Mother of All Agreements

It might be the “mother of all agreements,” it is the Transatlantic Trade and Investment Partnership (TTIP). The vision is to link-up the two titan trading blocs, the US and EU, to create the world's largest prosperous free trade zone. It would promote the trade of European made cars, food, fashion and design and maybe even financial services, by removing trade tariffs in the US market. A potential turbo charge to get the EU bloc states out of an economic quagmire and back to economic growth, job creation and prosperity. But TTIP might make more than just economic sense, there are chilly winds blowing from the East. Russian EU relations are not what they used to be, with tit for tat sanctions over the alleged Russian military support of the pro separatist forces in the ongoing Ukrainian civil war. More than 1,000 civilians have died since the September Ukrainian truce, which exists regretfully only in name. With bitter winter approaching, the Ukrainian crisis may turn out to be more than a humanitarian crisis, since it has already ignited a new cold war that could turn “hot.”

Trade wars between the East and West are at a peak. The Eurasian Union, worth anywhere between two and three trillion USD, is set to abandon the dollar and the Euro in all trade deals. Russian official says dollar, euro could be banned in Eurasian Union. So with the door likely to be slammed in the face of euro companies, with the eastern end of Europe, becoming difficult if not impossible to trade with, why then isn't the EU embracing TTIP with open arms? With all this bad blood on Europe's door step it would make strategic and economic sense to strengthen economic and political ties with a powerful ally across the Atlantic.

But not only is the EU indifferent to the idea of TTIP, it is even sceptical about signing a massive trade deal with the US?

Why all this EU paranoia over a transatlantic trade deal?

The French articulate the worries of the southern bloc states, with their proud culture, traditions and love of good food. “The Americans are a little bit surprised we think their foods are inferior. They don’t understand why we feel so superior”, said Marietje Schaake, a Dutch liberal MEP on the parliament’s trade committee (the invasion of transatlantic toxic chickens and Frankenstein foodstuffs into Europe). Or, would the French, Italian, Spanish film industry be gobbled up by Hollywood? So maybe it is the fear of the Americanisation of Europe and the death of their culture that could partly be behind the resistance to formulate closer trading bloc ties.

For the British, closer American trade ties might spell the beginning of the end of their treasured NHS, public health service. The privatization of the NHS would become a stripped down Medicare clone.

In an attempt to counter what US ambassador Barzun describes as “myths” and “scaremongering” in Europe about aspects of the proposed pact, both sides emphasise there is nothing in the talks that could facilitate the privatization of public services such as the NHS. Audio-visual services have also been excluded to appease French fears of Hollywood and Silicon Valley decimating the French film and television industries. American hormone-fed beef, GM foods, or chlorine-washed chickens will not be allowed in Europe, the European commission maintains, for as long as they are proscribed in the EU.

Nevertheless, senior commission officials have admitted to the Guardian that they are fighting a losing battle against, what they describe as “a tide of hostile and emotional public opinion that has taken them by surprise. I need to try to understand the scepticism, the fears,” said Cecilia Malmström of Sweden, the EU trade commissioner.

In fact the transatlantic trade acronym TTIP is the most contested in Europe.

Perhaps Matthew Barzun, the US ambassador in London sums up the problem in just a few words, “There is mistrust,” said the US ambassador in London to the Guardian. A key EU official put it another way: “[TTIP is] more sensitive politically in Europe than in the US”.

But where is most of this mistrust emanating from in the EU?

Germany, as well as Austria and France.

The fact that the Germans are sceptical is probably no surprise. After all, wouldn't you feel a little uncomfortable about a friend or neighbour who was spying on you?

The Snowden and NSA mass surveillance scandals have rattled transatlantic relations. The revelations of the NSA tapping Chancellor Angela Merkel’s mobile phone, has really thrown a spanner in the works. Then there is the potential loss to German Industry? The only natural resource Germany has lies about six feet above the ground, its intellectual property. All that energy, time and money spent on research and development to try and keep ahead of the game and your ally is listening in on everything, maybe even cheating. About 200 questions have been tabled in the German parliament on aspects of TTIP, which underscores how MPs have been besieged by their constituents.

No doubt American diplomats are probably working overtime, to mop up the mess and step up their charm offensive. Maybe with the EU now on its knees they may find a warmer reception. Meanwhile, the anti-trade pact are also keeping up the anti by handing a petition against the transatlantic trade pact to Jean-Claude Juncker, the European commission chief.

My view is that TTIP will go forward in 2015 after the wrangling over some differences have been ironed out , for example Brussels wants access to financial services in the US, but Washington is not keen on the idea. In view of the current geopolitical situation and delicate economic situation, neither trading bloc would want to jeopardize a great trading opportunity, which has the potential of boosting economic activity and prosperity in Europe and across the Atlantic.