By Sam Obenhaus
As
recently as this summer, top U.S. officials were telling their European
counterparts that financial sector regulations would not be included in the
Transatlantic Trade and Investment Partnership (T-TIP) negotiations.
Treasury Secretary Jacob Lew and other Administration officials were eager to
discuss market access issues, potentially making it easier for financial
institutions to operate in both jurisdictions, but thought that financial
regulatory reform should be addressed in another forum, such as the G20.
A major concern, presumably one the Administration still harbors, is that
negotiations with Europe will only weaken the U.S.’s comparatively more rigorous
financial regulatory system.
Nonetheless,
Dan Mullaney, the U.S.’s chief negotiator, recently signaled an about-face with
the U.S. now prepared to hold discussions on financial regulatory issues at a
special November 27 meeting with his European counterparts. One
explanation for the shift is that the U.S. now believes that it can pull Europe
closer to its position and force a compromise on its own terms. Another
explanation is the Administration is coming around to the idea that the
benefits of regulatory convergence will outweigh the costs of compromise.
The
Wall
Street Journal has more information on Treasury Secretary Lew’s prior
reluctance to include financial market regulations in the T-TIP talks while Bloomberg
BNA has more on U.S. negotiators’ recent reversal.
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