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Europe Daily Bulletin No. 11482
EUROPEAN PARLIAMENT PLENARY / (ae) trade

Commission no longer has TiSA blank cheque

Brussels, 03/02/2016 (Agence Europe) - The international trade in services agreement (TiSA) must open up new markets for EU companies but it must also protect consumers, public services and the right of governments to regulate. That is the broad thrust of the demands the European Parliament puts to the Commission and the member states in its recommendations on TiSA, adopted by 532 votes to 131, with 36 abstentions, in Strasbourg on Wednesday 3 February.

“Yesterday, the European Commission had a blank cheque. Today, it is bound by a very clear parliamentary mandate. If our recommendations are respected, then TiSA will afford more rights to our citizens at home and remove some obstacles to our companies abroad. If not, the Parliament will not hesitate to veto this agreement”, stated rapporteur and former commissioner Viviane Reding (EPP, Luxembourg) who has worked tirelessly on this issue over recent months.

“I am proud to have gathered wide support across the political spectrum to change the orientation of EU trade policy, in the interest of EU companies and consumers alike. The European Parliament is united in demanding full and complete transparency, fairer trade rules, more reciprocal market opening and more benefits for consumers. TiSA is an opportunity to prosper inside our borders and have more clout abroad”, she said.

“The globalisation and digitisation of our economies are facts. Should Europe continue to offer free access while the rest of the world is like a games field with no rules? Parliament's answer is an unequivocal “no”. We want to be standard makers today not standard takers tomorrow”, she stated.

Parliament's recommendations to the Commission set out “blue lines” on what it demands of the agreement and “red lines” on what it will not tolerate.

In its “blue lines”, Parliament calls for greater reciprocity on the part of the EU's partners so that European companies are assured of market access as open as that which the EU offers third country firms. MEPs say that TiSA must allow European companies, world leaders in telecommunications, transport, and financial and digital services, to increase their competitiveness and realise their full potential. It must also curb third countries' restrictive practices towards EU businesses, such as forced data localisation or foreign equity caps, and cut red tape for SMEs in non-EU countries.

Parliament also wants TiSA tangible benefits for European consumers in roaming charges (an issue dear to Reding who, when she was a commissioner, was successful in imposing reform of roaming fees on European telephone operators), commission payments on credit cards and safeguards against spam and geoblocking when buying online.

Among its “red lines”, Parliament is demanding that the European social and cultural model be defended, with public services, such as education, health, social services, social security systems, and audiovisual services, specifically excluded from the negotiations.

It also calls for fundamental rights to be protected - including the right to the highest standard of protection for personal data - and retention of the right of EU, national and local legislators to regulate on public health, consumer safety and environmental protection, as well as the right of these authorities to change their position if they wish to renationalise services which had previously been opened to private competition.

Parliament demands, too, that the EU agree to accept only highly-skilled foreign workers, on contracts and for a strictly limited period of time.

It also says that the deal should include a revision clause that makes it possible for a party to leave the TiSA or reverse commitments on liberalisation of a service if labour and social standards are infringed.

Among its other recommendations, Parliament gives its backing to China's request to join the TiSA negotiations and seeks to ensure future multilateralisation of this plurilateral agreement.

Parliament says, finally, that the Commission should provide fact sheets for the public, explaining each part of the agreement, and also publish factual round-by-round feedback reports on the Europa website.

Twenty three parties - Australia, Canada, Chile, Colombia, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, South Korea, Suisse, Taiwan, Turkey, United States and the EU - have been involved in TiSA talks since March 2013. Together, these countries account for 70% of global trade in services. Thus far, 15 negotiating rounds have taken place. (Original version in French by Emmanuel Hagry)

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EUROPEAN PARLIAMENT PLENARY
SECTORAL POLICIES
EXTERNAL ACTION
ECONOMY - FINANCE
NEWS BRIEFS