Alfred Sant: EU-US trade agreement is ‘dead’

Alfred Sant has said that the transatlantic trade and investment partnership (TTIP) – a broad and ambitious trade agreement being negotiated between the United States and the European Union – “is dead”.

The Labour MEP and former prime minister argued that TTIP had faced great opposition from both citizens and members of the European Parliament.

The proposed TTIP is a trade agreement being negotiated between the EU and the US, with the aim of promoting trade and multilateral economic growth.

A number of NGOs, unions and environmentalists have criticised the proposed agreement, arguing that it is too focused on reducing regulatory barriers for big business, at the expense of citizens’ rights.

“TTIP won’t make it,” Sant said, sounding categorical. He argued that the greens and those on the left were increasingly against it and a split also existed amongst right-wing MEPs.

Sant was speaking at an event organised by the Malta-EU Steering and Action Committee (MUESAC) to discuss the current state of TTIP negotiations.

“The lobby against the agreement is too big and there are still a number of stumbling blocks on issues such as agriculture, cultural issues, public procurement, as well as issues related to investment dispute and the environment,” he said.

MUESAC head Vanni Xuereb was more optimistic, saying that progress was being made and that locally, support for the agreement remains high, possibly because people understand the importance of the special relationship with the United States.

Kathleen Hill, the US ambassador to Malta, reiterated the US government’s commitment to implementing the trade agreement arguing that the agreement is vital to strengthening economic ties between the US and EU especially in the current climate of geopolitical uncertainty and uneven economic growth.

US ambassador G. Kathleen Hill

Hill acknowledged however that time was running out, however stressed that as long as there is political will, an agreement can be reached.

She said that an agreement had been reached an agreement on the reduction of 97% of tariff lines, and work is currently underway on making regulatory systems more compatible.

She added that both the US and EU had embraced the principle that nothing in TTIP can in any way diminish regulatory standards present on both sides of the Atlantic and that both sides have agreed that any agreement should have the strongest labour and environmental obligations yet seen in a trade agreement.

Eliza Patterson, a lawyer specialising in international trade also said that she felt an agreement is still possible and played down concerns over the apparent lack of political support for the agreement in Washington.

She said that while it is true that both presidential nominees have come out in opposition to the agreement, this was due to “political expediency” and that it was very possible for both candidates to shift their position once elected.  

She said that while progress had been made, there will still a number of areas where the two sides were in disagreement, including some regulatory issues such as the use of GMOs as well as resistance in Europe to the removal of certain agricultural tariffs.

On the US’ part, there was still some trouble removing 3% of existing tariffs which relate mainly to European companies being able to big for certain government contracts. She said that there was also a great deal of resistance, especially from the public, on investor-to-state dispute settlements.  

Nationalist MEP Roberta Metsola, speaking via a video message, expressed optimism about the agreement, however also said that “not just any agreement” will do, stressing that it must be the right one for each and every member state.

Metsola also highlighted the importance of keeping the public informed on the outcomes of negotiations, warning that if this is not done, lacunae will be filled with half-truths that are not representative of what is actually taking place.

David Sammut, Director of International Economic Relations at the Finance Ministry said that government was a bit more positive about the state of negotiations. He said that studies showing that Malta was the only country that will negatively affected by TTIP were carried out using incorrect data and that the picture was not as bleak.

Sant however argued that when there is an actual discussion about how TTIP will affect Malta, the official position that TTIP is good for Malta will change. He said that many people across Europe were scared in the current economic climate, with a number of jobs becoming precarious jobs, and as a result people do not want an acceleration of the current state of affairs.

The 15th round of talks were held in New York last week and those in favour of the deal will be looking to conclude negotiations before a new US President enters the white house in January and before the German federal elections later on in 2017.