Trans-Atlantic Free

Trade Agreement
(TAFTA) & TransAtlantic Trade
Investment Partnership
(TTIP)
By Isai Loen, Pil Ar Harera, & Francis
Oheneba

What is TAFTA ?

Proposal to create a
TransAtlanticfree trade
areacovering Europe and
North America.

We can put this in our last slide for conclusion, maybe!

What is it?
Transatlantic Free Trade Area
is a
proposal to create a trans-atlantic
free-trade areacovering Europe and North
America

TAFTA=TTIP is an
agreement
between US and
EU
The ultimate goal, once complete

+CA
+MX

The
proposals
have been made
since 1990, and
in
2013
the
TTIP
was
leaked

Biggest free trade area

OBJECTIVE

Create converged standards in the social, technical and

environmental field, as well as in security, settlement of
disputes, access to medicines, justice, trade, labor code,
protection of digital data and regulations in finance and

What happened before?

1950 Jean Monnet (the father of the European Union)
talked about a occidental block with the US, and in 1951
try to install the economic rules of war of US to EU
After WWII the economic bqrriers betzeen US and
EU were already very low:
-World trade organization
-Open skies threat
The European Commision states the benefit of an
agreement of free trade with US, +50% of profits
Constant friction between the white house and
the European Commission
The Chancellor of Germany, Angela Merkel,
promotes strongly this free trade in the 90s. And
in 2006 after the controversy of the free world
commerce in Doha, she talks again with the world
leaders about some kind of transatlntique
business.
1990 The transatlantique declaration
1995 Transatlantique business dialogue (Nouvel
agenda transatlantique
2007 Transatlantique economic council (Merkel,
Bush, Barroso)
2011 Strong close doors meeting between
Obama and Barroso
2013 Leaked of TAFTA to the media

Sobasically, we are talking about

The biggest trade threat ever in the history of mankind
It involves two powers that combine together
represents more than 40% of the PIB worldwide
A trade that will represent a third of the commercials
businness in the world
Nowadays the negotiations are being held behind
closed doors out of the public eye
Its defenders argue that this threat will benefit the
economic growth of the participants, it will increase the
economic freedom and it will push new job creation
Its opposers claim that in the future to come,
companies will call the shots against governments and
the citizens of the world, legalizing poisonous food, low
standard education and all kind of free trades making
rich the richest, and leaving poor the poorest.

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The Implication of TAFTA / TTIP

General consideration of the agreement
The impact in civil society and consumers
The relation to the third countries
Specific policies and trade issues included
within TAFTA / TTIP

General consideration of the agreement

Increase
economic
growth and
social gains

Strengthen
global
competitiveness
by removing
trade tariff
barrier.

negative
economic
effects for
the
countries
outside the
TAFTA/TTIP
caused by
the
spillover
effect
Reducing the
attractiveness of
European
Integration

Increase Economic Growth & Social Gains

European
Comission
arguments
TAFTAtwo
/ TTIP
:
A future
deal between
the on
worlds
most
important
economic powers will be a game Positive consequences
for jobs and growth
changer. Together, we will form the largest free
Will
not lower
trade
zone
in thesafety,
world.environmental
This deal willand
set the
standard - not only for our future bilateral trade
health standards
and investment but also for the development of
global rules. It will create a tremendous
CENTRAL ARGUMENT
impact on jobs and growth on both sides of
the Atlantic.
It is estimated National
that when this
Consumer
agreement is
up and running, the
EUs GDP will
Price
Income
get a half a per cent boost - which translates
into tens of billions of euros every year. It is
probably the cheapest stimulus package that
can be imagined

0,5 % of GDP
growth and extra
545 / average
European

Strengthen Global Competitiveness

Average import duties

between US and EU = 3
up to 4 %
No TAFTA/TTIP = Trade tariff
Obstacle to export product to another country :
barrier

Quality standards

TAFTA/TTIP
arrier

Technical requirements for imported products

Labeling requirements
Etc.

= Non-tariff
EU exports to the US would go up by 28%,
equivalent to an additional 187 billion worth
of exports of EU goods and services. The EU
imports from the US will also increase by
159 billion.

Negative Economic Effect for Country

Outside TAFTA/TTIP

TAFTA/T
TIP
Global Regulatory
Blue Print
Spillover effect :
* Country
adopt
TAFTA/TTI
Country
* P
without
TAFTA/TTI
P

+
TT

=
TTI

50

= Stay in
competiti
on
= Out of
competiti
on

Reducing attractiveness of European

integration
With
TAFTA/TTIP

Trade beetween :

Without
TAFTA/TTIP
Trade between :
EU 3rd countries =

US Germany =
Decline

90%
US UK = 60%
(source: Bretelsmann Stiftung
2013)

US NAFTA = Decline

Trade between intra EU =

Decline
European Integration

heavily relies on treade relation

would become weaker

Trade diversion -diversionfrom a more efficient exporter towards a

less efficient one by the formation of a freetradeagreement or a
customs union.

The impact in civil society and consumer

Series of positions on various
aspects on the TAFTA | TTIP
negotiation:
Legal Protection for People - instead of
Privileged Rights for Corporations
Core
Principles
of
Climate
and
Environmental Protection
Protect Small and Environment-friendly
Agriculture
High Consumer and Health Standards
Labor and Human Rights
International Solidarity and Cooperation
Safeguard and Develop Public Services
Protect and Promote the Diversity of
Cultural Expressions
Financial
Sector
Regulation
and
a
Reduction of Economic Imbalances
Innovation, Education and Freedom of

The relation to the third countries

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