The top 10 myths about TTIP - Separating fact from fiction The Transatlantic Trade and Investment Partnership (TTIP)
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The Transatlantic Trade and
Investment Partnership (TTIP)
The top 10 myths about TTIP
Separating fact from fiction
Trade
Europe Direct is a service to help you find answers
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Luxembourg: Publications Office of the European Union, 2014
ISBN: 978-92-79-47462-0
doi: 10.2781/83337
© European Union, 2015
Reproduction is authorised provided the source is acknowledged.
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
To download this brochure, go to: http://ec.europa.eu/trade/policy/in-focus/ttip/Foreword
Europe faces big challenges. It would help cut costs for EU firms, by
tackling unnecessary red tape.
These include kick-starting
our economy. Adapting to the rise of And it would put in place new rules to
emerging economies outside Europe. make it easier and fairer to export,
Or maintaining our influence in the import and invest across the Atlantic.
world.
But of course, TTIP can’t come at any price.
TTIP could help.
We have to make sure, for example, that it protects Europe’s
At home, it could generate jobs and growth, cut prices high standards, including our food safety rules.
when we shop and offer us more choice.
That it encourages investment while strengthening
And it would boost our influence in the world – by helping EU governments’ rights - to protect people and the
us to attract more investment, set high standards in environment, or run public services just as they wish.
global trade, and project our values.
And that it protects our cultural diversity, and ensures
How? Well, it would open up the US market to EU firms, developing countries gain, too.
especially smaller ones.
1TTIP is ambitious and innovative. So of course people Unfortunately, certain myths have developed about what
have concerns about what we’re negotiating – and about TTIP would or wouldn’t do – claims that simply aren’t true.
how we’re doing so.
This brochure lists the 10 main ones – and what the
As negotiators, it’s our job to understand and address reality actually is.
those concerns.
We hope it’ll help you separate fact from fiction as you
In fact, we know we’ll only get the best deal - one that form your own views about TTIP.
benefits as many Europeans as possible – if we involve
everyone with a stake in the outcome, at every stage. And once you have, I and my team want to hear about
them. So visit us online and have your say at http://
That’s why I and my negotiating team have pledged to keep ec.europa.eu/trade/policy/in-focus/ttip/have-your-say/
listening and responding, and to be as transparent as
possible about what we’re doing. We look forward to hearing from you.
And that’s why we’re working to put that pledge into Cecilia Malmström
practice - for example, by publishing every proposal EU Trade Commissioner
that we give our American counterparts. April 2015
You’ll find them at http://ec.europa.eu/trade/ttip-texts.
2“TTIP will force th
e EU to import
“TTIP will force governments hormone-treate
d beef.”
to privatise public services.”
Nope. Find out wh
at it would do on
page 5.
8.
No it wouldn’t. What would it do? See page
“TTIP will weaken EU standards.”
Actually it would uphold them. How? See page 4.
“TTIP will let US firms sue EU governments at will.”
Definitely not. Learn why on pag
e 7.
“Big busin
ess is calling
in TTIP.”
all the shots
13 and 14.
e who is, go to pages
Not true. To se
3nd in the future
1. Stand
ards – now a
s that pro
tect TTIP in practice
? Mythill weaken strict EU s
tandard
w
“TTIP et” Cutting costs for cake-makers
d the plan
people an ould - without cutting corners
on. TTIP w
negotiati
Fact aren ’t up fo r
rds simply European companies make safe, fresh cakes
? EU standa all. d to:
uphold the
m o committe and export them around the world, but not to the US.
But we’re als h
US have ing our hig
U and the • protect
Both the E tandard s in
standard
s That’s because EU and US
t set strict s
rule s th a arding EU
e : • safegu dependen
ce MADE IN cream-making machines are
are a s lik
re g ulators’ in different. EU ones don’t meet
afety
MADE IN
• food s t work ing the
’s rights a • uphold ciple US specifications.
p e o ple n . nary prin
•
on m e nta l protect io precautio m e nts’ 1
• envir g govern
• ensurin
2
ew laws With TTIP we could agree that
E U rig h t to pass n
cut the co
s ts tect people this difference shouldn’t stop
We want to in fu ture to pro Dd
:
face when us from selling to each other.
exporters are the same
rds
• standa
CH
nd U S , bu t
a
in the EU iffer.
a nd U S rules d
• EU
€ €
4NEWS
2. Food safe
ty
? Myth
“TTIP will low
er food safety st
andards in Eu
rope.”
? Fact TTIP in practice
TTIP will fully
up
EU sets them hold food safety standard Cutting costs for oyster farmers
. s and the way the
Of course we
JOBS
- without cutting corners
all want the fo
we eat to be sa od But TTIP will en
fe. So TTIP will able EU and US
mean no wea regulators to w Oysters, like many other EU products, can’t be
kening of EU’s ork together
high food safe • help make to:
ty standards– it easier to exported to the US.
absolutely none export and im
. port
• whilst fully
respecting ou Why? Well, to ensure they’re free of
rules on food r
The way we re safety.
gulate things
like dangerous bacteria, the US tests
genetically m
odified organi the water in which oysters are
(GMOs) and fo sms In the past, tackling
od safety will problems
like mad cow grown. In Europe we test the
stay just like it disease has be
is. difficult and en oyster itself.
costly. Many
countries, includ
TTIP will not ing the US, ha
force the EU to banned EU ex ve
import: ports of produc Scientists confirm both ways of
such as beef fo ts MADE IN
MA
• GM foods r long periods testingDE are
IN
equally good.
which EU .
regulators have
n’t already By working mor
31 approved e closely toge So with TTIP, French and Irish oyster producers should
EU and US regula ther,
• hormone- tors would be
treated beef only have to pass EU tests to gain access to the US.
• meat from better able to
cloned tackle proble
animals. that might aris ms CH
e in future. Dd
53. Tariffs
Trade deals in practice
? Myth th e EU an
MADE lo
d US are already
IN
w. TTIP is jus t Helping Europe’s firms export
“Tariffs be twee n MADE IN
antling EU regula
tions.” more to South Korea
a pretext for dism
Fact e
high tariffs. And th . In 2011 the EU signed a free trade deal
? s still suffer from up
Some EU industrie overall means even low tariffs add
1
2 3
EU -U S tra de with South Korea. Since then:
scale of
Dd
e low,
CH
ve And ev en where tariffs ar
d th e EU ha German exports of airbags for cars
Both the US an EU-US trade
rts – arou nd the large scale of
low duties on im po l cost of have grown 500%
age – but means the overal
on av er ficant.
4 per ce nt to EU firms is signi
es n’t m ea n th ey have no tariffs
that do French exports of
€ t.
€effec almost all
TTIP would scrap railway signalling have
EU exports
s co nc ea ls remaining tariffs on risen thirty-fold
An average alway the US.
industries - like to
extremes. Some Polish exports of
still suffer
food or textiles - This would: air conditioning units are up by
from high tariffs. nies save
• mean EU compa 23 times.
money right away
rd fo r EU firms e in goods
This m ak es it ha • encourage trad
in the US , d the
to sell their goods between the EU an The deal also means many goods we import from
them mor e Korea are now cheaper for consumers here in Europe.
because it makes US.
Am er ica n- m ade
expensive than
goods.
6TTIP in practice
4. Governments’ rig More choice for sunbathers
ht to regulate
?
JOBS Myth The sun’s ultra-violet (UV) rays can
“TTIP would allow po
werful US firms to su cause skin damage and even cancer.
will.” e governments at
? Fact
Sunscreens contain special filters
TTIP would tighten up
an existing system for which block out these rays.
between foreign firm settling disputes
s and governments.
EU countries have mo
re than If the tribunal decid In the EU, companies can only sell
1,400 investment es the
agreements gove them after scientists test them to
with each other and rnment has, it can ma
with other, ke it
non-EU countries. Th pay compensation. check they work and are safe.
ese bilateral But it can’t
investment treaties make it change or scr
(or ‘BITs’) help ap a law.
attract foreign inves But if they want to sell the same product in the US, it then has
tors. We want to tighten
up ISDS, by: to pass a second
MADE IN
MADE IN set of different tests.
Governments comm • clarifying the ba
it to treating sis on
them just as they wo which investors can
uld local file ISDS
ones. And the agreem cases With TTIP we want to help regulators:
ents • strengthening
include a system ca • swap test results for UV filters - both new and existing
lled Investor-
State Dispute Settl governments’ right ones
ement, or to
ISDS. regulate CH
• streamline
Dd the process for approving filters in the US
• giving the public
access to: which the EU has already approved.
An investor can ask • documents the
a panel of tribunal
independent interna receives
tional • hearings the trib That way:
arbitrators to judge € € unal holds
if a •
government has tre allowing any intereste • companies could export to the US more easily
ated them d party
unfairly. to make submission • consumers would enjoy a wider range of safe,
s.
innovative products.
7TTIP in practice
5. Public services Better access to the US market
for Europe’s plate-makers
? Myth e EU govern ments to priv
atise the publ
ic
US import duties on plates and other crockery
“TTIP will forc
MADE IN
l rely on”
MADE IN
from the EU are twice as high as EU duties on US exports.
services we al
ic
Fact ee to run publ
s le av e go vernments fr And complicated customs rules
? All EU trade de wish.
al
2
1
3
ey
services as th a
mean companies have trouble
TTIP would stop
Dd
ho sp itals an d Nothing in bringi ng an predicting how much it will cost them
, like om
Public services government fr to ship their products to the US.
s, are im po rt ant to us all. rc ed public service ba
ck
school outsou .
ic se ct or
into the publ
w hy all EU trade deals It could be 6% - or as much as 25% -
That’s for ’s
c guarantees ing a company of their products’ value.
include specifi And not renew blic
. id e a pu
public services contract to prov s
e w ould give no ground
se rvic What’s more, setting the duty charged as a percentage of the
trade deals, for compensat
ion.
After we sign product’s value makes it harder for European producers to
m ents ca n still run these
govern
as they wish. compete with cheaper, often lower-quality rivals from Asia.
services exactly
ey can still: For BHS Tabletop AG, a medium-size German producer, the
For example, th as
lic services’
• define ‘pub duty has a clear impact. It can no longer sell its decorated
want
broadly as they crockery in the US.
w he n to
• freely decide
e pu bl ic sector
only let th
icular service. With TTIP, we want to scrap duties on EU exports - and help
provide a part
European industries and firms like BHS Tabletop compete.
8NEWS
TTIP in practice
6. Cultural diversity Better access to the US market for Europe’s small
bakers
? Myth
and other
“TTIP will spell the end of European cinema Today, if you want to export a Danish pastry –
creative industries.” or plain ‘Danish’, as it’s called in the US - from
?
Fact Europe to the US, there’s a 6% tax at US
e cultural
TTIP will respect Europe’s distinctive and divers customs.
indus tries. JOBS
Cultural diversity is one of That’s why TTIP would: This might not seem much. But it still makes competing difficult.
Europe’s great assets. • leave out the
audiovisual sector from
any commitments we make In fact, once an EU exporter pays its US distributors, it has to
And the EU’s cultural and
to open up the EU market charge customers there over 10% more than it would
creative industries provide
jobs for over five million to US exporters otherwise. That gives its North American rivals a big advantage.
Europeans. • uphold laws on books
that fix the prices Take, for example, Mette Munk
en
These industries include music, publishers charge Claus Ols
Marketing Bakeries from Denmark. They
• ensure governments can Sales and
MADE IN
films, TV and radio –1 known as Mette Mu
nk MADE IN
2
continue subsidising Director - export worldwide, combining
the ‘audiovisual sector’ in trade Denma rk
3 cultural industries and Bakeries, craftsmanship with the latest
jargon.
the arts just as they do the curre
nt production techniques. In all they
‘We hope ay
And we’re determined to respect now. s we p employ more than 60 people.
p the taxe
s will scra
lk
our diversity and support those EU-US ta Dd
oms.”
at US cust
CH
industries. 1 31
By removing US customs duties,
TTIP would help firms like Mette Munk sell more of their
traditional, high-quality products on global markets – and create
jobs in the process.
9 € €JOBS TTIP in practice
7. Sustainable development
New rules to make trade easier
2
? Myth
1
and fairer
“TTIP will mean a race to the bott
3 om on the environment
and people’s rights at work.” MADE IN MADE IN
A decade ago the EU banned animal
? Fact
testing for make-up, deodorants and other cosmetic products.
We want a dedicated chapter in TTIP
to foster sustainable
development.
1 31 Now there’s a permanent ban on ingredients, too, and on
When it comes to protecting the For example, we want TTIP marketing them.
CH Dd
environment or people’s rights to include commitments that
at work, the EU has possibly guarantee that both the US and
the highest standards in the By contrast, the US still allows animal testing for cosmetics.
the EU respect core labour
world. But:
standards set out in core
conventions of the International € •€ both the EU and the US have pledged to find new
In TTIP, we’re determined to Labour Organisation (ILO), a UN alternatives for testing
uphold these standards, and agency that promotes people’s • producers in Europe have already developed several
promote them. rights at work. such methods.
So TTIP will: We also want to work more
• ensure the EU continues Through TTIP we want EU and US regulators and companies to:
closely with the US to combat
to decide its own levels things like illegal logging or • share their scientific knowledge
of protection for people fishing, or the illegal trade in • set an example of developing safe new products in a
at work, and for the wildlife. way that respects animal welfare.
environment
• commit the EU and US to And we want TTIP to promote
enforcing them. By doing so, we could help convince other countries to
trade and investment in
abandon animal testing, too.
renewable energy and other
green goods and technologies.
108. Develop
ing countries
es will suffer.”
? Myth rters – but developing countri
EU and US expo
“TTIP will help
fit, too.
Fact s would bene
su gg es t other countrie
? Independent st
ud ies
to one set
on ly ha ve to produce goods
Then they’d ake trade
om ies – already the tion s. Th at would in turn m
EU and US ec on of specifi ca
Of course, the IP. and cheaper.
es t – w ou ld benefit from TT arou nd th e world easier
rg
world’s two la
ways to
o. orks in other
th e w or ld would gain, to O f co urse , the EU also w from trade and
But the rest of lopi ng co un tries benefit
lp deve
n more he n investment.
or e EU -U S trade would mea at tract more foreig
For ex am ple, m ex po rt , like:
r countries
ings that othe
demand for th e:
ials Examples includ velopment ag
reements
• raw mater ry e an d de
s and mac hi ne • our tr ad cific countries,
• component an , Ca ribbean and Pa
oducts with Af ric Agreements,
• finished pr cu st om er support or n as Ec on om ic Partnership
rvices lik e know
• business se
ca re . or EPAs test round –
after-sales e in vo lv ement in the la
• our ac tiv global trade
m or e it would benefit as th e D oh a Round - of
r TTIP went, th e know n World Trade
And the furthe tw ee n m embers of the
world. talk s be e main goals
the rest of the is atio n, or WTO; one of th
Org an share in the
US ha rm on is ed he lp de ve lo ping countries
the EU and is to
For example, if so me areas, othe
r
growth in world
trade.
l st an da rd s in
tech ni ca them to o.
want to adopt
countries might
11TTIP in practice
Better access to the US market for
Europe’s vegetable growers
Producing and exporting sun-ripened peppers, artichokes
and other vegetables provides a living for thousands of
people in rural Spain.
But good times for Spanish exports are under threat.
Since the US offered trade preferences to its Latin
American partners, competition in the US market - Pedro He
rr
30% of global sales – has stiffened. Vigueras era
CEO - Con
servas El
Murcia, Sp Raal,
10 years ago, Spanish exporters sold nearly ain
all canned peppers in the US. Now it’s countries “Products
enter the from other
only 25%. a 15% ta US duty-f
x at US cu ree. But w
stoms. e pay
With TTIP,
we hope th
- helping is tax will
us recove be scrapp
r a nd even ed
sales in th grow our
e US.
That would
give new
communit hope to th
ies in whic e rural
h we oper
ate.”
12CH
Dd
1
9. Transparency
2 3
& influence
? Myth
€ € “Ordinary people have no ide
a what’s being discussed – it’s
TTIP.” big companies that are calling
all the shots in
? Fact
The TTIP talks are the most
open ever for a trade deal and
range of interests. our negotiators are consulting
a wide
Getting TTIP right means bei
ng as transparent as
possible. And listening to And our doors are open to
and involving everyone everyone.
with a stake.
In fact, we’re actively reachin
g out to ensure everyone
That’s why we’ve published with a stake in TTIP can hav
online a wealth of e their say - however lou
material about TTIP, includi or quiet. d
ng:
• the EU’s negotiating
texts on regulatory issues
and rules, which EU negotia For example, we:
tors have given their
US counterparts • regularly meet:
• factsheets explaining • businesses,
every chapter of TTIP in
plain language. • consumer bodies,
• trade unions, and
You’ll find all these docum • environmental and hea
ents online at: lth groups
http://ec.europa.eu/trade/tt • have set up a TTIP Ad
ip-texts visory Group of 16
outside experts representing
these interests
We’ve also enabled all Me • have held several public
mbers of the European consultations.
Parliament (MEPs) to see
other documents that
remain confidential.
1310. Democratic oversight
? Myth
over what
“Governments and politicians have no control
negotiators are cooking up.”
?
Fact process
Governments and MEPs are central to the TTIP
- and have the final say.
EU governments are central Once a final TTIP text is ready,
to the TTIP talks. We consult we’ll give it to:
them at every stage – as EU law
requires. • the governments of the
EU’s 28 countries
MADE IN So is the European Parliament, • The European Parliament
• stakeholders and the
MADE IN
whose members (MEPs) we
update regularly. public, by publishing it
online.
We often meet national
ministers, officials and And then a final1decision comes
with a double2 democratic
3
CH
Dd
parliamentarians, too.
guarantee.
We also share confidential
negotiating documents with EU EU governments and MEPs
governments and MEPs. will decide whether the
agreement is to be applied.
14The top 10 myths about TTIP
Myth Fact
1. Standards – now “TTIP will weaken strict EU standards that protect EU standards simply aren’t up for negotiation. TTIP
and in the future people and the planet.” would uphold them all.
“TTIP will lower food safety standards in Europe.” TTIP will fully uphold food safety standards and the
2. Food safety
NEWS
way the EU sets them.
“Tariffs between the EU and US are already low. TTIP is Some EU industries still suffer from high tariffs that
3. Tariffs
just a pretext for dismantling EU regulations.” make trade in goods more expensive.
4. Governments’ right “TTIP would allow powerful US firms to sue TTIP would tighten up an existing system for settling
to regulate governments at will.” disputes between foreign firms and governments.
MADE IN
MADE IN
“TTIP will force EU governments to privatise the public All EU trade deals leave governments free to run public
5. Public services
JOBS services we all rely on.” services as they wish.
“TTIP will spell the end of European cinema and other TTIP will respect Europe’s distinctive and diverse
MADE IN
MADE IN
6. Cultural diversity
NEWS
Dd creative industries.” 2 1 3 cultural industries.
7. Sustainable “TTIP will mean a race to the bottom on the We want a dedicated chapter in TTIP to foster
development
CH Dd
environment and people’s rights at work.”2 1 3 sustainable development.
“TTIP will help EU and US exporters – but developing Independent studies suggest other countries would
8. Developing countries
2
1
countries
3 will suffer.”
MADE IN
MADE IN benefit, too.
MADE IN
MADE IN
9. Transparency and “Ordinary people have no idea what’s being discussed – The TTIP talks are the most open ever for a trade deal
MADE IN
€ €
MADE IN
JOBS 1
Influence 2
it’s
3
big companies that are calling all the shots in TTIP.” and our negotiators are consulting widely.
10. Democratic CH
“Governments and politicians have no control over what
Dd
Governments
2
1
3
and MEPs are central to the TTIP process
oversight negotiators are cooking up.”
CH
Dd
Dd 1 - and have the final
2
1
3 say.
CH 2 3
€ €
€ € € €
15 MADE IN
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To download this brochure, go to: http://ec.europa.eu/trade/policy/in-focus/ttip/
European Commission
The Transatlantic Trade and Investment Partnership (TTIP)
The top 10 myths about TTIP
Separating fact from fiction
ISBN: 978-92-79-47462-0
DOI: 10.2781/83337You can also read
