Policy paper

TTIP: the mandate explained

Published 3 March 2015

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The governments of the 28 EU countries released the negotiating directives (the mandate) for the EU-US Transatlantic Trade and Investment Partnership (TTIP) on 9 October 2014.

1. What is the mandate?

The 28 EU countries agreed the mandate before the TTIP negotiations started in July 2013. The mandate:

• gives the European Commission permission to negotiate with the USA on behalf of the EU
• sets out what TTIP should cover
• sets out principles the European Commission will follow in their negotiations with the USA

2. What is in the mandate?

The mandate states that the TTIP agreement must be ‘ambitious, comprehensive, balanced and consistent with World Trade Organisation (WTO) rules and obligations’. It must have ‘a high level of ambition going beyond existing WTO commitments’.

The TTIP agreement will have 3 sections:

• market access
• regulatory issues and non-tariff barriers
• rules

These sections form a ‘single undertaking’. This means they will be negotiated at the same time, as part of one single agreement.

3. Objectives of TTIP

This section lays down the objectives of a TTIP agreement between the EU and the US. The objectives are to:

• increase trade and investment between the EU and the US
• create jobs and economic growth

The aim of TTIP is to make it easier for EU and American businesses to sell their goods and services in each other’s markets. It is also an opportunity for the EU and the USA to set global standards for the future of trade.

The mandate recognises that the EU and the US will not encourage trade and investment by lowering standards that include:

• environmental
• core labour
• occupational health and safety

TTIP will not undermine the EU’s diverse cultures and languages.

4. Market access

The market access section looks at ways to make it easier for EU businesses to enter the US market and vice versa. It will do this by removing obstacles which prevent companies from selling to the other side where possible and desirable. This is known as market liberalisation.

5. Trade in goods and services

This includes the goal of removing all trade duties (tariffs) for goods which are traded between the EU and the US. The agreement should also contain a safeguard clause. This clause will allow the EU or US to remove these advantages if a rise in imports from the other side is causing or threatening serious harm to domestic industry.

TTIP will also cover trade in services and aims to make it easier for EU service providers to operate in the US. This will include looking at ways for licenses and professional qualifications obtained in the EU or US to be recognised by the other side.

The mandate rules out public services (such as the NHS) from the scope of any improvements to the market. The mandate also excludes audio-visual services from TTIP. Read the letter from EU Trade Commissioner Cecilia Malmström about NHS and TTIP

6. Investors

The TTIP mandate allows the European Commission to discuss measures to protect investors. It states that investor protection and investor-state dispute settlement (ISDS) should not prevent the EU and the EU countries from making and changing regulations. This includes social, environmental, security, financial stability and public health and safety regulations.

7. Access to public procurement

TTIP will also look to increase access to US public procurement. This means that EU companies will be able to supply more goods and services to the US public sector (from providing office stationery and furniture to working on big construction projects).

8. Regulatory issues and non-tariff barriers

This part of TTIP looks at reducing unnecessary differences between the EU and US’s technical and regulatory requirements. It will look to reduce unnecessary duplication between both sides. The mandate states that TTIP will not lower environmental, labour and consumer protection standards. It also notes that the EU and the US will still have the right to regulate to protect the health and safety of their consumers.

TTIP will look at both regulatory issues which:

• apply to all sectors (such as increasing transparency and consultation when regulations are made)
• are specific to certain industries, including food safety, automotives, chemicals and pharmaceuticals

9. Rules

This section of TTIP will look at legal rules and requirements in the EU and the US. Negotiators will see whether any changes can be made to make it easier to trade and invest between the EU and US. These include:

• intellectual property rights
• customs and trade
• energy and sustainable development

TTIP will improve on existing cooperation between the EU and the US on intellectual property rights. It will increase recognition and protection of the EU’s Geographical Indications (place names used to identify products that come from these places, such as West Country Farmhouse Cheddar).

Negotiators will also discuss ways to simplify customs rules and procedures at the border and make processes more modern. This will include:

• improving cooperation between EU and US customs authorities
• reducing the amount of different paperwork which exporters have to fill out, as long as they provide the required data

TTIP will also include commitments by both the EU and the US in labour and environmental standards. It will look at ways to improve trade in environmentally friendly and energy efficient goods and services. It will encourage the EU and the US to uphold high levels of labour and environmental protections, including those agreed in international agreements.

The Commission will also use a Sustainability Impact Assessment to examine the economic, social and environmental impacts of TTIP. This will explain the likely effects of TTIP on sustainable development. It will also propose measures to maximise the benefits of TTIP whilst minimising any potential negative impacts.