BIS Committee TTIP Report – Global Justice Now response

BIS Committee TTIP Report – Global Justice Now response

Date: 7 April 2015

Tomorrow sees the publication of the Eleventh Report of Session 2014–15 of the Business Skills and Innovation (BIS) Committee on Transatlantic Trade and Investment Partnership TTIP.

Polly Jones, the head of campaigns and policy at Global Justice Now, who gave both oral and written evidence to the committee said:

“We welcome the BIS select committee taking a series of oral evidence sessions and producing a thorough report.”

“The BIS report shares the concerns of the general public on TTIP – the secrecy, ISDS, the lack of evidence to substantiate the benefits and the threat to public services. It demonstrates once more that the government is out of step in aggressively pushing this controversial trade deal.”

“The report confirms that the government has been wildly and wilfully optimistic about the potential economic benefits of TTIP.  Numerous studies have shown either much less benefit, or even harm to growth and jobs in Europe if the treaty were to come into force.  We support the Select Committee’s challenge to the government to “come up with a comprehensive assessment which includes the estimated economic yield of a variety of levels of agreement”, including a sector by sector analysis of the benefits and risks in the UK. It is incredible that in advocating for the deal and claiming benefits to the UK this work has not already been undertaken by BIS or business groups, such as the CBI and British American Business.”

“The government has been rightfully criticized by BIS over its refusal to engage with the concerns of the general public over ISDS following the overwhelming negative response to the public consultation that took place last year. 97% of respondents to the consultation did not want ISDS included in TTIP. Like the huge majority of people across Europe who have been consulted on ISDS, the BIS committee “does not believe that the case has yet been made for ISDS clauses in TTIP”.

“This echoes the finding of the Environmental Audit Committee which also said in their report of 10 March: A compelling case for the inclusion of an ISDS in TTIP has not yet been made.”

“The report nods towards the political pressure to include ISDS by suggesting possible modifications should ISDS be included in TTIP, Global Justice Now’s evidence about the costs that could be borne by the state whether they win or lose a case is taken particularly seriously. The select committee reflect this in their recommendations and ask for “loser pays principle” to be included to protect states from frivolous claims by business.”

“Crucially, the report expresses frustration about the lack of transparency in the negotiations and is not satisfied that public services will be unaffected by TTIP. The government is asked to provide an unequivocal statement on whether public services are protected and the right to expand them in the future. We would go further and ask for clarity about the possible cost to the state of bringing public services back into public hands. Our concerns with TTIP are not just about whether you are allowed to expand public services in the future, but what the cost to the taxpayer would be of doing this in ISDS claims.”

“British American Business, provides the secretariat for the APPG in TTIP and receives particular criticism for being unable to provide an informed and detailed assessment of TTIP. This demonstrates that BAB, like other business groups, are ideologically committed to TTIP without the evidence to substantiate their claims. Their legitimate role in supporting the APPG must be questioned.”

“Global Justice Now continues to be concerned about the negative impact of TTIP on developing countries and the potential for lowering standards across the EU. This report does not comment on those areas but they are reflected in the Environmental Audit Committee report of 10 March:

  1. The EU’s stronger focus on applying the precautionary principle in setting regulations should not be weakened as a result of efforts under TTIP to align regulatory standards. (Paragraph 16)
  2. The potential impact of TTIP on developing countries needs to be addressed as a central consideration of the TTIP negotiations. Developing countries should be invited to take part in the negotiations now, to allow their concerns to be fully addressed. The impact of TTIP should be assessed for each country affected”

“After the general election the next government must addresses the serious issues in this BIS report. With the Labour Party, the Green Party and Plaid Cymru expressing serious concerns about TTIP, and the SNP specifically worried about the limitations of TTIP for Scotland’s devolved powers, there is growing political discontent about the benefits of TTIP. This is more than matched by civil society in the UK which is calling for a halt to the TTIP negotiations.”