EU
and US trade sharp words on TTIP
In
testy exchange of emails, Commission warns US: Compromise or no deal
in 2016.
By RYAN HEATH
5/30/16, 9:04 AM CET Updated 5/30/16, 10:40 PM CET
Tensions between the
EU and U.S. over the lack of progress in talks on a transatlantic
trade deal boiled over last week as both sides aired frustrations in
sharply worded emails obtained by POLITICO.
The European
Commission warned in an email sent Friday to the 28 EU ambassadors in
Brussels that unless the U.S. changes its approach to negotiations on
the Transatlantic Trade and Investment Partnership (TTIP), there’ll
be no deal before President Barack Obama leaves office in January
2017.
In its email to EU
permanent representatives, the Commission strongly criticized U.S.
Ambassador to the EU Anthony Gardner for sending what it called a
“somewhat unusual” message to his European counterparts earlier
last week.
Gardner wrote to the
28 EU ambassadors on May 25, criticizing European Agriculture
Commissioner Phil Hogan for making a “a series of misleading
statements in the press,” while providing a detailed list of the
statements.
The
behind-the-scenes war of words is the latest sign of the increasingly
fraught politics behind the TTIP talks, with each side digging on key
policy areas and hinting that the other is not negotiating in good
faith.
Agriculture is one
of the most contentious of the 27 chapters currently under
negotiation in the TTIP talks. Each side is under pressure from
strong domestic lobbies.
In his email to the
EU ambassadors, Gardner wrote, “While differences of opinion are
natural, especially on tough issues like agriculture, they should be
aired privately, rather than in the public arena.”
Gardner added that
the U.S. position is that “EU tariffs are 2-3 times as high as U.S.
tariffs and EU non-tariff barriers have virtually eliminated many of
our key exports.”
In its counter-punch
email, the Commission made clear it thinks the U.S. is unwilling to
engage seriously in areas of importance for Europe, such as accepting
its system of geographical indicators (which limit the use, for
example, of the term “Champagne” to producers from specific
regions).
The Commission
blames the U.S. for the stalled negotiations, with the email saying
“the EU has not yet seen substantial progress in areas of
significant importance to EU agriculture, such as geographical
indications, wine and non-tariff barriers.”
Sent from Hogan’s
office, the content of the Commission’s rebuttal was agreed between
several Commission departments and President Jean-Claude Juncker’s
office was aware of it being sent to EU ambassadors, according to
emails seen by POLITICO.
The email also
implies that the Commission does not see a willingness on the part of
U.S. to compromise on key issues. The message reads, “The U.S.
Administration does not yet seem to be in a place where it can
reciprocate the EU’s efforts in TTIP and to start delivering on
matters of EU interest.”
A senior U.S. trade
official told POLITICO the Obama administration is “worried about
many recent developments on the EU side,” not limited to the TTIP
negotiations, but extending to the EU’s unwillingness to re-approve
the pesticide glyphosate.
According to an
internal Commission briefing document shared with EU ambassadors, and
obtained by POLITICO, Hogan rejected suggestions that current
E.U.-U.S. agriculture trade is imbalanced.
“The EU exports
processed, high value products, which cannot be easily substituted
(because of consumer preferences) whereas US products are
standardized commodities which are easily substitutable. The positive
trade balance is essentially a result of the EU exports of wines and
spirits and beer to the US.”
The Commission’s
advice to the EU ambassadors even includes a note of sarcasm. At one
point, the email notes that Hogan represents the collective view of
the Commission, rather than his own opinions, and suggests this is “a
point that seems to have been lost on the Ambassador [Gardner].”
Support for the TTIP
issue, which had once been a seen as a potential trophy for EU-U.S.
relations, is wavering in several key countries. French President
Francois Hollande told the U.S. at the G7 summit Washington has to go
“way further” to get his support for a TTIP agreement.
Germany’s Deputy
Chancellor Sigmar Gabriel said Sunday that Angela Merkel would be
wrong to push speed over quality in 2016 negotiations.
Hans von der
Burchard contributed to this article.
Authors:
Ryan Heath
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