Transatlantic Trade And Investment Partnership

1249 Words5 Pages
In June 2013 the European Commission and the U.S. government have commenced negotiations for the Transatlantic Trade and Investment Partnership (TTIP), a proposed free trade agreement between two of world’s largest economic and political partners. If weathered through the political storms, TTIP would replace the North American Free Trade Agreement (NAFTA) as the world’s largest free trade area, with a combined GDP of $31 trillion. Commonly eclipsed in the public mindset by the zenith of the emerging markets, BRICS and especially China, U.S. investment in the Eurozone is actually three times greater than in the whole of Asia, and the EU investment in the U.S. is an overwhelming eight times greater than that in India and China combined! The U.S. and EU, aside from the historic legacy of geopolitical cooperation, are the largest trading partners of most other countries in the world and represent a third of world trade flows. What’s at stake? According to the Office of United States Trade Representative’s report, TTIP would result in the annual EU GDP growth of 68 to 119 billion euros and U.S. GDP growth of 50 to 95 billion euros by 2027. If shared equally among the affected populations, this growth would hypothetically translate into additional annual disposable income for a family of four of 545 euros in the Eurozone and 655 euros in the U.S. respectively. Once fully implemented, TTIP is expected to increase economic and labour productivity to
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