May 28, 2014
Transatlantic Trade and Investment Partnership
The Transatlantic Trade and Investment Partnership (TTIP; also known as the Transatlantic Free Trade Area, abbreviated as TAFTA) is a proposed free trade agreement between the European Union and the United States. Proponents say the agreement would result in multilateral economic growth,[2]while critics say it would increase corporate power and make it more difficult for governments to regulate markets for public benefit.[3] The U.S. government considers the TTIP a companion agreement to the Trans-Pacific Partnership.[4]After a proposed draft was leaked, in March 2014 the European Commission launched a public consultation on a limited set of clauses.
The leaked text of the proposed treaty sets out limitations on the laws that any government can pass to regulate or publicly run various economic sectors, particularly insurance and banking,[5] telecommunications, and postal services.[6] Any corporation which is “expropriated” from its existing investments becomes entitled to market value compensation, plus compound interest.[7] It would allow free movement of business managers and certain other workers among all signatory countries.[8] It is proposed to allow corporations to bring actions against governments for breach of its rights.[9]
