A trade deal that allows corporations to sue governments is not about "recovery"

The proposed US-EU partnership is likely to strip away rules that protect health and the environment.

An antidote to austerity has finally been discovered. It involves breaking down the "barriers" between two of the world's economic powerhouses: Europe and the United States.

That is the spin being put on a planned trans-Atlantic "trade and investment partnership" (TTIP, for short). Supporters of the proposed deal contend it will help usher in a recovery.

Months before talks between the EU and US got underway in July, the European commissioner for trade Karel de Gucht said they would lead to "the cheapest stimulus package you can imagine". The delightfully-named Myron Brilliant from the US Chamber of Commerce dreams of a "more robust" commercial relationship because neither side will "emerge from the financial crisis through austerity alone". BusinessEurope, an alliance of employers' groups, believes TTIP will provide a "fantastic opportunity" to "generate the jobs and growth we need to turn our economies around" [PDF].

Funnily, nobody has a clear idea of just how beneficial the "partnership" will be. The Washington Post recently carried a blog post forecasting that it would boost EU-US trade by $180 billion each year. Yet that figure did not appear in the source cited by The Post - a 2010 study [PDF] partly financed by the aforementioned US Chamber of Commerce.

Hyping up TTIP as a rescue remedy is, no doubt, a deliberate ploy to divert attention from its real objective of binning regulations that are essential for protecting health and the environment.

The goal of a trans-Atlantic trade pact was first mooted by Leon Brittan, then the EU's trade commissioner, in 1995. Though the goal hasn't captured the public imagination for the past 18 years, representatives of some of the world's top companies have been working quietly towards realising it.

The Transatlantic Business Council (TABC), for example, brings together British American Tobacco, IBM, BP, Pfizer, Deutsche Bank and Nasdaq.  Under the "partnership", it wants new laws to undergo mandatory assessments of their likely impact on trans-Atlantic trade [PDF]. At first glance, this may appear technical and innocuous. Yet the idea of mandatory impact assessment was pioneered by cigarette-makers during the 1990s in a bid to stave off anti-smoking measures.

Big Tobacco's fingerprints smudge quite a few of the initiatives that paved the way for the trans-Atlantic talks. From 2007 until 2012, the Brussels office of the Trans Atlantic Business Dialogue (as the TABC was then known) was headed by Jeffries Briginshaw, who had previously spent 14 years with British American Tobacco. Briginshaw is now the managing director of BritishAmerican Business, a London-based outfit that has threatened to stage a "road show" [PDF] promoting the trade deal to the public.

It is not hard to see the attraction of the planned deal for the cigarette industry. The European Commission is committed to having a clause in it that will allow corporations to sue governments over laws that constitute a "barrier" to their activities in a specialised court. The history of arbitration panels resulting from trade liberalisation agreements is that they are headed by pro-corporate lawyers, not impartial judges. Last year, the World Trade Organisation ruled that the US would have to lift its ban on clove-flavoured cigarettes,  which have been designed to entice teenagers. Shielding the young from sweetened carcinogens is not permissible, according to the zealots of the "free market".

Culture is the only significant topic that has been removed from the scope of the negotiations so far. France has rightly been adamant that it be allowed maintain quotas to prevent its film-makers being buried under an avalanche of Hollywood dross. 

Otherwise, the European negotiators seem to be eager that this continent be transformed into a carbon copy of America. Brussels officials have committed themselves to revisiting - code for "weakening" - their food safety standards [PDF]. This will, no doubt, cheer up Monsanto, which has become increasingly frustrated with hippy parents like me, who would prefer not to feed genetically modified vegetables to our kids.

In some respects, the EU side may be even more eager to please corporate interests than the Americans. Michel Barnier, Europe's commissioner for the single market, has insisted that financial services should be up for discussion, despite signals that the US wants them excluded.

Rules on banks have been relaxed in the not so distant past. And we know what the consequences were: a global crisis. We are still living with the effects of that crisis, so why does the EU elite want history to repeat itself?

Far from prescribing an antidote to austerity, a trade deal could perpetuate the shock therapy now being administered.

David Cronin's book "Corporate Europe: How Big Business Sets Policies on Food, Climate and War" will be published by Pluto in August

Follow him on Twitter @dvcronin

Tobacco manufacturers and other corporations have been pushing for a trans-Atlantic trade pact. (Photo: Getty.)
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Labour’s best general election bet is Keir Starmer

The shadow secretary for Brexit has the heart of a Remainer - but head of a pragmatic politician in Brexit Britain. 

In a different election, the shadow Brexit secretary Keir Starmer might have been written off as too quiet a man. Instead - as he set out his plans to scrap the Brexit white paper and offer EU citizens reassurance on “Day One” in the grand hall of the Institute of Civil Engineers - the audience burst into spontaneous applause. 

For voters now torn between their loyalty to Labour and Remain, Starmer is a reassuring figure. Although he says he respects the Brexit vote, the former director of public prosecutions is instinctively in favour of collaborating with Europe. He even wedges phrases like “regulatory alignment” into his speeches. When a journalist asked about the practicality of giving EU citizens right to remain before UK citizens abroad have received similar promises, he retorted: “The way you just described it is to use people as bargaining chips… We would not do that.”

He is also clear about the need for Parliament to vote on a Brexit deal in the autumn of 2018, for a transitional agreement to replace the cliff edge, and for membership of the single market and customs union to be back on the table. When pressed on the option of a second referendum, he said: “The whole point of trying to involve Parliament in the process is that when we get to the final vote, Parliament has had its say.” His main argument against a second referendum idea is that it doesn’t compare like with like, if a transitional deal is already in place. For Remainers, that doesn't sound like a blanket veto of #EUref2. 

Could Leave voters in the provinces warm to the London MP for Holborn and St Pancras? The answer seems to be no – The Daily Express, voice of the blue passport brigade, branded his speech “a plot”. But Starmer is at least respectful of the Brexit vote, as it stands. His speech was introduced by Jenny Chapman, MP for Darlington, who berated Westminster for their attitude to Leave voters, and declared: “I would not be standing here if the Labour Party were in anyway attempting to block Brexit.” Yes, Labour supporters who voted Leave may prefer a Brexiteer like Kate Hoey to Starmer,  but he's in the shadow Cabinet and she's on a boat with Nigel Farage. 

Then there’s the fact Starmer has done his homework. His argument is coherent. His speech was peppered with references to “businesses I spoke to”. He has travelled around the country. He accepts that Brexit means changing freedom of movement rules. Unlike Clive Lewis, often talked about as another leadership contender, he did not resign but voted for the Article 50 Bill. He is one of the rare shadow cabinet members before June 2016 who rejoined the front bench. This also matters as far as Labour members are concerned – a March poll found they disapproved of the way Labour has handled Brexit, but remain loyal to Jeremy Corbyn. 

Finally, for those voters who, like Brenda, reacted to news of a general election by complaining "Not ANOTHER one", Starmer has some of the same appeal as Theresa May - he seems competent and grown-up. While EU regulation may be intensely fascinating to Brexiteers and Brussels correspondents, I suspect that by 2019 most of the British public's overwhelming reaction to Brexit will be boredom. Starmer's willingness to step up to the job matters. 

Starmer may not have the grassroots touch of the Labour leader, nor the charisma of backbench dissidents like Chuka Umunna, but the party should make him the de facto face of the campaign.  In the hysterics of a Brexit election, a quiet man may be just what Labour needs.

What did Keir Starmer say? The key points of his speech

  • An immediate guarantee that all EU nationals currently living in the UK will see no change in their legal status as a result of Brexit, while seeking reciprocal measures for UK citizens in the EU. 
  • Replacing the Tories’ Great Repeal Bill with an EU Rights and Protections Bill which fully protects consumer, worker and environmental rights.
  • A replacement White Paper with a strong emphasis on retaining the benefits of the single market and the customs union. 
  • The devolution of any new powers that are transferred back from Brussels should go straight to the relevant devolved body, whether regional government in England or the devolved administrations in Scotland, Wales and Northern Ireland.
  • Parliament should be fully involved in the Brexit deal, and MPs should be able to vote on the deal in autumn 2018.
  • A commitment to seek to negotiate strong transitional arrangements when leaving the EU and to ensure there is no cliff-edge for the UK economy. 
  • An acceptance that freedom of movement will end with leaving the EU, but a commitment to prioritise jobs and economy in the negotiations.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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