By now, the dismissed Coca Cola employees have totaled approximately 750 days of striking. The company terminated its production line in northern Greece, carrying the plant to Bulgaria. It claimed that the economic crisis in Greece, forced this action, since the company recorded losses. In the near future, Coca Cola, along with departing and forcing hundreds of fellow citizens into unemployment, might also be able to obtain some compensation from the Greek State because … it has failed financially. At least that’s what the Transatlantic Trade and Investment Partnership, also known as TTIP, claim.
It concerns an agreement, the terms of which are being discussed between the US and the EU in complete confidentiality; for that reason Wikileaks offer a “prize” of 100,000 euros to anyone who reveals the text of the agreement. Following the signing of the Trans-Pacific Partnership (TPP), the agreement concerning countries mainly from the side of the Pacific and their trade relationship with the US, it is now TTIP’s turn.
Public services
It could be said that, TTIP concerns everything. The main objective of TTIP is the equalization of EU policies with those of the US. A key area where the TTIP will be effective is that of public services. According to European analysts, the aim is the intrusion of American multinational companies in areas such as health, education and water in Europe. For instance, if a private multinational company offers cheaper health services than the state, it will have the right to take over the service. In consultation between institutions that have been established so far, the European Commission has assured that public services will not be included in privatization plans. Besides the liberalization of public services, the European Commission and the US government are determined to use the TTIP to release public contracts in the private sector. This means that, from now on, the local authorities would no longer be able to implement procurement policies which enable them to serve important social and environmental purposes. The European Union has expressed its intention to eliminate the popular legislative bills «Buy America» (buy American), in which many US states resort to support local businesses and jobs. The US Government has made known its intention to target EU procurement programs, such as locally produced groceries, supply programs promoted in schools, and other public institutions. Once again, the only winners will be the multinational companies that displace local suppliers and detach contracts.
Groceries & Environment
An additional sector that will be included in TTIP is that of food and environment (one of the points that “leaked” in July 2014). The purpose of the Transatlantic Partnership is to bring European standards closer to those of the US. For example, 70% of products sold in US super markets, is genetically modified. In the European continent and on the basis of the EU directions, genetically modified products are prohibited. The administration of hormones in beef in the US, which is associated with new cancer cases in the country, is also common practice. By applying TTIP, meat that is produced in America would reach the European market easier and would be sold without any restriction.
Great variation is observed in the use of insecticides on both sides of the Atlantic. US obtain a “looser” legislation on the use of insecticides. Generally, US allows the use of any chemical compound until proven harmful, while, in the EU, it is tested first and is withdrawn in case of side effects. According to the Action Network on Plant Protection (Pesticides Action Network), two large lobbying groups, CropLife and the ECPA which represent pesticide companies, wish to influence the regulations through TTIP on the three following issues:
- Use of atrazine in the EU, where it is prohibited
- Reinsertion of neonicotinoids in the European crop production, which until now it is prohibited
- relaxation” of European legislation on pesticide residue levels
Additionally, they hope to overturn the ban of certain pesticides that was imposed on American farmers by the World Trade Organization.
Banking System
Britain and the powerful City of London, is trying to eliminate the limitations imposed by the European banking system. In the US, the law governing the banking system, is stricter than in Europe and has been applied as a shield against the crisis and upcoming crises, to inhibit the power of banks. TTIP aspires to remove these regulations and power will return to the banking system.
Protection of private life
In the area of personal data, many probably remember the ACTA, the agreement that was rejected by a huge majority in the European parliament in 2012, following strong public opposition. It was considered that the agreement could result in monitoring the activity of internet users. Today, it is feared that TTIP will restore central parts of ACTA, such as access to users’ personal data, while restricting public access to data from the clinical trials of multinational pharmaceutical companies.
Working Conditions-Employment rights
The TTIP could also affect working conditions and labor rights. The EU has admitted that with the implementation of TTIP, the working conditions will shift closer to the US model, where labor rights are certainly more limited. It is estimated that this will increase the unemployment rate, despite the fact that a study of the Research Centre of Economic Policy –on behalf of the European Commission- states that the agreement will bring EUR 119 billion a year in the EU and 95 in the US. On the other hand, NAFTA, another multilateral agreement between the US, Canada and Mexico, has led to the loss of one million jobs in the last 12 years.
Unethical attack on democracy – Investor-State Dispute Settlement
Apart from the various areas which the masterminds wish to include in TTIP, democracy itself is in grave danger. Ultimately this is about global economic multinational enterprises being able to enforce governance, above any political power. Everything that becomes an obstacle to the profitability of multinational firms will cease to exist. The facilitator to such actions is the ISDS (Investor-State Dispute Settlement), the dispute resolution mechanism between the state and the investor. Basically, this would be a court superior to the international, European and national ones and would be governed by a code, which has yet to be created and would be used in resolving disputes between the state and the investors, leaning clearly in favor of the investors. For instance, the Swedish company Vattenfall sued the German state after loss of profits caused by the removal of photovoltaic systems by the German government, which forced the government to compensate the Swedish energy company. There are 500 other similar cases which will require settlement between companies and democratically elected governments.
Objections by the Parties
According to sources, the ISDS has faced strong criticism and that is why on September 16 it was announced that its name would be changed, but not its essence. On July 8, MEPs voted in favor of the recommendation by the European parliament, for the European Commission to continue the negotiations for the TTIP, (436 votes in favor, 241 against and 32 abstentions). The vote revealed disagreements within the parties. The Greens and United Left voted against joined by members of the European Social Party and the Social Democrats. Regarding the dispute settlement mechanism, the German and Austrian Social Democrats are opposed, and it is no coincidence that one third of the Social Democrats voted against.
Negotiations between the two continents are made under complete secrecy. The EU is represented by Jean-Claude Juncker. However, the objections of various nations towards the implementation of the Agreement are noted on both sides of the Atlantic. The Fair Trade Forum, an organization based in Berlin representing marketing and distribution networks throughout Germany, states that small producers in the developing countries are particularly concerned over the Europe-US negotiations, which aim at a common free trade zone that would abolish the commercial tariffs on American agricultural products in Europe and vice versa. Should this happen. any privileges ceded by Europe to developing countries in order to facilitate their exports to European markets, will be abolished.
France objects
The French government, drawing on the principle of 'cultural exception', which always protected the film industry from exterior competition, announced in June 2013 that it was able to exclude audiovisual services from the mandate of the European Commission for the TTIP, despite the opposition of the United Kingdom, Germany and the Commission itself. In a heated discussion in the European Council of Foreign Affairs, France threatened to veto the beginning of negotiations for the TTIP, if the principle of cultural exception was not accepted. The US government, however, confirmed that it will aggressively promote their own film and television industry in order for the audiovisual services to be included in the negotiations. Disturbed by the failure to ensure full mandate for all service sectors, the European Commission insists that there is no TTIP exemption for audiovisual services, and that it may try to establish this at a later stage of the negotiations.
How is Greece affected
The absolute dominance of multinational companies over smaller producers raises objections which are considered reasonable and fully justified. There is also basis for concern over the issue of genetically modified products, which as pre-mentioned, are not allowed in all EU countries and also the products of designated origin (protected).
According to a Deutsche Welle article, the “protected products” include feta cheese, other traditional Greek dishes and various wines. In May, the Minister of Rural Development and food George Karasmanis met with his US counterpart Tom Vilsak in Luxembourg, to raise the issue of PDO. At the same time, however, Vilsak was under pressure by Washington where 55 Senators recently asked, in a joint letter, to eliminate the “restrictions” in cheese names, including feta cheese.
A part of the European population has realized the changes that the signature of the TTIP will bring in our lives. Protests took place in many European countries, including Greece. Simultaneously, there has been a call for online collection of signatures for the cessation of TTIP negotiations, which have been submitted to the European Commission. In addition to that, it has been filed and there is always a call for a referendum, according to the EU procedures, with over one million signatures signing the petition. This agreement is expected to arrive for voting in the European Parliament. The latter, however, has no law-making jurisdiction. The TTIP should arrive separately to all national parliaments. Monitoring the extreme secrecy that accompanies the agreement and the full opacity regime under which the negotiations are taking place, is there anything that should make us optimistic about avoiding the pending Armageddon ?