EU-USA, all the risks of TTIP

European opposition to the agreement known as the transatlantic partnership for trade and investment (TTIP) is maturing gradually through the joint action of lay movements and religious associations of workers. One of the most active parties, with the involvement of large sectors of the German Church, is currently the Katholische Arbeitnehmer-Bewegung Deutschlands (Kab, German Catholic Workers’ Movement). Massimo Lavena for SIR Europe asked Wilfried Wienen, coordinator of KAB European Office, to explain the real matter at stake which in his opinion would occur with the enforcement of the TTIP. In many European environments there is strong opposition to the TTIP Treaty. Which are the most controversial aspects, object of criticism? “On behalf of the labour movement of German Catholics, I can say that the transatlantic partnership for trade and investment puts at risk labour, social, environmental and productive standards. For example, the US has ratified only two of the eight basic rules concerning the activities of the International Labour Organisation (ILO). In the US the ratification of the remaining six core labour provisions is not viable from the political angle and apparently the EU is content with this situation. There is therefore a risk that freedom of association and the system of collective agreements, the principle of equal pay for women and men, as well as combating discrimination in the workplace could be jeopardized. In addition, TTIP stipulates that companies would receive protection on investment and that through private arbitration panels they would enjoy stronger opportunities of filing legal actions. If in the future States approve laws, such as environmental protection measures, which could limit the foreseeable profit of foreign companies, the latter could promote legal actions against States and request high compensation. And citizens would pay the dues”. Other objections? “The European Commission and the German Government also consider that the TTIP is motivated by the need to achieve economic growth and create new jobs. But the expected effects are quite limited and cover a long period of 10-15 years, with expected additional growth of 0.5% for the next 10 years. In our opinion, to achieve such a small rate of growth there is no need for a TTIP treaty. Secondly, a generic economic growth, without having established what it is that should grow, is irresponsible”. Given its potential bearing, TTIP will not only involve the signatories, namely the EU and the US. It that true? “There are ongoing negotiations on the total abolition of barriers to trade, which indirectly involve 50% of global GDP and some 12% of the global population. In this way the effects of the TTIP will fall on many regions that are not involved in the negotiations. Since TTIP will condition trade flows worldwide, it is expected to affect also the economic performance of African countries. Although TTIP negotiations are confidential, it is increasingly clear that it is not a conventional treaty for the free market. In the future the involved Countries will be forced to promote a radical economic, market policy. To this should be added a further deregulation and flexibility of the job market and social policies, along with the privatization of general local services. To put it bluntly: as regards it basic provisions, TTIP corresponds to a corporate contract, on which EU officers are negotiating with the support of the economic lobby. This is unacceptable, democracy is being denied. In short, we don’t need a TTIP but a fair, harmonious trade policy. Trade should become the engine of ecology and justice, with high social and environmental standards”. How can the word of the Church in defense of labour and workers protection help the process on the revision of TTIP proposals? “In the Apostolic Exhortation Evangelii Gaudium, and on many other occasions, Pope Francis has clearly spoken out on economic issues. In Germany, many organizations close to the Church discuss matters regarding free trade and the TTIP. The Central Committee of German Catholics is preparing a statement. The Commission of the Bishops Conferences of the European Community (COMECE) has announced its public position by the end of the year, after a hearing last November, in which the bishops of Europe have concluded that the TTIP extends beyond the exclusively area of trade. They believe that the very European identity is being called into question. In view of the coming decades it is essential, according to the bishops, that the European Union agreed an sustainable economic and trade strategy”.