EU Temporarily Suspends Investment Part of US Trade Talks

In a surprise announcement on Tuesday, the European Commission confirmed that it has put the investment component of its trade negotiations with the US temporarily on hold. Brussels will use that time to allow the European people to provide their input on the subject, in light of the “unprecedented public interest” in the talks.

The Transatlantic Trade and Investment Partnership, or TTIP, has been promoted as having major potential for creating new jobs and spurring growth for both sides, with some estimates placing the annual gains at €120 billion for Europe and at over €90 billion for the US.

However, the possibility of including an investor-to-state dispute settlement (ISDS) mechanism in the agreement has rankled many consumer and environmental groups on both sides on the Atlantic, who have warned that such provisions give foreign corporations too much room to challenge domestic policies that are in the public interest.

The Commission will therefore publish in March a proposed EU text for the investment part of TTIP, which will be followed by a three-month public comment period.