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Only in February, EU Commission President José Manuel Barroso and US President Barack Obama had surprised the public by announcing their intention to start negotiations on a Free Trade Agreement of the EU with the United States. This week now, the European Parliament welcomed the plan regarding the Free Trade Agreement and asked the Council to award the Commission the mandate for starting the negotiations. However, criticism was voiced by the Greens, who tabled a separate resolution, requesting a separate Transparency Agreement, which would provide for the publication of draft proposals in all negotiation phases. However, the motion failed to gain the required majority.
At the start of the discussion on a Free Trade Agreement with the United States, the Irish Council Presidency did not hold back with references to the many positive effects the conclusion of the Agreement would have on EU citizens. For example, the impact assessment of the Commission had concluded that the Free Trade Agreement would be able to create 2 Million jobs and would result in 0.5 percent more economic growth. EU Trade Commissioner Karel de Gucht added that this would have excellent effects, which would not cost a single Cent. However, to achieve this it would be necessary to grant the Commission a high degree of flexibility in the negotiations, otherwise one would not succeed in extracting commitments from the United States. Of course, there would be a red line drawn in the negotiations, which was also part of the EU constitution. As an example, he cited audiovisual services and cultural diversity. According to the Commissioner, environmental and social standards shall also not be reduced under any circumstances.

The MEP Bernd Lange of the Social Democrats underlined that his party wanted the Agreement with the United States. This was important; in particular against the background that we are taking the reindustrialisation of the European Union seriously, said the MEP. It was therefore essential to look for new markets. However, Lange conceded that there were a number of issues, where the ideas of the USA would completely differ from those of the EU, for example when it came to data protection or the precautionary principle in the domain of consumer protection. Apart from that, the issue of employment rights was of vital importance. These would represent red lines, which the Social Democrats want to have guaranteed.

Stark criticism at the planned Agreement came from the European Greens and the European Left. However, according to the Green representative Yannick Jadot, the Agreement negotiations were concerned with big firms, hormone-treated meat and investors’ rights. According to the MEP, in this case, multi enterprises would have the right to claim compensation, which could go into hundreds of millions Euro, for example because Ireland had a public health system and big private health companies would not be able to enter her market. Transparency did not exist, said Jadot: obviously, citizens were not allowed to know what was actually negotiated. There had to be transparent negotiations. From his point of view, figures in the impact assessment, such as those referring to 0.5 % more growth, would equal scientific fraud. The German MEP Helmut Scholz from the Left also strongly criticised the Free Trade Agreement and announced that his group would reject it. The negotiations would inevitably fuel mistrust; sensible areas such as consumer protection, collective agreements, audiovisual services or energy costs would be called into question. In contrast, the Liberal MEP Marietje Schaake disputed the necessity of red lines in the negotiations; however, she too demanded transparency during the negotiations.

However, in spite of the critical voices, MEPs nevertheless voted in favour of a resolution, which requests the Council to grant the Commission the mandate for starting negotiations on a Free Trade Agreement with the United States. The European Greens and the Left voted against the text. As soon as the Council consents to starting negotiations, and this is expected to be happening soon, the Commission can commence discussions on the Agreement.

Further information:

AK Position on the Free Trade Agreement of the EU with the United States (Transatlantic Free Trade Agreement)