TTIP the truth about trasallatic trade and investment partnership

Contents Cover Dedication Title Page Copyright Abbreviations Acknowledgements Introduction Why TTIP now? The negotiating process Beyond the hyperbole Notes Growth and Jobs A way out of the crisis Economic modelling and the ‘management of fictional expectations’ Modelling TTIP Contesting economic modelling Notes Setting Global Standards American decline and disillusion with market power Europe Regulatory cooperation: the devil is in the mode TTIP is unlikely to lead to global standards Notes The Bottom Line: Cutting Red Tape Regulation in the crosshairs of the global trade regime Regulatory politics in the EU and the US The business agenda on TTIP Concerns about regulatory chill remain Cutting red tape from two sides Deregulation as a bargaining chip Giving up policy space through investor protection Taking the politics out of regulation? Notes Challenging TTIP Changing patterns of mobilisation Changing patterns of mobilisation NGOs and the TTIP negotiations The difficulties in selling free trade A successful mobilisation? Notes Conclusion: Seizing the TTIP Moment Rethinking global trade politics At the service of citizens Three scenarios for TTIP Notes References Index End User License Agreement For Merel and Larissa TTIP The Truth about the Transatlantic Trade and Investment Partnership Ferdi De Ville and Gabriel Siles-Brügge polity Copyright © Ferdi De Ville and Gabriel Siles-Brügge 2016 The right of Ferdi De Ville and Gabriel Siles-Brügge to be identified as Authors of this Work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988 First published in 2016 by Polity Press Polity Press 65 Bridge Street Cambridge CB2 1UR, UK Polity Press 350 Main Street Malden, MA 02148, USA All rights reserved Except for the quotation of short passages for the purpose of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher ISBN-13: 978-1-5095-0105-2 A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Ville, Ferdi de T.T.I.P : the truth about the transatlantic trade and investment partnership / Ferdi De Ville, Gabriel Siles-Brügge pages cm Includes bibliographical references and index ISBN 978-1-5095-0101-4 (hardback) ISBN 978-1-5095-0102-1 (pbk.) European Union countries Foreign economic relations United States United States Foreign economic relations European Union countries North Atlantic Region Economic integration I Siles-Brügge, Gabriel II Title HF1532.5.U6V55 2015 382’.911821 dc23 2015019452 The publisher has used its best endeavours to ensure that the URLs for external websites referred to in this book are correct and active at the time of going to press However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the publisher will be pleased to include any necessary credits in any subsequent reprint or edition For further information on Polity, visit our website: politybooks.com Abbreviations ACTA Anti-Counterfeiting Trade Agreement AFL-CIO American Federation of Labour and Congress of Industrial Organizations ATTAC Association for the Taxation of Financial Transactions and Aid to Citizens BEUC Bureau of European Union Consumer Organisations BIT bilateral investment treaty CEO Corporate Europe Observatory CEPR Centre for Economic Policy Research CETA EU-Canada Comprehensive Economic and Trade Agreement CGE computable general equilibrium DG Directorate-General ECI European Citizens’ Initiative EDC endocrine disrupting chemical EP European Parliament EPA Environmental Protection Agency ESF European Services Forum ETUC European Trade Union Confederation EU European Union FDA Food and Drug Administration FQD Fuel Quality Directive FTA free trade agreement GATS General Agreement on Trade in Services GATT General Agreement on Tariffs and Trade GDP gross domestic product GMO genetically modified organism HLWG High Level Working Group on Jobs and Growth IA impact assessment IAB Impact Assessment Board INTA International Trade Committee of the European Parliament ISDS investor-to-state dispute settlement MAI Multilateral Agreement on Investment MEP Member of the European Parliament MRA mutual recognition agreement MRL maximum residue level NAFTA North-American Free Trade Agreement NATO North Atlantic Treaty Organisation NGO non-governmental organisation NHS National Health Service NTA New Transatlantic Agenda NTB non-tariff barrier NTM non-tariff measure OIRA Office of Information and Regulatory Affairs OSHA Occupational Safety and Health Administration RCB regulatory cooperation body REACH Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals REFIT Regulatory Fitness and Performance Programme RoHS Restriction of Hazardous Substances Directive S2B Seattle-to-Brussels Network SME small and medium-sized enterprise SPS sanitary and phytosanitary (measures) TABD Transatlantic Business Dialogue TACD Transatlantic Consumer Dialogue TAFTA Transatlantic Free Trade Area TBT technical barriers to trade TNI Transnational Institute TPA Trade Promotion Authority TPN Transatlantic Policy Network TPP Trans-Pacific Partnership TRIPS Agreement on Trade-Related Intellectual Property Rights TSCA Toxic Substances Control Act TTIP Transatlantic Trade and Investment Partnership UEAPME European Association of Craft, Small and Medium-Sized Enterprises UNECE United Nations Economic Commission for Europe US United States USTR United States Trade Representative WEEE Directive on Waste Electrical and Electronic Equipment WTO World Trade Organisation big business bilateral downward spiral erga omnes EU NTBs single market, creation of mutual recognition agreements see MRAs N NAFTA (North-American Free Trade Agreement) National Health Service see NHS national treatment NATO (North Atlantic Treaty Organisation) Natura 2000 neoliberalism New Transatlantic Agenda (NTA) NGOs (non-governmental organisations) EU European Commission GATT ISDS on OIRA reformist/rejectionist regulatory processes trade policy on transparency TTIP US NHS (National Health Service) Nicolaïdis, K non-governmental organisations see NGOs non-tariff barriers see NTBs non-tariff measures see NTMs normative critique of trade agreements trade conflict x North-American Free Trade Agreement see NAFTA North Atlantic Treaty Organisation see NATO NTA see New Transatlantic Agenda NTBs (non-tariff barriers) actionability BEUC on bias in figures ECORYS impact of deregulation mutual recognition neoliberalism regulations removal of Single Market NTMs (non-tariff measures) O Obama, B Occupational Safety and Health Administration (OSHA) Of Paradise and Power (Kagan) Office of Information and Regulatory Affairs (OIRA) Olson, M O’Neill, J OSHA see Occupational Safety and Health Administrationoutsourcing P Pareto efficiency Perot, R pesticides Peterson, J pharmaceuticals Polanyi, K., The Great Transformation policy ineffectiveness proposition precautionary principle preferential trade agreements Prestowitz, C private sector privatisation protection, social protectionism automobiles selfish Smoot–Hawley Tariff Act (1930) and trade liberalisation trade policy Public Citizen see also Global Trade Watch public health protection public services R race-to-the-bottom scenario Rasmussen, A F rational utility-maximisers Raza, W RCB (regulatory cooperation body) REACH (Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals) red tape convergence REFIT regulatory differences SMEs TTIP’s aim reef theory REFIT (Regulatory Fitness and Performance Programme) reformism regulation chilling effect civil societies cooperation depoliticisation divergences eliminated EU/US financial services global trade local/international as NTB pharmaceuticals politics Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals see REACH regulatory alignment regulatory cooperation European Commission proposals toned down horizontal modes neoliberal risk protection sectoral regulatory cooperation body see RCB regulatory equivalence see also mutual recognition Regulatory Fitness and Performance Programme see REFIT Regulatory Scrutiny Board Reich, R Reid, H renewable energy Restriction of Hazardous Substances Directive (RoHS) Review of the Balance of Competences, UK Rimmer, M T risk management Rodrik, D RoHS see Restriction of Hazardous Substances Directive Rollo, J Ruggie, J G s safety measures automobile sector for consumers deregulation environmental food see also OSHA sanitary and phytosanitary measures see SPS Schattschneider, E E Schmidt, S K Scholte, J.-A Seattle-to-Brussels Network (S2B) Selmayr, M Shaffer, G shale oil Shapiro, M., Exposed Sikkink, K Siles-Brügge, G Single Market SMEs (small and medium-sized enterprises) deregulation red tape TTIP Smoot–Hawley Tariff Act social costs Social Democratic Group in the European Parliament Social Democrats social media social protection Sonnenschein–Mantel–Debreu theorem South Korea SPS (sanitary and phytosanitary measures) see also WTO (World Trade Organisation) standardisation state–market relationship Stiglitz, J Stockholm Convention Stoiber Group Stop/No TTIP Strange, S S2B see Seattle-to-Brussels Network subsidiarity sustainability T TABD see Transatlantic Business Dialogue TACD see Transatlantic Consumer Dialogue TAFTA (Transatlantic Free Trade Area) Taleb, N tar sands tariffs TBT (technical barriers to trade) see also WTO (World Trade Organisation) technical barriers to trade see TBT 38 Degrees Timmermans, F TNI see Transnational Institute Tokyo Round Toxic Substances Control Act (TSCA) TPA see Trade Promotion Authority TPN see Transatlantic Policy Network TPP (Trans-Pacific Partnership) critics/supporters global day of action growth and jobs US protests Trachtman, J trade, bilateral Trade Advisory Committees trade barrier concept trade conflict distributive normative WTO trade distortion trade diversion trade liberalisation trade policy business interests consumers depoliticising EU European Commission importance mobilisation NGOs politics protectionism repoliticising Trade Promotion Authority (TPA) trade unions see also AFL-CIO; ETUC Transatlantic Business Council Transatlantic Business Dialogue (TABD) Transatlantic Consumer Dialogue (TACD) Transatlantic Declaration Transatlantic Economic Partnership Transatlantic Free Trade Area see TAFTA Transatlantic Policy Network (TPN) Transatlantic Trade and Investment Partnership see TTIP transnational advocacy network Transnational Institute (TNI) transnational social movement Trans-Pacific Partnership see TPP transparency arbitration tribunals civil society groups on and consultation EU European Commission ISDS lack of NGOs on TRIPS (Agreement on Trade-Related Intellectual Property Rights) TSCA see Toxic Substances Control Act TTIP (Transatlantic Trade and Investment Partnership) costs critics/supporters future for as game-changer information campaign logic of post-democracy as threat see also global standards; growth and jobs; red tape TTIP Advisory Group tuna–dolphin rulings U UEAPME (European Association of Craft, Small and Medium-Sized Enterprises) Ukraine UNECE (United Nations Economic Commission for Europe) unemployment United Kingdom see also NHS United Nations Economic Commission for Europe see UNECE United Nations Food and Agriculture Organisation United Nations Global Policy Model United States of America agribusiness associations consumer organisations and EU failure to ratify agreements hegemony in decline impact assessment ISDS mobilisation on TTIP NGOs regulatory processes social movements tariffs TPA TPP trade unions TTIP The United States of Europe (Verhofstadt) United States Trade Representative see USTR Uruguay Round US see United States of America US Chamber of Commerce USTR (United States Trade Representative) agriculture and European Commission FQD growth and jobs negotiating objectives transparency V Van Rompuy, H Verhofstadt, G., The United States of Europe Vogel, D W Wallach, L Warren, E waste disposal Watson, M WEEE see Directive on Waste Electrical and Electronic Equipment welfare states WHO (World Health Organisation) Why Europe Will Run the 21st Century (Leonard) working conditions World Bank World Health Organisation see WHO WTO (World Trade Organisation) Dispute Settlement Body establishment of NGOs normative conflict SPS Agreement TBT Agreement trade disputes trading rules TRIPS see also Battle in Seattle Y Young, A R Z Zakaria, F POLITY END USER LICENSE AGREEMENT Go to www.politybooks.com/eula to access Polity’s ebook EULA ... wealthier and allowing the EU and the US to set the standards for the global economy Critics, on the other hand, warn that TTIP will benefit only big business and leave us all with worse jobs and less... the West’s demise At the same time, by invoking the idea of China as ? ?the other’, the impression is strengthened that the regulatory cultures of the EU and the US are rather similar, paving the. .. introduce the reader to the negotiating process for TTIP and the respective trade policymaking machinery in the EU and the US The current set of transatlantic trade negotiations trace their origin