Last week met in Hanover several international representatives aiming to advance in the TTIP negotiations. Far from being accepted by the majority, there are numerous detractors who consider this agreement violates fundamental rights.
3 may 2016
Commonly known as TTIP, the Transatlantic Trade and Investment Partnership (TTIP) is now more topical than ever due to the meeting that last week took place with Barack Obama, Angela Merkel, François Hollande and the Prime Ministers of United Kingdom and Italy in Hannover. A meeting to establish the agreement that will create the biggest free trade zone in the world.
Far from being a beneficial treaty for global economy –Brussels estimates at 100,000 million euros the benefits for the EU and USA–, there are many detractors who consider this agreement a threat for employment and for European social and environmental rights. The critics also point to the lack of transparency in the process.
Private arbitrations
The TTIP proposes the creation of private courts of arbitration aiming to protect foreign investment. The United States consider that it would serve to penalise expropriation and discriminatory treatment. On the contrary, France and Germany express their nonconformity when understanding that multinationals can impose their criteria against legislators. For now, the European Commission has proposed creating neutral professionalised courts.
Tariffs
The agreement could reduce the taxes to goods, which would cheapen importations and exportations. Nowadays, the EU taxes the goods from the United States with a 5,2%. Conversely, the percentage is 3,5%. While in the European Union the highest taxes are applied to the importation of motor vehicles and processed food, the United States penalise the purchase of railway equipment and the importation of agricultural products with a 350%.
Other measures
But coming to an agreement between the EU and the United States poses the question of how to regulate different legal frameworks. For example, the European legislation is more strict in terms of transgenic food, exploitation of hydrocarbons, fracking techniques and labour rights. By their part, the United States are reluctant to restrict the Buy American act, which privilege the use of American products in public contracts.
International opposition
Environmental groups, humanitarian organisations, unions, political parties and a large proportion of society oppose to the TTIP. On last 23 April, 25,000 people according to the police and until 90,000 according to the organisers protested in Hanover to try to stop from signing it. Detractors take as example similar agreement that did not have the expected results:
- NAFTA (North American Free Trade Agreement)
- MAI (Multilateral agreement on investments)
- ALCA (Free Trade Area of the Americas)
- CETA (Comprehensive Economic and Trade Agreement)
- GATS (General Agreement on Trade in Services)
Next steps
The intention of the European Union and the United States is closing negotiations before 2016 ends. The next step is gaining ratification in the US Congress and in the European Parliament, institutions in which it could possibly be rejected. For the moment, the draft of the agreement is in middle game phase, in which both parts have signed 17 chapters.
Related new: http://links.uv.es/2tox2Kd
