TTIP&TRADE in Action – June 22, 2016

Please join the Atlantic Council’s EuroGrowth Initiative for a conversation with European Trade Commissioner Cecilia Malmström, on Wednesday June 29, 2016 from 1 p.m. to 2:15 p.m. in Washington, DC for a stock taking of TTIP negotiations ahead of the 14th round of negotiations in July 2016.

H.E. Cecilia Malmström, European Commissioner for Trade, European Commission
Ms. Laura J. LanePresident, Global Public Affairs, UPS
Mr. Richard L. TrumkaPresident, American Federation of Labor & Congress of Industrial Organizations
Moderated by Mr. Joe SchatzEditor, Politico Pro Europe

Register for the event here. Not in Washington DC? Join us via webcast!

In Focus: Bremain vs. Brexit

With the British referendum approaching fast on June 23, we will dedicate this week’s “in focus” section to coverage of the “Brexit Vs. Bremain” debate. 
Want to join a conference call on the implications of the referendum? See the details here
Atlantic Council Director Proposes European Integration Solutions
Director of the Atlantic Council’s Global Business & Economics Program, Andrea Montanino, proposed five reforms for the European Union, regardless of outcome of the British referendum. They focus on establishing the Capital Market Union and the Digital Single Market, in addition to greatly simplifying the European regulatory apparatus and issuing Eurobonds. (Marketwatch)
London Riches Falling Down
The Atlantic Council’s Global Business & Economics Program‘s latest EconoGraphic “London Riches Falling Down” explains how London’s financial services sector, the most developed in Europe, is put at risk by the possibility of Brexit.

Atlantic Council’s Ashish Kumar Sen “Brexit or Bremain, What the EU Desperately Needs is Reform
The Wall Street Journal’s Simon Nixon on the Negative Ripple Effects of Brexit
Chairman of the National Foreign Trade Council Alan Wolff on How a Brexit will Complicate Free Trade
British Prime Minister David Cameron Channels His Inner Churchill for “Remain” in the Financial Times
IMF’s Christine Lagarde Presents Case for European “Unity in Diversity”
New York Times’ Roger Cohen on “The European Power Imbalance Created By Brexit
Bloomberg Video Debunks Important Economic Misconceptions About Brexit
LSE Economist Nicholas Barr Publishes Viral Pro-Remain Piece
JK Rowling Publishes “Remain” Piece “On Monsters, Villains and the EU Referendum” 
Founder of Virgin Group Richard Branson Launches “Remain Campaign”

Speeches & Announcements 

Malmström Discusses TTIP and Developing Countries 

“Some believe that the European Union’s trade policy should solely focus on gaining economic advantages for the European Union. I do not agree with that view…Our job here in Brussels is to project and defend our interests. If we don’t, no-one else will. But our job is about more than that. Because we are a union of values as well as a union of interests.”

Earlier this week, EU Trade Commissioner Cecilia Malmström spoke to Members of the European Parliament’s committees on development and international trade about the relationship between TTIP and developing countries. She underlined the centrality of development as an objective of EU trade policy and explained clearly why the impact of TTIP on developing countries was likely to be positive – most importantly as it would drive global demand. (European Commission

Michael Froman Discusses TTIP and Brexit
“You don’t really get to vote on automation. You don’t really get to vote on globalization. Trade agreements is what you get to vote on. So it becomes the vessel into which people pour a lot of their quite legitimate concerns about the economy.” 

In an interview with Bloomberg, United States Trade Representative Michael Froman stated that while Brexit would complicate TTIP negotiations, it was also “up to the British people” to decide whether their country, which is very open to free trade, would remain in the European Union. He also stated that trade agreements are the best way for the United States to shape its values to make globalization work for American workers. (Bloomberg


Hatch Says TPP Passage Will Open Door for TTIP
After a congressional hearing on digital trade and counterfeiting, Senate Finance Committee Chairman Orrin Hatch stated, “If we get TPP done, TTIP should come along.The TTIP people are learning a lot from what’s happening on TPP.” He described TTIP as very important to setting international trade standards for the future. (POLITICO)

TTIP Action Partners

Would you like to hear how you can partner with the Atlantic Council and our trade work? Click here and learn more!


Recent Analysis

Paradoxical Protest of TTIP
The Cologne Institute for Economic Research conducted a survey of TTIP skeptics in Germany. Two out of every three TTIP skeptics have a positive opinion of free trade, and almost just as many hold the view that globalization can benefit economic growth. However, it seems that these naysayers are conflating high negative sentiment towards the European Union’s democracy and trustworthiness with dissatisfaction towards TTIP. Supporters in other European countries view the trade agreement as a chance to improve the economic conditions in their own country, while this is not a priority for powerhouse economy Germany. (Cologne Institute for Economic Research)
How Lowering Trade Barriers Can Revive Global Productivity And Growth
New research from the International Monetary Fund shows that easing barriers to international trade and foreign direct investment (FDI) could boost productivity and output. Also, trade liberalization in upstream industries that use intermediate inputs matters more for sector-level productivity than liberalization in the sector itself. This is especially true for countries that are more open to FDI. (Seeking Alpha)
The US-German Case for TTIP
Chairman of the German American Chambers of Commerce of the United States and President of American farm equipment manufacturer AGCO Martin Richenhagen described how the agricultural business and machinery sectors need to be more vocal in supporting TTIP, because it will serve their interest and that of American and European customers. In the next five years, TTIP would increase transatlantic exports by more than $150 billion and GDP by about $250 billion, in addition to creating half a million high-paying jobs. It will also give German consumers greater purchasing power and uphold the European Union’s high labor standards. (Handelsblatt)
The Obstacles to TTIP 
In its latest economic report, French bank BNP Paribas analyzes the progress made on TTIP and the points that still need resolving. These include the disparity between the European Union’s mostly open public markets, and the US market, which through the “Buy American Act” of 1933, favors domestic products and is only waived in certain circumstances. (BNP Paribas)


TransPacific Partnership – News & Analysis

Varying Prospects for Lame Duck TPP Passage
Executive Director of the Singapore- based Asian Trade Center Deborah Elms is optimistic that during President Obama’s “lame duck” session from November to January, “TPP is the first thing on the agenda of unpopular things that will get done.” Meanwhile, others believe that Republicans who have lost their congressional elections will use the lame duck period as an opportunity to snuff out the accomplishments of this Democratic administration, including TPP. (Radio New Zealand
Financial Services Regulations for TPP
Following the Treasury Department’s release last month of inclusive language for financial services providers who were inconvenienced by a TPP rule that prohibits forced local data storage, the legal text is now being approved by other departments and for viewing by trade advisers from certain firms. This language would apply to a separate services trade deal that includes seven TPP countries: Australia, Canada, Chile, Japan, Mexico, New Zealand, and Peru. As for the other members, the White House will address their concerns on a bilateral basis. (POLITICO)
Michael Froman on the TPP
United States Trade Representative Michael Froman discussed the importance of using the TPP to “embed” both economically and strategically with the Pacific Rim region. The TPP is a key way to enforce a rules-based system, and Froman warned that the embrace of more “static, mercantilist” systems will open the door for China to implement a trade agreement with lower standards. He also mentioned that every industry was included in, and mostly embraced, the TPP. (Council on Foreign Relations

The Bigger Picture – Trade in Action

Updates on United States-Canada Softwood Lumber Agreement
United States Trade Representative Michael Froman, and Canada’s Minister of International Trade Chrystia Freeland issued a statement in which they reaffirmed the importance of overcoming differences in the North American softwood lumber trade. They have been “meeting intensively” for the past 100 days in government-to-government sessions, and meetings with stakeholders, state and provincial government officials and legislators, and producers. The two stated that Canada and the United States have made “significant advances” in the agreement. (Office of the United States Trade Representative
The Tariff Debate Continues for Environmental Goods Agreement
As the latest round of negotiations for the Environmental Goods Agreement (EGA) begins in Geneva, there are two camps on tariff reductions. Most of the seventeen WTO nations in the EGA want to completely remove tariffs on a specific list of goods, whereas China wants to maintain a five percent tariff on some of the goods. From now until Friday, these two sides will be trying to meet in the middle on which products to include and which tariffs to either eliminate entirely or keep. (POLITICO)
WTO Releases Report on G20 Trade Measures
The latest WTO report on trade restrictiveness finds that G20 economies applied 145 new trade-restrictive measures in the period between mid-October 2015 and mid-May 2016, a ten percent increase since 2009. Less than a quarter of new trade restrictions are rolled back. The WTO stated that “in the midst of this uncertainty, G20 economies must lead by example in the fight against protectionism by rejecting new trade-restrictive measures and rolling back existing ones.” (World Trade Organization)

Upcoming Events

National Economists Club and Stuart Mackintosh, Group Of Thirty: ‘The Brexit Referendum’ – June 22, in Washington – More Information
More In Common: Brussels Celebrates Jo Cox – June 22, in Brussels – More Information
Talking TTIP with European Trade Commissioner Cecilia Malmström – June 29, in Washington – More Information
North American Leaders’ Summit – June 29, in Ottawa – More Information
International Trade (INTA) Committee Meeting – June 30, in Brussels – More Information
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