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.

Brent Labour councillor won't vote Labour in Euro election

Brent Labour councillor Claudia Hector has said she will not vote Labour in the European elections on May 22nd because of Labour's lack of concern over the Transatlantic Trade and Investment Partnership (TTIP). The TTIP would open up public services to privatisation and un dermine workers' rights. In a Twitter exchange Cllr Hector expressed frustration at Labour Mep Calude Moraes' failure to engage on the issue:

1. Claudia ‏@HectorCllr Apr 24

   @ClaudeMoraesMEP Will you be supporting Andy Burnham's wish that the NHS be protected from the TTIP Treaty, as part of the euro platform?

   
   

   
   
2. Claudia ‏@HectorCllr Apr 25

   @ClaudeMoraesMEP You have not replied to my enquiry about TTIP. Is that because of ignorance or lack of interest?
3. Claudia ‏@HectorCllr May 5

   @ClaudeMoraesMEP Still no reply. I will not be voting Labour in Euro lctn, this is the greatest threat to our freedom in generations.
4. Benali Hamdache ‏@GreenBenali 9h

   @HectorCllr @ClaudeMoraesMEP @GreenJeanMEP & all @LonGreenParty MEP candidates pledged to oppose #TTIP.
5. Claudia ‏@HectorCllr 9h

   @GreenBenali @ClaudeMoraesMEP @GreenJeanMEP @LonGreenParty From the email I got from Claude Moraes it's clear he can't see the TTIP danger

    

 At the Green Party's Spring Conference, leader Natalie Bennett had this to say about the TTIP:

TTIP is a huge threat to hard-fought-standards for the quality and safety of our food, the sources of our energy and our privacy and risks undoing decades worth of EU progress on issues like worker’s rights.”

Bennett stated that the proposed deal threatened to “blow apart the power of our democratic decision making.” She raised the spectre of the Edward Snowden revelations to demonstrate that the US state was “profoundly untrustworthy”.

It’s not surprising, really, when we hear Lib Dems trumpeting the proposed US-EU free trade deal as some kind of economic saviour. The Lib Dems are the lapdogs of corporate Europe, while the Tories are its war horses. In their support for the trade deal, the Lib Dems are reiterating the propaganda of multinational companies interested only in swallowing up new markets, consuming new societies whole. 

Let’s make no mistake, the proposed free trade deal is a huge threat to hard-fought-for standards for the quality and safety of our food, the sources of our energy, workers’ rights and our privacy. One of the great contributions of the EU is to set a foundation of these standards – not good enough, not high enough – but a start. The proposed free trade deal is a supertanker of dynamite that would blow those foundations apart.

And more, it would blow apart the power of our democratic decision making. The deal provides corporations with new rights to sue the Government for legislating in the public interest – that’s definitely not acting for the common good. 

The banking lobby is so happy with the financial services proposals it has said that the text could have come straight from its own brochure – that’s acting in the interests of the 1%, not the common good.

And there’s more. It’s a deal being proposed with a state that the bravery of Edward Snowden demonstrated is profoundly untrustworthy. Yet there’s no openness – no democracy – about the negotiations: the mandate that the EU Council gave to the Commission is still classified as ‘secret’.