Brussels, 28/05/2015 (Agence Europe) - On Thursday 28 May, the European Parliament's international trade committee adopted the Parliament's draft recommendations on the negotiations for the transatlantic trade and investment partnership agreement (TTIP) compiled by Bernd Lange (S&D, Germany) by 28 votes in favour and 13 against. The draft recommendations take account of the opinions of 15 of the Parliament's committees.
The TTIP negotiations, still on track after nine rounds of technical level talks (the most recent, in New York at the end of April, enabled further progress for a political review in the autumn - see EUROPE 11302) and with a tenth round planned for Brussels in July, thus received an initial signal of support from the Parliament, which will be tasked with ratifying a possible agreement (as will be the national parliaments) if it is concluded. The whole Parliament will give its opinion on these draft recommendations on 10 June.
On Thursday, the Christian Democrat (EPP) MEPs, Conservatives (ECR) and Liberals (ALDE), who are all pro-TTIP, managed to rally the Social Democrats (S&D) to their cause in order to pass the compromise text compiled by Lange. This text does not advocate excluding the very controversial investor-state dispute settlement (ISDS) mechanism, provided that it is reformed. Faced with the hostility raised by the inclusion of this mechanism in TTIP, European Commissioner for Trade Cecilia Malmström suggested reform of the ISDS, based on the creation of a permanent international law court to settle investment disputes and setting up an appeal mechanism. The Commission is due to put together a proposal by the autumn.
The S&D Group U-turn roused the anger of the ecologists (Greens/EFA), who are totally opposed to the draft text. On behalf of the Greens, Yannick Jadot from France criticised the “disavowal” of the S&D Group on the ISDS issue, which he considered “unacceptable between two democratic continents with independent and efficient legal systems”. Jadot was also angry about the disavowal of the opinions of five other parliamentary committees (employment, environment, legal affairs, constitutional affairs, and petitions) that rejected the ISDS. “It is regrettable that the arrangement between the Socialists and Conservatives overrides the defence of democracy, the general interest, the citizens and European workers and consumers who massively reject this mechanism that has been conceived by, and for, big companies”, he stated.
The radical Left (GUE/NGL) were of the same opinion, including shadow rapporteur Helmut Scholz from Germany, who criticised the compromise agreed between Lange and the Conservative and Liberal Groups who, in his opinion, “are deliberately ignoring the deep concerns … in many member states regarding the creation of a common transatlantic market”. “It is arrogant that the amendments from the opinions of five other committees who asked to oppose the ISDS have been completely ignored, just like the 1.9 million EU citizens who have already signed a petition against the ISDS”, Scholz added.
In the view of the EFDD Group, Tiziana Beghin (Five Star Movement, Italy), regretted that “the EU citizens are still being taken for mugs”.
Lange, the rapporteur, hailed the result of the vote. “The requirements for opening up US government procurement have been strengthened, as have the requirements on social standards, and for the exclusion of the audiovisual sector”, he commented. Furthermore, his draft text ensures that services will not be subject to liberalisation but that market access to services will be dealt with through a “positive list”. As for regulatory cooperation, “it cannot be integrated in European legislation”, he added. In addition, as regards investor protection, “the S&D Group believes that the ISDS mechanism is not necessary. The old model will no longer be tolerated. An independent court will be needed, with independent judges. Private courts are not wanted”, he stated.
On behalf of the EPP Group, Godelieve Quisthoudt-Rowohl from Germany hailed a “very good draft resolution”. “The objective of the vote was to define guiding principles on which we will not budge. A reformed ISDS mechanism is needed, which respects the right of states to regulate, functions transparently, prevents any improper claim, integrates an appeal mechanism, and forms part of the objective of creating a permanent international law court in the medium term for settling disputes on investment”, said Tokia Saïfi and Franck Proust, both from France. “We point out, too, that the TTIP will not be negotiated at any price: the level of protection for health, the environment and consumers will not be able to be reviewed downwards, and reciprocity on market access, especially to US markets, remains a priority”. As regards agriculture, “we have ensured that this text integrates the defence of sensitive European products and remains firm in the demand for GI protection”, they state.
On behalf of the ECR Group, Emma McClarkin from the UK hailed the “strong pro-TTIP message” given by the Parliament, which “does not lay down red lines on investor protection at this early stage”.
On behalf of the ALDE Group, Marietje Schaake from the Netherlands hailed a vote which “will strengthen the negotiation position of the Commission”. In her view, the draft recommendations clearly underline the Parliament's demands on access to the US market, especially government procurement, and for SMEs. Schaake also stressed the need to rule out public services (water and education) from the negotiations, and to maintain a high level of consumer protection standards. (Emmanuel Hagry)