TTIP: the threat to local authorities and public services

As the perils of TTIP are still not widely known and only a few organisations. including the Barnet Alliance and the Green Party seem to be ringing the alarm bells, I am reposting this long piece first published on the Barnet Alliance website LINK.

The EU and the US have been negotiating the Transatlantic Trade and Investment Partnership (TTIP) Agreement since July 2013. The consequences of this treaty could have a profound effect on EU member states at regional and local levels.TTIP would affect many sectors which are the responsibilities of local and regional authorities.

 The broad scope and myriad responsibilities of German Federal States, regional governments and local authorities across the EU would have justified involving them in the decision-making process as stakeholders. However, this has not happened. Representatives of regional and local governments as well as the public are puzzling over the content, the scope and the possible consequences of this treaty. It is therefore the aim of this short briefing to shine a light on possible consequences of this treaty for local and regional government. However, as negotiations are still ongoing, and owing to the restricted access to documentation, we can only present a rough estimation as to what TTIP will entail.

TTIP will have a profound effect on many areas under the remit of regional and local authorities and is examined in more detail here under in order to allow for a realistic assessment of risks. The source for this analysis are a series of leaked documents such as the text of the negotiating mandate of the EU Commission and drafts texts of various chapters and appendices.

As TTIP negotiations cover a very broad spectrum of topics, only those which are of relevance to local and regional authorities are considered for this briefing:

They include the planned Investor State Dispute Settlement (ISDS) of arbitration, and issues relating to the status of public services, grants, subsidies and public tendering.

The Effects of TTIP on Local and Regional Governments.

by Thomas Fritz

Translation by Phil Fletcher

Arbitration tribunals: Local authorities and international courts.

When the Lisbon Treaty came into force in 2009, the European Commission was given the exclusive authority over direct foreign investments. This allows it to include into trade agreements far reaching provisions for investor protection, provisions which had already been included in a multitude of bilateral treaties. The mandate to negotiate on TTIP, which the European Council granted the European Commission, also provides for investor protection including ISDS, albeit on condition of an overall “satisfactory” result of the negotiations for the EU.