Monday 20th October 2014

Last week SOLIDAR was part of a transatlantic dialogue in Washington D.C. to raise our concerns regarding the Transatlantic Trade and Investment Partnership (TTIP). We participated in a conference organised by the Foundation for European Progressive Studies (FEPS) and the Initiative for Policy Dialogue (IPD) with the support of the Brookings Institute on the international financial architecture. In addition SOLIDAR co-organised a transatlantic debate with FEPS, the Global Progressive Forum (GPF) and other partners on TTIP and facilitated with the European Trade Union Confederation (ETUC), European Public Health Alliance (EPHA) meetings between MEPs and US trade negotiators responsible for labour, social services and investment.

On the basis of these meetings SOLIDAR strongly recommends the following:

• Health and social services should be excluded from TTIP, not even be placed in an annex, to ensure the partnership principle; the close cooperation between public authorities at national, regional and local levels in the Member States with social and health services providers to tailor high quality services matching the needs of vulnerable people.

• TTIP must promote regulatory harmonisation to eradicate non-tariff barriers and non-tariff measures where it is beneficial; however regulatory convergence cannot lead to lowering high quality standards, such as the ones defined by the Voluntary European Quality Framework For Social Services, and should rather aim at improving them.

• As Commission President-elect Juncker seems to have stated already; following the example of the US-Australia agreement, Investor-to-State (ISDS) dispute settlement mechanism has to be removed from TTIP and be replaced by State-To-State dispute mechanism.

• Replace within TTIP the sustainability chapter to make labour and social standards enforceable by introducing a State-to-State dispute settlement mechanism on the basis of all ILO Conventions and in particular the ILO Recommendation 202 on social protection.

• In order to promote transparency the European Parliament should be enabled to hold an open and transparent mid-term assessment of the TTIP negotiation mandate and the ‘state of play’ to provide a better political mandate for the European Commission to proceed with the negotiations.

AN OVERVIEW

DAY ONE

TTIP: reduce inequalities and improve structural transformation

The first activity during this mission was a dinner debate on the international financial architecture with Nobel Laureate Josef Stiglitz. He pointed out that that the challenges caused by rising inequalities and lack of structural transformation adjustments, fostered by the austerity obsession by some European leaders, might lead to a ‘triple dip’ crisis. These words also have to prove a guideline when discussing TTIP; trade cannot lead to rising inequalities and weaken structural transformation adjustments. Read full article

DAY TWO

Labour market erosion is no structural reform!

The second meeting in Washington, as part of this transatlantic dialogue, SOLIDAR participated at a seminar with Brookings Institution – one of the most influential think tanks in the world – organised by Foundation for European Progressive Studies (FEPS). At this seminar renowned professors in economy Adam Posen (Peterson Institute for International Economics), Peter Bofinger (University of Wurzburg) and Olivier Blanchard (International Monetary Fund) underlined that European decision makers have to broaden their limited perspective on structural reforms. Read full article

Investment for growth and jobs

Sustainable growth and quality jobs have to be the purpose of a new Investment for Growth approach! This was the main discussion during the second round table of the day during transatlantic dialogue taking place in Washington with Damon Silvers (American trade union confederation AFL-CIO), Joao Carlos Ferrez (Brazilian development bank) and Mariana Mazzuccato (University of Sussex) at the Brookings Institute in Washington. Read full article

DAY THREE

What will be the role of TTIP when it comes to investment for growth and jobs?

On 14th October SOLIDAR has organised a transatlantic conference on TTIP in cooperation with the Foundation for European Progressive Studies and the Global Progressive Forum. The main questions for us on the table were how will it affect our standards; how will it change some elements of the European Social Model? Read full article

Social protection has to stand at the heart of TTIP

US interest groups, trade union confederation AFL-CIO stressed the importance to strengthen labour rights in the TTIP during the SOLIDAR, FEPS and GPF organised round table in Washington DC. Moreover, they pointed at the ‘trojan horse’ syndrome to promote unpopular domestic reforms – as the reduction of quality employment and lowering wages. In order to prevent this syndrome, labour rights and social protection need to be defined within TTIP. Read full article

DAY FOUR

TTIP: enforceable labour and social standards needed!

On day four SOLIDAR, the Global Progressive Forum and European Trade Union Confederation (ETUC) facilitated a meeting with the US labour negotiators and Members of the European Parliament Jörg Leichtfried (MEP, Austria), David Martin (MEP, UK), Inmaculada Rodríguez Piñero (MEP, Spain), Agnes Jongerius (MEP, Netherlands) and Pedro Silva-Pereira (MEP, Portugal). At this meeting the question of enforceable labour and social strandards on the basis of ILO Conventions were discussed. Although the US keeps on refusing the ratification of relevant ILO labour and social conventions, it however has interesting suggestions to replace within TTIP the sustainability chapter to make labour and social standards enforceable by introducing a State-to-State dispute settlement mechanism on the basis of the ILO convention related to fundamental rights. In the perspective of SOLIDAR this is an interesting proposal, however it has to reach beyond fundamental rights and has to include all ILO Conventions and in particular ILO Recommendation 202 on social protection.

Health and social work are not for trade

Also SOLIDAR, Global Progressive Forum and the European Public Health Alliance (EPHA) facilitated a meeting with the US services and investment trade negotiators and Members of the European Parliament. A strong discussion was held on the Investor-to-State (ISDS) dispute settlement mechanism, the US side explained that the US-Australia trade agreement does not have this clause as a result of the negotiations and the strong opposition of Australia on the matter. However negotiators underlined that if TTIP wants to be ambitious – a standard for future agreements – the ISDS should be included, to replace it with a State-To-State dispute mechanisms would reverse practice and politicize trade and investment relations. SOLIDAR sees openings at the US side to remove ISDS from the treaty and would strongly welcome the introduction of a State-To-State dispute mechanism. Read full article