Since 2009, when president Barack Obama came
into power, a “pivotation” regarding the U.S. foreign policy has taken place. The idea of the Obama
administration’s strategic “pivot” from the Middle East to East Asia seems to
be challenged with the negotiations of the Transatlantic Trade and Investment
Partnership.
Photograph retrieved form: <http://www.baquia.com/tecnologia-y-negocios/entry/emprendedores/2013-05-28-startups-europeas-como-conseguir-inversores-de-los-eeuu>. |
The Transatlantic Trade and Investment
Partnership, or TTIP, is a proposed free trade agreement that would link the
world's two largest economies: the United States and Europe. If successfully
negotiated, the TTIP would replace the North American Free Trade Agreement
(NAFTA) as the world’s largest free trade area, with a combined GDP of $31.06
trillion.
On the one hand, the TTIP implies advantages such as a
greater economical growth, which would create more jobs and prosperity for two
giant engines of the world's economy; reduce high unemployment levels left over
from the 2008 financial crisis; improvement of the political bilateral
relations between the U.S. and the European Union; and boost the economy by
reducing costs (for example the removal of double-taxations).
On the other hand, TTIP could also involve some
negative aspects such as the disappearance of small business due to the
increased competition and the possible monopoles that big enterprises may build.
The U.S.A. and specially, the E.U. would have to give up protectionist measures
in industries such as agriculture, energy.. For example, European agribusiness
would suffer from cheaper American-made food imports. In addition, the E.U.
bans all genetically-modified crops and meat from animals treated with growth
hormones. It also refuses poultry that's been washed with chlorine. These are
all practices common with U.S. food. European consumers would complain loudly
if these bans were lifted. They feel the ban protects them from tainted or
lower quality food and public criticism may arise with the implementation of
the TTIP.
It is estimated that until late 2015 or early
fall 2015, technical negotiations would not conclude. Then the agreement will
be submitted to the US Congress and the European Parliament for their
consideration and hopefully their approval in the months of January-April 2016.
If it goes as planned, the agreement will be approved by late spring of 2016
and on January 1st 2017 the TTIP will be implemented.
Since Colonial times, the Atlantic has been of
key importance regarding trade, alliances and economic relationships. We can
say that the last time we could see the Atlantic as the major ocean from a
geopolitical point of view was during the Cold War. This agreement will
relocate the focus of Americans towards their historical allies responding to
those who argue that the U.S. was more interested in the Pacific (eg. The
Trans-Pacific Partnership: U.S. Trade agreement with Pacific countries such as
Japan, Philippines…).
An agreement would strengthen the geo-political
standing of the Trans-Atlantic bloc against the rising economic power of China,
India and other Pacific nations, as well as the growing success of Latin
America. If the U.S. and E.U. could iron out their differences, they could
stand as a united front against market threats from the rest of the world.
Paula Padrino
Paula Padrino