By a vote of 52 to 45 (a majority of 60 was needed), the US Senate has declined to pass the Trade Promotion Authority bill that would have given President Barack Obama the power to negotiate trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership (TPP) with foreign governments in total.

Unless the decision is amended, which looks unlikely in the current climate, all provisions of all such treaties will have to be approved by the US Congress separately. This would deal a severe blow to the European Commission's attempt to finally push the TTIP to a final settlement.

The Senate vote was triggered by demands from Asian countries such as China for a reassurance that Congress stood behind the provisions of TPP. The EU has not asked for such guarantees.

US lawmakers, including many in Obama's own Democratic Party, also had expressed concern about the impact the TPP in particular would have on US jobs. As regards the transatlantic agreement, up to now more opposition has been seen in Europe than in the US, although this may be changing.

The concerns of European consumer and environment advocates as well as same small businesses, among other things, revolve around import and labeling of GMO food. The most controversial talking point, however, is the Investor-State Dispute Settlement (ISDS) mechanism, which would allow foreign investors to challenge national laws in closed international arbitration tribunals rather than in domestic courts.

As reported, in advance of the US vote, EU trade commissioner Cecilia Malmström had presented to the European Parliament (EP) a set of proposals for rewriting ISDS. The provision had been excluded from the negotiations a year earlier in an effort to expedite its passage.

In particular, Malmström's proposals include hearing investors' appeals in a permanent dedicated court.

The European Parliament is due to vote on the Commission's proposals on June 9. It is not yet clear what impact, if any, the US Senate's decision will have.