According to a leaked draft of the European Union’s first proposal to the US on trade in services and investment, financial services will not be included in the negotiations at the next round of talks on the Transatlantic Trade and Investment Partnership (TTIP).
In an attached note to Member States, the European Commission proposes that, until the US engages on regulatory cooperation, the EU should not negotiate over access to financial services market. “The EU considers that the ambition of the EU offer is closely linked to the progress of discussions on regulatory cooperation. Therefore, commitments on financial services will be included at a later stage".
The Commission said that US opposition to including regulatory cooperation on financial services in TTIP indicates that there is no intention to commit on financial services. Although it highlights “the situation may change in the future if the US shows willingness to engage solidly on regulatory cooperation”, it is deemed to be unlikely since this is a major point of disagreement between the US and the EU.
John Clancy, the trade spokesman for the commission, said “the EU approach on services is an ambitious one, both on market access and regulatory aspects. And we will put forward strong commitments to achieve the goal of creating meaningful new market opportunities in this negotiation”.
Michel Barnier, the EU Commissioner for Internal Market and Services, also stressed the “vital importance” of including financial services in the trade pact “to ensure global financial stability”. “We need to do more to make these regulatory systems work together”, he said.
BETTER FINANCE believes financial services should be discarded from TTIP negotiations. It is important not to weaken the level of consumer protection assured in the EU by entering in a trade agreement with the US where consumer protection is less stringent.
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