TTIP – What´s in it for the social partners ? Brussels November 2015 Regulatory Cooperation Petr Zahradník, Economic Analyst and Consultant, Adviser to the President of the Chamber of Commerce of the Czech Republic Member of the Economic and Social Committee (EESC) TTIP – What´s in it for the social partners ? Brussels November 2015

TTIP - GENERAL ISSUES The reasons behind the concept of TTIP remain strong and the need to adapt its final platform stregthens; To create an appropriate environment for a new form of coexistence between two biggest economic systems in the world, additionally based on similar principles ( together they represent about 50% of global economic output, 800 mil. consumers and 500 mil. labour force); Strengthened global economic competition accompanied by new geo-political risks; A huge potential to eliminate obstacles for natural business and investment relations (intensive trade relations, the largest investments in each other); Non-tariff barriers are more serious problem A CLUSTER APPROACH FOR THE TTIP – to remain competitors, but to become partners as well: COMPETITION IN PARTNERSHIP

REGULATORY COOPERATION - PRINCIPLES A set of keywords: May be rather the rules of the game than regulation; Rules of the game: necessary precondition to create a homogenous and full-blooded systém on the TTIP basis; Respect to the principle of common understanding; The implicit precondition fo regulatory cooperation is to pursue a high level of protection; what type of protection is to be a part of the rules of the game ? The protection covering public, not particular interests; protection having a visibly positive general impact; on the other hand, protection that could represent a burden for free business, trade, or investment decisions on both parts is to be eliminated – analogy with the creation of EU Single Market; Market supportive regulation Regulation: technical, procedural, physical, fiscal, economic Coordination of the main economic policy concepts; understanding in policies, not only in legislative framework

REGULATORY COOPERATION - PRINCIPLES Need to respect social and environmental standards; common understanding of civil society and labour and environmental provisions; RIA (Regulatory Impact Assessment) rules; Smart Regulation: to test the regulatory Framework on both sides according to objective principles and criteria; Cooperation and coordination of regulators; Special focus on SMEs; Special focus on market failures; Need to distinguish among different forms of regulation (supportive, versus restrictive; just procedural, or connected with a financial reallocation/ redistribution)

CONCLUSIONS AND OPEN QUESTIONS Common understanding of the main regulátory approaches; RIA – objective criteria; Coordination of regulators; Regulation could not erode motivation, initiative and individual responsibility; if the level of protection is stronger than a private spontaneus aktivity, it is about a competition of rules and policies, not a competition among natural market agents

Thank you very much for your attention Petr Zahradník pzahradnik@email Thank you very much for your attention Petr Zahradník pzahradnik@email.cz