Free trade
Quo vadis, free trade?
In Brussels the next round of Negotiations begin on a free trade agreement between the EU and the USA. By the Brexit Referendum, the prospects of success are decreased.
For the past three years, the European Union (EU) and the United States have been in negotiations on the free trade agreement TTIP (Transatlantic Trade and Investment Partnership). In Brussels, the 14 starts. Round of negotiations. However, in a number of important questions that no agreement is still in sight.
In Europe and especially in Germany, the controversial arbitration courts, before which investors against States can sue, if you see her, as it is called, “legitimate expectations” by laws are violated. Whether a compromise can be reached, such as the agreement between the EU and Canada (Ceta), is open. There, agreement was reached between both sides, to replace the originally provided for private arbitration through a permanent court.
Open the rules for public tenders, i.e. contracts awarded by governments and municipalities. This is a lot of money, says Laura von Daniels, the Berlin science and politics Foundation (SWP). “Within the European Union, public contracts account for 16 percent of gross domestic product in the United States, there are up to twelve percent.”
Buy American?
The Europeans feel unfairly treated. “Their economic programs in the United States have installed a Buy-American clause,” says Daniels. “If there is no important reason not to, contracts are primarily awarded to U.S. providers.”
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Little chance for TTIP
The EU is therefore pushing for the widest possible Opening. However, it is unclear whether the US are allowed to do under the dealer of the Europeans here at all concessions. “In the United States, the issue is controversial, whether the government in Washington is at all entitled, in a legally binding set contract, such as Federal States and local authorities have to award their public contracts”, the SWP researcher.
There is still no agreement, there is also a point of heated, especially in Europe, the minds: Should foods containing genetically modified organisms be characterized? The Europeans follow the consumer protection called the precautionary principle. Simply put: If there is a suspicion that something is harmful, it should be better banned or at least marked. The USA, however, the scientific principle: If there is no evidence for the harmfulness, it is allowed.
Dealing with genetically modified foods is also being discussed in the United States controversial
No Black-And-White Thinking
Nevertheless, the recent developments show that things are more complicated than traditional stereotypes suggest. The U.S. Senate adopted on Thursday (07.07.2016) a law that establishes for the first time, the labelling of foods with genetically modified organisms.
A consent in the house of representatives is likely to be – and yet all are not satisfied. “There are in the United States, a debate about whether the label goes far enough,” says Daniels. Especially since some Federal States, such as Vermont, already have more stringent laws.
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Whether the negotiations on a free trade agreement ever come to a final result, it is now completely unclear. In April, President Barack Obama had said at the Hanover trade fair and that he expected a final contract until the end of the year. But since then, the opportunities for free trade have become rather worse.
Bad times for free trade?
In Europe, the vote casts of the British EU-exit, many questions remain long unanswered. Also, the tone of the policy has become sharper. So is it anything other than ensure that the already negotiated the Ceta agreement between the EU and Canada ever in power, since that also the national parliaments of the EU must agree to that States.
“Ceta is a bad agreement,” said Jürgen Trittin, former Federal environment Minister and now a member of the opposition party, the Greens. “Such an agreement should not be used as yet final.” The Greens govern in ten German länder, therefore, the consent of the Bundesrat is questionable.
“Very much Irrational” in the resistance against the free trade says, however, to recognize Peter Ramsauer, Chairman of the economic Committee in the Bundestag. He sees a direct relationship between the agreements with Canada and the United States. “About Ceta members would not be upset no one, if there is the TTIP,” says the CSU.
In fact, the criticism of TTIP is not only based on economic arguments. “All the survey results show that: The Germans are worried that a softening of the high Standards in our country and in the EU,” says Laura Daniels of the Foundation for science and politics. “That’s enough of labour and environmental standards to food, consumer protection and dealing with data security and privacy.”
Free trade in the US election
In the United States about TTIP, however, is less of a Worry. If anything about TTIP would be spoken, rather then positive, says Daniels. “Even trade unions facing the free trade agreement generally critical, so far as a result of TTIP, improvements in worker and environmental protection.”
However, the agreement with the European Union to play a much smaller role as the TPP (Trans-Pacific Partnership), the agreement of the United States with eleven Pacific rim countries, including Mexico, Japan, Vietnam and Malaysia.
In the US election campaign, TTP is a permanent issue. The Republican presidential candidate, called it “a terrible Deal”, and his democratic Competitor has become more cautious in their support of free trade agreements. Unlike in Germany, the discussion is not primarily a matter of labour and environmental standards, but to Jobs. “The biggest concern is that cheap imports to displace American producers and lead to further job losses,” says Daniels.
TTP is already signed, but still needs to be ratified by the Congress. Whether the planned agreements with the EU ever comes so far, is open. “A particularly unfavourable course for the Commission would be,” said Daniels, “that the negotiations just vanish into thin air, without a Plan for the time after the US elections in November.”