Transatlantic Trade and Investment Partnership (TTIP)

The Transatlantic Trade and Investment Partnership (TTIP) was a proposed trade agreement between the European Union and the United States. Here are the key points about TTIP:

• Objective: The primary goal of TTIP was to remove trade barriers in a wide range of economic sectors to facilitate easier and more efficient trade between the EU and the US. It aimed to increase economic growth, create jobs, and reduce costs for consumers.
• History:
  • Negotiations for TTIP were launched in 2013 following a decision made by the leaders of the EU and the US at the G8 summit in 2013 in Lough Erne, Northern Ireland.
  • The negotiations aimed at addressing a broad spectrum of issues including tariffs, regulatory barriers, subsidies, and public procurement.
  • The talks were conducted in relative secrecy, which led to significant public concern and criticism over transparency.
• Contentious Issues:
  • Investor-State Dispute Settlement (ISDS): One of the most debated elements was the inclusion of ISDS, allowing companies to sue governments over policies that could negatively impact their profits.
  • Regulatory Coherence: There was concern over the harmonization of regulations, particularly in areas like food safety, environmental standards, and labor rights, where the EU and US have different approaches.
  • Public Services: Fears were raised that public services might be opened up to competition from private companies, potentially affecting healthcare, education, and water supply.
• Public Reaction:
  • TTIP faced widespread opposition from civil society groups, trade unions, and environmental organizations due to concerns about corporate power, the environment, and consumer rights.
  • Large-scale protests occurred in several European countries, and petitions against TTIP gathered millions of signatures.
• Outcome:
  • By 2016, the negotiations had stalled, with the European Commission pausing discussions due to upcoming elections in both the EU and the US.
  • After the election of Donald Trump in 2016, who favored bilateral trade deals over multilateral ones, TTIP negotiations effectively came to a halt.
  • In 2019, the European Commission declared that TTIP was no longer an active project, although it did not formally terminate the negotiations.
• Legacy:
  • TTIP has left a legacy of caution regarding large-scale trade agreements, influencing how future trade deals are negotiated, with greater emphasis on transparency and public engagement.
  • Some elements of TTIP, like mutual recognition of standards, have been incorporated into other trade agreements or dialogues between the EU and the US.

Sources:

• European Commission - TTIP
• Office of the United States Trade Representative - TTIP
• Council on Foreign Relations - TTIP Backgrounder

See Also:

• Comprehensive Economic and Trade Agreement (CETA)
• Trans-Pacific Partnership (TPP)
• North American Free Trade Agreement (NAFTA)
• Trade Agreements