The Volkswagen Group emissions-testing scandal may affect the Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP), both of which are now under negotiation. “The fact that the car group managers were able to cheat on emission tests on 11 million cars in multiple countries calls into question public powers’ ability to regulate industry and services globally,” writes Carlo Bastasin, a nonresident senior fellow in the Global Economy and Development and Foreign Policy programs at Brookings.
Before the scandal, he writes, “…the European negotiators involved in the TTIP negotiations with American colleagues could claim the moral high ground. Europeans generally charge American regulators with being less aware of the need for environmental protection and public health concerns.” He continues, “After a scandal centered around the largest European automotive group, everything could change.”
He cites endemic weaknesses in the EU regulatory system, exacerbated by efforts of the powerful German automotive lobby both at home and in Brussels.
He cites “…various examples of the toothless bite of European supervision powers…”—including the outbreak of mad cow disease and financial supervisory shortcomings.
“All this will severely affect the European position in the TTIP negotiations,” he adds.
Read the complete article, “Hanging by a thread: Volkswagen and European regulation,” at Brookings.
