THE planned Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States would risk an unacceptable “race to the bottom” on environmental standards, MPs warned today.

A report by the Commons environmental audit committee (EAC) suggested that TTIP could make it harder to strengthen rules on issues such animal welfare or climate change in the future — particularly if it allowed US companies to sue governments for bringing in new regulations that harm their businesses.

It could also weaken European and British regulations in areas including genetically-modified crops, chemicals in cosmetics and meat treated with growth hormones by aligning EU standards with laxer US rules.

Trade unions and campaigns including online pressure group 38 Degrees are opposing TTIP, claiming the deal would lead to the privatisation of NHS services.

“Europe must retain its right to regulate. That needs to be embedded in any treaty text,” said Eac chairwoman Joan Walley.

“The focus in TTIP has been on its potential for boosting transatlantic trade, but that must not be at the expense of throwing away hard-won environmental and public health protections.”

The Labour MP highlighted that, as TTIP negotiations proceeded, the next government would have to ensure that EU negotiators did not engage in a race to the bottom on regulation.

Critics of the trade pact have aimed particular vitriol at the investor-state dispute settlement mechanism, allowing private companies to sue governments in offshore tribunals for introducing policies that harm their business.

“Any dispute settlement must unambiguously deny US companies any opportunity to sue us when we look to introduce necessary environmental or public health safeguards,” said Ms Walley.

The committee’s report said that environmental concerns over aligning standards could be addressed, but there was currently not enough transparency on the deal to see if the risks would be dealt with.

Britain, along with other EU member states, must be more closely involved with the negotiations from now on and engage with environmental groups and agencies to make sure environmental concerns are addressed alongside economic and trade considerations, the committee said.