Ppresident Obama and Chancellor Merkel’s hopes of getting the Transatlantic Trade and Investment Partnership trade deal finalised by December 2016 were dashed when it was revealed that EU and US trade negotiators have not as yet finalised a single chapter in the 30 chapter treaty.
Citing “fundamentally different views” it is reported that whole areas of the agreement have not even been addressed. One sticking point is the US’s ‘Buy American’ clauses which stop EU companies from taking part in the bidding process for some US government contracts. US negotiators are refusing to budge.
Another sticking point are the infamous ISDS courts which will sit to adjudicate on disputes between countries, investors and companies. The USA is demanding the courts are held in secret whereas the EU – under public pressure see them as a threat to democracy and sovereignty and is proposing public courts with a built in appeal systems.
The failure to make progress on any of the thirty chapters mean TTIP is looking increasingly compromised. What has been agreed are ‘consolidated texts’ – which are in effect ‘written offers’ from each side – but have little bearing on securing any agreement.
Chancellor, Merkel has said she that she wanted to reach an agreement before President Obama leaves office in January next year.
There is strong public opposition to TTIP in Germany – the German trade union movement has expressed its severe concerns that the trade deal will undermine employment, consumer and environmental protections.
This opposition has spread to senior German government officials such as Economics Minister Sigmar Gabriel, who has been distancing himself from TTIP in recent months. Mr. Gabriel has cast doubt on the future of the negotiations.
“After three years of negotiations, results have to finally be achieved or there will have to be an honest appraisal of where the negotiations currently stand,” he said. “If there isn’t progress on key questions, then we in the federal government will have to make an honest evaluation.”
EU Trade Commissioner Cecilia Malmström (an enthusiastic champion of the new generation of free trade deals with the US, Canada, Mexico and Korea) and US Trade Representative Michael Froman are planning to review to the negotiations in September. Ms Malmström will also meet with Mr. Gabriel and ministers from the other EU member states.
If Ms Malmström and ministers decide that a trade agreement is still possible it is anticipated that negotiations will move to EU Commission President Jean Claude Junker, President Obama, Chancellor Merkel and President Hollande. Interestingly, there has been no mention that UK Prime Minister Theresa May will be invited to take part – no doubt part of the freezing out of the UK following Brexit.
Even so such a meeting will only deal with the heads of agreement on ISDS courts and the US public procurement process.
