[CTC] Lighthizer does not rule out resuming TTIP talks, non-committal on TISA

[Arthur Stamoulis]

INSIDE US TRADE

Lighthizer does not rule out resuming TTIP talks, non-committal on TISA

March 20, 2017 
U.S. Trade Representative nominee Robert Lighthizer, in written responses to questions posed by senators, did not rule out the possibility of resuming negotiations for the Transatlantic Trade and Investment Partnership, but noted that the European Union would not be in a position to do so until the end of the year because of federal elections in France and Germany.

He was also asked about the Trade in Services Agreement, but gave no indication of whether he, or the Trump administration, supported or opposed the deal.

Lighthizer was responding to written questions-for-the-record <https://insidetrade.com/node/158017> from members of the Senate Finance Committee following his March 14 confirmation hearing, obtained by Inside U.S. Trade.

“I understand that the T-TIP negotiations sought to reduce or eliminate barriers to U.S. exports in the EU, and that, while the United States made progress toward that goal, a number of difficult issues could not be resolved,” Lighthizer wrote in response to a question by Finance ranking member Ron Wyden (D-OR) on whether he supported TTIP. “I would look forward, if I am confirmed, to consulting with you and with other members of the Committee on whether, when, and how to proceed with a trade agreement with Europe.”

The USTR nominee also said that he does not believe that the EU would be ready to pick up the talks until the end of the year, pointing to federal elections in France and Germany.

“It is our impression, though, that upcoming elections in France, Germany, and other EU member states will, in any case, make it difficult for the EU to resume comprehensive trade negotiations until at least the end of this year.”

The administration has punted on taking any official stance on the TTIP negotiations, which were launched by the Obama administration and European Commission in July 2013 and put on hold by EU trade ministers <https://insidetrade.com/node/155959> in September 2016. National Trade Council Director Peter Navarro has called the deal “dead,” <https://insidetrade.com/node/157396> but that perspective is not shared throughout the administration. A senior administration official said the administration has not yet adopted a formal position <https://insidetrade.com/node/157894> and that Lighthizer would have to be confirmed as USTR before it would be able to do so.

Lighthizer also told Wyden that he is “open to exploring ways to address barriers to U.S. exports and to expand trade with the EU and its member states.” Additionally, Lighthizer emphasized that the U.S. is willing to work with the EU to address the “non-economic expansion of production capacity around the world in critical sectors such as steel, aluminum and solar panels.”

The tone struck by Lighthizer in his responses was considerably more amicable to the EU than previous overtures made by President Trump and his advisers. For instance, Trump was vocal about his support of the United Kingdom's vote to leave the EU, a view that was not shared by the European Commission and member state leaders. The administration also made headlines in early February for reaching out to individual EU member state governments <https://insidetrade.com/node/157410> about potentially negotiating bilateral trade deals, but those advances were immediately rebuffed by those approached.

Lighthizer was also questioned about the future of the Trade in Services Agreement, but was similarly non-committal and did not provide an outlook for whether the U.S. will continue to be a party to the talks.

Sen. Tom Carper (D-DE) asked Lighthizer how he would make sure TISA did not “fall by the wayside.”

“The U.S. services sector is highly innovative and a key driver of the U.S. economy. Maintaining a vibrant U.S. services sector and expanding U.S. services exports is vital to a healthy economy and a key objective of U.S. trade policy,” Lighthizer wrote. “If confirmed, I look forward to working with you to pursue this objective.”

He provided a nearly verbatim answer to Wyden when asked if he would support the TISA negotiations.

Sen. Maria Cantwell (D-WA) asked Lighthizer if he would commit to end the negotiations of TTIP and TISA, as well as the U.S.-China Bilateral Investment Treaty talks, referring to them as “three corporate trade agreements.”

To that, Lighthizer said he would “carefully review all previous negotiations, and look forward to consulting with you and other Members of the Committee on how best to proceed,” while also reiterating that the EU would not immediately be ready to resume the TTIP negotiations due to European elections. -- Brett Fortnam (bfortnam at iwpnews.com <mailto:bfortnam at iwpnews.com>)
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