Roundup: Unsettled issues drag TTIP behind schedule

The eighth round of negotiations on the Transatlantic Trade and Investment Partnership (TTIP) put European Union (EU) and U.S. common interests and concerns in the spotlight this week, but there are still many obstacles to overcome before the ambitious agreement to establish a new, global trade system can take effect.

The process of negotiation has been impeded by many unexpected events, one of which is the so-called U.S. spying scandal over European politicians' privacy. This unfortunate incident, which is being called an accident, has nonetheless undermined the trust between the two sides and is considered as having had the most encumbering effect on the negotiation, together with Ukraine crisis and far-right parties gaining traction in many European countries.

Moreover, there were new, unsettled disputes over the investor-state dispute settlement (ISDS), regulation convergence, and public interests, casting a shadow over the negotiation's scheduled completion.

EU Trade Commissioner Cecilia Malmstrom has delivered a few speeches in support of TTIP and to address public concerns since she took office since late last year.

Malmstrom stressed the importance of protecting European standards and values in trade alliances with the United States, but also said the TTIP was a way to strengthen an alliance that would be fundamental to shaping the world in the 21st century.

She took Germany as an example, saying open trade could lead to many jobs and urged stakeholders to take advantage of the trade partnership.

"Seven million people in Germany have a job thanks to export success. That's more than 15 percent of people working in the country. And 15 percent of those jobs depend on exports to the United States," she said.

The European Commission's own estimate of TTIP's impact suggests the EU economy could benefit by 119 billion euros (about 135 billion U.S. dollars) a year, equivalent to an extra 545 euros per family of four in the EU. According to the same study, the U.S. economy could gain an extra 95 billion euros a year or 655 euros per American family.

However, apart from the growth projections, there are many existing uncertainties and rising public dissent.

Talking about the controversial investor-state dispute settlement (ISDS) mechanism, which allows foreign companies to challenge local governments on the international stage, Malmstrom said she would not accept an imbalanced ISDS which would undermine the capacity of governments to regulate in the public interest.

Despite negotiators' best efforts, some experts warned that time was running out for the planned deadline for reaching a deal on TTIP.

European Center for International Political Economy (ECIPE) director Hosuk Lee-Makiyama said in a report that three elements were required to bring the TTIP negotiations back on course, including a common understanding of ambitions from both sides, addressing who would be willing to pay for TTIP, and establishing the overarching objective of the trade agreement. Endit