Failure of trade talks would cause 'very considerable costs to the UK ', warns House of Lords

“In so far as a public TTIP debate exists, EU member states are losing it,” the report said. “There is…a risk that transatlantic trade is perceived as ‘sending stuff across the ocean’, and therefore not relevant to an ordinary household or small business.”

Sources close to the negotiations say the odds are still in favour of a TTIP deal getting done, but that there is only a one-in-three chance of that deal being as effective as once hoped.

Many critics of the deal fear that the reduction in import duties will only lead to a flood of US goods into Europe. They are also wary that TTIP could pave the way for a swathe of other controversial changes, such as poorer protections for employees, genetically modified food in Europe, and the introduction of “fracking” technology to extract shale gas and shale oil in Britain.

Americans are also balking at the prospect of certain changes. Although the White House strongly supports the trade talks, it is having difficulty winning political support for some of the concessions that were expected to feature in the final deal, such as the creation of an international banking regulator, and the changes to the existing “Buy America” rules, which give US suppliers an advantage in public tender processes.

Other objections have come from the industries affected. The marine and aviation sectors have resisted changes that would clear the way for more competition from operators on the other side of the Atlantic. By contrast, the motor industry has welcomed the talks because they have the potential to clear away pointless red tape, such as legal requirements to test car parts twice, in Europe and America, to meet slightly different but equally effective standards.

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