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.)
Photo: Getty
Show Hide image

The UK press’s timid reaction to Brexit is in marked contrast to the satire unleashed on Trump

For the BBC, it seems, to question leaving the EU is to be unpatriotic.

Faced with arguably their biggest political-cum-constitutional ­crisis in half a century, the press on either side of the pond has reacted very differently. Confronting a president who, unlike many predecessors, does not merely covertly dislike the press but rages against its supposed mendacity as a purveyor of “fake news”, the fourth estate in the US has had a pretty successful first 150-odd days of the Trump era. The Washington Post has recovered its Watergate mojo – the bloodhound tenacity that brought down Richard Nixon. The Post’s investigations into links between the Kremlin and Donald Trump’s associates and appointees have yielded the scalp of the former security adviser Michael Flynn and led to Attorney General Jeff Sessions recusing himself from all inquiries into Trump-Russia contacts. Few imagine the story will end there.

Meanwhile, the New York Times has cast off its image as “the grey lady” and come out in sharper colours. Commenting on the James Comey memo in an editorial, the Times raised the possibility that Trump was trying to “obstruct justice”, and called on Washington lawmakers to “uphold the constitution”. Trump’s denunciations of the Times as “failing” have acted as commercial “rocket fuel” for the paper, according to its CEO, Mark Thompson: it gained an “astonishing” 308,000 net digital news subscriptions in the first quarter of 2017.

US-based broadcast organisations such as CNN and ABC, once considered slick or bland, have reacted to Trump’s bullying in forthright style. Political satire is thriving, led by Saturday Night Live, with its devastating impersonations of the president by Alec Baldwin and of his press secretary Sean Spicer by the brilliant Melissa McCarthy.

British press reaction to Brexit – an epic constitutional, political and economic mess-up that probably includes a mind-bogglingly destructive self-ejection from a single market and customs union that took decades to construct, a move pushed through by a far-right faction of the Tory party – has been much more muted. The situation is complicated by the cheerleading for Brexit by most of the British tabloids and the Daily Telegraph. There are stirrings of resistance, but even after an election in which Theresa May spectacularly failed to secure a mandate for her hard Brexit, there is a sense, though the criticism of her has been intense, of the media pussy-footing around a government in disarray – not properly interrogating those who still seem to promise that, in relation to Europe, we can have our cake and eat it.

This is especially the case with the BBC, a state broadcaster that proudly proclaims its independence from the government of the day, protected by the famous “arm’s-length” principle. In the case of Brexit, the BBC invoked its concept of “balance” to give equal airtime and weight to Leavers and Remainers. Fair enough, you might say, but according to the economist Simon Wren-Lewis, it ignored a “near-unanimous view among economists that Brexit would hurt the UK economy in the longer term”.

A similar view of “balance” in the past led the BBC to equate views of ­non-scientific climate contrarians, often linked to the fossil-fuel lobby, with those of leading climate scientists. Many BBC Remainer insiders still feel incensed by what they regard as BBC betrayal over Brexit. Although the referendum of 23 June 2016 said nothing about leaving the single market or the customs union, the Today presenter Justin Webb, in a recent interview with Stuart Rose, put it like this: “Staying in the single market, staying in the customs union – [Leave voters would say] you might as well not be leaving. That fundamental position is a matter of democracy.” For the BBC, it seems, to question Brexit is somehow to be unpatriotic.

You might think that an independent, pro-democratic press would question the attempted use of the arcane and archaic “royal prerogative” to enable the ­bypassing of parliament when it came to triggering Article 50, signalling the UK’s departure from the EU. But when the campaigner Gina Miller’s challenge to the government was upheld by the high court, the three ruling judges were attacked on the front page of the Daily Mail as “enemies of the people”. Thomas Jefferson wrote that he would rather have “newspapers without a government” than “a government without newspapers”. It’s a fair guess he wasn’t thinking of newspapers that would brand the judiciary as “enemies of the people”.

It does seem significant that the United States has a written constitution, encapsulating the separation and balance of powers, and explicitly designed by the Founding Fathers to protect the young republic against tyranny. When James Madison drafted the First Amendment he was clear that freedom of the press should be guaranteed to a much higher degree in the republic than it had been in the colonising power, where for centuries, after all, British monarchs and prime ministers have had no qualms about censoring an unruly media.

By contrast, the United Kingdom remains a hybrid of monarchy and democracy, with no explicit protection of press freedom other than the one provided by the common law. The national impulse to bend the knee before the sovereign, to obey and not question authority, remains strangely powerful in Britain, the land of Henry VIII as well as of George Orwell. That the United Kingdom has slipped 11 places in the World Press Freedom Index in the past four years, down to 40th, has rightly occasioned outrage. Yet, even more awkwardly, the United States is three places lower still, at 43rd. Freedom of the press may not be doing quite as well as we imagine in either country.

Harry Eyres is the author of Horace and Me: Life Lessons from an Ancient Poet (2013)

This article first appeared in the 20 July 2017 issue of the New Statesman, The new world disorder