U.S.-EU Trade Deal is the Foundation For a New Global Economic Order
Monday, February 25th, 2013
By Dana Gabriel, Be Your Own Leader
February 25, 2013
The U.S. and EU have agreed to launch negotiations on what would be the world’s largest free trade deal. Such an agreement would be the basis for the creation of an economic NATO and would include trade in goods, services and investment, as well as cover intellectual property rights. There are concerns that the U.S. could use these talks to push the EU to loosen its restrictions on genetically modified crops and foods. In addition, the deal might serve as a backdoor means to implement ACTA which was rejected by the European Parliament last year. A U.S.-EU Transatlantic trade agreement is seen as a way of countering China’s growing power and is the foundation for a new global economic order.
In his recent State of the Union address, President Barack Obama officially announced that the U.S. would launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union (EU). A joint statement issued by European Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy and U.S. President Obama explained that, “Through this negotiation, the United States and the European Union will have the opportunity not only to expand trade and investment across the Atlantic, but also to contribute to the development of global rules that can strengthen the multilateral trading system.” In a separate speech, European Commission President Barroso also emphasized that, “A future deal between the world’s two most important economic powers will be a game-changer. Together, we will form the largest free trade zone in the world. So this negotiation will set the standard – not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules.”
With the final rounds of negotiations sessions planned for September and October, Canada and the EU are closing in on a free trade deal that would go far beyond the reach of NAFTA. Meanwhile, there is growing opposition to the agreement as the whole process has lacked openness, transparency and any public consultations. In Canada, there are concerns over the threat it poses to local democracy. This includes fears of deregulation and privatization, as well the expansion of corporate investor rights. There are also warnings that the deal could be used as a backdoor means to implement ACTA which was rejected by the European Parliament in July.
by Dana Gabriel,
Dana Gabriel,
At the recent APEC meetings, Canada and Mexico announced their interest in joining the U.S., along with other countries already engaged in negotiations to establish what has been referred to as the NAFTA of the Pacific.
Optimism. More than anything, it was optimism which hung in the air as two thousand people marched through the financial district to St James Park to ‘Occupy Toronto’ this past Saturday. Decamping from the subway to the paved expanse of Commerce Court’s plaza, I was cheered by the sight of a vast crowd that had improbably ventured out on a drizzly mid-October morning. They gathered right at the geographic heart of Canada’s banking center, X marks the spot, King and Bay – it’s not the sort of thing that usually happens in Toronto. But it happened this day, and it was an unprecedented, courageous symbol – watch the video below for a brief walk-though of the day’s events. If nothing else, you had to admire the chutzpah, the obvious joy that was expressed in speaking back to power. And the celebratory mood of the demonstrators was undiminished as they sang and chanted their way up Bay and along Queen to St. James Park, united by a hope that, maybe this time, visibility might drive positive change.
Recent
It was surprising that bilateral relations with the U.S. did not play a more prominent role during the recent Canadian election considering that both countries are pursuing a trade and security agreement. In fact, the issue did not really surface until the dying days of the campaign. After winning a much coveted majority government, Stephen Harper’s Conservatives are moving ahead quickly with perimeter security and regulatory harmonization negotiations. NAFTA and the defunct Security and Prosperity Partnership (SPP) both addressed issues such as regulatory cooperation. The push for a single unified North American business-friendly regulatory regime continues on different fronts.
Canada and the European Union (EU) have already held five rounds of negotiations towards a Comprehensive Economic and Trade Agreement (CETA) which will go beyond NAFTA. With the sixth round of talks scheduled to take place in Brussels, Belgium from January 17-21, Canadian and EU officials remain optimistic that a deal could be finalized by the end of 2011. Thus far, negotiations have included key areas such as goods, rules of origin, services, investment, government procurement, as well as others. As talks enter their final crucial stages, there are growing concerns over the threat CETA poses to Canadian sovereignty. Coupled with the financial turmoil sweeping Europe, deep economic integration with the EU could prove disastrous.