Froman Pushes TTIP Rules-Based Framework in Brussels
The Transatlantic Trade and Investment Partnership (TTIP) negotiations between the U.S. and European Union face obstacles but the divide over U.S. cost-benefit analysis priority and European preference for precautionary principles is a conflict of the past, said U.S. Trade Representative Michael Froman during a Sept. 30 speech in Brussels. The partnership must tie the two economies closer through enhancing mutual commitment to rules-based trade, which will enable the two economies to strengthen rules globally in the areas of localization and the role of state-owned enterprises.
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“Restricting standards development to nationality-based processes is a tempting way to carve out market share for national constituencies, but the costs are too high, not just for trading partners, but for standards-setters and regulators forced too often to leave cutting-edge technical solutions out in the cold,” said Froman. The TTIP negotiations should target the following three areas, Froman said:
- Transparency: Providing adequate advance notice of specific regulatory measures, not just preliminary, general papers on the subject, but the actual rule being proposed.
- Participation: Providing meaningful opportunities for input from a broad range of stakeholders, public and private, foreign and domestic.
- Accountability: Providing responses to that input, a rationale for the final regulatory decision, based on evidence, science, including an impact analysis of the proposed regulation.
The U.S. and European Union exchange $2.6 billion dollars’ worth of goods and services daily, said Froman. Mutual investment totals $4 trillion and the bilateral economic relationship provides more than 13 million jobs, he said. The TTIP negotiations remain underway in rudimentary stages, while pressure to conclude Trans-Pacific Partnership negotiations continues to build (see 13091118). Froman will maintain his schedule in the immediate future, despite government shutdown, according to a USTR spokeswoman (see 13100120). Lawmakers on Capitol Hill have recently pushed the USTR to implement state-owned enterprises and currency disciplines (see 13092702).