This paper introduces the transatlantic trade and investment partnership (TTIP) which is a free trade agreement between the European Union and the United States. Currently, both partners are negotiating about the content of the agreement. This includes amongst others the removal of trade and non-trade barriers and regulatory issues.
Some of the topics are highly controversial mainly due to differing standards and norms of both partners. After a thorough introduction of the background of TTIP as well as its content, the paper discusses possible benefits and drawbacks. These opportunities and risks are evaluated for both partners, the EU and U.S., but also for other countries that are not involved in discussions.
By reading this paper, the reader has the opportunity to inform himself/herself completely about TTIP and to additionally form an own opinion on TTIP based on the comprehensive benefits and drawbacks that are presented in this paper. At the end, stances of the most important political parties in Germany and America are presented followed by an critical evaluation of TTIP by the author. The paper finishes with a conclusion of the most important axioms of TTIP.
Table of Contents
1. Introduction
2. Background of TTIP
2.1. The Importance of Trade Relations between EU and US
2.2. Reasons for TTIP
3. Key TTIP Negotiation Topics
3.1. Market Access
3.2. Regulatory Issues and Non-Tariff Barriers
3.3. Rules Addressing Shared Global Trade Challenges and Opportunities
4. Benefits of TTIP
4.1. Mutual benefits for the EU and U.S
4.2. Benefits for the Whole World
5. Drawbacks of TTIP
5.1. Mutual Drawbacks for the EU and U.S.
5.2. Drawbacks for the Whole World
6. Discussion
6.1. Statement of Political Parties
6.2. Own Opinion
7. Conclusion
Objectives and Topics
This paper aims to provide an objective overview of the Transatlantic Trade and Investment Partnership (TTIP), analyzing its background, core negotiation components, and the potential economic and societal impacts for the EU, the U.S., and the global economy.
- Analysis of the strategic importance of EU-U.S. trade relations.
- Examination of core negotiation topics including market access and regulatory standards.
- Evaluation of potential mutual benefits such as economic growth and job creation.
- Critical assessment of drawbacks including concerns regarding consumer and labor standards.
- Discussion of political stances in Germany and the U.S. regarding the agreement.
Excerpt from the Book
3.2. Regulatory Issues and Non-Tariff Barriers
Regulatory issues and NTBs are regarded as the most critical factor of the whole agreement. “NTBs are the result of differences in regulations and standards” (European Commission, 2014). An agreement or disagreement could decide over making or breaking the deal (Akhtar et al., 2013, p.115). A settlement in this area could lead to a reduction of cost and administrative delays caused by strict and differing regulations in specific sectors (HLWG, 2013, pp.3-4). The European Commission (2013a) states that the high-standard of consumer safety and environmental protection is aimed to be kept at the same level. The regulation issues seem to be a very sensible topic especially due to different preferences and values.
Particularly divergent food laws, specific industrial goods and allocation of public orders are sensitive topics (Mildner & Schmucker, 2013, p.1). In Europe, ecological food is massively preferred whereas in the U.S. genetically-modified (GM) food is more common (for further information also see Case Study 1 “GM Food and EU regulations”). An example for the effect of removing NTBs can be found in agriculture: The U.S. bans some kinds of European cheese and the EU bans some GM products from the U.S. The removal of tariffs and NTBs could lead to a more open market which enables both countries to sell more (European Commission, 2014). NTBs can also be found in the car-, pharmaceuticals-, cosmetics- and textile industry (Mildner et al., 2013, p.2).
The decision of including financial services in the area of regulations still needs to be discussed as well. Europe supports the suggestions whilst the other side declines the idea of financial services being part of TTIP (Akhtar et al., 2013, pp.116-117).
Summary of Chapters
1. Introduction: This chapter introduces TTIP as a significant free trade agreement between the EU and the U.S. and outlines the paper's aim to objectively evaluate its potential benefits and risks.
2. Background of TTIP: This section details the historical context of the partnership and emphasizes the strategic economic relationship between the EU and the U.S.
3. Key TTIP Negotiation Topics: This chapter explores the primary areas of negotiation, focusing on market access, regulatory harmonization, and global trade challenges.
4. Benefits of TTIP: This chapter analyzes the expected positive outcomes of the agreement, including economic growth, job creation, and increased competitiveness for both partners and the world.
5. Drawbacks of TTIP: This section presents critical perspectives on the agreement, including concerns regarding consumer standards, labor rights, and potential environmental impacts.
6. Discussion: This chapter examines the political positions of various parties in Germany and the U.S. and provides the author's personal evaluation of the trade deal.
7. Conclusion: This final chapter synthesizes the main arguments of the paper and offers a summary of the potential future of the EU-U.S. trade negotiations.
Keywords
European Union, United States, TTIP, Free Trade Agreement, Economic Growth, Market Access, Non-Tariff Barriers, Consumer Standards, Job Creation, Competitiveness, Political Stances, Global Trade, Regulatory Issues, WTO.
Frequently Asked Questions
What is the core subject of this publication?
This paper focuses on the Transatlantic Trade and Investment Partnership (TTIP), a proposed free trade agreement between the European Union and the United States.
What are the central themes discussed in the paper?
The paper covers the historical background of the agreement, negotiation topics such as market access and regulation, potential economic benefits, and public concerns regarding standards and labor.
What is the primary objective of the research?
The aim is to provide an objective, comprehensive overview of TTIP to help readers understand both the opportunities and the controversial aspects of the agreement.
Which scientific methodology is applied?
The paper utilizes a literature-based analytical approach, drawing on academic reports, official documents from the European Commission, and studies from organizations like the CEPR.
What topics are covered in the main section?
The main section details the negotiation areas, evaluates potential benefits for economies and SMEs, addresses concerns about consumer and labor rights, and discusses the political landscape in Germany and the U.S.
What keywords characterize the work?
The work is characterized by terms such as TTIP, European Union, United States, economic growth, trade barriers, regulatory standards, and competitiveness.
Why is the issue of "Non-Tariff Barriers" considered so critical?
These barriers arise from differences in national regulations and standards; reaching an agreement here is deemed essential for the deal to succeed but is simultaneously highly controversial due to differing societal values.
What is the author's stance on the agreement?
The author expresses a fundamentally supportive opinion of TTIP, arguing that the economic benefits outweigh the drawbacks, provided that European consumer and safety standards are not compromised.
- Quote paper
- Ramona Mayer (Author), 2014, Transatlantic Trade and Investment Partnership (TTIP). A Discussion about Benefits and Drawbacks, Munich, GRIN Verlag, https://www.grin.com/document/288972
