The 12th round of TTIP negotiations is scheduled for the week of February 22, in Brussels. Catch up on the results of the 11th round here.
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Graphic of the Week
TTIP Divides Public Opinion in Europe
Source: Atlantic Council
The graphic shows that there is still a strong need for the governments to engage in open and constructive dialogue with the public to take concerns into account while helping their electorates to separate myths from fact, and communicating the benefits of a deep and comprehensive TTIP for business and consumers alike.
Learn more about the Global Business & Economics program’s weekly EconoGraphic here.
Speeches & Announcements
TTIP – A Chance for Small and Medium sized Enterprises
“We think the potential for TTIP to help SMEs is even greater because there are so many SMEs in Europe and the United States, many of whom have not exported. These SMEs continue to face obstacles when seeking to export to the other side of the Atlantic.” – Anthony L. Gardner, US Ambassador to the European Union
Speaking to members of parliament, policy makers, and representatives of the business community at the European Parliament on January 26, US Ambassador to the European Union, Anthony Gardner gave real examples of SMEs’ ongoing difficulties with transatlantic commerce given existing trade barriers, and talked about how a special SME chapter in TTIP could help SMEs overcome these hurdles. (US Mission to the EU)
DG Trade Statistical Guide 2016
On January 26, the Directorate-General for Trade of the European Commission released the most recent guide to EU Trade since 2004. This statistical trade guide comprises selected tables and graphs that outline the current state of and recent developments in the European Union’s trade with the rest of the world. The full report can be found on the Directorate General Trade’s webpage.(European Commission)
EU Commission and United States Agree on Framework for Transatlantic Data Flows: EU-US Privacy Shield
On February 2, the European Commission and the United States agreed on a new framework to protect the rights of European citizens regarding transatlantic data transfers while ensuring legal certainty for businesses. The new arrangement will include strong obligations on companies handling Europeans’ personal data and robust enforcement, clear safeguards and transparency obligations on US government access, and effective protection of EU citizens’ rights with several redress possibilities. European Commission Vice President Andrus Ansip and Commissioner Vera Jourova will be spearheading the implementation. (European Commission)
News
Briefing on Trade: TTIP Negotiations, Market Economy Status for China, TiSA & Trade Council
Reporter for EU Trade Insights, Joanna Sopinska, gives a briefing on the EU’s trade issues for the first half of February. A draft report by Vivian Reding on TiSA that won a large majority of support at the International Trade Committee in January is expected to fly through the EP Plenary. EU Trade Commissioner Cecilia Malmström will reply to questions over China’s request for Market Economy Status (MES) and procurement issues are expected to be the focal point of the next round of TTIP negotiations, scheduled for February 22 in Brussels. (viEUws)
Member States with Long-Standing US Trade Ties to Gain the most from TTIP
According to an extensive report published last week by the World Trade Institute and the American Chamber of Commerce to the European Union, the implementation of TTIP would result in GDP level increases for every EU member state, with nations that are already integrated in the global value chain with the United States expecting the largest increases. Researchers attribute the negative impact on Malta’s economy to its predominant economic ties to China and Canada. (EurActiv)
European Union Seeks to Bring US Trade Talks Towards a Close by Summer
At a news conference at the end of talks between EU trade ministers in Amsterdam earlier this week, EU Trade Commissioner Cecilia Malmström talked about the potential timeline for TTIP, stating “we have to be approaching the endgame by the summer.” Negotiation rounds are scheduled for February, April, and July, with the the goal to have consolidated text on most issues. Malmström also said, “I have no other mandate for a balanced, comprehensive and fair deal,” implying that no aspect of the deal will be brushed over for the sake of speed, but there is no doubt the parties would like to conclude negotiations during the Obama administration. (Reuters)
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Recent Analysis
TTIP is Too Important to Fail
German Marshall Fund fellow Erik Brattberg writes for Europe’s World about the intangible importance of TTIP. The Eurozone crisis, developments in the South China Sea, the refugee crisis, ISIS, and Russian aggression are among the many things contributing to decreasing trust in established political institutions in Europe and the United States. To the author, TTIP can pave the way to an even deeper and more strategic transatlantic relationship and is an opportunity to underpin the international liberal order at a time of global power shifts. Brattberg concludes “In short, TTIP is an essential ingredient for bringing out a “transatlantic renaissance” in the 21st century.” (Europe’s World)
A Push for TTIP
The Minister of Enterprise and Innovation of Sweden, Mikael Damberg, writes about the importance of international trade for the competitiveness of the Swedish economy, which has a long tradition of promoting free and open trade. To him, the rules of trade should always reflect the evolution of trade. Therefore, as a proponent of progressive international trade agreements, he pledges support for the successful and timely conclusion of an ambitious TTIP agreement that ensures the protection of the environment, labor interests, and public health. (Huffington Post)
The Ambassador Filled Us in on Trade, TTIP, and What Makes America Cool
Last week EU Ambassador to the United States David O’Sullivan made his first trip to Delaware to meet with Governor Jack Markell and business leaders to talk about TTIP. Given that nearly 40% of Delaware’s exports go to Europe, TTIP could have major benefits for the state. Chemicals, in particular, are costly to export because of separate testing requirements in the European Union and the United States. Dual procedures like this are an excellent example of inefficiencies TTIP aims to eliminate. (Technical.ly)
What is the Difference Between TPP and TTIP, and why They Are Both Important
Michael Czinkota, former Deputy Assistant Secretary of Commerce in the US Department of Commerce and Valbona Zeneli, professor at the George C. Marshall European Center for Security Studies, write for The Diplomat about the differences between TPP and TTIP, and why, ultimately, TTIP is more ambitious. In addition to to the financial and economic benefits, TTIP will have a larger geo-strategic impact, since it reinforces the strong economic ties and the strong defense relationship that exist between Europe and the United States. It is in this way that the TTIP will have greater implications than the TPP in shaping the future global landscape. (The Diplomat)
TPP News & Analysis
First In-depth Briefing on the Realities and Impact of TPP
On February 2, the Peterson Institute for International Economics released a collection of essays analyzing the market opening and sectoral aspects of the TPP. The essays provide in-depth analysis of the overall economic effects, and the impact on tariffs, agriculture, autos, textiles, government procurement, services, financial services, investment, and ISDS. The essays conclude that myths about investor protection, health, and safety are largely unfounded; but that the agreement also fails to deliver on some of the more ambitious goals set at the onset of negotiations. (Peterson Institute of International Economics)
The collection of essays can be accessed here.
The Trans-Pacific Partnership – The View from the Obama Administration
Senior Fellow of Governance Studies at the Brookings Institution, William A. Galston, summarizes comments made by a senior Obama administration official at a background briefing for journalists and fellows. The official showed strong support for the agreement, highlighting many benefits beyond economics. Speaking on China the official stated, “If we get TPP done, China is going to have to live in a TPP world. China’s neighbors have signed up for standards that will make them attractive places to do business.” On the overall proliferation of trade he agreements he said, “The choice isn’t between TPP and the status quo. It’s between TPP and the direction the world is heading.“(Brookings Institution)
The Bigger Picture – Trade in Action
Globalization Means Worldwide Trade Pacts Needed
Rex Merrifield, writing for the EU research and innovation magazine Horizon, talks about the continuing importance of global-level trade pacts in the medium and longer term, despite the current trend towards bilateral and super-regional trade agreements. Although super-regional agreements have the potential to shape the rules of global trade, their benefits may be limited in the future if they are not structured in a way that can be extended more broadly as globalization and the inter-connectedness of markets continues. (Horizon)
EU-Vietnam Free Trade Agreement (FTA) now Available Online
As of February 1, the full text of the EU-Vietnam FTA, which was concluded in January, is available online, as well an in-depth analysis of the points of the agreement. European Commissioner for Trade Cecilia Malmström emphasizes that making the text of the FTA available to the public within weeks of the agreement is “in line with our strong commitment to a transparent trade policy. (European Commission)
The official text of the agreement can be found here.
Cecilia Malmström’s blog entry about the FTA with Vietnam can be found here.
An in-depth analysis on the human rights and sustainable development aspects of the deal can be found here.
European Commission Takes Action to Open Up International Procurement Markets
Although the European Union has made it a priority to be an open market, many of its trading partners use discriminatory practices against EU businesses. In an effort to combat restrictive procurement practices outside of the European Union, the European Commission has proposed a revised International Procurement Instrument that would allow the Commission to initiative public investigations against discrimination of EU companies in procurement markets. Opening up non-EU markets for European companies would lead to public savings, increased transparency, creation of jobs and growth in the European Union and the country in question. (European Commission)
Upcoming Events
Opportunities and Potential of TTIP – February 29, 2016; hosted by thre Bavarian Trade Union in Passau, Germany – More Information