Monday

27th May 2019

EU and US aim for 2015 trade deal, exclude financial services

  • Financial services won't be part of an EU-US trade deal, the US ambassador told the European Business Summit

Trade negotiators will look to complete an EU-US trade deal before the end of 2015, senior officials have agreed. But a deal will not include financial services, after the US ambassador all but ruled out discussion of harmonising financial regulation.

"We don't see the need for financial services to be part of TTIP [the Transatlantic Trade and Investment Partnership]" the US ambassador to the EU, Anthony Gardner, told Europe's trade commissioner Karel de Gucht and delegates at the European Business Summit in Brussels on Thursday (15 May),

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

"The [US] Treasury has been very clear on this and I don't see much chance of them changing their position," he added.

The move came as a disappointment to De Gucht, who had called for financial services to be part of a deal just minutes earlier. But it does not come as a surprise.

The Americans are unwilling to put financial services on the table on the grounds that EU financial regulation is less strict than the so-called Dodd-Frank bill adopted in 2010 in response to the 2008 financial crisis.

Recent experiences of trans-Atlantic co-operation in financial regulation have not been promising.

In talks separate to the TTIP, the EU and US in February could only reach agreement on how to regulate the multi-trillion dollar derivatives market at the 11th hour following a tense showdown between regulators.

It is the first policy area to be excluded from discussion by the Americans. The EU has already made clear that the audiovisual and culture sectors cannot be part of the talks, at the insistence of the French government.

Meanwhile, all participants agreed that they faced an uphill battle to convince a sceptical public of the merits of a trade deal, which the European Commission estimates could be worth up to €100 billion for the EU alone.

Earlier, police had prevented anti-TTIP protestors from accessing the summit in central Brussels and made a number of arrests.

Inside the summit, supporters of a trade accord accused their opponents of spreading "myths" and "lies" about its implications.

"Our opponents are killing this," said Tim Bennett, director general of the Transatlantic Business Council.

"We've been too timid ... talking only to people who are already convinced," commented Gardner, adding that "we need to go after these myths and destroy them".

De Gucht complained that TTIP had become a victim of the EU election campaign.

"This debate has got caught up with the European election campaign. Part of the left, Greens and far-left see TTIP as something to be beaten," he said, adding that he was "amazed" when Martin Schulz, the socialist candidate for the Commission presidency, had called for trade talks to be postponed.

The US ambassador did agree with De Gucht that officials should look to complete negotiations on a deal by the end of 2015 despite the disagreements.

"It is obvious that there will be no major breakthroughs before the US mid-terms [Congress and Senate elections in November]," said De Gucht, adding that "we should agree on a political timeline to get an agreement in 2015. The political deadline is the end of next year."

The fifth round of talks on TTIP will take place next week in Washington DC.

EUobserved

Jubilant Greens in party mood after first EP projection

A party like atmosphere has seized the Greens as a packed room of people discuss around food and drinks. Elsewhere, the centre-right EPP appear sombre, as they huddle around their computers behind closed doors.

News in Brief

  1. Timmermans calls for 'progressive alliance'
  2. Catalonia's Puigdemont wins MEP seat
  3. Weber opens door to alliance with greens and liberals
  4. Tsipras calls snap Greek election after EP defeat
  5. Polish ruling PiS takes lion's share of EU vote
  6. Romanian voters punish ruling PSD party
  7. First official EP projection: EPP remain top, Greens fourth
  8. UK forecast puts Brexit Party on top, with 24 seats

Key details on how Europeans will vote

It's one of the biggest democratic exercises in the world with over 400 million eligible voters. National rules apply, and national parties run, but the stakes are at European level.

Magazine

All about the European Parliament elections 2019

EUobserver's new magazine is meant to help readers prepare for the European Parliament elections, no matter their level of knowledge. You can download and read the entire magazine now.

Stakeholders' Highlights

  1. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  2. Nordic Council of MinistersEducation gets refugees into work
  3. Counter BalanceSign the petition to help reform the EU’s Bank
  4. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  5. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  6. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  7. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  8. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  9. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate
  10. Nordic Council of MinistersNew Secretary General: Nordic co-operation must benefit everybody
  11. Platform for Peace and JusticeMEP Kati Piri: “Our red line on Turkey has been crossed”
  12. UNICEF2018 deadliest year yet for children in Syria as war enters 9th year

Latest News

  1. Populists' EU breakthrough fails, greens and liberals gain
  2. Jubilant Greens in party mood after first EP projection
  3. 2019 European election results
  4. Thunberg: We can still fix climate, but must start today
  5. Turnout up in Slovakia, with pro-EU liberals scoring high
  6. Belgium votes in hybrid EU-national election
  7. Irish greens take Dublin in second EU exit poll
  8. EU election results to trigger top jobs scramble This WEEK

Join EUobserver

Support quality EU news

Join us