EU mulls new tactics on US trade pact amid pessimism

After three years of negotiations, big differences remain over the TTIP

European Union ministers expressed pessimism yesterday that the bloc can conclude a massive trade pact with the US anytime soon and debated whether to change tack on the talks.

“There is some new start or some new approach needed,” Slovak Economy Minister Peter Ziga, whose country holds the EU’s rotating presidency, told reporters ahead of informal trade talks in Bratislava yesterday.

After three years of negotiations, big differences remain over the Trans-Atlantic Trade and Investment Partnership, with work needed in all of the 30 chapters the pact will entail.

TTIP, as the potential deal is called, is aimed at removing barriers to trade between the EU and the US to boost economic growth and employment. The European Commission estimates that the pact could boost EU economic output by €119 billion ($133 billion) a year and the US economy’s by €95 billion ($106 billion).

Thousands of people have demonstrated against the pact in Germany and Belgium over the last week. They fear the agreement is a threat to the environment and public health, and would give more power to big multinational companies.

In contrast, good progress has been made on the trade deal with Canada, known as CETA, with some nations due just to add clarifying statements to the text of the agreement.

“The Americans have not been willing to make offers the way Canada has so it’s guaranteed there will be no agreement this year,” said German Economy Minister and Vice Chancellor Sigmar Gabriel.