The fencing of democracy: Basic problems with regulatory cooperation under CETA

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1 The fencing of democracy: Basic problems with regulatory cooperation under CETA , Ljubljana Max Bank, LobbyControl

2 structure of my presentation 1. Background material 2. General remarks on chapter Key provisions in the CETA text 4. CETA, TTIP and JEFTA in comparison 5. Conclusions

3 background material 1. Making Sense of CETA (September 2016, 2nd ed.), p CETA and TTIP in comparison: A factsheet on regulatory cooperation (September 2016). 3. Moving Regulation out of Democratic Reach: Regulatory Cooperation in CETA and its Implications (September 2016). 4. A dangerous regulatory duet. How transatlantic regulatory cooperation under TTIP will allow bureaucrats and big business to attack the public interest (January 2016). 5. From NAFTA to CETA: Corporate Lobbying through the backdoor (February 2017) 6. Welcome to JEFTA: Trading away our rights (September 2017).

4 2. General remarks on chapter 21 Regulatory cooperation establishes new institutions and processes for the alignment of regulations. Huge differences between the way Canada and the EU regulate (precautionary vs. aftercare principle; GMO's no GMO's). New generations of trade agreements, so-called living agreements - institutionalisation of a mechanism The chapter endangers regulation in the public interest. Many ways for business lobbyists to get their interests across. Great importance: Key interest for corporate lobbyists across sectors.

5 3. Key provisions 1) Delays for important legislation and pressure to harmonise 2) Lower protection for Canadian and European Citizens 3) Business influence and lack of transparency

6 3. Key provisions Delays for important legislation and pressure to harmonise: Regulatory cooperation on a voluntary basis (Article ). Explanations for refusal of regulatory cooperation (Article ). Early warning system for the EU and Canada to intervene into unfavoured legislation (Article 21.4(b) and 21.4(e)).

7 3. Key provisions Lower protection for Canadian and European Citizens. Attack on the precautionary principle: Reference to the aftercare principle (Article 21.4(n)(iv). Regulatory cooperation takes place at horizontal (chapter 21) and sectoral (chapter 25) level, for instance in the field of biotechnology.

8 3. Key provisions Business influence and lack of transparency. Regulatory Cooperation Forum (RCF) only vaguely described. Sectoral dialogues and subcommittees on specific issues. Lack of transparency: Features such as publication of agendas, reports or participant lists of meetings.

9 DG Trade lobby meetings Lobby meetings with Malmström cabinet (December 2014-March 2016) meetings business lobbyists and business associations meetings with civil society representatives meetings with think tanks and foundations 317 meetings, 283 with business, 21 with civil society, 13 with think tanks and foundations (90 percent)

10 CETA, JEFTA and TTIP in comparison CETA (chapter 21) Regulatory Cooperation on a voluntary basis. New body to coordinate regulatory cooperation (RCF) Early warning system for new regulations Consultation processes for socalled stakeholders JEFTA (chapter X) Regulatory Cooperation on a voluntary basis New body to coordinate regulatory cooperation Early warning system for new regulations Consultation processes for socalled stakeholders TTIP (chapter X) Binding regulatory cooperation in US-EU negotiations No body in current text due to critical public debate (Regulatory Cooperation CouncilRCF); institutionalisation in the annex now. Early warning system for new regulations. Consultations processes for so-called stakeholders Source: Factsheet on regulatory cooperation in TTIP and CETA & Welcome to JEFTA: Trading away our rights.

11 Conclusion: Backdoor policy via trade agreements Regulatory cooperation in CETA particularly dangerous due to its vague character. It is key to the trade agenda of large corporations, but not in the interest of SME's. CETA regulatory cooperation has become the blueprint for upcoming EU-trade agreements JEFTA and also NAFTA indicate this. To enshrine regulatory cooperation in these trade agreement creates the risk of permanently weaken the role of parliaments in legislation.

12 Thank you very much for your attention!