Written Testimony of Chris Brummer, J.D., Ph.D.
before the European Parliament Committee on Economic and Monetary Affairs
Discussing the Transatlantic Trade and Investment Partnership(TTIP) and financial services regulation, Milken Institute Senior Fellow Chris Brummer testified before the European Parliament Committee on Economic and Monetary Affairs on Tuesday, March 18, 2014. The proposed partnership has the potential to create a robust framework for EU-US regulatory cooperation - an important outcome because for all of the remarkable success in reforming the global regulatory system since the financial crisis of 2008-2009, both regulatory superpowers have occasionally clashed in areas as diverse as derivatives regulation, banking oversight and supervision, accounting and insurance.
Brummer made three suggestions as to what the European Union should not do in its negotiations with the United States:
• The framing and focus of any TTIP negotiations, at least with respect to financial services, should not be on the traditional terms of "market access" because there are already a variety of instruments available for the regulation of market access for financial services.
• Second, the TTIP should not be used to introduce any substantive reforms or change existing domestic laws via new international obligations -- the vast bulk of international financial law has been articulated as explicitly informal nonbinding standards.
• Finally, the TTIP should be extremely cautious about introducing any formalized dispute resolution regime.
His testimony offers details and well considered views on the opportunity presented by TTIP.