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Transatlantic Trade and Investment Partnership (TTIP)





Talking about international trade, specifically about trade between the European Union and the United States of America, we have to consider some agreements like the Transatlantic Trade and Investment Partnership (TTIP).

The TTIP is a proposed trade and investment agreement in which take part both the European Union and the United States. In the case of the European Union is the European Commission who represents the member countries at the negotiating table.

The negotiations started in July 2013, and still continue. They were halted in 2016 because of the United States presidential election, but the willingness of both parts to resume the negotiations allowed it few months later.

These negotiations cover three main areas, which are market access, cooperation between EU and US regulators and trade rules.

The TTIP would eliminate tariffs, reduce bureaucracy and decrease the restrictions related to investment. It would also be easier for EU companies, large and small ones, to export goods and services to the US as well as investing there. The same thing would occur in the opposite way, US companies exporting and investing in EU countries.

This agreement could lead to an increase in new jobs creation which is a positive point for the European economy. These days, about 30 million jobs in the European Union depend on exports and more than three million people there, are employed by US companies.

The TTIP would reach a reduction in companies’ costs because they should not produce different goods for the European and American markets. As a result of this reduction in costs, consumers will find a wider variety of products at a lower price.

One of the objectives of the TTIP which is being negotiated is the cooperation between EU and Us regulators, who should work closely when setting new regulations and recognise each other’s regulations when they provide an equivalent protection.

Regarding trade rules there are some important points to be reached such as non discriminatory and free access to natural resources, as well as access to infrastructure and renewable energy. Protection for workers and the environment is also contemplated and make possible that medium-sized and small companies get benefit from the agreement.

The agreement process:

In negotiating this kind of subjects, is the European Commission who represents the member countries of the union. It is the EU Trade Commissioner the one in charge to be the voice of the EU side, who is surrounded by negotiators and experts of different areas (health, companies, agriculture). Every step of the negotiation process will be consulted with the Council and reported to the European Parliament.

Once the negotiations end, the agreement has to be ratified and to get it, both parts have to be considered. In the US both houses of the Congress will have to pass the agreement; in the UE the Union member governments will have to approve it via unanimous voting, and the European Parliament would also be asked for its endorsement.


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