IKV held its first FTA Information and Capacity Center Seminar this year on the 12^th February 2015 with the participation of the Head of Trade and Agriculture Section at the EU Delegation to the Washington D.C Damien Levie and TEPAV Director of Center for Multilateral Trade Studies and Former Permanent Representative of Turkey to the WTO his Excellency Bozkurt Aran.

In the seminar which is entitled “Latest Developments in TTIP Meetings: Progress, Obstacles and Impacts upon Third Countries”, the latest developments regarding TTIP negotiations, the challenges encountered during the negotiations process and potential impacts upon third countries were the main topics discussed.

In his opening speech, IKV Board of Directors Member and IHKIB Chairman Hikmet Tanrıverdi gave detailed information regarding the FTA Information and Capacity Centre which is to be set forth within IKV. This Centre aims to establish the capacity that will be able to better formulate opinions on the impacts of these agreements on the business community and on various sectors. Furthermore, IHKIB Chairman Tanrıverdi pointed out to the importance to follow closely FTA negotiations between the EU and third countries, especially the TTIP negotiations process conducted between the EU and the USA. IHKIB Chairman Tanrıverdi stressed that it is of great importance to follow the developments in regard to the TTIP negotiations not only because it would have important impacts on the established Customs Union between Turkey and EU but also because it would contribute in determining new trading standards that would contribute in shaping the future of the world trading system. Furthermore Tanrıverdi indicated, as discussions regarding the possible scenarios to include Turkey in the TTIP process continue, that the eighth round of TTIP negotiations has been completed. 

The Head of Trade and Agriculture Section at the EU Delegation to the USA Damien Levie made a comprehensive presentation on TTIP negotiations during the seminar. TTIP negotiations are composed of three parts: market access, regulatory issues and non-tariff barriers andrules addressing shared global trade challenges and opportunities. Withthe TTIP, both parties are aiming at achieving a balanced comprehensive high ambition agreement increasing market access for goods and services of companies from both sides, reducing regulatory differences between the two economies and improving rules relevant for global trade and investment

During his presentation, Damien Levie highlighted the political will on both sides to pursue the negotiations and to find agreement on sensitive issues. He also pointed to the challenges faced during the TTIP negotiations in the three areas of market access (including agriculture trade), regulatory convergence and rules. Sensitive areas from either side include but are not limited to: maritime and air transport services and investment barriers, data flows and personal data protection rules, financial services regulatory cooperation and investment protection, including             notably investor-to-state dispute settlement mechanisms. Damien Levie also explained that, in regards to the services sector, that European and American negotiators need to work out the precise link between TTIP negotiations and TISA (Trade in Services Agreement). Furthermore, he also drew the attention to the difference in the perception between Europeans and Americans in regard to the level of opening the respective public procurement markets. While Europeans observe numerous Buy America and Buy American legislative restrictions in the US, Americans consider that their public procurement markets nevertheless have the same level of openness as the EU's markets.

In his presentation, Damien Levie also touched upon the state of play in the negotiations involving both regulators and trade negotiators regarding various sectors such as the cars, chemicals, pharmaceuticals, cosmetics, textiles and medical devices. In regards to the challenges encountered within the negotiations over sectors, he pointed out that both parties were looking at ambitious but realistic propositions taking into account existing significant differences between EU and US laws such as within the chemicals sector which will not be modified as a result of TTIP.

Damien Levie also stressed that TTIP negotiations are going to be pursued intensively but also in a more transparent way. In that context, Damien Levie emphasized on the importance of the initiatives taken by the European Commission in the last months in regards to strengthening the transparency within the negotiation process. Lastly, Damien Levie briefly discussed the potential impacts of TTIP upon third countries. He assured that the European Commission has fully understood Turkey's concerns regarding the TTIP negotiations in light of Customs Union with the EU.In that context, he explained the importance for Turkey of parallel conversations with the USA on trade and investment. He also stressed the importance for both the EU and Turkey of the joint on-going work towards upgrading the Customs Union.

In the closure of the seminar, TEPAV Director of Center for Multilateral Trade Studies and Former Permanent Representative of Turkey to the WTO his Excellency Bozkurt Aran stressed the importance of rules of origins that are being negotiated within the framework of TTIP as well as trade rules (such as environment, labour standards, energy and competition). Moreover, his Excellency Bozkurt Aran stressed that the protection of investments, which is a controversial issue between the EU and USA, is much more important in comparison to the previous investment agreements signed by the EU with third countries.

Presentation:

Bozkurt Aran