Following a meeting of European Union foreign ministers in Brussels on Friday, István Mikola declared that “It is practically inconceivable that the free trade agreement between the European Union and the United States could come into being before the end of this year; if such a treaty does come about at all, it will take years”.
At his press conference, the Minister of State for Security Policy and International Cooperation at the Ministry of Foreign Affairs and Trade told reporters that Friday’s meeting had centred on two issues: the Transatlantic Trade and Investment Partnership (TTIP), and the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada.
According to Mr. Mikola, most EU Member States were not particularly optimistic about the former; on the other hand, only the finishing touches remain to be added to the upcoming treaty between the EU and Canada, which will be signed during the summer, after which the ratification process can commence. CETA is an extremely important agreement for all parties, the advantages of which will be enjoyed by us all, Mr. Mikola said. However, with regard to TTIP, the Minister of State said that much still has to be done to seal the agreement, and it is unlikely that this will occur in the near future.
During the meeting there was debate on two areas related to the free trade agreement. The first was on the dispute settlement mechanism, on which the Hungarian standpoint is that it would not be a good idea to include it in the agreements, though the United States, for instance, insists on it. The other sensitive issue is the nature of the agreement itself: Hungary and several other countries are insisting that a so-called “joint” agreement come about, which would require ratification by Member State parliaments – meaning that if the deal is not suitable it can be vetoed at the very last minute.
Another subject of the meeting was the threat posed by cheap Chinese imports, which endanger many jobs in the European steel industry. All those present agreed that the question must be settled as soon as possible. The latest round of TTIP negotiations – the 14th – are expected to begin in Brussels in July.
According to plans, the proposed Transatlantic Trade and Investment Partnership concerns not only the breaking down of relatively low customs barriers, but also the harmonisation of European and American regulations on the production and distribution of goods and services.
The negotiations, which began in July 2013, have seen no breakthrough thus far, the main reason being the fact that a proportion of European political public opinion is worried about the planned deal, fearing it will open the door for the assertion of US global corporate interests which ignore environmental and consumer safety considerations.