Last weekend, The Daily Mail published a guide to vacuum cleaners being removed from the shelves as a result of new EU regulations. Yesterday the Daily Express said that now the EU is coming for our kettles. These are typical eurosceptic tabloid stories that have had many people fired up; they’ve turned relatively niche issues into a mainstream panics. So why then has the wide-reaching impact of TTIP been relegated to niche issue status?
TTIP, the acronym for the Transatlantic Trade and Investment Partnership, is an agreement between the US and the EU currently in the negotiation stages. It is being negotiated in what are highly secretive circumstances; the majority of what we know comes from leaks. What we do know though is that the treaty will have significant repercussions for our democracy. The treaty, if passed, will provide powers to corporations that raise serious questions about where the power lies in the world today.
No doubt many of those reading this will have at some point heard someone give a stereotypically vague and lefty rant about “the corporations” in a pub or on the street with a placard. It seems though that if TTIP goes through, this concern will no longer be the preserve of the few but of the many. TTIP will provide transnational corporations with the power to sue governments for lost future profit as a result of government actions; the case would then be taken to a secret arbitration panel, which makes its decisions based upon the ominously phrased, ‘free market values’.
An American union has, for example, warned that under this agreement a corporation could sue a government for raising the minimum wage. In another example that is perhaps specifically worryingly for Ed Miliband, a similar trade treaty meant that when Argentina froze water and energy prices in the recession, the government was consequently sued by international utilities corporations for the profit they had lost out on. Through removing the regulatory differences between the different markets in order to pursue profit, TTIP is essentially legally ensuring that corporations outrank governments.
Given this grave threat to British democracy, why is TTIP so starkly absent from our media? Behind the multiple stories of bananas, hoovers and kettles lies the fear that the UK is no longer being ruled by its own government; that is the crux of what fuels many people’s euroscepticism. TTIP, which represents a fundamental shifting of power, not from one government to another, but away from government entirely, is absolutely a threat to sovereignty and yet it has so far been largely ignored.
To be fair, it’s a pretty complex issue and frankly it’s harder to get people fired up about trade agreements, which appear abstract and removed, than it is about their kitchen appliances. Perhaps in this regard it is a similar political issue to climate change: both are highly complicated, often technical and do not sit comfortably within one area of policy or interest, but rather affect multiple areas. That being said, it is not as though these reforms will not produce the kind of stories that gain traction in the media; if the movements of the European Court of Human Rights can make headlines for overruling the UK, then surely a multinational corporation suing a government can? And if that doesn’t work, what about the fact that the NHS is not excluded from TTIP, leading many to fear imposed privatisation and systemic changes.
It’s not even as though large corporations are all that popular in the press anyway. Just look at G4S, the security company that appears “too big to fail” despite a history of rank incompetence. Remember the anger after G4S failed to fulfil its security obligations for the 2012 Olympics? Just imagine how angry it would make people to learn that G4S would essentially outrank the government as a result of TTIP. This isn’t an issue just for the left, or even for those who believe that the government should be bigger than corporations; for a government to be able to govern, it must be able to set policy without fear of financial repercussions.
Who do you want governing you? A democratically elected government or an unaccountable multinational corporation? It makes the old maxim that money is power into a brutal reality.
One major justification for TTIP is that it will generate around an extra 1 per cent in GDP growth. The question that has to be asked is whether this 1 per cent is worth the damage to our democracy? I would say it’s clearly not. This is the greatest threat to democracy that we don’t know about, and that’s more important than how powerful your vacuum cleaner is.