The Transatlantic Trade and Investment Partnership has hit a
major stumbling block, with the announcement that France will not sign it in its
current form and Germany has grave concerns over a section known as the
Investor State Dispute Settlement mechanism (ISDS).
Minister of Foreign Trade, Matthais Fekl, told the French Senate
that “France did not want the ISDS to be
included in the negotiation mandate. We
have to preserve the right of the state to set and apply its own standards, to
maintain the impartiality of the justice system and to allow the people of
France, and the world, to assert their values," according
to an article on the EurActiv website.
It is this
very section, the ISDS that has also led critics of the project to claim that
the NHS would be opened up further to corporation takeover, whether the
government of the day welcomed it or not, for the ISDS would allow corporations
to challenge legislation that they claim would be putting a brake upon
profits. The US is loath cut this
section but it seems that Germany is not going to sign any agreement that
contains ISDS.
Quite right too in my opinion. TTIP is more than a look at tariffs between
trading nations: it is a massive unification of regulations across vast trading
zones. Although there is a lot of
potential upside – for the UK alone this is estimated at £10 billion a year, it
is important too that governments are able to keep control over their own
legislation – this should not become a battlefield for lawyers. Surrendering of sovereignty to corporations
is unacceptable.
A lot depends on the TTIP negotiations: at this
time in the UK economy an estimated 3.5 million jobs are linked to the EU, and
that number will only increase if TTIP goes through. I want to see that happen, but it is also
correct for both Germany and France to highlight the threat to both sovereignty
and therefore democracy that this contained within ISDS.
The TTIP negotiations also show how
wrong-headed and muddled the views of UKIP and the Conservative right are on
Europe. Outside the EU, we would not be
part of the negotiations and would have no influence upon their outcome. Should a Britain outside the EU seek to join the TTIP group, it would be on a take-it-or-leave-it basis.
My view is that the UK can benefit greatly if
TTIP is secured, and that we should be backing the views of France and Germany
on ISDS. Trade is good: having
corporations being able to dictate legislation, not so much.