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What They Don't Want You to Know: TTIP Will Change Everything
Trade between the EU and the US has a long and complex history, not least because of our differing perspectives and policies on topics such as healthcare and food standards. Indeed, a major source of pride for the EU has been our difference in approach to such areas - whereby policies don’t necessarily put economic prosperity first. For this reason, there is no surprise that the TransAtlantic Trade and Investment Partnership (TTIP) talks that kicked off some 18 months ago have been kept quiet and out of the spotlight. Whilst we struggle to get to grips with our own domestic issues, these talks have the potential to dramatically alter the international and European landscape before we know it.
What is the TTIP?
These are a set of new agreements – complex and long winded – that will supposedly boost overall trade levels between the US and the EU by as much as 50%. It’s about reducing the regulatory barriers to trade for big business on things like food, safety laws, environmental legislation, banking legislation and ultimately sovereign power for individual nations. Thus, such agreements go beyond trade and will affect all corners of life. As John Hilary puts it these talks are essentially “An assault on European and US societies by transnational corporations.”
What are the impacts?
These policies have the power to potentially undermine certain social and environmental standards that we have in the EU, and will put a huge number of industries at risk to the regulations implemented by American economic policy. Long story short – this is a corporate power grab that will benefit the 1% and harm the 99%. Below are summaries of the potential impacts.
1) Food Standards Drop
American regulations on food are very different to ours. For example, in American stores GM crops are in 70% of stores. Comparatively, the EU has a very tough stance, banning most GM food. The beef industry will be especially affected by such a change in legislation - the use of hormone growth supplements will allow for more efficient production and as a result, cheaper meat. Customers always follow price – so whilst local farmers who practice traditional, more ethical methods of production will lose out, big corporations that use GM technology will prosper. Additionally, whilst the EU bans 1,200 substances from cosmetic use, in the US any substance can be used until proven unsafe.
2) Public Services Suffer
Tougher competition represents just one of the issues that the TTIP will bring about. Having a strong foothold in market practices generally means an increase in power everywhere else. Perhaps the greatest fear then, is the impact it will have on our public services – health, education and water services. This has the potential to threaten the NHS. Whilst the European Commission has claimed that public services will be avoided by the TTIP, a report on the Huffington Post revealed that Trade Minister Lord Livingston has admitted talks are still on the table about the NHS.
Livingston.
3) Environmental Degradation
Environmental regulations of all kinds will be threatened, and the deal is expected to add an extra 11 million metric tons of CO2 emissions, undermining previous efforts associated with the Kyoto Protocol. Leaks have also revealed TTIP will open the flood gates for mass exportation of oil from the Canadian tar sands – putting oil and gas prices first. Whilst we may have some choice over what energy companies we support - like having to choose between fast food outlets after a night out – we’ll eventually have to settle for one and get served a plate of rubbish anyway.
3) Loosening Laws on Bankers
Currently, America’s financial rules are harsher than ours – residue of the legislative tightening that followed the financial crisis and an attempt to curb the powers of bankers. The deregulation of TTIP could threaten these laws and potentially put the power back into the hands of the bankers.
4) Loss of Jobs
As jobs get moved over to the US where labour standards are lower, the EU will suffer from unemployment as a result. Bi-lateral trade agreements like this have often led to huge job losses- take the North American Free Trade Agreement (NAFTA) for example. A report published by Public Citizen this year - 20 years on from its establishment in 1994 - revealed the extent of the damage caused by NAFTA between the US, Mexico and Canada. Besides growing income inequality, displacement of more than one million Mexican farmers and a doubling of immigration from Mexico, the agreements incurred a staggering deficit of $181 billion between the US and trading partners Canada and Mexico, whilst at least 1 million jobs were lost in the U.S. Essentially, the weakest areas will be exploited and local business will suffer.
5) Democracy...
Potentially the biggest threat is the one directed at our democracy. Without sounding premature, a key component within the TTIP – the introduction of Investor-State Dispute Settlements (ISDS) – could completely undermine our voting systems. This clause essentially allows companies to sue governments if those governments’ policies cause a loss of profits. In short, transnational companies could wield this power to dictate the policies of democratically elected governments, which could see a severe compromising of individual rights at the hands of the fat cats.
What can we do?
Although these trade agreements look like they’ve gone a long way to becoming a reality, people are beginning to open their eyes to the detrimental effects such an agreement could have. Whilst Lord Livingston attempts to portray this as “a good news story,” many will reflect on past trade agreements such as NAFTA and cast a more cynical eye. Even though we can’t actually vote on the matter, we can at least try to spread the message so that more and more people become aware of it. Also, signing the petition below would help.
Benji Long
