The European Commission will be obliged to consult with US authorities before adopting new legislative proposals following passage of a controversial series of trade negotiations being carried out mostly in secret.
A leaked document obtained by campaign group Corporate Europe Observatory (CEO) and the Independent from the ongoing EU-US Transatlantic Trade and Investment Partnership (TTIP) negotiations reveals the unelected Commission will have authority to decide in which areas there should be cooperation with the US – leaving EU member states and the European Parliament further sidelined.
The main objective of TTIP is to harmonise transatlantic rules in a range of areas – including food and consumer product safety, environmental protection, financial services and banking.
The leaked document concerns the “regulatory cooperation” chapter of the talks, which the European Union says will result in “cutting red tape for EU firms without cutting corners”. It shows a labyrinth of procedures that could tie up any EU proposals that go against US interests, according to analysis by CEO.
The campaign group said the document also reveals the extent to which major corporations and industry groups will be able to influence the development of regulatory cooperation by making what is referred to as a “substantial proposal” to the working agenda of the Commission and US agencies.
The plans revealed by the document will give the US regulatory authorities a “questionable role” in Brussels lawmaking and weaken the European Parliament, CEO argues.
Business news in pictures
Business news in pictures
1/50 United goin down
Manchester United's absence from the Champions League hurt more than the fans' pride last year - it also dented the bottom line. Revenues at the New Uork listed club dipped 8.8 per cent to £395.2m in the year to June, triggering a £1.2 million loss after broadcasting and sponsorship deals dried up. The club said it was now looking to raise $400m from a share issue.
2/50 Star Wars boosts economy
Production of the next Star Wars movie has brought an economic impact of some £150 million to Britain, according to company accounts. The seventh movie in the series, The Force Awakens, will be released in December.
3/50 Natalie Massenet Leaves Net-a-Porter
The Net-a-Porter founder Natalie Massenet decided to quit the online fashion retailer during "a summer of reflection" that included a spectacular 50th birthday party on the Almalfi coast.
4/50 I'll keep working, says Mayer
The chief executive of Yahoo, Marissa Mayer, said that she was expecting twin girls in December. She said she would "approach the pregnancy and delivery the same way as I did with my son three years ago, taking limited time away and working throughout". In 2012, she took two weeks off when her first child was born.
5/50 World's richest lose $182b
Warren Buffett, the world’s third richest person, lost $3.6bn in last week’s market slump. Fears that China's economy is slowing took many indices into correction territory. The turmoil has wiped $182 billion off the wealth of the 400 richest billionaires, according to research by Bloomberg.
6/50 City for sale
London City Airport was put up for sale by the American hedge fund Global Infrastructure Partners, which also owns Gatwick and Edinburgh airports. It is expected to fetch around £2 billion
7/50 Kicking up a skink Down Under
An Australian court has overturned approval for Adani’s Carmichael coal mine in north Queensland, based on concerns over the impact of the project on the endangered yakka skink (pictured). Standard Chartered is under renewed pressure to stop financing the deal
8/50 Scope to do more in the City?
Damien Hirst's 7m statue, Charity, has been installed in the shadow of the Gherkin in London. It is based on an old Scope collection from the 1960s and has provoked a debate about the City and disability. The Lord Mayor of London says the City does not employ enough disabled people.
9/50 Thousands more take a look at Sky
Drama and football are a winning formula for Sky, which has recorded its best growth for 11 years, gaining 124,000 UK customers in the past quarter. Sky paid £4.2bn for Premier League rights, but also has 35 dramas planned, following successes such as the ‘The Enfield Haunting’ (pictured) with Timothy Spall.
10/50 FirstGroup suffers over lost lines
FirstGroup, the bus and rail operator, is paying the price for losing a string of rail franchises last year. Rail revenue will be “substantially lower” in 2015 after some big franchise losses, including ScotRail. The division lost out on tenders for the East Coast and West Coast (pictured) mainlines, which went to Virgin Trains.
11/50 US retail rush hour slows down again
US retail sales unexpectedly fell in June as households cut purchases of cars and a range of other goods. Sales fell 0.3 per cent, while economists had forecast a small rise.
12/50 Blockbusters aid Pinewood expansion
Pinewood Studios revealed it is having to turn away major films until the five new stages it is building come on stream next summer. The group still saw operating profits rise from £4.9m to £5.8m in the past year, which saw it host the new Star Wars and Avengers films (Scarlett Johansson, pictured, stars in ‘Avengers: Age Of Ultron’) as well as the latest Bond release, ‘Spectre’
13/50 Rogue trader freed
Kweku Adoboli, the former UBS trader who was convicted of the UK’s biggest banking fraud, has been released from jail after serving half of his seven-year sentence. He was imprisoned in 2012 on two counts of fraud that resulted in losses of £1.4bn, the largest trading loss in British banking history
14/50 Burberry’s autumn ad campaign
Burberry is launching its autumn ad campaign today with a cast of models including the singer Tom Odell and the actress Holliday Grainger
15/50 Sneak peak at console battlefield
Videogame titans Microsoft and Sony vied for attention ahead of the industry’s annual E3 conference yesterday, giving fans sneak peaks of the latest games for their Xbox and PlayStation consoles, including Sony’s new ‘Assassin’s Creed Syndicate’
16/50 High street shops hit by exodus
The number of Britons out shopping has fallen for the second month in a row. High streets saw 1.5 per cent fewer shoppers and shopping centres 2 per cent fewer in May compared with a year ago. Only out-of-town retail parks saw a rise, with 1.4 per cent more visitors, the British Retail Consortium said. Overall shopper numbers fell by 1 per cent.
17/50 Argentina hit by strikes
Daily life ground to a halt in Buenos Aires yesterday amid a 24-hour general strike protesting against moves to limit pay rises and increase taxes.
18/50 Duty rises blamed for beer woes
Beer sales are still “fragile” after a decade of “devastating” duty hikes, according to the British Beer and Pub Association. The industry lobbyists said sales in pubs and shops were up 1.5 per cent in the past year, but fell by 0.8 per cent in the first quarter. Sales have fallen 24 per cent in the past decade.
19/50 New Look in push for men
New Look is planning a menswear push after poaching Christopher Englinde, H&M’s menswear chief. Like-for-like sales at the fashion chain rose 5 per cent
20/50 Court halts Airbus insider trading trial
A French court has quashed an insider trading case against seven current and former Airbus executives as well as Lagardère and Daimler, who were investors in the plane maker. Judges said the trial was dropped as they had all been cleared by France’s market regulator AMF, and it would have breached safeguards against double prosecutions
21/50 Alibaba hits back over ‘fake’ claims
Alibaba has hit out at Gucci’s owner, Kering, for “wasteful litigation instead of the path of constructive co-operation”, after the French luxury giant filed a lawsuit in New York alleging the Chinese online retailer allows sales of fake goods on its websites. Gucci unveiled its Fall-Winter 2015-2016 women’s range at this year’s Milan Fashion Week
22/50 Hats off to Ralph Lauren
The upmarket US clothing company Ralph Lauren saw sales climb 1 per cent to $1.9bn (£1.2bn) in the quarter to 28 March. The company said it opened several stores across key markets around the world, fuelling momentum for its luxury accessories business. However, net income decreased to $124m, compared with $153m in the same quarter last year, partly as a result of exchange-rate impacts.
23/50 With this ring… arts sales jump
Sotheby’s raised $380m (£241m) in its New York contemporary art sale, a day after rival Christie’s sold a Picasso for a record $179m, with the auction house describing bidding as a “rush for art”. The top lots included Roy Lichtenstein’s ‘The Ring (Engagement)’ Estate of Roy Lichtenstein
24/50 Brewdog’s dead cat bounce
Brewdog parachuted taxidermy “fats cats” holding its latest prospectus out of a helicopter over the City of London as the Scottish brewer looks to drum up publicity for its latest “punk” fundraising. The craft beer group has already raised £5m of the £25m it is seeking from investors to fund a new brewhouse and set up a US operation
25/50 Change at the top for Alibaba
Chinese ecommerce giant Alibaba replaced its chief executive yesterday. Daniel Zhang, chief operating officer, will replace Jonathan Lu. The move follows the share price briefly dipping below $80 this week, its lowest since its New York flotation in September.
ChinaFotoPress/ChinaFotoPress via Getty Images
26/50 Put that light out
New York City officials have been informed by the American Government that the Big Apple’s dazzling neon billboards violate a 2012 highways ruling and must be taken down. The city could forfeit up to $90m (£59m) in federal highway money if it fails to comply. New York is debating getting an exemption from the rule.
27/50 Lionsgate wants the lion’s share
Lionsgate yesterday announced plans to finance and co-invest in up to 25 British independent films over the next four years. The Canadian-US entertainment company has previously invested in such UK films as A Little Chaos, starring Kate Winslet
28/50 Tillman planning a ‘new Jaeger’
The fashion entrepreneur Harold Tillman (centre) has spoken out against the way Jon Moulton’s Better Capital has run Jaeger since taking it over from him and declared he would start a rival business to serve disappointed Jaeger customers. Mr Tillman said turnover at the group had fallen and losses widened since the private equity firm took over.
2011 Getty Images
29/50 Aer Lingus: end in sight to Irish talks with IAG
Aer Lingus, the Irish carrier being bid for by British Airways’ owner IAG, yesterday said it is hopeful talks between its suitor and the Irish government will conclude soon. Ireland owns a 25 per cent stake in the airline, which posted a €48m (£35m) first-quarter loss yesterday but said its long-haul business had performed well
30/50 Weir sheds more jobs in oil slump
Slumping orders for oil and gas projects in the wake of the oil price collapse have forced the engineer Weir to cut another 125 jobs. Since the start of the year, the US oil-rig count has more than halved, sending orders in Weir’s oil and gas division down 23 per cent in the first quarter. Weir has already shed 1,300 staff in the past year
31/50 Williams F1 team drives into the red
Formula 1 team Williams drove £34m into the red for 2014 after the worst season in its history. A fall in prize money for 2013 – paid a year in arrears – meant the Frankfurt-listed group went into reverse after a £12m profit the year before. But Williams said this year’s figures would be better after it finished third in the 2014 Constructors’ Championship. Its driver Felipe Massa, pictured in Bahrain, is 5th in this year’s driver’s contest
32/50 Rivals roar as Harley stalls
A strong dollar allowed US motorcycle-maker Harley-Davidson’s foreign competitors to undercut its prices in the first quarter, hurting its sales and market share and prompting it to lower 2015 shipment forecasts. The news sent its shares down 10 per cent in early trading
33/50 Climate changes for BP
BP will be more accountable for its role in climate change after 98 per cent of investors backed a resolution to make it more transparent on the issue. BP’s annual shareholders’ meeting was held in London yesterday and attracted a protest against offshore oil drilling.
34/50 Car sales lift in Europe
Demand for new cars in Europe soared last month, particularly in Spain and Portugal where sales increased by more than 40 per cent on March last year. Meanwhile UK sales were up 6.1 per cent on March 2014, according to the European Automobile Manufacturer Association.
35/50 Ricci heir guilt of tax fraud
Arlette Ricci, the heir to the Nina Ricci perfume and fashion fortune, has been convicted of tax fraud by a Paris court, after hiding millions in an offshore HSBC account. Ms Ricci, 73, was sentenced to a year in prison and ordered to pay a €1m (£72,000) fine.
36/50 Camden set for a makeover
Teddy Sagi, Camden Market’s new Israeli billionaire owner, has appointed Mace as project manager to oversee the redevelopment of Camden Lock Village, with 170 homes as well as shops and offices in the north London district.
37/50 All aboard the iron ore train
Australia is reportedly examining how BHP Billiton and Rio Tinto shift billions of dollars in iron ore profits through low tax hubs in Singapore.
38/50 Shell’s Arctic plans under fire
Greenpeace activists have climbed aboard a Shell oil rig in the Pacific Ocean bound for the Arctic. They plan to camp under the rig’s main deck in protest against the oil giant’s plans to restart drilling off the coast of Alaska. The group said the six protesters would occupy the underside of the Polar Pioneer’s main deck but would not interfere with the vessel.
Vincenzo Floramo / Greenpeace
39/50 GoDaddy off to flying start in New York
GoDaddy shares jumped 34 per cent as they started trading on the NYSE Wednesday, valuing the website group at more than $5bn (£3bn). The firm, which manages 59 million web domains – a fifth of the world’s total – raised $460m. It sponsors race car driver Danica Patrick (pictured with chief executive Blake Irving) and is backed by private equity firms KKR and Silver Lake
40/50 The first lady of high street banks
Shriti Vadera, a former adviser to Gordon Brown, has become the first female chairman of a UK high street bank, succeeding Sir Terry Burns at the helm of Santander UK. Baroness Vadera will be paid £650,000 and work alongside Santander’s new CEO, Nathan Bostock
Paul Morigi/Getty Images
41/50 Sterling returns for Compass
Compass could see £30m added to its annual profits, thanks to the strength of the pound. The catering giant, which serves up strawberries and cream at Wimbledon each year, said underlying revenues are up 5.5 per cent in the first half, while gains from sterling against the euro, yen and Brazil’s real are set to offset any weakness of the pound against the dollar
Peter Macdiarmid/Getty Images
42/50 Serco sells Australian rail unit
Serco has sold its Great Southern Rail to the Australian private equity firm Allegro Funds in a £2.5m deal. The disposal of the luxury business, which runs tourist trains such as The Ghan (pictured) across Australia, is part of the outsourcing group’s move to focus on core businesses under its new chief executive, Rupert Soames
Mark Metcalfe/Getty Images
43/50 Italian Retailer Yoox eyes Net-a-Porter
The Italian internet retailer Yoox in the latest contender to swoop in with an offer for the luxury fashion business Net-a-Porter that could value the London-based firm at £1.3 billion
44/50 Li Ka-shing buys O2 for £10bn
Li Ka-shing’s Hutchison Whampoa has finalised a £10.25bn deal to buy the UK mobile business O2 from Spain’s Telefonica. Hutchison, the Hong Kong conglomerate that already owns Three in the UK, entered exclusive talks with Telefonica in January.
45/50 Jaguar climbs high in the City
A Hollywood stuntman in a Jaguar XF crosses the River Thames by highwire to promote the latest model. The stunt was supported by 34mm-wide carbon wires.
46/50 Pubs get protected
New rules have been announced to mark Community Pubs Day today which protect local pubs and give communities a greater say in planning processes.
Oli Scarff | Getty Images
47/50 Tesco jet still left on shelf
Tesco has been forced to cut the price of its Gulfstream G550 jet by £3.5m in an attempt to shift it. The retailer has already sold three of its fleet of five jets since October but has cut the price of the 14-seater jet from $35m (£23.5m) to $30m. It also still has a Hawker 800XP.
48/50 Uber called to account in Paris
Uber’s Paris offices have been raided by French police as part of an investigation into its UberPOP service that lets anyone offer taxi rides. The French headquarters of the US taxi-booking app have been targeted by authorities as part of investigations into the feature, which is not available in the UK, that allows non-professional drivers to sign up
49/50 P&G on the scent of a sale?
Procter & Gamble is believed to be looking at a sale or IPO of some of its beauty brands, which range from Herbal Essence shampoos to Olay creams and Boss perfumes (as advertised by Sienna Miller, pictured). Shares in the US consumer products giant rose 2 per cent on the prospect of a sale yesterday, even though P&G said the report, on Bloomberg, was “speculation”
50/50 Blackpool pier is on sale for £12.6m
Blackpool’s central pier has been put up for sale by its owner Cuerden as the attractions organiser looks to restructure its operations. The group is asking for offers of about £12.6m for a package of three piers – including Blackpool’s 19th-century central and southern piers and a third in Landudno in Wales
Kenneth Haar, researcher for CEO, said: “EU and US determination to put big business at the heart of decision-making is a direct threat to democratic principles. This document shows how TTIP’s regulatory cooperation will facilitate big business influence – and US influence – on lawmaking before a proposal is even presented to parliaments.”
Nick Dearden, director of the Global Justice Now campaign group, said: “The leak absolutely confirms our fears about TTIP. It’s all about giving big business more power over a very wide range of laws and regulations. In fact, business lobbies are on record as saying they want to co-write laws with governments – this gets them a step closer. This isn’t an ‘add on’ or a small part of TTIP – it’s absolutely central.”
Mr Dearden said it was “scary” that the US could get the power to challenge and amend European regulations before elected European politicians have had the chance to debate them.
Referring to the imminent EU referendum, he said: “We’re talking about sovereignty at the moment in this country – it’s difficult to imagine a more serious threat to our sovereignty than this trade deal.”
CEO says greater regulatory cooperation between the EU and the US has already led to public health concerns – such as the EU failing to regulate hormone-disrupting chemicals and the recent Glyphosate relicensing controversy.
CEO claims that on both issues the Commission listened closely to US authorities and big business despite the health threats posed by these chemicals to EU citizens.
A spokesman for the European Commission said: “These accusations are unfounded and are not reflected in the EU proposal for simplifying rules for EU exporters. The text on regulatory cooperation will be published soon for everyone to see that this so-called analysis is completely false, presents a biased view of the European Commission’s work and ignores the reality of EU texts. Regulators – not trade negotiators – will continue to lead regulatory cooperation initiatives – both in the EU and the US.”
Explainer: The TTIP
The Transatlantic Trade and Investment Partnership (TTIP) is a proposed trade agreement between the EU and the US, with the aim of promoting trade and multilateral economic growth.
The EU says that the aim of TTIP is to help people and businesses by opening up the US to firms in the bloc, helping cut red tape that firms face when exporting and setting new rules to make it easier and fairer to export, import and invest overseas.
Anti-TTIP campaigners say the deal will increase the power of multinationals at the expense of democracy and the general good.
One of the main issues around the negotiations is that so many of the talks have been carried out in secret, with media leaks the only way the public is being informed as to what is happening.
The European Commission says that the TTIP would boost the EU’s economy by €120bn, the US economy by €90bn and the rest of the world by €100bn. The trade deal is opposed by unions, charities, NGOs and environmentalists, particularly in Europe, with critics previously telling The Independent that negative impacts include “reducing the regulatory barriers to trade for big business, things like food safety law, environmental and banking regulations and the sovereign powers of individual nations,” or more critically as an “assault on European and US societies by transnational corporations”.
The European Commission says once a final text has been agreed it will be up to member state governments and MEPs to decide on the implementation of the deal.
Leaked document highlights serious threat to democracy
By Kenneth Haar, CEO researcher
So-called “regulatory cooperation” in the ongoing EU-US TTIP talks seeks to bring legislation on both sides of the Atlantic into line. This chapter of the negotiations means razing those “regulatory barriers” already in place and preventing new ones from emerging.
Lengthy procedures, including vetting by business for possible economic impacts, are thus envisaged for new regulations. Such measures have already been used informally to weaken EU ambition on financial sector supervision in the years leading up to the 2008 collapse, to offer a free pass to US companies on personal data protection, and to delay or water down EU proposals on animal testing and aviation emissions.
More recently, in the case of toxic hormone disrupting chemicals, we've seen the European Commission siding closely with US authorities and big business in refusing to take action to restrict the use of these substances despite the well-documented health threats posed to EU citizens.
Enshrining such procedures into legislation under TTIP will lead to intensified attacks on laws that protect public health, workers’ rights and environmental standards.
This leaked document from the negotiations confirms fears that the Commission will be obliged to consult with US authorities before adopting new legislative proposals while EU Member States and the European Parliament are sidelined. The leak also offers a glimpse at the proposed bureaucratic labyrinth of impact assessments, dialogues, consultations and reviews that could tie up any proposals that go against US business interests.
All in all, the extent to which big business will be able to influence regulations under these proposals is a serious threat to democracy as we know it.