President Barack Obama's green light to comprehensive trade talks between the EU and the US in his annual State of the Union address to the US Congress is exciting business and government on both sides of the Atlantic. Observers say the resulting “Transatlantic Trade and Investment Partnership” could create the largest single free trade zone in the world. But what could it mean for European research and development?
International research part of global trend
European Union and US officials met in Washington the same day as Obama’s announcement to discuss enhancing cooperation in science, technology and innovation. Both sides claim to be committed to promoting the role R&D can play in fostering economic growth, creating jobs and solving challenges in health, climate change and food security.
On the table were transatlantic marine, maritime and Arctic research, transport research, health research and materials science. The meeting resulted in a new agreement to boost cooperation in transport research, signed by US Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, Kerri-Ann Jones, and EU Research Director General Robert-Jan Smits, who emphasised his personal commitment to the joint endeavour.
DG Research spokesman Michael Jennings told Science|Business that a new EU/US agreement could only benefit the research sector. “Science is going global, research and development are going global: this agreement is part of that global trend. We are already focused on the big challenges and working with international partners such as the US, and a new agreement would be complementary to that effort. So it is very welcome.”
Yes, but there could be trouble ahead
However not everyone in Europe is so effusive. While members of the European Parliament's International Trade Committee backed the idea of a deal last week, they warned of reservations in some areas. "We all were very happy when President Obama announced the will to start transatlantic free-trade negotiations," said Godelieve Quisthoudt-Rowohl (EPP, DE). Marietje Schaake (ALDE, NL) agreed that this is a historic moment and she believes the House shares, "the political will to find a mutually beneficial and fair deal".
Some MEPs emphasised however, that any deal would have to respect European regulations in key areas. Vital Moreiria (S&D, PT), said the biggest bone of contention in the talks would be animal and plant health standards. The concern is that the EU would come under pressure to abandon the precautionary principle in these areas, Moreiria said.
Other MEPs raised concerns over genetically modified crops and hormones in beef. Meanwhile Paul Murphy (EUL/NGL, IRL) and Franziska Keller (Greens/EFA, DE) asked whether Europe's position on intellectual property rights and data protection would be respected.
The concerns of MEPs have the potential to derail any high-level agreement, as was highlighted in July 2012 when the European Parliament voted against measures to prevent international copyright theft, voting down the Anti-Counterfeiting Trade Agreement, despite the fact that it had been laboriously negotiated by the European Commission and approved by member states.
Red lines being drawn
Data protection, especially where that data affects the privacy of European citizens, is a red line for the Parliament. Here there is an unfortunate history over agreements between the EU and US. The renewal of the Passenger Name Record (PNR) agreement was achieved last year in the face of strong objections from many MEPs.
PNR allows European airlines to fulfil their obligation to supply information on passengers booking long-haul flights, to the US security administration. However, since at the last count this security administration numbered over a dozen different agencies, there are concerns about lack of control over such data. Voting in the Parliament went 409 votes in favour, 226 against and 33 abstentions, showing significant opposition remains.
Sophie in ’t Veld (ALDE, NL) said at the time that the PNR, “still falls short of the high standards of data privacy and legal protection that our citizens expect. …. Apparently the European Parliament believes transatlantic relations are more important than the fundamental rights of EU citizens.”
US-EU trade already open
Obama’s announcement followed the publication of the conclusions of the High Level Working Group on Jobs and Growth, a body established in November 2011 to investigate opportunities for greater cooperation. Specifically the group was asked to draw up policies and measures to increase US-EU trade and investment to support mutually beneficial job creation, economic growth, and international competitiveness. With Obama’s go-ahead, an ambitious target has been set, to reach a new free trade agreement within the next two years.
As things stand, the US/EU represents a huge economic force, accounting for half of global output and 30 per cent of world trade. Every day, goods and services worth €2.0 billion are traded bilaterally.
The group consulted business, environmental, consumer, labour, and other representatives – to develop its recommendations on how to increase trade. It concluded that negotiations on a comprehensive trade and investment agreement should aim to enhance market access and deal with regulatory issues and non-tariff barriers.
Improvements to market access would involve the elimination of all duties on bilateral trade, removing long-standing market access barriers in services, a commitment to transparency and impartiality in relation to licensing and qualification requirements and procedures, and improve access to government procurement.
In addition, the High Level Group recommended moves to reduce costs associated with regulatory differences, by promoting greater compatibility and harmonisation. There was also a commitment to maintaining and promoting a high level of intellectual property protection, including enforcement, and to sustain and enhance joint work on IPR issues.
Stars are aligned
Overall, the aims of the free trade agreement recognise that tariffs per se are not the main barrier to creating a single market. Instead, it is issues such as technical standards, regulatory requirements and intellectual property rules that stand in the way of open markets in services, and in sectors such as pharmaceuticals and electronics.
Trade groups at the US Chamber of Commerce and BusinessEurope have long been lobbying for a new accord. Responding to Obama’s announcement, the President of the US Chamber, Thomas Donohue said, “The stars are finally aligned, and we urge the US and EU governments to move forward swiftly to negotiate a high-standard agreement that will foster economic growth and job creation.”
New US Open Access policy an attraction?
Despite reservations at the political level, scientists may well be attracted by the announcement at the beginning of this week that the White House Office of Science and Technology Policy is to follow the European Union’s lead on Open Access, making nearly all science papers produced with federal funding accessible to the public within a year of publication. The new approach will apply to agencies as well as projects.
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