TTIP pros and cons: Is the Transatlantic Trade and Investment Partnership (TTIP) a threat or an opportunity?
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The negotiations around the TTIP may have great impact on the future of the USA and the EU. We discuss the TTIP pros and cons and if it is a good idea. Share your views on this trade agreement.
US-EU trade agreement
The aims of the Transatlantic Trade and Investment Partnership (TTIP) are to create a free-trade agreement between the EU member states and the USA. Boosting the economy is particularly important after the economic crisis. But this major issue also has long-term policy implications and the potential to undermine democracy in both EU member states and the USA. Whilst the EU stresses in its economic assessment that both the EU and the USA will benefit from “significant economic gains” as a result of the free-trade agreement, some economists have expressed concerns about the distribution of these benefits, with investors and shareholders being the most likely beneficiaries and workers in manufacturing industries being the most likely losers, with a serious risk of becoming unemployed. The debate about the pros and cons of the TTIP remains well entrenched. Many groups in civil society are now campaigning against this agreement, trying to force decision-makers to change it.
TTIP pros and cons
The main advantages that the TTIP may bring to the US and EU are:
- The TTIP agreement is expected to boost the US and EU economies.
- Create new business and trade opportunities on both sides of the Atlantic.
- Opportunity to set common standards and similar regulations that may facilitate the action of companies.
- Removal of some market barriers and promoting the free-market.
- As a consequence of the removal of tariffs, many products will be cheaper for consumers.
But that is not the whole story, there are also problems associated to the US-EU trade agreement, such as:
- The new common standards will probably be lower than those previously existing (mainly in Europe).
- The new investor-state dispute settlement (ISDS) procedures may infringe principles of sovereignty and, in cases, go against the democratic rules of countries.
- Red tape: since companies may sue governments and officials, the latter may become more cautious and bureaucratic to avoid legal troubles.
- The lack of transparency during the process of negotiations reduces accountability and the capacity of citizens to understand its potential impact.
- In some regions, where the industry is less competitive, many jobs may be lost.
Overall, what do you think? Will this EU-USA free trade area have a negative or positive impact in the long run? What effects would the TTIP have on different stakeholders? Will Europe benefit from the agreement as much as the USA? Will the consequences of TTIP be similar to those of NAFTA or TPP?
If you change your mind, you can change your vote simply by clicking on another option.
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