Monday 6 June 2016

The Alternative Guide to the EU Referendum: 4 things you should know about TTIP, free trade and the European Union

One of the most controversial elements of the UK's membership of the European Union, at present, is the TTIP - Transatlantic Trade and Investment Partnership - trade deal. Between the United States and the European Union, it is intended to break down trade barriers limiting free trade.

The prospective deal has been controversial from the start - being assembled in negotiations deemed secret, under a cloud of fear that business is being given legal rights to seek recompense from governments for profit-hurting policy, reduce Europe's regulatory standards and open protected domestic institutions to aggressive corporate competition.

I: The EU is only what you make of it

The misconception here is that the EU is a distinct, abstract institution, pursuing its own agenda - thus imagining the deal to be the work of the EU alone, with exit a simple blocking measure. But the EU doesn't work like that. It is driven by a council of the governments of the member states, including the UK.

Right now, Britain's representative are David Cameron's government and the Prime Minister has argued forcefully in favour of TTIP. Leaving the EU is not going to stop the UK's Conservative government seeking the pass TTIP-type trade agreement.

The basic reality is that the opposition to TTIP is to be found in Europe, not out of it. In Germany, 250,000 people have marched against the treaty. In France, the government is opposing the treaty for the way it threatens its protection policy covering certain of its own domestic interests. The movements are right in step with the major concerns over the treaty in Britain.

II: Remember ACTA?


As ever, the problem persists of national governments hiding behind the EU - using it as an excuse or a way to pass policies where the public aren't watching, when it is simply a system whose strings they are pulling.

Consider the controversial ACTA treaty. ACTA, which was intended to ensure an international 'harmonisation' of copyright enforcement, was criticised as potentially allowing private companies to violate basic personal liberties like privacy and even threatening generic medicines to protect the financial interests big pharmaceutical companies.

While many national governments around the world and across Europe signed, including the UK, the treaty was ultimately blocked in a vote by the directly and proportionally elected EU Parliament, following massive public protests across the EU.

III: What is the point of free trade?

On TTIP, Prime Minister Cameron has tried to make out that there are stark lines over the deal. From his perspective, on his side - supporting TTIP - are all those who want free trade and the benefits it brings, and on the other are people who are 'against free trade and wanting to see an expansion of trade and investment and jobs' (Mason, 2016).

It is not unfair to suggest free trade is a worthy principle, but why can't we have it on ethical terms?

In its more idealistic form, the EU is all about constructing an ethical free trade area. In its origins, it was conceived of as a way to end war in Europe by stopping national governments getting into strife with each other over control of the natural resources with which to construct to materiel of war.

Going further back, into the 19th century, the campaign for free trade was about breaking open cartels. Under the system of trade formed by the competing systems of national protection, the basic necessities were made prohibitively expensive by the stranglehold over them of powerful and unaccountable landlords and bosses whose interests where served by national government protection.

The Anti-Corn Law League, the early radical liberal campaign in the UK for free trade, sought to break up these cartels to reduce the cost of basic food and goods, so that the poorest could afford a decent and healthy life. The campaign for free trade was in service to the public against the protected interests of the rich landowners.

IV: What does EU trade look like?

What the EU has attempted, but not completed, is to ensure that the free trade it promotes takes place on a fair and ethical playing field. Basic standards, enforced by regulation (the mythical beast the Right love to talk of slaying), protect workers' rights, prevent animal testing and in a host of other important areas ensure a basic minimum expected of business practice in Europe.

Internally, this comes hand-in-hand with policies like the Regional Development Fund. The fund is intended to invest in the poorest, sub-national, regions of the EU to raise the standard of living up, so no country can look to undercut another on basic standards or be cut out left unfairly behind.

Externally the protections, of standards and rights, require trading partners to meet certain conditions for access to Europe's common market - like those of Norway and Switzerland that have been much publicised as alternatives in for the UK during this EU referendum campaign.

All of these ideals depend, however, on who is in charge of policy and negotiation at the EU. Right now, it is the conservatives of many EU member states who are in the ascendency and control policy and decision making at the European level. As a result, the EU's actions have been tinged with conservatism.

Within that system, it has been the Right, and the far right, who have been the ones pushing most aggressively for the UK to do away with the EU's standards - though it has faced resistance. The solution for the Right has become doing away with the EU, but keeping the market intact, as they still want to trade with Europe, but want to be undercut everyone else and help big business pad its profits by doing away with concern for the environment or workers' rights.

What do progressives want from trade?

Exiting the EU will require new trade deals to be negotiated. The conservative Right is unlikely to make those standards and regulations any kind of priority in its negotiations. Maybe, of course, those who want a 'left exit', unrestricted by the European system, will get a government of the Left before too long, to set about forming a new progressive trade policy.

But what are progressives in Britain going to negotiate for, if not an ethical trade area? An ethical trade area underscored by democratic accountability and cooperation?

Even a progressive exit would mean the dismantling of systems of cooperation, decades in the making, that have supported advances in rights, in a move that could only make the Far Right happy - only to have to then try to rebuild it all over again.

Right now for progressives, fighting corporate power and ensuring trade is conducted ethically and with appropriate standards and rights protections, remaining in the EU - not idly, but campaigning for progressive, democratic reforms - is still the best option.

This is Part 2 of  a multi-part series, "The Alternative Guide to the EU Referendum" - click here to go to the introductory hub

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