foreign Relations and Anu Bradford of Columbia Law School) will focus on business sectors for which transatlantic trade laws and local regulations can often overlap, e.g., pharmaceutical, agricultural, and financial trading.^[6] This will ensure that the United States and Europe remain "standard makers, rather than standard takers", in the global economy, subsequently ensuring that producers worldwide continue to gravitate toward joint US-EU standards.^[6]

In March 2013, an economic assessment by the European Centre for Economic Policy Research estimates that such a comprehensive agreement would result in GDP growth of 68–119 billion euros for the European Union by 2027 and GDP growth of 50–95 billion euros (about 53.5–101 billion US dollars) in the United States in the same time frame. The 2013 report also estimates that a limited agreement focused only on tariffs would yield EU GDP growth of 24 billion euros by 2027 and growth of 9 billion euros in the United States. If shared equally among the affected people, the most optimistic GDP growth estimates would translate into "additional annual disposable income for a family of four" of "545 euros in the EU" and "655 euros in the US", respectively.^[74]

In a

The European Commission says that the TTIP would boost the EU's economy by €120 billion, the US economy by €90 billion and the rest of the world by €100 billion.^[5] Talks began in July 2013 and reached the third round of negotiations by the end of that year.^[5]

American economist

A 2018 paper by KU Leuven economists estimated that a "deep" free-trade agreement, such as TTIP, between the United States and the European Union would increase EU GDP by 1.3% and US GDP by 0.7%.^[76] These gains would primarily be the result of reductions in non-tariff barriers to trade.^[76]

Criticism and opposition

Secrecy of content and negotiations

The content of the drafts of agreement, as well as the reports on negotiation rounds, are classified from the public, an arrangement that The Independent criticised as "secretive and undemocratic".^[16] As noted above, elected representatives may only view the texts in a secure "reading room" in Brussels, to avoid any further leaks of information about TTIP negotiations into the public domain.

To answer the criticism, and months after their leaks by Greenpeace, the European Commission has made negotiation documents public, including all EU proposals in the regulatory and rules components of the agreement.^[64][79][80] The Trade Commissioner has described the negotiations as "the most transparent trade talks ever conducted by the EU".^[81]

Potential negative impacts

Politics, economy and society

The Guardian described TTIP as "the most controversial trade deal the EU has ever negotiated".

An October 2014 study by Jeronim Capaldo of the Global Development and Environment Institute at Tufts University indicates that there will be losses in terms of net exports, net losses in terms of GDP, loss of labour income, job losses, reduction of the labour share, loss of government revenue and higher financial instability among European countries.^[82]

Labour standards, workers' rights and job security

Anti-poverty group

Critics of TTIP say that "ISDS provisions undermine the power of national governments to act in the interests of their citizens",[14] that "TTIP could even undermine the democratic authority of local government",^[17] and that it threatens democracy.^[89] France and Germany have said that they want access to investor-state dispute settlement removed from the TTIP treaty.^[90] In December 2013, a coalition of over 200 environmentalists, labor unions and consumer advocacy organizations on both sides of the Atlantic sent a letter to the USTR and European Commission demanding the investor-state dispute settlement be dropped from the trade talks, claiming that ISDS was "a one-way street by which corporations can challenge government policies, but neither governments nor individuals are granted any comparable rights to hold corporations accountable".^[91][92] Some point out the "potential for abuse" that may be inherent in the trade agreement due to its clauses relating to investor protection.^[93][94] A recent study shows that investor-state dispute settlement (ISDS) indeed generates strikingly large and consistent opposition to the trade agreement and this effect of dispute settlement characteristic cuts across individuals’ key attributes, including skill levels, information, and national sentiment, which have been viewed as key determinants of trade attitudes.^[95]

In December 2013, Martti Koskenniemi, Professor of International Law at the University of Helsinki, warned that the planned foreign investor protection scheme within the treaty, similar to World Bank Group's International Centre for Settlement of Investment Disputes (ICSID), would endanger the sovereignty of the signatory states by allowing for a small circle of legal experts sitting in a foreign court of arbitration an unprecedented power to interpret and void the signatory states' legislation.^[96]

Faced with such broad and vociferous criticism, ISDS was abandoned in September 2015; in its place, the European Commission proposed an Investment Court System (ICS).^[97][98] Not long afterwards, ICS was declared illegal by the German Association of Magistrates,^[99] though the commission dismissed the magistrates' judgement as based on a misunderstanding.^[100] For its part, the United States wants ISDS reinstated.^[100]

In February 2016, Labour (UK) leader Jeremy Corbyn said that human rights should be part of TTIP, describing TTIP as a threat to national sovereignty, workers, consumers, health and the environment.^[101]

Public health and environment

According to a report in The Guardian, TTIP draft leaked in 2016 shows "irreconcilable" differences between EU and the US in some areas, with the US demanding that EU compromise its "environmental, consumer protection and public health standards".^[13]

Consumer protection and food safety

Environment protection and climate change

See also:

Politics of global warming

A draft of the sustainable development section of TTIP was leaked to

ISDS cases already brought against EU countries under bilateral trade agreements in the last two decades, according to Friends of the Earth Europe.^[104]

According to

Joseph E. Stiglitz, TTIP could have a "chilling" effect on regulation and thus "undercut urgently needed action on climate that the Paris agreement requires". He says that industries that do not pay for the "social costs" of pollution in effect receive hidden subsidies, and that TTIP would give companies many more opportunities to sue governments over environmental protection mechanisms.^[105]

The draft energy chapter of the TTIP was leaked to The Guardian in July 2016.[106] According to The Guardian, this draft could "sabotage" European efforts to implement mandatory energy savings measures and to favor the switch to renewable electricity generation. The draft text obliges the two trade blocs to: "foster industry self-regulation of energy efficiency requirements for goods where such self-regulation is likely to deliver the policy objectives faster or in a less costly manner than mandatory requirements".^[106] The draft also mandates that operators of energy networks grant access to gas and electricity "on commercial terms that are reasonable, transparent and non-discriminatory, including as between types of energy".^[106] This would open feed-in tariff schemes to commercial challenge, including that used by Germany. The Green MEP Claude Turmes stated: "These proposals are completely unacceptable. They would sabotage EU legislators' ability to privilege renewables and energy efficiency over unsustainable fossil fuels. This is an attempt to undermine democracy in Europe."^[106]

The EU's draft text for the trade and sustainable development chapter was also leaked to The Guardian in July 2016.^[107] The draft, dated 23 June 2016 and marked "restricted", reveals new loopholes on a G20 pledge to phase out inefficient fossil fuel subsidies by 2025. The IMF estimates these subsidies run globally at $10 million per minute^[108] and G7 ministers pledged to remove them in May 2016 in a meeting in Japan.^[109] The draft however states that "such a phasing out may take into account security of supply considerations".^[107] The Guardian believes that this passage could be open to abuse and used to slow the phase out of subsidies.

Banking regulation

See also: Bank regulation in the United States

According to critics, TTIP could weaken the stricter

financial crisis of 2007–08.^[16][110]

Intellectual property and privacy

See also: Mass surveillance in the United States and Internet censorship in the United States

Critics of TTIP argue that its proposals on intellectual property and user privacy could have a similar effect as the EU-rejected Anti-Counterfeiting Trade Agreement (ACTA).^[110] The Electronic Frontier Foundation and its German counterpart, FFII, in particular, compared TTIP to the ACTA.^[111]

Activism against TTIP

In March 2013, a coalition of

US Congress, the European Parliament

, national parliaments, and other transparent forums" instead of conducting "closed negotiations that give privileged access to corporate insiders", and to leave intellectual property out of the agreement.

In 2014, an online consultation conducted by the European Commission[113] received 150,000 responses. According to the commission, 97% of the responses were pre-defined, negative answers provided by activists.^[114][115] Additionally, hundreds of demonstrations and protests have taken place in an organised "day of action" on 11 October 2014,^{[116][117][118]} and again on 18 April 2015.^{[119][120][121]} In February 2016, Greenpeace activists blocked secret talks on the Investment Court System.^[122]

A self-organised European Citizens' Initiative against TTIP and CETA has also been established, acquiring over 3.2 million signatures within a year.^[21][22]

In April 2016, then-President Barack Obama visited UK, and more than 130,000 people signed a petition organised by political activism group 38 Degrees, urging Obama to stop negotiating TTIP.^[123] The group planned to send an open letter to Obama to urge Obama to oppose the pact, saying that TTIP would be a threat to NHS, food standards, animal welfare and democracy because it 'gives corporations more power than people'.^[123]

Leaks

In 2016, Greenpeace published 248 pages of classified documents from the TTIP trade negotiations.^[124] Greenpeace Netherlands said it released the documents "to provide much needed transparency and trigger an informed debate on the treaty".^[125]

National objections

From both the European and American sides of the agreement, there were issues which are seen as essential if an accord is to be reached. According to Leif Johan Eliasson of Saarland University, "For the EU these include greater access to the American public procurement market, retained bans on imports of

geographic trademarks on food products. For the United States they include greater access for American dairy and other agricultural products (including scientific studies as the only accepted criteria for SPS policies)." He observes that measures like the EU ban on hormone treated beef (based as they are on the precautionary principle) are not considered by the WTO

to be based on scientific studies.

Eliasson further states that US objectives in a deal include "tariff-free motor vehicle exports", and retained bans on foreign contractors in several areas", including domestic shipping (see

Budweiser beer.^[127][128] This has provoked debate between European politicians such as Renate Künast and Christian Schmidt over the value of the designations.^[129]

At French insistence,

US Ambassador to the European Union Anthony L. Gardner has denied any linkage between the two issues.^[132]

European negotiators are pressed the United States to loosen its restrictions on the export of crude oil and natural gas, to help the EU reduce its dependence on energy from Russia.^[133]

Response to criticism

Freedom of Information request, that "more than 93% of the Commission's meetings with stakeholders during the preparations of the negotiations were with big business". They characterized the industry meetings as "about the EU's preparations of the trade talks", and the civil society consultation as "an information session after the talks were launched".^[136]

Effect on third-party countries

EFTA

)

In early 2013, Canadian media observers had speculated that the launch of TTIP talks put pressure on Canada to secure ratification of its own three-year-long FTA negotiations with the EU by the close of 2013.[137] Countries with customs agreements with the EU, like Turkey's, could face the prospect of opening their markets to American goods, without access for their own goods without a separate agreement with the United States.^[138]

Reports

Various groups have produced reports about the proposed agreement, including:

• The Politics of Transatlantic Trade Negotiations: TTIP in a Globalized World (2015)
  ISBN 9781472443649
• The Transatlantic Trade and Investment Partnership: Ambitious but Achievable – A Stakeholder Survey and Three Scenarios (April 2013)
  ISBN 978-1-61977-032-4^[139]
• TTIP and the Fifty States: Jobs and Growth from Coast to Coast (September 2013)
  ISBN 978-1-61977-038-6^[140]
• The Transatlantic Colossus: Global Contributions to Broaden the Debate on the EU-US Free Trade Agreement (December 2013)
  ISBN 978-3-00-044648-1^[141]
• The Transatlantic Trade and Investment Partnership: A Charter for Deregulation, An Attack on Jobs, An End to Democracy (February 2014)[142]

See also

Trade agreements

• Anti-Counterfeiting Trade Agreement (ACTA)
• Comprehensive Economic and Trade Agreement (CETA)
• Trans-Pacific Partnership (TPP)
• Transatlantic Free Trade Area

Trade topics

• Copyright infringement
• Digital rights
• Investor–state dispute settlement
• Trade in Services Agreement (TISA)
• United States–European Union relations

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External links

Wikimedia Commons has media related to Transatlantic Trade and Investment Partnership.

• What exactly is the Trans Atlantic Trade and Investment Partnership? Video produced by DW (Deutsche Welle)

Official sites

• EU negotiations site
• EU negotiating texts in TTIP
• European Commission, DG Trade – In focus Transatlantic Trade and Investment Partnership (TTIP)
• USTR Transatlantic Trade and Investment Partnership

Discussion and analysis

• The Politics of Transatlantic Trade Negotiations, by Jean-Frederic Morin, Tereza Novotna, Frederik Ponjaert and Mario Telò, Routledge, 2015
• Towards an EU-US trade and investment deal, European Parliamentary Research Service, 11 July 2014
• UK House of Lords European Union Committee, The Transatlantic Trade and Investment Partnership, report published 6 May 2014
• UK
  Business, Innovation and Skills Select Committee, Transatlantic Trade and Investment Partnership
  , HC804, report published 25 March 2015, noted that there were varying opinions on which aspects of TTIP would be beneficial and to what extent (paragraph 7).
• The Transatlantic Colossus: Global Contributions to Broaden the Debate on the EU-US Free Trade Agreement A collaborative publication with over 20 articles on the global implications of the TAFTA | TTIP, Berlin Forum on Global Politics, December 2013
• The Transatlantic Trade and Investment Partnership – Defensive Move or Constructive Engagement A Research Based Documentary placing the TTIP negotiations in a global context produced by the Institut d'Etudes Européennes of the Université Libre de Bruxelles, 19 March 2014
• The Transatlantic Trade and Investment Partnership: A Charter for Deregulation, an Attack on Jobs, an End to Democracy, Rosa Luxemburg Stiftung, Brussels Office, February 2014
• Free Trade: Project of the Powerful, Rosa Luxemburg Stiftung, Brussels Office, May 2014
• Politics at a standstill, Katapult Magazine, 11. March 2014
• TTIP: Are 40 Cents a Day Big Gains?, Center for Economic and Policy Research, August 2015

Websites

• TTIP: What lies beneath (European Parliament
  Greens/EFA
  Group)
• TTIP (American Chamber of Commerce to the European Union)
• The Trans-Atlantic "Free Trade" Agreement (TAFTA) (Public Citizen) (US)
• No TTIP (UK umbrella organisation)
• EU/US Trade & Investment (British American Business) – backers of the UK
  All Party Parliamentary Group
  for EU-US Trade & Investment
• Trade Leaks (TTIP negotiation documents)