The Transatlantic Trade and Investment Partnership (TTIP) currently being negotiated between the European Union (EU) and the United States has been sold by politicians on both sides as a strategic opportunity to shape globalization to the benefit of both parties. But a new research paper from Chatham House finds that the risks of such an ambitious project are significant – whether or not the current deadlock in negotiations can be overcome – and the UK vote for Brexit increases those risks.

The primary strategic benefit of TTIP would be to enable the United States and the EU to set the ‘rules of the road’ for international trade in the 21st century. TTIP’s backers hope that if the EU and the United States can agree on a new set of standards, the power of their combined markets will lead other countries to adopt the same rules. According to Realizing TTIP’s Strategic Potential one of the risks of agreeing such far-reaching rules is that they set the bar too high for other countries to accept. By imposing restrictive rules unilaterally on, for example, state-owned enterprises, TTIP could provoke retaliation and encourage other countries to establish alternative rules.

TTIP also has the potential to attract other countries to align themselves economically and politically with the EU and the United States due to their ‘soft-power’. But this benefit will only materialise if strategically important countries, such as Turkey, are able to join. The research finds that the demands placed on Turkey may be too high for this to be a realistic prospect in the near future. Ukraine is another strategic country that could be targeted for expansion of TTIP, but extending membership to Ukraine would be regarded by Russia as a 'serious escalation' by the West in their confrontation.

The paper argues there would be benefits to the UK, the EU and the United States if the UK were to join TTIP after the UK leaves the EU. For the UK it could provide the only real prospect of being able to influence international standards and a relatively quick means to conclude a comprehensive trade deal with the United States. For the EU and the United States, it would ensure the scale and attractiveness of TTIP is not reduced by the loss of one of the major European economies. It would also provide an immediate opportunity to establish TTIP as a plurilateral deal that is open to new members. The process would be made easier if the UK were to maintain an active role in the development of the EU position on TTIP, while the UK is still a member of the EU. This would mean that the UK would be in a position to accept the terms required to join TTIP relatively quickly upon exiting the EU. There will inevitably be sensitivities in the UK, other EU member states and the EU institutions about this, but it is in the strategic interests of all parties.

The most immediate risk for TTIP, however, is of failure. Despite 14 rounds of negotiations so far there is still disagreement over what should be included in the scope of the negotiations, including issues such as financial services regulation, which the United States is determined to exclude, and how to handle politically sensitive questions such as investor-state dispute settlement, which has become a hot-button issue in the EU. Even if an agreement is reached it must then be ratified by a sceptical US Congress, where there are challenges on both sides of the aisle, and by EU institutions and member states. The hostility to TTIP in many parts of Europe, especially in Germany, is not encouraging.

If the negotiations break down, or a deal is reached that falls short of the ambition set for it, this would send a damaging signal to the rest of the world about the ability of the EU and the United States to work together. It could also hasten the demise of their influence. For the EU, the stakes are greater now that the UK has decided to leave the EU.

The paper notes that the EU-US trade relationship is still the largest bilateral relationship in the world 'for now', but that in most sectors the lead over China is decreasing. If they miss this opportunity, the United States and the EU may not get another chance to set the standards that will govern the global trading order in the 21st century.

Report author, Gregor Irwin, said:

'TTIP negotiations are hanging in the balance. If they succeed TTIP has the potential to shape the next generation of trade rules and ensure a transatlantic vision for the international trading system prevails.  

'For now, both sides are facing off against each other in the negotiations and failing to focus enough on the strategic risks and opportunities from TTIP. If the full strategic potential from TTIP is to be realized they must pay more attention to how other countries are likely to respond.

'The UK’s decision to leave to leave the EU should sharpen the incentives that both sides have to conclude a deal. It is in everyone’s interest to ensure that the UK is able to join TTIP once the UK leaves the EU.

'Further opening up TTIP to include Turkey could create an alternative anchor for its economic and political relationship with the EU, short of EU membership. It could transform Turkey’s relationship with the EU, just as the North American Free Trade Agreement (NAFTA) has transformed Mexico’s relationship with the US.'

The 1967 Outer Space Treaty (OST) is the mainframe for space law. It recognizes the importance of the use and scientific exploration of outer space for the benefit and in the interests of all countries. It also prohibits national sovereignty in space, including of the Moon and other celestial bodies.

The OST prohibits all weapons of mass destruction in space – in orbit or on other planets and moons – and does not allow the establishment of military infrastructure, manoeuvres or the testing of any type of weapon on planets or moons. As the treaty makes clear, outer space is for peaceful purposes only. Except of course, it is not – nor has it ever been so.

The very first satellite, Sputnik, was a military satellite which kicked off the Cold War space race between the US and the USSR. The militaries of many countries followed suit, and space is now used for military communication, signals intelligence, imaging, targeting, arms control verification and so on.

However, in keeping with international aspirations, space is also being used for all kinds of peaceful purposes such as environmental monitoring, broadcast communications, delivering the internet, weather prediction, navigation, scientific exploration and – very importantly – monitoring the ‘space weather’ (including the activity from the Sun).

There are several other international agreements on space, such as on the rescue of astronauts, the registration of satellites and liability for damage caused by space objects. There is also the Moon Treaty, which governs activities on the Moon and other moons, asteroids and planets.[i]

More recently, states at the UN Committee on the Peaceful Uses of Outer Space (COPUOS) in Vienna have agreed on guidelines to deal with the worrying situation of space debris which is cluttering up orbits and posing a danger to satellites, the space station and astronauts.

The problem the international community now faces is that the use of space is changing dramatically and rapidly. There are more satellites than ever – well over 1,000 – and more owners of satellites – almost every country uses information generated from space. Increasingly, however, those owners are not countries, militaries or international organizations but the commercial sector. Very soon, the owners will even include individuals.

Small ‘mini-satellites’ or ‘cube-sats’ are poised to be deployed in space. These can act independently or in ‘swarms’, and are so small that they piggy-back on the launching of other satellites and so are very cheap to launch. This is changing the cost–benefit equation of satellite ownership and use. Developing countries are increasingly dependent on space for communications, the internet and information on, for example, weather systems, coastal activities and agriculture. 

Another major development is the advent of asteroid mining. Asteroids contain a wide range of metals and minerals – some asteroids are more promising than others, and some are closer to Earth than others. Several companies have been set up and registered around the world to begin the exploitation of asteroids for precious metals (such as platinum) and compounds (such as rare-earth minerals).

Legally, however, this will be a murky venture. The current international treaty regime prohibits the ownership of a celestial body by a country – space is for all. But does international law prohibit the ownership or exploitation of a celestial body by a private company? The law has yet to be tested, but there are space lawyers who think that companies are exempt. Luxembourg and Australia are two countries that have already begun the registration of interest for space-mining companies.

As humanity becomes more dependent on information that is generated in or transmitted through space, the vulnerability to the manipulation of space data is increasing. The demands on the use of communications frequencies (the issue of spectrum availability and rights), managed by the International Telecommunication Union (ITU),[ii] need to be urgently addressed.

There are now constant cyberattacks in space and on the digital information on which our systems rely. For example, position, navigation and timing information such as from GPS or Galileo is not only vital for getting us safely from A to B, but also for fast-moving financial transactions that require accurate timing signals.

Almost all of our electronic systems depend on those timing signals for synchronization and basic functioning. Cyber hacks, digital spoofing and ‘fake’ information are now a real possibility. There is no rules-based order in place that is fit to deal with these types of attacks.

Cyberweapons are only part of the problem. It is assumed that states, if they haven’t already done so, will be positioning ‘defensive’ space weaponry to protect their satellites. The protection may be intended to be against space debris – nets, grabber bars and harpoons, for example, are all being investigated.

All of these ideas, however, could be used as offensive weapons. Once one satellite operator decides to equip its assets with such devices, many others will follow. The weaponization of space is in the horizon.

There are no international rules or agreements to manage these developments. Attempts in Geneva to address the arms race in space have floundered alongside the inability of the Conference on Disarmament to negotiate any instrument since 1996.

Attempts to develop rules of the road and codes of conduct, or even to begin negotiations to prohibit weapons in space, have failed again and again. There are no agreed rules to govern cyber activity. The Tallinn Manuals[iii] that address how international law is applicable to cyberwarfare also address the laws of armed conflict in space, but data spoofing and cyber hacking in space exist in far murkier legal frameworks.

The current system of international space law – which does not even allow for a regular review and consideration of the OST – is struggling to keep up. Space is the inheritance of humankind, yet the current generation of elders – as they have done with so many other parts of our global environment – have let things go and failed to shepherd in the much-needed system of rules to protect space for future generations.

It is not too late, but it will require international cooperation among the major space players: Russia, the US, China, India and Europe – hardly a promising line-up of collaborators in the current political climate.

Filling the governance gaps

Norms of behaviour and rules of the road need to be established for space before it becomes a 21st-century ‘wild west’ of technology and activity. Issues such as cleaning up space debris, the principle of non-interference, and how close satellites can manoeuvre to each other (proximity rules) need to be agreed as a set of international norms for space behaviour.

A cross-regional group of like-minded countries (for example Algeria, Canada, Chile, France, India, Kazakhstan, Malaysia, Nigeria, Sweden, the UAE and the UK) should link up with UN bodies, including the Office for Outer Space Affairs (UNOOSA), COPUOS and ITU, and key private-sector companies to kick-start a new process for a global code of conduct to establish norms and regulate behaviour in space.

The UN could be the host entity for this new approach – or it could be established in the way the Ottawa process for landmines was established, by a group of like-minded states with collective responsibility for, and collective hosting and funding of, the negotiations.

A new approach should also cover cybersecurity in space. The UN processes on space and cyber should intersect more to find ways to create synergies in their endeavours. And the problems ahead as regards spectrum management – particularly given the large number of small satellites and constellations that are to be launched in the near future – need urgent attention in ITU.

Notes

[i] All of these treaties and other documents can be found at UN Office for Outer Space Affairs (2002), United Nations Treaties and Principles on Outer Space, http://www.unoosa.org/pdf/publications/STSPACE11E.pdf.

[ii] ITU (undated), ‘ITU Radiocommunication Sector’, https://www.itu.int/en/ITU-R/Pages/default.aspx.

[iii] The NATO Cooperative Cyber Defence Centre of Excellence (CCDCOE), ‘Tallinn Manual 2.0’, https://ccdcoe.org/research/tallinn-manual/.

This essay was produced for the 2019 edition of Chatham House Expert Perspectives – our annual survey of risks and opportunities in global affairs – in which our researchers identify areas where the current sets of rules, institutions and mechanisms for peaceful international cooperation are falling short, and present ideas for reform and modernization.

African countries will be amongst the worst affected by climate change. High levels of poverty and underdevelopment combined with insufficient infrastructure exacerbate the already severe impact of global warming on resources, development and human security. In order to adapt to and mitigate the effects of climate change, Africa’s leaders need to implement more robust environmental policies, increase local human capacity and encourage renewable energy entrepreneurship. Within international fora, they must better coordinate their position as some of the smallest contributors to global warming.

Ahead of the upcoming UN conference on climate change in Paris, this discussion will examine the prospects for African countries to present a stronger collective voice within the international efforts against climate change, as well as the role that the international community and public and private partners can play in supporting local capacity and lower carbon economic growth.