TTIP

Simmering tensions have surfaced within the European Parliament over the Transatlantic Trade and Investment Partnership.

Tensions have surfaced in the European Parliament over what could become the world’s biggest trade deal between Europe and the United States.

Jeering, booing and slow clapping were heard in the Strasbourg chamber after the controversial Transatlantic Trade and Investment Partnership (TTIP) was suspended.

Members of the public have also been protesting against the deal, fearing it will hand more power to large corporations at the expense of ordinary citizens.

The Transatlantic Trade and Investment Partnership is a free trade deal between the United States and Europe that has been under negotiation for almost two years. An agreement would see the dawn of the world’s biggest free trade zone, shaping the rules governing a quarter of all global trade.

It aims to cut red tape, making it easier to import and export goods, as well as to invest and set up new businesses abroad. The European Commission predicts that it would boost the size of the EU economy by €120bn and the US economy by €95bn by 2027. Supporters of the deal say these savings would filter back to individuals, who would also benefit from cheaper goods and greater choice.

Critics fear, however, that it will undermine democracy in Europe and the US by favouring the rights of large corporations and preventing governments from regulating in the public interest. The Corporate Europe Observatory, a research and campaign group, claims that 92 per cent of 560 lobby encounters with the commission have come from private sector companies, while just four per cent have come from public interest groups.

Campaigners in Europe think EU regulations on areas such as food safety, employment rights and the environment could be watered down. ‘TTIP is a huge threat to hard-fought-for standards for the quality and safety of our food, the sources of our energy, workers’ rights and our privacy,’ says a Green Party spokesperson. For example, it fears that by harmonising food standards, the UK would be forced to allow chemically washed poultry, livestock treated with growth hormones, and genetically modified crops – which are all allowed in the US. More than two million people have signed an online petition against the deal, describing it as a ‘threat to democracy, the environment, consumers and labour standards’.

Opponents say the guarantee of market access effectively outlaws state monopolies, which could pose a risk to government-run services such as the NHS. Critics have serious concerns about transparency and a clause called the Investor State Dispute Settlement (ISDS), which they claim would allow corporations to sue governments in private. 38 Degrees, an activist group campaigning against the deal, says its details are being ‘worked out in secret’ and will allow big corporations to take governments to court behind closed doors.

EU officials behind the negotiations insist TTIP would uphold current EU standards and leave governments free to run public services as they wish. Negotiators are being ‘as transparent as possible’ and have published fact sheets explaining every chapter of the TTIP, they say. Negotiators also want to tighten up existing ISDS regulation for settling disputes between foreign firms and governments, with public access to hearings. But judging by the ongoing campaigns against TTIP, it appears many don’t entirely trust the EU’s claims.

See also:

• A bilateral trade agreement between Japan and America looms…