United States – European Union
Transatlantic Trade and Investment Partnership
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Rationale: Win-Win! (in a “modestly optimistic” way)
“The transatlantic economic relationship is already the world’s 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
“We’re modestly optimistic that we can get this done. I think in the past, the EU, because they’ve 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 we’ve narrowed down the issues. I think it
will still be a heavy slog.”
-- President Obama, speaking to the President’s 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
Privileged Attorney-Client Communication
High Level Working
Groups on Jobs and
Growth
• Need for process
• And a manageable
agenda
• Political
commitment
• “Don’t let the
perfect be the
enemy of the good.”
TTIP
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
Privileged Attorney-Client Communication
Prospective TTIP – “Living Agreement”
Market Access Track:
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Goods: Immediate tariff elimination and ROOS
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Services: Market access
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Agriculture
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Highly contentious
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Ag subsidies: 3rd rail of trade policy?
“Regulatory Cooperation” Track:
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Customs Administration
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TBT and SPS (EU resistance on SPS)
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Non-tariff barriers to trade (sectoral and cross-sectoral)
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Transparency (i.e., rule-making processes)
Other Tracks and Off Table Issues:
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Intellectual Property
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EU wants Geographical Indicators (GIs) on and copyright
off the table
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EU Parliament rejected the ACTA Treaty
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How reconcile EU single patent system?
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Pharmaceutical issues
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Data privacy: Continued internal EU debate
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Investment: Different models
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Trade remedies: Off the table for both sides
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Government procurement: Irresistible force/immovable object
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Internet governance: Emerging issue
Regulatory Cooperation – TTIP’s Negative Sum Game
What’s in a name?
Issues & Sectors
Harmonization
Convergence
Regulatory
Cooperation
Mutual
recognition
Privileged Attorney-Client Communication
Reform
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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?
The “Other” Issues: What’s in? What’s out? Where do they go?
Mandate Problems
Indicative Issues
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Intellectual Property (IPR)
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Privileged Attorney-Client Communication
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
Pre-Launch Phase: March – June 2013
Over here…
Privileged Attorney-Client Communication
Over there…
Your Organization and the Pre-Launch Phase
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Congress
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USTR
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How will a new USTR matter?
Public stakeholder forum concluded April 10-11th.
Next hearings May 29-30, comment deadline May 10th.
What’s a TPSC anyway and what does it do?
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Ways & Means, Finance, plus expanded committee activism throughout oversight process
What is the USTR/Congressional dynamic in this Administration?
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 11th hour!
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Singapore: chewing gum and capital controls
Korea: auto dispute mechanism
Colombia: Labor, Labor and Labor
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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 organization’s 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…
Managing priorities
 Front burner issue?
 Can you trust in a yet to be
determined institutional process?
Reduced
agenda
Future
promises
Political
pressure
Privileged Attorney-Client Communication
 What’s the price of patience?
 “Living agreement” a nonacceptable Plan B for most issues