Concerns over spying scandal’s effect on trade deal ambitions

Determination to reach historic trade agreement.

The United States and the European Union on Monday (8 July) opened the first round of talks on a transatlantic trade deal, with both sides insisting that the controversies that have overshadowed the start of negotiations would not dampen their ambitions. 

“We need to resist the temptation to downsize our ambitions or avoid tough issues just for the sake of getting a deal,” said the US trade representative, Mike Froman. His counterpart, Karel De Gucht, the European commissioner for trade, said: “We will, of course, meet a lot of problems and stumbling stones, but if we reach an agreement, it would be a historic one.”

Avoiding the subject

French concerns about imports of US films have obliged European Commission negotiators, who are led by Ignacio Garcia-Bercero, to avoid discussions on the audiovisual sector in the initial phases of the talks, while revelations last week of US espionage of EU premises resulted in a decision to hold parallel talks about US intelligence activities.

The week-long round is focusing on investment, government procurement, cross-border services, textiles, rules of origin, energy and raw materials and legal issues. It also included an opportunity yesterday (10 July) for business and civil-society groups from both sides of the Atlantic to voice their opinions.

Last week, on 3 July, a team of Commission negotiators led by Mauro Petriccione completed the second round of talks on the second-largest trade deal that the EU is currently pursuing, with Japan.

The meeting produced no breakthroughs, but Japan is under heavy pressure, because of a unique clause introduced into the Commission’s mandate by EU member states that could halt negotiations if Japan fails to make substantive concessions within 12 months. The negotiations began in April.

Barriers

The ‘safeguard clause’ was introduced under strong pressure from European carmakers, which argue that Japan has erected many discriminatory barriers, ranging from tax to restrictions on sales venues.

The Commission says its focus is on persuading Japan to sign up to international standards on cars and other issues, rather than to bilaterally agreed standards or mutual recognition of each other’s regimes.

By contrast, mutual recognition is seen as a significant way of overcoming obstacles in talks with the US.

While the EU and US hope to complete a deal in 2014, there is no public timeline for talks with Japan. Trade negotiations typically last between two and five years.

Click Here: cheap all stars rugby jersey