Brussels, 16/02/2015 (Agence Europe) - During a speech to the NATO parliamentary assembly on Saturday 14 February, European Commissioner for Trade Cecilia Malmström argued for the future free trade agreement between the EU and US (TTIP) to include a legally binding commitment by both sides not to restrict exports of oil and gas to the other partner.
One of the links “between trade policy and security that I want to highlight is also exemplified by the Ukraine crisis, but has an important transatlantic dimension: the impact of export restrictions on natural resources. A major limitation on the European Union's freedom of action in response to Russia's actions in Ukraine is the fact that many European countries depend on Russian gas exports for significant proportions of their energy needs. Over the medium term, this issue can and must be addressed. We can become more energy efficient, create a true Energy Union, and explore new energy sources within our own borders. But the potential for future energy exports from the United States can also help change this security equation”, Malmström stated.
“Today US gas exports are subject to cumbersome licensing procedures and oil exports are essentially banned. These limits can be removed in the agreement. To do this, the EU believes that TTIP should include a legally binding commitment by both sides not to restrict exports of oil and gas to the other partner”, Malmström continued. In her view, TTIP “should contain a wider set of rules that would support a general market based approach to trade in natural resources” in line with both parties' climate goals, and which would not affect their freedom to make decisions either about future energy exploration or their own energy-use mix.
“The strategic benefits of an approach like this would in fact go beyond the Russia question. By setting an example for other countries to follow, it would help promote open trade in energy and raw materials around the world - helping boost growth and solve other security quandaries in the process”, Malmström concluded. (Emmanuel Hagry)