Avoiding TTIP Redux

Ten Principles for U.S. Trade Negotiations with the European Union, with Gabriella Beaumont-Smith, Heritage Foundation Backgrounder #3480, April 8, 2020. "Since the collapse of the negotiations for the Transatlantic Trade and Investment Partnership (TTIP) in 2016, trade tensions between the U.S. and the European Union have increased. In July 2018, the U.S. and the EU agreed to negotiate a trade agreement, and in October 2018, the U.S. released its negotiating objectives for trade talks with the EU. These objectives are generic and based on a vision of “balanced” and managed trade that is excessively pessimistic about the value of free trade. Negotiating with the EU will not be easy: The EU’s support for regulatory harmonization and its proclivity for accompanying its free trade agreements with broad political declarations are both unacceptable. The U.S. and the EU should learn the lesson of TTIP, and prefer a narrow, principled agreement that increases market-based competition and which can be negotiated rapidly, to an effort to negotiate a wider agreement that fails and thereby only gives rise to further animosity."

No, It's Not A CFIUS

The Potential Risks of the EU’s Investment Screening for the United States, Heritage Foundation Issue Brief #5055, April 6, 2020. "The EU has adopted a framework for screening foreign direct investment. While this framework has regularly been compared to the Committee for Foreign Investments in the United States (CFIUS), the reality is that the EU’s framework bears no similarities to CFIUS in form or likely effectiveness. In fact, the EU’s framework is riddled with weaknesses and perverse incentives. Moreover, because the EU’s framework covers EU programs that have been developed in order to create strategic distance between the EU and the U.S., it is likely that the framework will be used not only against the autocracies at which it is purportedly directed, but also against the United States. The U.S. should focus on improving investment screening at the national level, and vigorously protest any use of the EU’s framework against the U.S."