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The Transatlantic Colussus - We have to broaden the debate on TTIP

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‘The Transatlantic Colossus: Global Contributions to Broaden the Debate on the EU-US Free Trade Agreement’ (2014), a publication from the Berlin Forum on Global Politics in collaboration with the ...

‘The Transatlantic Colossus: Global Contributions to Broaden the Debate on the EU-US Free Trade Agreement’ (2014), a publication from the Berlin Forum on Global Politics in collaboration with the Internet & Society Collaboratory and FutureChallenges.org of the Bertelsmann Stiftung.

http://futurechallenges.org/local/news/global-contributions-to-broaden-the-debate-on-the-eu-us-free-trade-agreement/

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The Transatlantic Colussus - We have to broaden the debate on TTIP The Transatlantic Colussus - We have to broaden the debate on TTIP Presentation Transcript

  • The Transatlantic Colussus Transatlantic Trade and Investment Partnership (TTIP) Photo by Chamarisk http://www.flickr.com/photos/chamarisk/400421377 CC BYNC-SA 2.0 25th of January 2014 Ole Wintermann (@olewin)
  • THE TRANSATLANTIC COLOSSUS EDITORS Daniel Cardoso Philani Mthembu Marc Venhaus Miguelángel Verde Garrido Global Contributions To Broaden The Debate On The EU-US FreeTrade Agreement A COLLABORATION BETWEEN Internet & Society Co llaboratory 2
  • These slides are a summary of the publication „The Transatlantic Colussus“. This brochure is a result of joined action by Berlin Forum of Global Politics, Internet und Gesellschaft Collaboratory and futurechallenges.org. Disclaimer ! The slides 10-28 are short summaries of the articles which are part of that brochure. Partly these are quotes out of the articles. For further questions you can contact the authors who are mentioned on every single slide.
  • Living in a democracy means… …taking all arguments in favor or against TTIP for serious
  • „The Transatlantic Colussus: A first step into a more reflected debate about TTIP TTIP - a perspective from the civil society 1. Magazine Sprint and CfP 2. 50 Participants/experts 3. 25-45 yrs 4. About 90% from universities 5. German/International
  • 1. A Transatlantic Partnership with Ripples Across the Oceans: 
 What does Africa Stand to Gain or Lose? 2. The TAFTA | TTIP and Agriculture: 
 Making or Breaking the Tackling of Global Food and Environmental Challenges? 3. The TAFTA | TTIP and Treatment Access: 
 What does the Agreement Mean for Intellectual Property Rights over Essential Medicines? Topics 4. TAFTA | TTIP: 
 New Dawn for Atlanticists, Sunset for Old Europe? 5. The Treatment of Non-Investment Interests in Investor-State 
 Disputes: 
 Challenges for the TAFTA | TTIP Negotiations 6. Why TAFTA│TTIP will not Live Up to its Promises 7. TAFTA | TTIP and TPP in Comparison: 
 Similar Interests, Unknown Outcomes 

  • 8. Public Protests and FTA Negotiations with the United States: 
 Lessons for the TAFTA | TTIP 9. Counting on the American Public to Be Informed on the 
 TAFTA | TTIP Talks? 
 Don’t Hold Your Breath 10.Differences in Regulatory Approach between the EU and the US. Topics Transatlantic Trade and Investment Partnership (TTIP) and its Impact on Trade with Third Countries 11.Tackling Regulatory Trade Barriers in the Transatlantic Trade and Investment Partnership 12.The TAFTA | TTIP Agreement: 
 ‘Old’ and Unsustainable? 13.Macroeconomic Effects of TAFTA | TTIP 14.Regimes Governing the Re-Use of Personal Data in the US and the EU: A Primer on Mass Surveillance and Trade
  • 15.The Strategic implications of TAFTA | TTIP: 
 Will it Engage or Contain China? 16.The Transatlantic Trade and Investment Partnership as a New Challenge to Emerging Powers
 A Divided Free Trade Order in the Making? Topics 17.TAFTA | TTIP
 No Thank You! That’s Not What a Transatlantic Partnership Means 18.Is TAFTA | TTIP a Race to the Bottom in Regulatory Standards? 
 The Case of Hormone-Treated Beef 19.Safeguarding Consumer Rights and Protection in the TAFTA| TTIP
  • ! ! Participation Public Protests Regulatory Trade Barriers Information Macroeconomic Effects Environmental Challenges Investor-State Disputes ! Issue Cluster Pure Economics TTIP and TPP ! Consumer Perspectives Geopolitical Aspects Personal Data China Lack of Sustainability Emerging Powers Global Food Third Countries Hormone-Treated Beef Old Europe Essential Medicines Africa ! !
  • Negative effects on Africa to be expected Especially in Africa TAFTA/ TTIP could have trade diversion effects. Geopolitical Aspects Solutions? -> minimizing their vulnerability by expanding intra-african trade -> further regional integration plus expanding trade with emerging powers -> BRICS’ development cooperation across Africa provides new strategic options
  • Regulation vs. East-European interests? Third countries such as Moldova, Georgia, Ukraine and Morocco will soon have Deep and Comprehensive Free Trade Agreements (DCFTA) with the EU Whereas the US requests from its FTA partners to implement WTO commitments and respective domestic legislation, the EU’s precondition in DCFTA negotiations is approximation of partner country’s trade related legislation to that of the EU Geopolitical Aspects The EU and US have different regulatory approaches to key areas covered by FTAs such as sanitary and phyto-sanitary measures (SPS) or geographical indications (GIs), which means that some US-originated products, such as Californian champagne or mozzarella, face trade restrictions in the EU Interestingly, the EU requests its DCFTA partners to apply the same restrictions on US products Unless the EU and US find a compromise on non-tariff barriers, the EU’s DCFTA partners will be forced to introduce trade restrictions on some US products once DCFTAs are implemented
  • TTIP only focused at quantitative growth TAFTA/ TTIP will significantly intensify the economic cooperation and trade between two of the most developed and powerful actors of the world TTIP will modify the current political, but also economic scenario, and this in of the context of worldwide climate change and the overconsumption of natural resources Geopolitical Aspects The question is, whether it can be guaranteed that the TTIP agreement will be sustainable in the medium and long term also from an environmental point of view – or will it be unsustainable by requiring more energy and resources and contribute the future costs of climate change The focus on creating jobs and economic growth is an existing risk if the sustainable use of resources and energy and the local production doesn’t find an equal frame in the TTIP agreement Before any free trade agreement is signed, the true impact and consequences in terms of emissions and pollution must be analyzed and evaluated ! ! !
  • Negative effects at EU-integration Currently the US is turning attention towards Asia-Pacific, the EU is preoccupied with themselves – for Atlanticists is this a weakening of the transatlantic relationship Geopolitical Aspects -> With TAFTA/ TTIP trade would be diverted from the intra-European area towards more EU-US trade -> lower regulation is probably one result -> TTIP leads to a relative decline of traditional European integration to the benefit of transatlantic integration -> especially economically strong member states would have fewer interests in preserving the integrity of the EU
  • TTIP excludes China explicitly A comparative perspective on TTIP, TPP and the EU-Japan agreement shows that the trade agreements are unprecedented in their comprehensive liberalization agenda Geopolitical Aspects All agreements show similar economic goals and besides, all have in common that they exclude China (World‘s 2nd largest economy) from their trade strategy Next negotiating rounds will show if this strategy of counterbalancing China‘s growing influence in trade will be successful or if China has the pressure to adapt some of the rules promoted by the EU and US
  • Which economic system should rule the world in the end? As China is moving up the supply chain, both the EU and the US have seen their export shares declining in markets that they have traditionally dominated The TAFTA | TTIP can be seen as the economic pillar of Washington’s security strategy addressing the challenge of a rising China Geopolitical Aspects TTIP along with TPP has the vision of setting the norms of world trade in the 21st century and pressure China to open up its economy and limit the support to State Owned Enterprises (SOEs) Chinese elites view the TAFTA | TTIP both as an opportunity and as a threat: -> On the one hand, an exclusive agreement may force China to follow a balancing strategy and form competitive regional trade blocks -> On the other hand, an open and transparent TAFTA | TTIP may well engage Beijing to liberalize its economy, and seek to constructively reform rather than expel the current liberal global order
  • TTIP a reactionary move towards old bipolar thinking Financial crises led both US and EU to the relative loss of their global economic power – Simultaneously, the BRICS catched up with an impressive economic growth and extended their influence in multinational organizations Geopolitical Aspects Now, times seem dire enough for the old transatlantic partners to close the ranks by creating the biggest preferential trade agreement ever: TAFTA/ TTIP has the potential to become a game changer TAFTA | TTIP offers a way to set up new rules and norms based on EU/US interests that could no longer be carried through within the framework of the WTO TAFTA | TTIP provides a strategy to contain the rise of China and other emerging powers by manifesting a new trench system of global trade, undermining production networks and diverting the flow of goods In conclusion, TTIP is a reactionary move in the global geo-economic game and a warning that our world might become more divided than united TTIP is merely working as a brake for the ongoing process by buying some additional time for the West to prolong its global preeminence ! !
  • Economic growth but ambiguous 3rd country results According to a purely macroeconomic perspective, a comprehensive free trade agreement between the US and EU is beneficial for both parties The removal of barriers of trade reduces the costs of trade activities between the contracting economies ! Pure Economics Although different model calculations arrive at different quantitative conclusions, all calculations share the assessment that TTIP will increase real gross domestic product and employment in the US and in the EU Estimates about the economic consequences for third countries are ambiguous: ! On one side, intensified trade links between the US and the EU take place at the costs of growth and employment in the rest of the world ! Otherwise, negative impacts could be compensated by a global growth impulse generated by TAFTA | TTIP Now it is not possible to decide which scenario is more likely. This questions can be answered in another 10 to 20 years ! ! !
  • Risk of undemocratic arbitration claims in a democratic system ! Pure Economics ! ! Investment claims brought by investors have dramatically altered perceptions of investment law and provoked criticisms of democratic deficit inherent in this regime The TTIP-negotiations risk producing an unintended, costly and undemocratic burden on EU member states who may become a target for arbitration claims The occasion of the TAFTA | TTIP negotiations might however provide an opportunity to address such criticisms, and to effect much needed changes in ISDS
  • Regulation: Race to the Bottom? ! Pure Economics ! ! A critical deconstruction of the argumentation in favor of the agreement shows that benefits could only be achieved if the agreement succeeded in harmonizing a large share of divergent EU-US standards But this agreement won‘t set global standards but leads to deregulation and has only bilateral advantages – third countries are excluded
  • Participation: 2 sides of a coin ! While former EU FTA-negotiations didn’t receive a lot of attention, trade negotiations with the US are often accompanied by massive public protests in the partner countries ! Public protests can tie the hands of the national government in negotiations, in particular, if the protests come from their own constituency. Participation While secret negotiations between the state actors assure a sufficient room for bargaining to achieve an agreement, an open consultation and inclusion of civil society lowers the intensity of possible social conflicts which could hinder cooperation Besides, civic participation increases the legitimacy of an agreement at national level and leads to better mutual understanding at the international level !
  • Media have to bring light into that elitist debate ! Generally the US media is covering a one-dimensional, matter-of-fact report – a deeper problematization of the topic is missing ! When the TAFTA | TTIP does receive press coverage, elite sources will be primarily referenced and mainstream media outlets and journalists will favor elite framing Participation For covering the public interest, some aims of the media must be to: 1) Explain the agenda in terms of domestic policy and possible precedents
 2) Craft a narrative geared towards the media’s personification and dramatization biases
 3) Present an easily recognizable and authoritative affiliation

  • TTIP guarantees pharmaceutic business model New opportunities for the pharmaceutical lobby have been created through: -> increased proliferation of regionally based regimes for trade/investment liberalization Consumer Perspectives -> reduced standards for what counts as a “new” invention -> facilitating evergreening of patents -> effectively extended patent terms beyond the period designated in the TRIPS -> data exclusivity rules -> limited ability to challenge patent applications
  • Unclear impact on global agriculture remains The recently commenced TTIP-negotiations are likely to have an impact on transatlantic and global agricultural and environmental regulation Consumer Perspectives -> A global trade regime that is able to face the pressing food and environmental challenges depends on whether the two global players are able to arrive at concerted efforts -> Whatever the outcome will be, it is unlikely to significantly contribute to global challenges of environmental sustainability
  • TTIP maybe a starting point for regulatory cooperation The emphasis on tackling the trade barriers has generated some excitement, with large figures being thrown around as estimates of the resulting economic gains Consumer Perspectives But regulatory divergence like in the area of Genetically Modified Food (GMO) worries EU citizens. While some claims of potential benefits are overstated, this does not mean that facilitating regulatory cooperation is not worthwhile TTIP offers a good starting point for regulatory cooperation on a multilateral basis Negotiators should put aside some of the more contentious regulatory disputes, and be responsive to the needs of industry and consumers by focusing their attention on issue areas where they can have the greatest impact
  • EU should use TTIP negotiations for better data protection A difficulty of TAFTA/ TTIP are the differences in the regimes of the trading partners: Whereas the international trade regime is an EU competence, the national security is not As for the re-use of personal data, some of that data is processed in ways relating to trade such as airline records and financial data Consumer Perspectives Other ways of re-using personal data, though, concern national security in EU member states, and hence cannot be part of TTIP negotiations Moreover the Snowden revelations threatened to derail the TTIP negotiations before they even started Strategically, it will matter whether the EU or the US has the stronger interest in concluding an agreement. Business interests in America may be pushing for trade policy to trump EU data protection If the Americans are not willing to compromise, the Europeans might find that a trade agreement is not the venue with the best chances of success regarding data protection
  • ! TTIP is an indicator for old style pure economic thinking TAFTA | TTIP does not provide answers to many important questions: -> How do we want to live? Consumer Perspectives -> What is a ‘good life’, without the exploitation of people, animals and the environment? -> How can we work within the planet’s natural limits and guarantee good, fairly paid work? -> How can we achieve food sovereignty for everyone? The society needs more economic solidarity, protection of smallholders, and an economy and agriculture orientated towards the common good, in times of environmental, economic and social crisis Besides, there is a need of effective consumer and data protection and protection against the financial interests of international corporations
  • TTIP fosters unsustainable cattle breeding US beef that has been treated with growth hormones is an example that shows what threats a potential lowering of standards could entail, while government and corporations work out a deal over the consumers’ heads Consumer Perspectives Sex hormones are injected into the cattle to promote faster growth – since farmers are paid for the weight of the animal, hormones are good for their profit Hormone practices are prohibited since 2003 in the EU, as the hormones have tumour-promoting effects Aside from the threat hormones could pose to humans, one has to also keep in mind that an accelerated growth and increase of cattle is means also an increase in CO2-Emissions
  • TTIP jeopardizes consumer rights Core consumers policy areas in the negotiations concern: -> food production and agriculture, -> data protection, -> intellectual property rights, -> financial services, Consumer Perspectives -> medical devices, -> environmental and chemicals regulation Consumers on both sides of the Atlantic risk losses of existing protective measures The negotiation process has been characterized by a lack of transparency and the lack of inclusion of civil society In these areas, the US and the EU apply very different standards as their regulatory approaches, while governmental objectives are often contradictory There is a real risk that longstanding and absolutely necessary safeguards will be declared trade obstacles and consequently lowered
  • TTIP means Quantitative growth instead of qualitative growth „Free Trade“ based on offline thinking models Elitist decision making instead of modern participation Trying to summarize Corporate interests instead of consumer rights Bilateralism in times of inclusiveness and globalization Politics of power in times of upcoming „One World“ generation Mistrust against globalization as a pre-condition for social justice Rebirth of deregulation hype Materialism instead of inclusive growth ! It doesn´t matter if all that is true, it matters that this is the perception
  • Solution ! Redefined Free Trade in an online world Refocussing at democratic values Transparency no classified docs Participation online feedback platform Surveys asking consumers for their preferences