USTR Michael Froman and European Commissioner for Trade Cecilia Malmström meet this week ahead of the next round of TTIP negotiations in October in Miami, Florida. (Foto: USTR.gov)This Week’s Trade Highlights
On the European side, the European Union and Japan concluded the 12th round of talks towards a free trade agreement, while the Greeks voted for the fifth time in six years- and Tsipras won his third mandate in eight months. Earlier this week, the European Parliament’s Committee on International Trade held their first debate on the court system that is supposed to replace ISDS in TTIP.
After her visit in Poland last week, EU Trade Commissioner Malmström spends this week in the United States to meet with USTR Michael Froman among others to progress TTIP talks ahead of the next round of negotiations in October.
Commissioner Malmström is joined in DC by the Pope who will mainly talk about poverty, social justice, climate change, and peaceful institutions and societies. Chinese President Xi Jinping who also arrived in the US earlier this week, has promised that China is against competitive depreciation or currency war and won’t depreciate the Yuan to boost exports but instead is committed to economic reform.
Treasury Secretary Jack Lew calls on China to reaffirm reform commitments and to demonstrate their intent to allow the yuan to be subject to upward pressure that would drive the currency up, not just down.
If you want to refresh your knowledge on China because President Xi is in town, check out this video of last week’s Atlantic Council event on the Internationalization of the Chinese currency.
Speeches and Official Announcements
Malmström and Froman Discuss TTIP in Washington
“We need to intensify the pace of our negotiations. That means stepping up efforts on both sides. Today’s meeting took place in a constructive spirit, and we have a good momentum going forward to the next negotiating round. In the technical talks preceding the next round, we will instruct our negotiators to exercise creativity and flexibility in order to achieve progress in all areas.”– Cecilia Malmström
On Tuesday, European Commissioner for Trade Cecilia Malmström met with US Trade Representative Michael Froman in Washington to discuss upcoming negotiations and supplementary technical talks for the next round of TTIP negotiations in October. Both sides are looking to increase the speed of negotiations and overcome some of the remaining barriers. While in the US, Commissioner Malmström will also meet with the Secretary of Agriculture, the Deputy NSA for International Economic Affairs, and the President of the AFL-CIO. (European Commission)
If you want to meet Commissioner Malmström while she is still in the United States, check out our “Upcoming Events” section below for details.
US Ambassador to EU Discusses TTIP
“There are manifest economic benefits of a deal, including providing a debt-free stimulus to jobs and growth, needed on both sides of the Atlantic, but above all here in Europe. There are also real and important geostrategic benefits. T-TIP is an effort to actively shape the global trading system and promote a race to the top in terms of standards, rather than engage in a race to the bottom.” – Ambassador Anthony Gardner
On September 18, US Ambassador to the EU Anthony Gardner spoke at the American Council on Germany. The Ambassador spoke about TTIP, migration issues, cooperation on defense issues, and many other areas on the Transatlantic Agenda. In discussing TTIP, the Ambassador stressed the importance of TTIP for its range of economic benefits as well as how it would strengthen the transatlantic partnership and make the US and EU leaders on global standards in trade. (US Mission to the EU)
News
Crucial TTIP Talks to be Held in October
The 11th round of negotiations for TTIP are planned for late October in Miami. While both sides are hoping to make significant progress, there is some concern in Europe that the US is more focused on negotiations for the TPP, stalling progress on TTIP. Negotiators want to make progress in October so that a framework for a final deal can be completed sometime in 2016. (Politico)
Malmström Urges EU Leaders to Make Case for TTIP
Speaking at a Politico event late last week, Commissioner Malmström urged EU member state governments to be more engaged in arguing for TTIP in the face of significant media criticism of a deal. She made clear that governments need “to explain the value of TTIP to their citizens” and make clear that they are backing the Commission’s efforts to negotiate a deal. (Politico)
Portugal Could See Huge Investment Boost from TTIP
In an interview with the magazine EuropeanCEO, Miguel Frasquilho -the head of AICEP, a Portuguese public business entity- discussed the potential benefits of TTIP to Portugal. He suggested that Portugal’s geographic position on the Atlantic as well as comparatively low labor costs make it a significant investment target, and that TTIP would further enhance investment. (EuropeanCEO)
TTIP Great for Houston and Germany, but Struggles in Popularity in Germany
An article for Houston Public Media discusses the potential benefits of TTIP for both sides of the Atlantic. In Houston specifically, there would be significantly increased shipments through the Port of Houston as chemicals, communications equipment, and other technologies would face significantly lower tariffs. The article also notes the discontent with TTIP in Germany, but points out that the German economy, heavily relying on exports, only stands to benefit from TTIP which would further increase exports. (Houston Public Media)
TTIP Action Partner
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Recent Analysis
The Economics and Security Benefits of a Successful TTIP Are a Package Deal
In a piece for the Cato Online Forum, Phil Levy argues that TTIP is in many ways a security agreement as well as a trade agreement. He points out that TTIP is likely to complement and show renewed commitment to NATO and further integrate the transatlantic community. He also suggests that an agreement would help counter some of the increased Euro-skepticism that has undermined European solidarity over the last several years. (Cato Institute)
TTIP Aims to Set New Global Trade Rules, But Much Depends on How Others Respond
In another article for the Cato Online Forum, Vinod Aggarwal puts forward a number of different avenues third-party countries could pursue if there is a successful agreement on TTIP. He suggests a number of different ways that standards put in place through TTIP could spread to future trade agreements, adoption through the WTO, or unilateral adoption by other countries, and that the way these rules spread will influence the global trading system for years to come. (Cato Institute)
Ahead of its conference on TTIP on October 12th, the Cato Institute has had participants each publish a piece about TTIP. More contributions by conference participants can be found here.
Ahead of its conference on TTIP on October 12th, the Cato Institute has had participants each publish a piece about TTIP. More contributions by conference participants can be found here.
B|Brief TTIP – California’s Gateway to Europe
This Bertelsmann Brief points out that many people in California are currently focused on TPP negotiations but know little about TTIP, which could bring significant gains to California’s economy. A 2013 report conducted by the Atlantic Council, the Bertelsmann Foundation,and the British Embassy suggests that a comprehensive and fully-implemented TTIP could boost California exports by 26 percent and add over 75,000 jobs, the largest net employment gain of any US state. (Bertelsmann Foundation)
TTIP Would Benefit SMEs the Most
In an op-ed in the Leicester Mercury, MEP Emma McClarkin argues that contrary to public belief, TTIP would not allow big business to undermine regulations in Europe, but would actually provide more opportunities for investment in SMEs. To ensure the benefits for SMEs she suggests to include a chapter for them in TTIP, as well as reducing tariffs and unnecessary burdens, which will make it easier for SMEs to export to the United States. (Leicester Mercury)
Trade in Action
EU and Japan Conclude 12th Round of Talks for EU-Japan FTA
At the end of last week, the European Union and Japan concluded their 12th round of negotiations towards an EU-Japan Free Trade Agreement. While there are still significant obstacles in negotiations over agricultural products and auto parts, both sides are optimistic that a deal will eventually be completed. Japan is the EU’s 2nd largest trading partner in Asia after China, making this one of the EU’s most significant trade agreement negotiations behind TTIP. The next round of talks will take place in Brussels in October. (European Commission)
USTR Releases Detailed Summary of TPP Objectives
Earlier this week, the Office of the US Trade Representative released a detailed summary of the most recent US negotiating objectives on the Trans-Pacific Partnership (TPP). The report is part of continued Administration efforts to make trade negotiations accessible and transparent to the public and their representatives in Congress. (Office of the United States Trade Representative)
Can the WTO Regain its Importance?
This article by the South African Institute for International Affairs analyzes the WTO’s decline in importance and the subsequent increase in regional and bilateral trade negotiations. It suggests that stalled negotiations are a result of competing visions of what the WTO should be and what kinds of standards it should enforce. It also points specifically to the power of agriculture lobbies in many countries that have made progress to new WTO rules difficult. (allAfrica)
Upcoming Events
UK National Road Shows – June to December in the United Kingdom, hosted by the British American Business – More Information
TTIP Lecture with European Commissioner Cecilia Malmström– September 24 in New York City; hosted by the European Liberal Business Club – More Information
Open for Business: What TTIP Means for the UK Life Sciences Sector– September 24 in Oxford, hosted by British American Business- More Information
TTIP and Beyond: EU Trade Policy in the 21st Century- featuring Cecilia Malmström– September 25 in New York, hosted by Columbia University- More Information
The Free Trade Agreement between the EU and US-Solution or Problem? – September 28 in Stockholm, hosted by the European Parliament’s Information Office- More Information
A TTIP-ing Point for Europe in the World– September 28 in Berlin, Germany; hosted by the Jacques Delors Institute- More Information
Trade for Sustainable Development Forum 2015 – October 1-2 in Geneva, hosted by the International Trade Centre – More information
Will TTIP Live up to Its Promise? – October 12 in Washington DC- hosted by the CATO Institute- More Information
Transatlantic Leadership in Global Perspective – Challenges and Opportunities– October 19 in Bruges, Belgium- hosted by the College of Europe and the European Foreign Affairs Review- More Information
The Good, the Bad & the Ugly of Bilateral Investment Treaties: What Investors And Their Advisors Need To Know About Investment Protection When Investing In Foreign Countries – October 29 in New York, hosted by the European American Chamber of Commerce- More Information