US Trade Representative Michael Froman will meet with his fellow trade ministers at a TPP summit from July 28-31 in Hawaii.
This Week’s Trade Highlights
On July 24, the European Union, the United States, China and the vast majority of the World Trade Organization (WTO) members agreed to extend the 1996 Information Technology Agreement (ITA), eliminating custom duties on 201 high-tech products in what is the biggest tariff-cutting deal brokered by the WTO in almost two decades.
As negotiators push to reach a draft TTIP agreement by the end of the year, geographical indications (GIs) – a cornerstone of EU agricultural and trade policy, designed to ensure that only products from a given region can carry a name – are proving to be a major sticking point.
Trade ministers from the twelve TPP nations are meeting in Maui for a four-day negotiating round starting today. Check back on Thursday for updates from the ministerial.
Speeches & Official Announcements
Trillion-Euro Global High-Tech Trade Deal Agreed
“This is a great deal for consumers, and for companies big and small. We’ve worked hard to broker this compromise between different countries and to find the best solutions for Europe. This deal will cut costs for consumers and business – in particular for smaller firms, which have been hit especially hard by excessive tariffs in the past. […] And looking ahead, this agreement is an inspiration to step up our efforts in the run-up to the WTO ministerial in Nairobi in December. That will be the ‘make or break’ meeting for the Doha development round – it will be the last chance to conclude it.” – EU Trade Commissioner Cecilia Malmström
On July 24, the European Union, the United States, China and the vast majority of the World Trade Organization (WTO) members agreed to extend the 1996 Information Technology Agreement (ITA), eliminating custom duties on 201 high-tech products in what is the biggest tariff-cutting deal brokered by the WTO in almost two decades. All in all, the deal will cover one trillion euros in global trade, covering close to 90% of world trade in the products concerned. (European Commission)
News
EU Steps Up PR Campaign to Overcome U.S. Trade Deal Hostility
Amidst growing opposition to TTIP in Europe, driven by outspoken and social media-savvy activists, the European Commission is finally fighting back with a public relations campaign of its own. Using some of the tools employed by anti-trade campaigners, the Commission has begun posting video clips on YouTube, as well as publishing leaflets, fact sheets and “myth-busting” brochures to counter what it says are misconceptions about the trade agreement. (Reuters)
Officials Call for TTIP Digital Trade Boost as US-EU Tech Tensions Linger
Meeting with European Commission officials in Brussels last week, United States Secretary of Commerce Penny Pritzker urged European leaders to ramp up their efforts at promoting TTIP so that negotiators can close trade negotiations with a draft agreement by the end of this year. On July 23, Pritzker met with EU Justice Commissioner Vera Jourová to discuss the US-EU Safe Harbor agreement, which will shape the data-sharing framework under TTIP. (EurActiv)
What’s in a Name? U.S, EU Battle Over ‘Feta’ in Trade Talks
As negotiators push to reach a draft TTIP agreement by the end of the year, geographical indications (GIs) – a cornerstone of EU agricultural and trade policy, designed to ensure that only products from a given region can carry a name – are proving to be a major sticking point. While the US does not object to the protection of niche food items, it does not want to force domestic producers of widely produced goods-such as feta, Parma ham or parmesan-to rename their products in order to comply with European naming rights. (Reuters)
TTIP Action Partner
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Recent Analysis
Malmström: We Can Finish TTIP During the Obama Administration
In an interview with EurActiv, EU Trade Commissioner Cecilia Malmström refuted claims that TTIP can be finished by the end of the year, but hinted that negotiations can be completed under the Obama administration if all offers and demands are tabled by the end of the year. She also singled out geographical indications as a major sticking point in negotiations, given that eight EU member states have already refused to ratify the final agreement without strong protections on geographical origin. (EurActiv)
The Misinformation of the Free-Trade Opposition
Mark Hauptmann, a Christian Democrat and member of the German Bundestag, argues that the growing criticisms of TTIP are small-minded in comparison to the far-reaching benefits of the deal. According to him, much of the opposition is fueled by misinformation about parts of the agreement that opponents simply don’t understand. The chapter on rules, for example, will not force Europeans to accept lower standards in areas like consumer protection and health, but will instead reduce the high bureaucratic costs of transatlantic trade. (Wall Street Journal)
Trade in Action
On Trade Promotion Authority (TPA) and the Trans-Pacific Partnership (TPP)
Rice, Milk and Cars Among the Stumbling Blocks in Historic Trade Pact
From today until Friday, trade ministers from the twelve TPP nations will attempt to hammer out a deal in Maui, but standing in their way is a laundry list of outstanding issues ranging from tobacco to pharmaceuticals, each of which has the potential to scupper a comprehensive agreement. Much of the tough bargaining will concern market access for agricultural and manufactured goods, with Japanese and Canadian import barriers in the spotlight, although the United States has sensitive sectors – such as sugar, autos, apparel and footwear – that it is also under pressure to protect. (Politico)
Unlimited Potential: Intellectual Property in the Trans-Pacific Partnership
A recent report from the US Chamber of Commerce’s Global Intellectual Property Center demonstrates that a strong, well-rounded intellectual property chapter in the TPP would likely bring significant and direct benefits to each country involved in the deal, such as enhanced patent protection for innovators and a 12-year term of regulatory data protection for biologics. (US Chamber of Commerce)
Ways and Means Democrats Press USTR to Protect Anti-Tobacco Public Health Measures in TPP Negotiations
On July 24, all fifteen Democratic members of the House Ways and Means Committee sent a letter to U.S. Trade Representative Michael Froman urging him to ensure that the TPP clearly protects legitimate public health measures related to tobacco. According to the signatories, “the sovereign right of countries to adopt legitimate policies to reduce tobacco consumption from tobacco industry subversion in the TPP is critical to the health of the citizens of all of the TPP countries, including the United States.” (Ways and Means)
Read the letter here
Upcoming Events
UK National Road Shows – June to December in the United Kingdom, hosted by the British American Business – More Information
EU Digital Single Market Conference – September 15 in Brussels, hosted by the Trans-Atlantic Business Council – More Information