The ferocity of German opposition
to TTIP has caught American
officials by surprise. Above,
protesters are seen ata march in
Berlin sponsored by the German
Pirate Party.
Americans 'Unprepared' for Opposition to TTIP
Free Trade Deal (SueddeutscheZeitung,
Germany)
"Protests in Germany are focused on the prospect of
previously forbidden products from the United States having to be permitted into
the E.U. (chlorinated chicken and genetically modified corn). Even more
important is the issue of investor protection. According to current plans for TTIP, investors would be able to turn to international
courts for arbitration when they feel they have been discriminated against. For
many critics, these courts are an attack on the rule of [national] law."
Large numbers of Europeans are outraged not only over chlorinated chicken and 'Frankenfoods' from the United States, but over the notion that large multinationals will be able to take nations to court for regulations they find onerous, under a proposed free trade deal between Europe and the United States.
New
York: On Friday, on the outskirts of Washington in Arlington, the fifth round
of negotiations for the Transatlantic
Trade and Investment Partnership (TTIP)
came to an end. If negotiation leaders Dan Mullaney
(U.S.) and Ignacio Garcia Bercero (E.U.) are to be
believed, the talks have progressed according to plan.
"It
was a good week," said Mullaney. What has
changed is the intensity of protests against the deal in Europe - and
especially Germany. Both Barack Obama's team of negotiators and the U.S.
economic community were unprepared for the opposition.
[Editor's
Note: English-language quotes in this column are translated].
Peter
Chase, vice president for the U.S. Chamber of Commerce who is also responsible
for Europe, said "We are exactly where I had expected us to be - as far as
the negotiations are concerned. As far as the public debate is concerned - we
are not."
Chase
has been with the U.S. State Department since 2010, and has negotiated
agreements on free trade and investor protection for the Obama Administration.
His incomprehension with respect to the protests is heartfelt: "As far as
I can tell, TTIP is all about the positive. The theme
is hope. It is interesting for me to see that the debate, particularly in
Germany, has turned into a debate about fear."
One
thing the protests in Germany are focused on the prospect of previously
forbidden products from the United States having to be permitted into the E.U.
(chlorinated chicken and genetically modified corn). Even more important is the
issue of investor protection. According to current plans for TTIP, investors would be able to turn to international
courts for arbitration when they feel they have been discriminated against. For
many critics, these courts are an attack on the rule of [national] law.
There
is a certain irony in this development in that the protests are directed against
the policies of President Obama of all people, who as a Democrat must keep trying
to bring along his party’s free-trade averse left flank. On the sidelines of
the most recent round of negotiations in Arlington, the government invited 300
representatives from civil society to take a stand on aspects of the talks.
The
model is 42 pages long, which makes it 33 pages longer than the previous model.
The additional pages are filled mainly with "clarifications’ intended to help
ensure that investors don't abuse the agreement. One example of misuse could be
when a company submits obviously unmeritorious claims to put the government
concerned under pressure.In American
parlance, such claims are called "frivolous claims" ("frivolous
lawsuits"). The revised model of 2012 provides the basis for the American
negotiating strategy at TTIP.
Germany now has
over 140 of these agreements
President
Obama’s trade representative, Michael Froman,
confirmed on German TV channel ARD that
with respect to investor protections, the U.S. also feels corrections are
necessary: "We’re familiar with these discussions from our own open
consultations with Congress. That’s exactly why we recommend raising standards
to ensure the prevention of frivolous lawsuits."The U.S. intends to ensure that
non-governmental organizations also participate in the negotiating process.
Posted By Worldmeets.US
The
negotiations should also be transparent. "Only this will ensure that
governments regulate in the public interest." Froman’s
representative Miriam Sapiro also made clear that, "We
don't have a deregulatory agenda."In other words, the Obama Administration doesn't intend to use TTIP to push through the removal of protective regulations.
Even in his own party, Obama wouldn’t be able to enforce a deregulatory policy.
Investment
protection treaties – a German invention
In
talks, Americans point out that investment protection treaties are a German
invention. The first was adopted by Germany with Pakistan on December 1, 1959.
Today, Germany has over 140 such treaties, with China, among others. The U.S.
has adopted just under 50 bilateral agreements.The North
American Free Trade Agreement also includes an investment protection
clause.
Investment
protection is based on four principles: Foreign investors may not be
discriminated against; they have the right to "fair and equitable
treatment"; they may only be expropriated if it is in the public interest
and in exchange for compensation; and they must be allowed to freely transfer
capital in and out of the country. If an investor believes that the government of
a host country has violated any of these principles, he can file suit in a
court of arbitration, the International
Center for the Settlement of Investment Disputes, which is administered by
the World Bank in Washington.
The
Obama Administration, as well as the U.S. economy, are committed to having TTIP set global standards. For this reason, it is important
to include investment protection.
"We
did it bilaterally, so we should also do it multilaterally," said Peter
Chase of the U.S. Chamber of Commerce. According to Chase, the actual purpose
of the treaties is to keep each and every dispute from turning into a
diplomatic incident.
"What
worries me about the European debate is the fact that no government is publicly
saying: Yes, there are good reasons for this thing."
Among
the American public so far, controversy surrounding TTIP
is almost non-existent. At the same time, the debate surrounding the TTP, the Transpacific Partnership,
in which the government is simultaneously negotiating with eleven Pacific Rim
countries (which include Japan, but not China), is raging far more heatedly.
The unions, in particular, are fighting TTP, as they
are concerned with the migration of jobs to Asia.
Obama
has to fear resistance from within his own ranks. Harry Reid, the Democratic
Senate majority leader, has made it clear that he doesn't support Obama’s free
trade strategy. Reid explained that he wasn’t prepared to support "fast-track"
legislation that would allow the president to speed international trade deals
through Congress.
Without
"fast track," Congress could pick apart and reject every
international agreement it doesn't like. No partner of the United States would
find that acceptable. So far, Reid’s refusal is directed at TTP.
Whether the TTIP will be impacted as well remains unclear.
