Recent reports indicate that negotiations for the world's largest free trade agreement have recently picked up.
The discussions, between the U.S. and the European Union (EU), are in regard to the Transatlantic Trade and Investment Partnership (TIIP). The talks began in 2013, but had slowed down over EU concerns about certain aspects of the deal. Opposition in Europe is such that Reuters reported the EU began a PR campaign to combat hostility toward the agreement, sometimes also referred to as the Trans-Atlantic Free Trade Agreement. But earlier in the month, key negotiators in the deal indicated that they would push forward with discussions.
"We have worked this week with strong political wind in our wings," EU Chief Negotiator Garcia Bercero told AFP.
One issue still holding talks up
The main sticking point between negotiators has been insistence from the U.S. that private companies be allowed to take governments to court over grievances, called Investor-State Dispute Settlement (ISDS). When asked by AFP about any discussions on ISDS, Bercero indicated that it had not been a part of recent talks. Despite the EU concerns over ISDS, both he and U.S. negotiator Dan Mullaney indicated that talks had been going well.
"Negotiators could develop the largest free trade accord in the world."
TIIP would be the globe's largest free trade deal
If negotiators can make their way past the ISDS issues, then they could develop the largest free trade accord in the world. A European Commission report estimates that the deal could boost the EU economy by €120 billion ($132.93 billion). The commission projected that the U.S. economy could grow by as much as €95 billion ($105.24 billion). That's 0.5 percent and 0.4 percent of the economies' respective gross domestic products (GDP).
The plan is to remove tariff barriers, while cutting non-tariff barriers in goods in services by 25 percent and public procurement barriers by 50 percent, according to the European Commission. Both the EU and the U.S. have agreed that the deal should "go further than any other existing agreements in this area," the commissions report states. It goes on to state that if the commission's estimates are incorrect, then the figures are likely understatements.
Robust TIIP opposition in Europe
Opposition to the trade talks, conducted mostly in secret, is strong in Europe, though. The EU PR campaign to boost TIIP popularity among Europeans includes YouTube videos, "published leaflets, fact sheets and 'myth-busting' brochures," according to Reuters. Critics are worried that the U.S. could force the EU to lower standards on consumer safety and the environment, and force other unpopular changes in European policy.
In addition to the published materials and videos endorsing a trans-Atlantic trade agreement, Cecilia Malmstrom, the EU's trade chief, has been on a tour of many of the bloc's 28 countries touting the benefits of TIIP. However, despite the efforts, activists still claim that, should the deal go into effect, Europeans will be consuming "chlorine-washed chicken or meat from cattle fed growth-enhancing hormones," Reuters reported.
Though many Europeans have health and environmental concerns in regard to TIIP, the issue for the economies involved remains ISDS. An alternative proposal from the Malmstrom detailed creating an international investment court to hear disputes between governments and private companies, according to AFP.