Brussels, 10/09/2014 (Agence Europe) - With the US mid-term elections and the renewal of the EU's governing bodies, European Commissioner for Trade Karel De Gucht is anticipating a slower pace for the rest of 2014 in the work being conducted at political level on both sides of the Atlantic for the transatlantic trade and investment partnership agreement (TTIP). In addition, in the light of the Ukrainian crisis, energy is becoming a key component in the talks, according to De Gucht.
The next round of TTIP negotiations (the seventh since they were launched in July 2013) is planned in Washington for the week of 29 September. “But we are not taking big political decisions at the moment”, given the American elections and the transition of European leadership, De Gucht stated at a press conference after his meeting with US Trade Representative Mike Froman in Washington on 9 September. “The negotiators are nevertheless making a lot of work for after the transition. In the course of 2015, we will begin an end to quite a long game” towards the conclusion of the TTIP negotiations, De Gucht said. Technically, it is possible to conclude for the end of 2015 “at best”, but everything will depend on the political resolve, he said.
Underlining that energy was becoming an “urgent and very geo-strategic” issue, in the light of the crisis in Ukraine (through which over half of the Russian gas for the EU transits) and the threats weighing on Europe's energy security due to the tension with Russia, De Gucht believed it was “unthinkable” that the US not export oil and natural gas to the EU as part of the TTIP. “It is important that we come forward with a position on that [Ed: energy agreement] as soon as possible, because maybe you may have noticed that some things are going on in Europe. I cannot imagine that that there will ever be a TTIP without such [energy] provisions”, he said.
The European side is pushing more than ever for the inclusion of a detailed chapter on energy in the TTIP negotiations. In De Gucht's view, a solution would be to lift the restrictions that have weighed on US exports of oil and gas since the 1970s (see EUROPE 11118).
Expected position of Juncker Commission on TTIP. Following on from the outgoing Commission led by Jose Manuel Barroso from Portugal, which was greatly in favour of concluding a TTIP agreement, the next Commission, to be led by Jean-Claude Juncker from Luxembourg, will have to take position on this sensitive issue. The TTIP still arouses considerable distrust and hostility at the European Parliament and within civil society and public opinion - which fear a lowering of health, social and environmental standards under pressure from the US. A European Citizen's Initiative was even submitted this summer, calling for a definitive halt to the negotiations (see EUROPE 11123).
In its programme for the European elections, the Christian Democrat family (EPP) from which Juncker hails, said it was in favour of the free trade negotiations with the US - as long as the future agreement protects the high European standards and as long as the important aspects of European identity are preserved. Juncker confirmed this position, but at the end of May he had considered it necessary to wait for the end of the elections to continue the TTIP talks (which at that point were in the fifth round).
The appointment of Swedish Liberal Cecilia Malmström to the post of commissioner for trade in the next Juncker Commission bodes for some continuity in the free trade agenda of the trade policy conducted by the Commission.
While waiting, the Commission is continuing its analysis of the results of the public consultation, which was launched at the end of March and concluded on 13 July, on the controversial issue of the protection of investments and the inclusion of an investor-state dispute settlement (ISDS) mechanism in the TTIP. The Commission has promised a report for the end of 2014 on the full results of the recommendations (see EUROPE 11122).
Lastly, in order to respond to the criticism on the lack of transparency of the negotiations, De Gucht has called on the European governments - as did the Italian Presidency of the Council at the end of August - to publish in full the negotiating mandate entrusted to the Commission. (EH)