What
is this ugly acronym ‘TTIP’ that is getting the chattering classes into such a
lather? The great unwashed remnants of the anti-globalisation campaigners are already mobilising.
Well,
it is the Transatlantic Trade and Investment Partnership. Who cares?
We
all should. It will be the largest free-trade agreement ever. It will account
for about 60% of world GDP. It is estimated that it will increase EU GDP by
around 5%; there is already a substantial
balance of EU/US trade surplus in favour of the EU. It would be a market
of 820 million people.
Its
overarching aim will be the reduction of trade barriers between the two
signatories.
If
it comes to pass, that is. Unsurprisingly, the French are being typically
obstructive. Anything that might threaten their bloated farmers and
feather-bedded industries is anathema to them.
The
sectors to be included are textiles, chemicals], pharmaceuticals, cosmetics,
medical
devices cars, electronics and information technology,
machinery and engineering,
pesticides, sanitary measures and barriers to trade in food and agricultural
products.
The main exports from the US to the EU are aircraft,
machinery, and fuel oils, together worth $471 bn. The top US imports are machinery, vehicles and pharmaceuticals, in
all, worth $535 bn.
There are some basic issues to be sorted.
There are concerns that Big Business could sue
governments, such as an American tobacco company suing the UK for introducing
plain packaging cigarettes. This could be seen as an attack on democratic sovereignty.
The
Greens are choking on their organic muesli at the thought of having to admit GM
foods and hormone-treated beef although the Americans have been consuming large
quantities of both for years without dropping dead in the street.
There
are worries that the NHS could face legal action if it tried to de-privatise any
of its contracted-out services.
The
financial services industry is worried that the draconian regime regulating American
banks could be enforced here.
Many
people are concerned that it will all lead to even larger crony-capitalism,
with gargantuan enterprises able to get governments to do their bidding, never
mind ‘the people’, because of its huge clout.
At
this time we only know what is being negotiated. We don’t know what is being
decided.
There
is everything to play for.