CEMR warns trade deal must not undermine public services or local self-government
As negotiations progress on the Transatlantic Trade and Investment Partnership (TTIP), the Council of European Municipalities and Regions (CEMR) urges the European Commission to ensure that any final agreement fully respects the autonomy of local and regional governments across Europe.
While recognising the potential economic benefits of TTIP, CEMR underlines that free trade must not come at the expense of democratic governance, public service quality, or citizens’ rights. The organisation stresses that local and regional authorities (LRAs) must retain the freedom to shape and deliver public services tailored to their communities’ needs.
Safeguarding Public Services
CEMR calls for a clear, horizontal exemption of all public services from TTIP. Ambiguous definitions such as “public utilities” or “services supplied in the exercise of governmental authority” are inadequate and leave room for legal uncertainty. CEMR strongly opposes “standstill” and “ratchet” clauses that would make liberalisation irreversible, limiting future political choices at the local level.
Local governments must remain free to organise, finance, and deliver services such as water, energy, transport, health and social care. These services are essential to social cohesion and territorial equality, and their regulation must not be constrained by trade rules designed for commercial markets.
Rejecting Investor Privileges
CEMR expresses deep concern over the inclusion of Investor-to-State Dispute Settlement (ISDS) mechanisms. Such provisions would allow corporations to sue public authorities outside national courts, threatening democratic decision-making and the general interest. In stable democracies like the EU and the US, robust national legal systems already offer sufficient protection for investors.
Regulatory Cooperation and Standards
While regulatory cooperation can reduce trade barriers, CEMR insists it must not lead to a lowering of European standards in areas such as environmental protection, health, safety, labour rights or data privacy. Instead, TTIP should provide opportunities to raise standards on both sides of the Atlantic.
Moreover, local and regional authorities must maintain the right to set stricter rules where justified by the public interest.
Transparency and Democratic Accountability
CEMR criticises the lack of transparency in TTIP negotiations and the limited involvement of local authorities. As the agreement would have far-reaching implications for subnational governance, LRAs and their national associations must be meaningfully involved in the process, not merely consulted post-factum.
CEMR calls for regular dialogue between EU negotiators and local governments, and for national parliaments and the European Parliament to have a real say in shaping the agreement.
“Trade must never override democracy. Local authorities are not just economic actors – they are democratically elected institutions with a duty to serve the public good. TTIP must reflect that.”
— Council of European Municipalities and Regions (CEMR)
For more information, contact:
Officer – Employment, Digitalisation and Public Services
