According to assessments made by the EU Commission, a comprehensive TTIP could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. This converts into 400,000 jobs across the EU. A study commissioned by my Department estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests growth in Irish exports of almost 4%, increases in investment of 1% and increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs.
The last formal round of the Transatlantic Trade and Investment Partnership (TTIP) negotiations, which was the ninth since negotiations began in 2013, took place in New York during the week beginning 20 April, 2015. The tenth formal round is scheduled to take place in Brussels during the week beginning 13 July, 2015. Work has advanced in all three pillars of the negotiations, namely, market access, regulatory cooperation and rules.
One of the general principles set out in the EU’s negotiating mandate is the objective to take into account the particular challenges faced by small and medium-sized enterprises in contributing to the development of trade and investment. TTIP will include a specific chapter on SMEs which is aimed at making the terms of TTIP more accessible by providing information which in turn will help to identify opportunities to trade and invest.
Insofar as negotiations on investment is concerned, the stated aim of EU’s negotiating mandate is to negotiate investment liberalisation and protection provisions on the basis of the highest levels of liberalisation and highest standards of protection that both sides have negotiated to date. The mandate makes it clear that, ultimately, the decision to include investment protection and ISDS in TTIP will depend on EU interests being met and on the final balance of the Agreement. Negotiations on investment protection including ISDS are on hold pending further work being undertaken by the EU Commission.
The EU’s aim is to overhaul investment protection provisions and the ISDS in international agreements, learning from experience of others under existing agreements globally. Significant progress in this regard has already been made under the EU-Canada (CETA) free trade and investment agreement. The Commission’s Concept Paper on reforming ISDS “Investment in TTIP and beyond – the path for reform”, builds on this progress and sets out ideas to further improve four key issues, namely, Governments’ right to regulate, establishment and functioning of tribunals, relationship between national judicial systems and an ISDS system, and an appellate mechanism.
As regards accessibility of SMEs to arbitration, some of the improved provisions included in CETA were introduced with SMEs in mind and should provide the basis for similar provisions in TTIP. These include specific provisions on mediation, to encourage an amicable solution between parties and avoid a longer and costlier formal arbitration process. CETA also introduces the possibility of a sole arbitrator when both parties agree, which would reduce costs, and also introduces limits on the fees paid to arbitrators.
I am open to considering proposals that can achieve a reasonable and workable arbitration system that is fair, transparent and efficient and addresses the shortcomings of historic models of investment arbitration which have given rise to concern.
