The partnership between North America and Europe is becoming unsettled and uncertain. How can we deal with this new situation that threatens the prosperity and ultimately the position of North America and Europe in the global economy.
There are concerns that the UK’s decision to leave the EU may jeopardise future TTIP negotiations. Some fear Brexit could make the EU a less attractive trade partner for the US. However, it seems that the new US administration as well as upcoming elections in Germany and France could end up posing bigger threats to the trade agreement than Brexit.
What’s at stake: Since the recent leak of documents on TTIP (Transatlantic Trade and Investment Partnership) negotiations, there has been renewed interest in the trade deal. This blog review looks at studies on the estimated impacts of TTIP on growth, labour markets and social conditions. We also summarise its impact on countries outside the deal, and look at the debates surrounding its counterpart, the TPP (Trans-Pacific Partnership).
Committee on International Trade (INTA), European Parliament, 12 November 2015.
Is the ‘Global Trade Slowdown’ a signal that globalisation has structurally 'peaked', and thus we should expect a stagnation of trade growth also in the future? Or is the slowdown just the result of cyclical drivers, e.g. the fragile European recovery and slower growth in China?
The T-TIP negotiations remain extremely complex, and pushed for time given the political pressure to get an agreement signed by 2016. What is achievable and feasible in that time frame?
Global Economics and Governance
Speech by Cecilia Malmström, European Commissioner for Trade, at the Bruegel Workshop on TTIP held on 12 March 2015.
What’s at stake: The European Union and the USA are currently negotiating a free trade agreement, known as the Transatlantic Trade and Investment Partnership (TTIP). After a draft has been leaked to the public, an intensive public debate over possible advantages and disadvantages of such a deal has erupted. While there is some debate over how large the economic benefit of such a free trade agreement can be in face of already relatively low trade barriers between the EU and USA, critics claim that the deal will lower standards of consumer protection, provision of public services and environmental protection in the EU.
To deliver a deal that is more welfare-improving, TTIP negotiators will need to focus on means to enhance long-term competitiveness of the two partners rather than bargain concessions that will be bear little fruit in the global trade arena.
This Policy Contribution was prepared for the European Union Committee's inquiry into the Transatlantic Trade and Investment Partnership. Regulatory harmonisation under TTIP may not lead to emerging markets automatically upgrading to the higher TTIP standards. Domestic priorities and the high demand from a rising price-sensitive group of consumers will likely result in a dual regulatory regime in emerging markets in the medium-term.
The decision to launch negotiations on a bilateral free trade area between the EU and the US, called the Transatlantic Trade and Investment Partnership (TTIP) or EU-US free trade area is being hailed on both sides of the Atlantic as a historic development. Why have the EU and the US decided to undertake this “historic” project and at this point in time?