TTIP Should Be Open to Third Countries

The European Union and the United States are currently negotiating a preferential trade agreement by way of the Transatlantic Trade and Investment Partnership (TTIP). Bilateral or regional cooperation with like-minded partners allows states to pursue more ambitious plans for trade liberalization than what is currently being debated at the multilateral level. However, preferential agreements are, at least partially, at odds with the principles of an open multilateral trading regime. The increasing number of preferential agreements has contributed to the fragmentation of the global trading system in the last few decades. TTIP, which accounts for a third of global exports, could increase the risks associated with bilateral trade agreements. While the multilateralization of preferential agreements might be possible in the long run, the accords currently exclude third countries from decision-making processes and represent a way for powerful actors to introduce global rules through the back door.

To alleviate such risks for the multilateral system and excluded countries, preferential trade agreements like TTIP should be as ​“open” as possible. In particular, they should include an explicit accession clause for interested third countries, establish transparent cooperation on norms and standards that also take into account concerns of third parties, and develop an inclusive set of rules of origin.

To read the full article (in German), please visit Heinrich-Böll-Stiftung online.