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BackCETA, the Free Trade Agreement between the EU und Canada came to its conclusion at the EU-Canada Summit on 26 September 2014 in Ottawa. CETA and TTIP also played a large role at the hearing of the designated EU Trade Commissioner Cecilia Malmström in the European Parliament in Brussels this week. Even though she stood by the controversial Investor-state dispute settlement (ISDS), Malmström received majority approval of the competent committee.
In spite of wide criticism, speaking at the EU-Canada Summit last week, the President of the European Council, Herman Van Rompuy declared the negotiations on the Free Trade Agreement between the EU and Canada, which had lasted several years, as having been concluded. CETA is also seen as the blueprint for the agreement with the USA (TTIP), which is also currently being negotiated. Only two days previously, the Austrian National Council had adopted a resolution of SPÖ and ÖVP on CETA with the consent of Greens and NEOS. This resolution casts doubt on the reasonableness of protective clauses for investors and demands more transparency in the negotiations and a ratification by national Parliaments.
Different answers on ISDS caused confusion beforehand
Prior great excitement had been caused by the various answers on the Investor-state dispute settlement (ISDS). A version of the written answers by Malmström had surfaced before the weekend of the hearing, in which she had declared wanting to do without ISDS in TTIP. Later she issued another corrected and “correct” version, which once again contained the ISDS clause. However, in the hearing she gave no hint as to how this could have happened and who had inserted this sentence.
ISDS, CETA and TTIP as main topics in the hearing
The hearing itself proceeded without great surprises. Malmström conceded straight away that TTIP was not without problems; in order to counteract these she intended to create more transparency and speedier access to documents - in accordance with the current security regulations. This poses the question how more transparency concerning the negotiations could be achieved. Main topics of the hearing itself included the Free Trade Agreement with Canada and the USA as well as ISDS. Malmström also explained that she attached great importance to labour, environmental and human rights standards. She pointed out that many trade agreements would already contain relevant chapters and that she would support the inclusion of these chapters in all future agreements and adaptations of old agreements respectively. To achieve this, Malmström said, she would work in close cooperation with Vice President Federica Mogherini.
ISDS is not off the (negotiation) table
In reply to the question whether it would not be possible to eliminate ISDS from the agreements with Singapore, the USA and Canada, Malmström said. “Eliminating it from the Canada agreement right now, as you asked, I think would not be a good idea because then it would open the whole Canada agreement.”
With regard to TTIP, she did not rule out that the controversial Investor-state dispute settlement might eventually be eliminated from TTIP; not, however, without qualifying her statement in the same sentence. Malmström also emphasised that the existing protection standards must not be lowered. The decision-making powers concerning the new rules had to be in accordance with European democratic controls. She also said that there existed already thousands of such provisions in respect of the controversial investment protection clause. Malmström promised that there would also be greater transparency concerning TTIP. Above all, investment protection had to be free of abuse! With regard to the public consultation on ISDS in TTIP, she held out the prospect of initial quantitative results being available soon and that a qualitative analysis would hopefully be complete by the end of the year. She also hoped to be able to discuss these results in the Trade Committee or with other interested parties.
Malmström remains true to Juncker’s line
More general, during her hearing, Malmström time and again referred to the guidelines of Commission President Jean-Claude Juncker. She shared in particular his opinion that it would not be acceptable if the jurisdiction of European courts would be undermined by investor arbitration chambers. Juncker already stated that for him, in particular the safety of food and the protection of personal data of EU citizens would not be negotiable.
Hence, overall, Malmström advocated the old familiar positions of the Commission; however, she made an effort during the hearing to show fewer rough edges than her predecessor de Gucht. Her strategy has paid off; Parliament granted her majority approval.
More relevant information:
Position Paper TTIP
Position Paper CETA
Consultation contribution ISDS in TTIP
Position on the draft of the TTIP Trade Sustainability Impact Assessment
Different answers on ISDS caused confusion beforehand
Prior great excitement had been caused by the various answers on the Investor-state dispute settlement (ISDS). A version of the written answers by Malmström had surfaced before the weekend of the hearing, in which she had declared wanting to do without ISDS in TTIP. Later she issued another corrected and “correct” version, which once again contained the ISDS clause. However, in the hearing she gave no hint as to how this could have happened and who had inserted this sentence.
ISDS, CETA and TTIP as main topics in the hearing
The hearing itself proceeded without great surprises. Malmström conceded straight away that TTIP was not without problems; in order to counteract these she intended to create more transparency and speedier access to documents - in accordance with the current security regulations. This poses the question how more transparency concerning the negotiations could be achieved. Main topics of the hearing itself included the Free Trade Agreement with Canada and the USA as well as ISDS. Malmström also explained that she attached great importance to labour, environmental and human rights standards. She pointed out that many trade agreements would already contain relevant chapters and that she would support the inclusion of these chapters in all future agreements and adaptations of old agreements respectively. To achieve this, Malmström said, she would work in close cooperation with Vice President Federica Mogherini.
ISDS is not off the (negotiation) table
In reply to the question whether it would not be possible to eliminate ISDS from the agreements with Singapore, the USA and Canada, Malmström said. “Eliminating it from the Canada agreement right now, as you asked, I think would not be a good idea because then it would open the whole Canada agreement.”
With regard to TTIP, she did not rule out that the controversial Investor-state dispute settlement might eventually be eliminated from TTIP; not, however, without qualifying her statement in the same sentence. Malmström also emphasised that the existing protection standards must not be lowered. The decision-making powers concerning the new rules had to be in accordance with European democratic controls. She also said that there existed already thousands of such provisions in respect of the controversial investment protection clause. Malmström promised that there would also be greater transparency concerning TTIP. Above all, investment protection had to be free of abuse! With regard to the public consultation on ISDS in TTIP, she held out the prospect of initial quantitative results being available soon and that a qualitative analysis would hopefully be complete by the end of the year. She also hoped to be able to discuss these results in the Trade Committee or with other interested parties.
Malmström remains true to Juncker’s line
More general, during her hearing, Malmström time and again referred to the guidelines of Commission President Jean-Claude Juncker. She shared in particular his opinion that it would not be acceptable if the jurisdiction of European courts would be undermined by investor arbitration chambers. Juncker already stated that for him, in particular the safety of food and the protection of personal data of EU citizens would not be negotiable.
Hence, overall, Malmström advocated the old familiar positions of the Commission; however, she made an effort during the hearing to show fewer rough edges than her predecessor de Gucht. Her strategy has paid off; Parliament granted her majority approval.
More relevant information:
Position Paper TTIP
Position Paper CETA
Consultation contribution ISDS in TTIP
Position on the draft of the TTIP Trade Sustainability Impact Assessment