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A few slides on

Tie-Tip: a curse or a blessing
for developing countries?
by Burghard Ilge, Both ENDS
Amsterdam 1 November 2014

Why is it on the agenda ?
Motivation and objectives of TTIP
What is on the agenda ?
Investment Protection/ISDS
Trade in goods

Why is it on the Agenda ?


TTIP motivation & objectives

EU & US together (still) nearly 50% of:
World economic output (GDP)
World trade
Global Foreign Directs Investment

What is on the Agenda ?

2) Trade in Goods (elimination of 100% of all tariffs)
* Trade in services and establishment
1) Investment protection (highest level of protection ISDS)
* Public Procurement
* Regulatory issues and Non-Tariff Barriers
* Intellectual Property Rights IPR
* Sustainable development
* Competition (state monopolies, state owned companies,
Enterprises entrusted with special exclusive rights)
* Energy and Raw materials (unrestricted access to energy & raw
* Capital movements (full liberalization)
* Transparency (consult on trade related policies, but no effect
on EU and national law on access to information)

Nothing on development or third countries

Investment Protection
and ISDS

Investment Protection
Investor-to-State Dispute Settlement
In brief:

Foreign company gets rights with respect to its investment

Does not have to go to national courts can also go for ISDS
Rights of foreign investor stand above national law
ISDS has now a track record
ISDS also in NAFTA and BITs

Huge claims: 100 million-2 billion US$/Euro

Wide definition of what is protected and has to be compensated

Chevron succeeded in ISDS case

against Ecuador
got US$ 700 mio (1,3% of GDP)
One of the known lobbyist for ISDS in TTIP

Legal conflict over environmental clean up and

compensation to be paid by Chevron to victims.

TTIP as the new global standard


TTIP as the new global standard

Such an agreement [TTIP] could become the template for
future investment agreements with our other major trading
partners in Asia, South America and Africa, where ISDS
agreements are an essential safeguard for investors against
arbitrary politics.
Peter M Robinson, CEO,
United States Council for International Business
Karsten Dybvad, CEO
Confederation of Danish Industry
Urban Bckstrm, Director General,
Confederation of Swedish Enterprise

(Financial Times 10/03/2014)

Trade in goods liberalization

Trade diversion
Lower import barriers for one country (EU/US)
-> replaces import from another country

Trade diversion
Lower import barriers for one country
-> replaces import from another country

TTIP => Preference erosion

Example Beef Botswana
Botswana signed EPA to keep trade preferences for Beef.
But now must open their market (more or less) fully to EU imports

Thank You
Burghard Ilge