Atlantic Council on TTIP
Atlantic
Council
“Talking
TTIP with European Trade Commissioner Cecilia Malmström”
Wednesday,
June 29, 2016
Key Topics &
Takeaways
·
No Immediate Changes due to Brexit:
European
Trade Commissioner Cecilia Malmström explained that the outcome of the
referendum is not legally binding, and that the UK Prime Minister must invoke
Article 50 in order to begin formal exit negotiations from the EU. She
explained that David Cameron will leave this duty to the next Prime Minister,
and therefore the UK currently remains in the EU and part of Transatlantic
Trade and Investment Partnership (TTIP) negotiations.
·
TTIP in the Wake of Brexit: Commissioner Cecilia
Malmström acknowledged the intense political debate on the topics of trade and
investment, however explained that regardless of the outcome of the Brexit
vote, she and U.S. Ambassador Michael Froman agree that the rationale for
negotiating TTIP is “just as strong” today as before the referendum. Malmström
explained that the plan is to complete negotiations before the end of the Obama
Administration.
Speakers
·
Cecilia Malmström, European Trade Commissioner
·
Laura Lane,
President of Global Public Affairs, UPS
·
Richard Trumka, President, AFL-CIO
Cecilia
Malmström, European Trade Commissioner
Malmström
explained that the European Commission “respects” but “regrets” the outcome of
the UK referendum and acknowledged that the consequences will only become
apparent over time. Malmström said that the referendum was not legally binding,
and that the UK will remain a member of the European Union (EU) until the new
Prime Minister, who is expected to be elected this September, invokes Article
50. Malmström added that formal exit negotiations will be held once Article 50
is invoked, and that the UK will need to define their future relationship with
the EU. However, Malmström maintained that “out is out, [and the UK] can’t be half
in.”
Malmström
reiterated that since the UK is still legally part of the EU, it is currently
included in the Transatlantic Trade and Investment Partnership
(TTIP) negotiations. She stated that U.S. Ambassador Michael Froman agreed
that the rationale for negotiating TTIP is “just as strong” today as before the
referendum and that the EU and US are continuing to prepare for the next round
of negotiations in Brussels on July 11th. Malmström explained that the plan is
to complete negotiations before the end of the Obama Administration.
Malmström
also mentioned that while global trade and investment has never been more
important for US and EU economies, political debates on these topics have never
been more intense. As a result of skepticism, Malmström stressed the need
address concerns. Accordingly, Malmström stressed the need to address
legitimate concerns, such as through: 1) improving transparency around the
negotiations; 2) engaging in dialogue with citizens; 3) ensuring that TTIP is
not aimed at removing regulatory protections but rather raising regulatory
standards; and 4) stressing that TTIP should not change a state’s ability to
provide healthcare, education, water and other public services. She also
expressed the need for a highly ambitious agreement that creates economic
opportunities. Malmström commended negotiators’ efforts to develop ambitious
outcomes for market access and trade in goods; but stated there is “more to do”
to improve trade in services and access to public procurement opportunities.
She explained that negotiators must address longstanding barriers that EU
service providers face in the US, establish a mutual recognition scheme for
qualified professionals, and strengthen cooperation to regulate the
transatlantic financial service industry.
Malmström
argued that TTIP will constitute the most ambitious agreement in history
regarding sustainable development, labor and environmental rights and ensuring
benefits for small and medium businesses. She concluded by stating that the
TTIP is a way to strengthen the EU-US alliance and that it should not face the
same problems as the Trans-Pacific Partnership (TPP), since the EU and US have
similar regulatory standards and are both highly developed markets that share
common values.
Panel Discussion
UK
Referendum
In
response to a question, Malmström contended that the TTIP can survive the UK
referendum to exit the EU. Additionally, she recalled that yesterday all Prime
Ministers and Heads of State for EU countries confirmed that TTIP negotiations
will continue. She noted that later on the UK may need to make a decision about
where the nature of its relationship with the EU, but for now it will continue
on as part of the negotiation. Malmström added that the UK and European
Commission need time to reflect because Article 50 has never been invoked
before so it is unclear how it will play out. She confirmed that there will be
a ministerial meeting in September.
Laura
Lane, President of Global Public Affairs at UPS, expressed optimism about the
future of TTIP despite it facing some tactical issues due to the referendum.
She said that the goal of TTIP is to reduce frictions in cross-border trade so
the US, UK and EU economies can continue to grow.
Skepticism
About TTIP
Richard
Trumka, President of the AFL-CIO, argued that his concerns about TTIP are not
related to trade, but are about who benefits from the
rules. He commended Malmström and the EC for their transparency in the
negotiation process and suggested that TTIP could benefit the “working people”
if it preserves states’ and local governments’ abilities to manage their own
economies.
Economic
Growth
Lane
said that agreements like the TPP and TTIP are important for creating economic
opportunities, setting global standards, and bolstering economic growth. She
cautioned that the rest of the world is continuing to negotiate free trade
agreements that espouse standards with which we may not agree, and urged US and
EU policymakers to continue negotiations to set the global standard for trade.
Trumka
countered claims that TTIP will meaningfully improve economic growth in the US
and EU, and he also expressed concern about the Investor-State Dispute
Settlement (ISDS) mechanism, which he said may supersede sovereign courts.
For
more information on this event, please click here.
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Atlantic
Council
“Talking
TTIP with European Trade Commissioner Cecilia Malmström”
Wednesday,
June 29, 2016
Key Topics &
Takeaways
·
No Immediate Changes due to Brexit:
European
Trade Commissioner Cecilia Malmström explained that the outcome of the
referendum is not legally binding, and that the UK Prime Minister must invoke
Article 50 in order to begin formal exit negotiations from the EU. She
explained that David Cameron will leave this duty to the next Prime Minister,
and therefore the UK currently remains in the EU and part of Transatlantic
Trade and Investment Partnership (TTIP) negotiations.
·
TTIP in the Wake of Brexit: Commissioner Cecilia
Malmström acknowledged the intense political debate on the topics of trade and
investment, however explained that regardless of the outcome of the Brexit
vote, she and U.S. Ambassador Michael Froman agree that the rationale for
negotiating TTIP is “just as strong” today as before the referendum. Malmström
explained that the plan is to complete negotiations before the end of the Obama
Administration.
Speakers
·
Cecilia Malmström, European Trade Commissioner
·
Laura Lane,
President of Global Public Affairs, UPS
·
Richard Trumka, President, AFL-CIO
Cecilia
Malmström, European Trade Commissioner
Malmström
explained that the European Commission “respects” but “regrets” the outcome of
the UK referendum and acknowledged that the consequences will only become
apparent over time. Malmström said that the referendum was not legally binding,
and that the UK will remain a member of the European Union (EU) until the new
Prime Minister, who is expected to be elected this September, invokes Article
50. Malmström added that formal exit negotiations will be held once Article 50
is invoked, and that the UK will need to define their future relationship with
the EU. However, Malmström maintained that “out is out, [and the UK] can’t be half
in.”
Malmström
reiterated that since the UK is still legally part of the EU, it is currently
included in the Transatlantic Trade and Investment Partnership
(TTIP) negotiations. She stated that U.S. Ambassador Michael Froman agreed
that the rationale for negotiating TTIP is “just as strong” today as before the
referendum and that the EU and US are continuing to prepare for the next round
of negotiations in Brussels on July 11th. Malmström explained that the plan is
to complete negotiations before the end of the Obama Administration.
Malmström
also mentioned that while global trade and investment has never been more
important for US and EU economies, political debates on these topics have never
been more intense. As a result of skepticism, Malmström stressed the need
address concerns. Accordingly, Malmström stressed the need to address
legitimate concerns, such as through: 1) improving transparency around the
negotiations; 2) engaging in dialogue with citizens; 3) ensuring that TTIP is
not aimed at removing regulatory protections but rather raising regulatory
standards; and 4) stressing that TTIP should not change a state’s ability to
provide healthcare, education, water and other public services. She also
expressed the need for a highly ambitious agreement that creates economic
opportunities. Malmström commended negotiators’ efforts to develop ambitious
outcomes for market access and trade in goods; but stated there is “more to do”
to improve trade in services and access to public procurement opportunities.
She explained that negotiators must address longstanding barriers that EU
service providers face in the US, establish a mutual recognition scheme for
qualified professionals, and strengthen cooperation to regulate the
transatlantic financial service industry.
Malmström
argued that TTIP will constitute the most ambitious agreement in history
regarding sustainable development, labor and environmental rights and ensuring
benefits for small and medium businesses. She concluded by stating that the
TTIP is a way to strengthen the EU-US alliance and that it should not face the
same problems as the Trans-Pacific Partnership (TPP), since the EU and US have
similar regulatory standards and are both highly developed markets that share
common values.
Panel Discussion
UK
Referendum
In
response to a question, Malmström contended that the TTIP can survive the UK
referendum to exit the EU. Additionally, she recalled that yesterday all Prime
Ministers and Heads of State for EU countries confirmed that TTIP negotiations
will continue. She noted that later on the UK may need to make a decision about
where the nature of its relationship with the EU, but for now it will continue
on as part of the negotiation. Malmström added that the UK and European
Commission need time to reflect because Article 50 has never been invoked
before so it is unclear how it will play out. She confirmed that there will be
a ministerial meeting in September.
Laura
Lane, President of Global Public Affairs at UPS, expressed optimism about the
future of TTIP despite it facing some tactical issues due to the referendum.
She said that the goal of TTIP is to reduce frictions in cross-border trade so
the US, UK and EU economies can continue to grow.
Skepticism
About TTIP
Richard
Trumka, President of the AFL-CIO, argued that his concerns about TTIP are not
related to trade, but are about who benefits from the
rules. He commended Malmström and the EC for their transparency in the
negotiation process and suggested that TTIP could benefit the “working people”
if it preserves states’ and local governments’ abilities to manage their own
economies.
Economic
Growth
Lane
said that agreements like the TPP and TTIP are important for creating economic
opportunities, setting global standards, and bolstering economic growth. She
cautioned that the rest of the world is continuing to negotiate free trade
agreements that espouse standards with which we may not agree, and urged US and
EU policymakers to continue negotiations to set the global standard for trade.
Trumka
countered claims that TTIP will meaningfully improve economic growth in the US
and EU, and he also expressed concern about the Investor-State Dispute
Settlement (ISDS) mechanism, which he said may supersede sovereign courts.
For
more information on this event, please click here.