DECEMBER 6, 2013
TTIP NEGOTIATIONS: A SUMMARY OF ROUND 2 BY KARA SUTTON Making Progress Amid Delays Second-round talks between US and EU negotiators originally scheduled for October 6-10 were postponed to November 11-15 due to the US government shutdown. The talks, held in Brussels, focused on four areas: services, investment, regulatory issues, and energy and raw materials. Video conferences on other key issues were also held during the week and continued through the latter half of November and early December. The Brussels negotiations concluded with some agreements, allowing discussions on the actual treaty text for many subject areas to begin in December.
Takeaways
The second round was explorative and consisted of identifying points of potential convergence by building on progress made since July’s first round of negotiations. US and EU negotiators also discussed via video conference into early December areas such as competition, intellectual property and small- and medium-sized enterprises (SMEs).
The latest talks included priorities pertaining to market access in the services sector. Headway was made on cross-border services, telecommunications and e-commerce. In a shift from Washington’s initial reluctance to incorporate financial regulation into the TTIP, negotiators held a special session on financial-services regulation on November 27.
The US demonstrated a strong interest in regulatory issues by bringing more than 50 US officials to the meetings in Brussels, many of whom represented agencies, outside of USTR, that deal with such issues. They expressed optimism about agreements for the automobile and pharmaceutical sectors and were bullish about an accord on technical barriers to trade (TBTs) that would extend beyond current World Trade Organization (WTO) regulations.
Potential Sticking Points
Nine US Senators asked in a bipartisan letter sent to US Trade Representative Michael Froman before the round that agriculture remain a top priority in any agreement.
Some controversial sanitary and phytosanitary and agriculture issues, such as genetically modified organisms (GMOs), were not discussed during the round.
Data-protection issues remained taboo following allegations of US spying on EU leaders. A lastminute request from Germany to include data protection in the round almost led to further postponement of the talks. Brussels ultimately decided TTIP and data flow concerns in light of the NSA surveillance allegations should be handled separately.
The transparency of negotiations is coming under scrutiny on both sides of the Atlantic, particularly as draft texts concerning the intellectual property chapter from the Trans-Pacific Partnership (TPP) were leaked via WikiLeaks during the round. Representatives of consumer groups and trade unions called for more public access to negotiation texts and expressed concern over the agreement’s potential capacity to weaken domestic regulations. The Transatlantic Consumer Dialogue (TACD) held on October 29 a stakeholder forum that included a discussion on making the negotiation process more transparent. Both lead negotiators were present. Following the round, lead negotiators briefed 350 EU and US stakeholders representing consumer groups, businesses, non-governmental organizations, and trade and labor unions. US chief negotiator Dan Mullaney assured attendees that TTIP would not undercut regulation on either side of the Atlantic that protect consumers, public health or the environment.
Discussions about including in an agreement an investor-state dispute resolution continue. Consumer groups, such as the TACD, are increasingly speaking out against this and expressed their concerns to lead negotiators at the stakeholder forum.
On the Margins
The US Department of Agriculture (USDA) announced on November 1 that the Animal and Plant Health Inspection Service (APHIS) will modernize US bovine spongiform encephalopathy (BSE)related import requirements to be more consistent with international regulations. This announcement means the US will accept EU beef and bovine exports. The US market had been closed to such EU products since 1998.
US Attorney General Eric Holder and European Commission Vice President Viviane Reding met on November 18 to discuss data-protection issues and the alleged NSA surveillance of European communications. Both expressed a commitment to concluding an agreement on data protection before summer 2014.
On November 20 the US International Trade Commission held a public hearing for input on their report on trade barriers in the EU affecting US SMEs.
Senator Max Baucus, chairman of the Senate Finance Committee, and Congressman Devin Nunes, chairman of the House Ways and Means Committee Subcommittee on Trade, told reporters that the two committees are close to finalizing a bipartisan bill on trade promotion authority (TPA) or “fast track”. However, with limited time remaining on Congress’ calendar, Minority Whip Steny Hoyer anticipates that the bill is unlikely to pass by the end of 2013. Before the round, more than 170 representatives signed letters expressing opposition to TPA. One hundred fifty-one Democrats signed a letter opposing TPA for the TPP and future agreements due to the lack of transparency in negotiations. Six Republicans sent a similar letter to President Obama on November 12. Twenty-two Republicans, the majority aligned with the Tea Party movement, conveyed opposition based on Constitutional grounds.
Next Steps
The WTO Ministerial in Bali, Indonesia was held December 3-6, 2013.
The third round of TTIP negotiations, which is expected to cover all topics, will take place December 16 – 20, 2013 in Washington, DC.
In January 2014 US Trade Representative Froman and EU Commissioner Karel de Gucht will hold a stocktaking exercise to review the progress of negotiations.
The US International Trade Commission will submit to USTR on February 28, 2014 a report on EU trade barriers affecting US SMEs.
Kara Sutton is project manager for legislative relations at the Washington, DC-based Bertelsmann Foundation. kara.sutton@bfna.org