Presentation on theme: "Privileged Attorney-Client Communication United States – European Union Transatlantic Trade and Investment Partnership."— Presentation transcript:
Privileged Attorney-Client Communication United States – European Union Transatlantic Trade and Investment Partnership
Privileged Attorney-Client Communication Rationale: Win-Win! (in a modestly optimistic way) The transatlantic economic relationship is already the worlds largest, accounting for half of global economic output and nearly one trillion dollars in goods and services trade, and supporting millions of jobs on both sides of the Atlantic….A high-standard Transatlantic Trade and Investment Partnership would advance trade and investment liberalization and address regulatory and other non-tariff barriers. Through this negotiation, the United States and the European Union will have the opportunity not only to expand trade and investment across the Atlantic, but also to contribute to the development of global rules that can strengthen the multilateral trading system. -- US-EU Joint Leaders Statement, February 13, 2013 Were modestly optimistic that we can get this done. I think in the past, the EU, because theyve got to coordinate among so many countries, consistently had to pursue the lowest common denominator….What I think has changed is the recognition throughout Europe that it is hard for them to figure out a recipe for growth at this point, in part because of the austerity measures that have been put in place throughout the eurozone, in the absence of a more aggressive trade component. So I think they are hungrier for a deal than they have been in the past. So weve narrowed down the issues. I think it will still be a heavy slog. -- President Obama, speaking to the Presidents Export Council, March 12, 2013
Privileged Attorney-Client Communication Modest Optimism By the Numbers Annual GDP gains: $154 billion vs. $123 billion Export gains: 28% vs. 8% Global income boost: $130 billion The hard part? 80% of potential TTIP gains from liberalizing services trade, reducing non-tariff barriers, and opening government procurement.
Privileged Attorney-Client Communication Different Process, Different Breed of FTA Global Recession Need for growth Political will Need for process And a manageable agenda High Level Working Groups on Jobs and Growth Political commitment Dont let the perfect be the enemy of the good. TTIP
Privileged Attorney-Client Communication Will TTIP be a Real FTA? KORUS FTA 1. Initial Provisions and Definitions 2. National Treatment and Market Access for Goods 3. Agriculture 4. Textiles and Apparel 5. Pharmaceuticals and Medical Devices 6. Rules of Origin (ROOs) and Origin Procedures 7. Customs Administration and Trade Facilitation 8. Sanitary and Phytosanitary Measures (SPS) 9. Technical Barriers to Trade (TBT) 10. Trade Remedies 11. Investment 12. Cross-Border Trade in Services 13. Financial Services 14. Telecommunications 15. Electronic Commerce 16. Competition-Related Matters 17. Government Procurement 18. Intellectual Property Rights (IPR) 19. Labor 20. Environment 21. Transparency 22. Institutional Provisions and Dispute Settlement 23. Exceptions 24. Final Provisions & Non-Conforming Measures Prospective TTIP – Living Agreement Market Access Track: Goods: Immediate tariff elimination and ROOS Services: Market access Agriculture Highly contentious Ag subsidies: 3 rd rail of trade policy? Regulatory Cooperation Track: Customs Administration TBT and SPS (EU resistance on SPS) Non-tariff barriers to trade (sectoral and cross-sectoral) Transparency (i.e., rule-making processes) Other Tracks and Off Table Issues: Intellectual Property EU wants Geographical Indicators (GIs) on and copyright off the table EU Parliament rejected the ACTA Treaty How reconcile EU single patent system? Pharmaceutical issues Data privacy: Continued internal EU debate Investment: Different models Trade remedies: Off the table for both sides Government procurement: Irresistible force/immovable object Internet governance: Emerging issue
Privileged Attorney-Client Communication Regulatory Cooperation – TTIPs Negative Sum Game Whats in a name? Regulatory Cooperation HarmonizationReform Mutual recognition Convergence Issues & Sectors Customs Administration Technical Barriers to Trade Sanitary and Phytosanitary Measures Rule-making transparency Services eligibility Banking and financial E-commerce Healthcare & Pharmaceuticals * A catch-all meant to capture the universe of non-tariff barriers – will it really be comprehensive?
Privileged Attorney-Client Communication The Other Issues: Whats in? Whats out? Where do they go? Mandate Problems Indicative Issues Intellectual Property (IPR) EU: Geographical Indicators (GIs) and copyright? EU Parliament rejected the ACTA Treaty How to reconcile the EU single patent system? Rx/Gx/BIO: Data protection? Trademarks and internet domain names Data Privacy Investment Government Procurement Trade Remedies Internet Governance
Privileged Attorney-Client Communication Pre-Launch Phase: March – June 2013 Over here…Over there…
Privileged Attorney-Client Communication Your Organization and the Pre-Launch Phase Congress Ways & Means, Finance, plus expanded committee activism throughout oversight process What is the USTR/Congressional dynamic in this Administration? USTR How will a new USTR matter? Public stakeholder forum concluded April 10-11 th. Next hearings May 29-30, comment deadline May 10 th. Whats a TPSC anyway and what does it do? Big Four: USTR, Commerce, State, Treasury (always cover the Big 4!) IPR issues: USPTO, LOC (copyright), White House IP Coordinator Investment: add Justice Drug regulatory: FDA, USPTO, Public Health Service Environmental regulatory: EPA, White House CEQ, Energy/Climate czar Internet and telecoms: FCC Of course you can lobby at the 11 th hour! Singapore: chewing gum and capital controls Korea: auto dispute mechanism Colombia: Labor, Labor and Labor
Privileged Attorney-Client Communication Road Map to Negotiations April – June is critical pre-negotiation phase. USTR first hearings May 29-30. House Ways & Means and Senate Finance have yet to set hearings. EC ahead of schedule, Commission draft mandate went to member states March 12. Your organizations interests best served through parallel advocacy. USTR and key TPSC agencies. Indicated regulators and the race to define regulatory convergence/harmonization/cooperation. Do you have a political argument you are not making? Congressional approach – grass tops to rooftops. District, State and jurisdictional committees. Remember the non-trade committees will be vital. Post-Lisbon Treaty has created an empowered EU Parliament. Ignore EU member states at your own peril. Timeline for conclusion?
Privileged Attorney-Client Communication Can you live with a living agreement? A limited bargain… Reduced agenda Political pressure Future promises Managing priorities Front burner issue? Can you trust in a yet to be determined institutional process? Whats the price of patience? Living agreement a non- acceptable Plan B for most issues