Brussels, 29/05/2015 (Agence Europe) - The European Parliament's draft recommendations on the negotiations for the transatlantic trade and investment partnership agreement (TTIP), which were compiled by Bernd Lange (S&D, Germany) and amended and adopted by the Parliament's international trade committee (by 28 votes in favour and 13 against) on Thursday 28 May, underline the need for increased access to the US market, for a reform of the dispute settlement mechanism between investors and states, and for the high level of European standards to be maintained.
The TTIP negotiations are still on track after nine rounds of technical level talks. The latest round (in New York at the end of April) enabled further progress towards a political review in the autumn (see EUROPE 11302) and a tenth round is planned for Brussels in July. These negotiations thus received an initial signal of support from the Parliament, which will have to ratify a possible agreement (as will the national parliaments) if it is concluded. The Parliament will give its opinion in plenary on these draft recommendations on 10 June.
Ambition and balance. Given the heavy dependence of EU GDP on trade and export, the amended draft text states that a “well-designed” TTIP could help boost the industry contribution to EU GDP by 15-20% by 2020. European companies, particularly SMEs, would benefit from a market of 850 million consumers, the text adds. Alongside this, given the contradictory study findings and the difficulty of evaluating the real gains from TTIP, MEPs call for an “ambitious” and “balanced” agreement, with gains shared across the member states and increased transparency in the negotiations. TTIP must also prevent non-tariff barriers being erected, ensure a high level of protection for European consumers, and prevent social, tax and environmental dumping.
ISDS reform. MEPs say that TTIP must put an end to the unequal treatment of European investors in the US by establishing a reformed and fair system for investors based on the presentation made by European Commissioner for Trade Cecilia Malmström in early May about reforming the investor-state dispute settlement (ISDS) mechanism in order to protect the right of states to rule in the public interest and avoid abuses. The reformed system should include a “permanent solution” with publicly appointed, independent judges, public hearings and an appellate mechanism, while respecting the jurisdiction of courts of the EU and its member states. In the medium term, an international public investment court could be used to settle investor disputes.
Exhaustive list of sensitive products. While trying to eliminate all customs duties, the parties should negotiate an “exhaustive list” of sensitive agricultural and industrial products that could be exempt from trade liberalisation or subject to longer transitional periods, the draft text states. MEPs call for a safeguard clause to be included, reserving the right to close markets for specific products should a surge in imports threaten or cause serious harm to national food production. MEPs also underline that the European Commission should encourage the US to lift the ban on beef imports and include a high level of protection for the EU's geographical indication system.
Protecting health standards. MEPs call for excessive procedures for vetting imports for sanitary and phytosanitary reasons to be eliminated, and they also call for mutual recognition of equivalent standards. Alongside this, European standards should be safeguarded in areas where those of the US area very different (such as for the authorisation of chemicals, cloning or endocrine-disruptive chemicals). The EU precautionary principle must be respected, the text underlines.
Increased access to energy. In order to increase the EU's energy security and reduce energy prices, MEPs call for TTIP to abolish any existing constraint or restriction on fossil fuel exports (especially on LNG and crude oil) between the EU and US. MEPs say that TTIP should include a specific chapter on energy, which ensures respect of the EU's environmental standards and goals in fighting climate change.
Data protection. The draft text calls for the EU's arrangements on data privacy not to be threatened by the integration of the EU and US e-commerce and financial services market. MEPs say that TTIP should explicitly exempt all existing and future EU rules on personal data protection. The clauses on the flow of personal data could be negotiated with the US only if the same data protection rules are applied by both parties, MEPs state.
Market access. The draft text calls for the removal of US restrictions on foreign ownership of maritime and air transport services and airlines, such as the Jones Act or the Air Cabotage Law. It also calls for increased access to the US telecommunications market, and for a “significant opening” of the US public procurement market at all levels of government so that European companies, particularly SMEs, can bid for US public contracts in construction services, civil engineering, transport and energy. MEPs also ask the European negotiators to keep in mind the EU interests in penetrating the market for the supply of highly specialised services (such as engineering and professional, financial or transport services).
Excluding public services. MEPs want public services excluded from TTIP (including, but not limited to, water, health, social services, social security systems and education).
Labour rights. The draft text asks the European negotiators to insist that the US ratify, implement and enforce the eight core conventions of the International Labour Organisation (it has so far ratified only two). The text also calls for careful monitoring of US companies for their implementation of labour provisions, by involving social partners and civil society.
Increased transparency. MEPs call for increased transparency in the TTIP talks by making more texts available to the public and obtaining US permission to disseminate more documents. MEPs also call for access to consolidated texts.
Role model. In addition, MEPs highlight TTIP as a role model in establishing global standards. (Emmanuel Hagry)