The Rt Hon Dr Vince Cable MP
Secretary of State for Business, Innovation and Skills and President of the Board of Trade
Department for Business, Innovation and Skills
1 Victoria Street
London
SW1H 0ET
Date: 15th September 2014
Dear Vince,
I am writing to you to raise my concerns about the Transatlantic Trade Investor Partnership (TTIP) and the Comprehensive Economic and Trade Agreement (CETA).
As I am sure you are aware, on 25th September the European Commission is planning to initial both TTIP and CETA alongside the USA and Canada. Member States had until 12th September to make amendments to the text of both trade agreements, which mean that they can no longer be altered.
I share the concerns of thousands of campaigners, including trade unions, human rights groups and consumer watchdogs that these trade deals will give unprecedented power to multinational corporations and risk the privatisation of public services. The controversial proposals for an Investor-State Dispute Settlement (ISDS) clause could have a detrimental impact on the NHS, public education, and other public services. The inclusion of an ISDS clause could enable foreign investors to file complaints against a national government whenever investors perceive a violation of their rights. The fact that these complaints will be filed directly to international arbitration tribunals and completely bypass national courts is extremely worrying. We have seen cases brought against government regulation of public services in other countries; with potential worrying results in terms of policy-making. Additionally, ISDS clauses could mean that existing legislation is ‘locked-in’, making progression to a climate-conscious and sustainable economy substantially more difficult.
In January this year, as a result of public disquiet, the European Commission announced a public consultation on ISDS. Between March and July, about 150,000 people contributed to the consultation. The largest number of contributions were from the UK. An overwhelming majority expressed very clearly that they don’t want ISDS to be part of the trade agreements being negotiated with the US. This in turn led to a European Citizen’s Initiative (ECI). An ECI exists as a mechanism for European citizens to evoke a democratic process in the EU. However, it is my understanding, that the ECI calling for an alternative trade and investment policy to both TTIP and CETA was rejected by the European Commission last week.
In its rejection of the ECI, the European Commission claims that because the negotiating mandates on TTIP and CETA are not legal acts but internal preparatory acts between EU institutions, they are therefore not contestable via an ECI. Prior to the official submission of the ECI, the Stop-TTIP Alliance commissioned legal counsel, and based on its recommendation is now considering taking legal action against the Commission’s decision, including through the European Court of Justice. I have attached a copy of the legal briefing for your information.
In my opinion, the decision not to respond to the concerns of European Citizens by encouraging a debate in the European Parliament is undemocratic, and against the European Union’s strong principle of transparency. The UK Government should, therefore, push for a hearing in European Parliament and encourage Member States to engage in a democratic discussion before potentially damaging measures are put into place without full and proper scrutiny.
I look forward to hearing your thoughts on this matter.
Yours sincerely,
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