TTIP: a promising response to the need for energy diversification

The consequences of the Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the USA will reach far beyond further liberalisation of what already now accounts for 30% of global trade. A trade and investment agreement of this magnitude can impact growth, jobs and standards - not just on both shores of the Atlantic but worldwide. The stakes are high.

In just a few days, the Parliament’s recommendations to the Commission on the TTIP negotiations will be voted in the Committee on International Trade. It is an important document for at least two reasons. Firstly, because it reflects the increased role of the European Parliament (EP), granted by the Treaty of Lisbon. Secondly, because it is a great opportunity to highlight some of the areas which are of particular significance to Europeans citizens and our economy.

Ensuring Europe’s energy security

Energy is one of these areas, and perhaps the most prominent one. For the EU, an affordable and stable energy supply is one of the flywheels of future growth, and one of only a few available exit strategies from the crisis and stagnation. A common EU energy policy must be based on an internal market with interconnected infrastructure and shared rules, on the use of all indigenous resources available to Member States, but also on diversified energy sources, suppliers and routes.

A common EU energy policy must be based on an internal market with interconnected infrastructure and shared rules, on the use of all indigenous resources available to Member States, but also on diversified energy sources, suppliers and routes

The USA offers one of the most promising responses to this need for diversification, especially with regard to natural gas and crude oil. These energy sources would be a welcome addition to today’s growing transatlantic trade in solid fuels and refined petroleum products. This is why the Committee on Industry, Research and Energy, in its opinion on the report by the Committee on International Trade, has called for including a separate energy chapter in TTIP. It should address the measures that currently limit crude oil and LNG exports from the US.

A most welcome outcome would be the lifting of licencing requirements, the streamlining of approval procedures and the creation of export infrastructure

A most welcome outcome would be the lifting of licencing requirements, the streamlining of approval procedures and the creation of export infrastructure (import infrastructure exists in the USA and is constantly developing in the EU). I am well aware that even then the volume of trade will be determined by market forces – which may act in favour of other regions than the EU, with higher demand for natural gas and with higher spot prices.

What our argumentation is based on is a long-term geopolitical rationale in which the simple possibility of having even slightly more imports can already positively affect energy security in the whole of Europe

We are not, however, aspiring to become the world’s number one recipient of American LNG by shifting the stream from Asia to Europe. What our argumentation is based on is a long-term geopolitical rationale in which the simple possibility of having even slightly more imports can already positively affect energy security in the whole of Europe and on our bargaining position in the global energy markets.