A standard argument for “free trade” agreements is that they reduce tariffs, thereby expanding trade, allowing access to cheaper imports and that broad benefits to the economy clearly outweigh the downsides.But tariffs between the US and the EU are quite low already – 3 percent on average. Officials promoting TTIP are therefore focusing their positive economic predictions on the elimination, reduction, or prevention of unnecessary ”behind the border” policies, so called non-tariff trade barriers. Optimistic studies have assumed that TTIP might result in a 0.5-1 percent increase in gross domestic product (GDP). Besides the fact that this way of thinking is the one that has lead Europe to the actual crisis, such estimates are unrealistically high, and fail to mention that the full range of benefits is only projected to be achieved by 2027. This means that the short-term benefits are unlikely to outweigh the negative effects – in terms of health, social protection, environment and privacy – of the agreement According to an analysis by Public Citizen´s Global Trade Watch (a consumer advocate group), benefits from TTIP would amount to about less than €40 per family, per year. And that does not take into account any additional costs from weakened safeguards regarding health, financial, environmental and other public interest regulations. Tom Jenkins from the European Trade Union Council (ETUC) has voiced his doubts regarding job increases promised through TTIP: „It is unclear, where these jobs should come from and which EU countries would in the end benefit.”
Posted on: Sun, 11 May 2014 07:47:29 +0000
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