TTIP is a trade and investment agreement being negotiated between the United States and the European Union, since the 17th of June 2013. On that day, US-president Obama and former EU commission president Barrosso announced the beginning of negotiations, which currently are in the 13th round of negotiations.
Objective is to increase access to markets on both sides of the atlantic, by dismantling customs and other trade barriers. Additionally, the agreement is supposed to minimize constraints for commercial services, improve investment safety and equality of competition, and facilitate the entry to public contracts on all governmental levels.
In the following, I will analyse and discuss the main arguments of TTIP opponents to discover what the impacts of the free trade and investment agreement would be for Europe.
According to the Bertelsmann-Stiftung “all states would benefit from an agreement, and increases in trade with the USA of 20-30 percent per state are expected”. Furthermore, TTIP shall increase the turnover of companies, because of an increasing trading volume, which should positively affect job safety and quality. Studies have also shown that e.g. the german economy will save expenses for customs handling which then could be invested in companies and their work places. Thus, real wage is expected to increase for all educational groups. But also SMEs (small-medium enterprises) should profit, which nowadays cannot affort certification in the US.
The federal ministry of economy and energy in Germany promises, there will not be any negative consequences for sustainable development, since it is a prior aim for both parties. The improvement in trade shall not be at costs of social or environment stand-ards, labour law or industrial safety.
Table of Contents
1 Introduction
1.1 General Information about TTIP
1.2 Attitudes towards TTIP (Germany vs. United States)
2 Status Quo – Boundaries in Transatlantic Trade TTIP tackles
2.1 Market Access
2.2 Regulatory Cooperation
2.3 Rules
3 Threats
3.1 The Investment Court System and its consequences
3.2 Rules for banking supervision
3.3 Loss of working places
3.4 Privatisation
3.5 Antibiotics and hormones in groceries
3.6 Import of gentically changed food and softer labeling obligations
3.7 Consequences for small and local enterprises
3.8 REACH – If TTIP includes the chemistry sector
4 Why is the EU considering TTIP?
5 Conclusion
5.1 Impacts on European standards
5.2 Author’s Opinion
Research Objectives and Key Topics
This assignment provides a critical discussion of the Transatlantic Trade and Investment Partnership (TTIP), analyzing potential impacts on European sustainability standards, social regulations, and local economic structures while weighing them against expected macroeconomic gains.
- The structure and negotiation status of the TTIP agreement.
- Public opinion and transparency concerns in Germany and the United States.
- Risks associated with the Investment Court System (ICS) and regulatory harmonization.
- Potential threats to food safety, environmental standards, and labor markets.
- Economic rationales for the EU’s consideration of the agreement.
Excerpt from the Book
3.4 Privatisation
Another considerable threat of TTIP is the fact that the agreement should include the liberalisation of markets - including public services - and opening investment opportunities to transnational firms. Three aspects make this topic notably dangerous:
1. The planned harmonization of regulations between the EU and the US would inevitably mean downward pressure on the EU’s higher health and safety standards as well as on the US’ financial service regulations. Consequences would be increasingly privatised, commercialised and degraded services.
2. The ISDS (with TTIP ICS) would allow corporations to sue governments for any action that could negatively affect their future profits. Thus, regulators will fear being sued for introducing legitimate standards, e.g. regarding health or the environment.
3. The difference that services will be named “negative listing”. Along with ISDS or a new ICS, TTIP will make it almost impossible to renationalise privately owned businesses.32
The European Commission denies the threat of privatisation and claims that the EU would not take any commitments for publicly funded services or the collection, purification and distribution of water. Member states could take any measures they wished in these areas – also with TTIP.33
Summary of Chapters
1 Introduction: Provides an overview of the TTIP negotiations, the key stakeholders, and the contrasting public attitudes toward the agreement in Germany and the USA.
2 Status Quo – Boundaries in Transatlantic Trade TTIP tackles: Examines the core pillars of the agreement, specifically focusing on market access, regulatory cooperation, and the rule-based framework.
3 Threats: Details the primary criticisms and risks of TTIP, covering investment protection, labor markets, privatization, food safety, and environmental regulations.
4 Why is the EU considering TTIP?: Analyzes the economic arguments for the agreement, including projected GDP growth and potential export benefits for EU member states.
5 Conclusion: Summarizes the impacts on European standards and offers the author's critical assessment of the trade deal's risks versus its potential benefits.
Keywords
TTIP, Transatlantic Trade, European Union, United States, Investment Court System, ICS, Sustainability, Market Access, Regulatory Harmonization, Privatisation, Food Safety, GMOs, SMEs, Economic Growth, Labor Rights
Frequently Asked Questions
What is the core subject of this paper?
The paper provides a critical analysis of the Transatlantic Trade and Investment Partnership (TTIP), focusing specifically on its potential implications for European standards and societal interests.
What are the primary thematic areas covered?
The key themes include economic market access, regulatory cooperation between the EU and the US, and the associated threats to health, environmental, and social standards.
What is the central research question?
The paper examines what the actual impacts of the free trade agreement would be for Europe and whether its sustainable standards can be maintained under the proposed framework.
Which scientific methodology is applied?
The author employs a literature-based qualitative analysis, examining official Commission reports against critical studies and counter-analyses from various organizations.
What is discussed in the main body of the work?
The main body systematically reviews the status quo of trade barriers, the specific threats posed by the Investment Court System (ICS), and the risks to sectors like agriculture, chemicals, and public services.
Which keywords characterize this work?
Essential keywords include TTIP, investment protection, regulatory harmonization, sustainable standards, and the socioeconomic impacts on the EU.
How does the Investment Court System (ICS) differ from previous models?
The ICS is proposed to replace the Investor-State Dispute Settlement (ISDS) system, but critics argue that it still threatens the sovereignty of governments to regulate in the public interest.
What concerns are raised regarding European food and safety standards?
There are significant fears that harmonization would lead to the adoption of lower US standards, such as those regarding growth hormones in meat, chlorinated chicken, and GMO usage.
Why does the author consider Brexit and US politics relevant to TTIP?
The author identifies that the political climate, including the potential loss of a key supporter like Great Britain and the opposition of major US presidential candidates, has cast doubt on the future completion of the agreement.
- Citar trabajo
- Daniel Unrau (Autor), 2016, Critical Discussion about TTIP. Potential Impacts of the Free Trade Agreement for Europe and its Sustainable Standards, Múnich, GRIN Verlag, https://www.grin.com/document/338822
