Brussels, 06/05/2015 (Agence Europe) - Jerzy Buzek (EPP, Poland), the chair of the European Parliament's industry, research and energy committee, insisted at a meeting with the US Congress energy committee, in Brussels on Tuesday 5 May, on including a specific chapter on energy in the future transatlantic trade and investment partnership agreement (TTIP).
“We have a wide-range of common interests - from the transatlantic trade and investment partnership agreement (TTIP) to global energy security and stability. As US energy production and advances in efficiency expand America's supply influence on the global market, the EU continues its work toward a connected, secure and environmentally sound Energy Union”, said the head of the US delegation, Republican Fred Upton.
“Visits like today show that the free trade agreement negotiations are gathering momentum on both sides of the Atlantic. If negotiated carefully, transparently and with full participation of our citizens, TTIP can be a great opportunity”, said Buzek, the permanent rapporteur on TTIP in the Parliament's energy committee. “Energy cooperation plays a crucial role here. This is why we as a committee called for a separate chapter dedicated to energy in the agreement. In addition, I hope that our US partners will lift the licensing requirements and facilitate the development of infrastructures for energy exports to Europe”, Buzek added.
The discussions on liberalising exports of liquefied natural gas will continue at a round table being organised by Buzek at the European Parliament on 27 May. The round table will serve as a platform for an exchange of views between US and EU policymakers and businesses.
Significant step forward. Important progress was made in the TTIP negotiations at the ninth session of talks in New York on 20-24 April as regards energy and raw materials (which is part of the rules pillar of the negotiation). On 24 April, the EU's chief negotiators, Ignacio Garcia Bercero, said that “a significant step forward” had been made. Indeed the parties assessed how TTIP could ensure non-discriminatory and transparent access for third-parties to the energy infrastructure (gas pipelines and electricity grids). They also assessed how to increase regulatory cooperation on energy efficiency. Nevertheless, no conclusion has yet been reached on knowing whether these issues will be the subject of a specific chapter - as the European party would like.
“We have received real elements of text. For over a year we have put pressure on the US and for the first time we have an annotated agenda. It's the beginning of a structure for the text on which we will be able to work together. It's big progress”, a European negotiator told the energy committee on Wednesday 6 May. The negotiators agreed on aspects to discuss in the energy dimension of TTIP, said the European Commission representative, mentioning the scope of application, the energy products concerned, the rules to be followed, the competition disciplines, the issue of monopolies, transit rights and customs duties on raw materials exports, transparency, sustainable development goals, energy efficiency, renewable energy, and the safety of offshore activities.
Gas and oil supply is highly political issue. The issue of gas supplies, which arouses great interest from the European party, as part of its efforts at diversification, is “a much more political issue because it affects the conditions for which the US would be ready to open its market”, said the Commission representative, stating that the US Gas Act is based on the principle that the supply of gas and gas contracts are a matter of US interest. The issue of lifting restrictions on US crude oil exports will also require much political skill from the Europeans - especially in convincing the Republicans (who are very close to the US oil industry and now have the majority in Congress) to listen to the European negotiator. In addition, the two parties will also have to find ways to bridge the gap on the issue of energy-intensive industries and the difference in prices for energy in Europe and the US. (Emmanuel Hagry)