Advantages And Disadvantages Of TTIP
After looking at the advantages and disadvantages of TTIP in the point of the EU, the incentives and concerns of the US will be presented. The US Chamber of Commerce collected 10 facts about the importance and benefits of the TTIP, which give a better understanding of the US motives. (U.S. Chamber of Commerce, 2013)
High degree of EU relations
Some of their arguments include that the EU is the largest trading partner of the US. The US and the EU provide almost the half of the GDP in the world (47%) (European Commission, 2015), which means that more than $16 trillion in GDP is generated by each annually. Furthermore, more than half of the total investments made by US companies were invested in the EU ($2.1 …show more content…
Because the EU has already 28 trade agreements with other countries, missing out the TTIP might leave the US with a disadvantage, resulting in decreased job opportunities.
Predictions on increase in export and job opportunities
The Atlantic Council, the Bertelsmann Foundation, and the British Embassy in their study analyse the economic benefits of TTIP on the US state by state, focusing on the increased exporting opportunities and new jobs created. The information used in this paper was calculated with the help of general equilibrium model. (Barkel, et al, 2013)
They emphasize the high degree of the connection the states already have with Europe, both in terms of exports of goods and services and employment. If the objectives of TTIP - such as the elimination of all the tariffs, 25% decrease in production costs due to non-tariff regulatory barriers, and a 50% increase in procurement facilitation – are delivered successfully, exports to the EU will grow by $300 billion …show more content…
What is more, this prediction does not include jobs caused by the higher number of EU investments in the US. The most increase in job opportunities are found to be in advanced manufacturing and financial services (goods and services). Hospitality and retail (non-tradable) are also expected to grow due to the increase in families’ income. The study also concludes that although the financial crises in 2008 has reached its end, in some states unemployment rates are still high. The TTIP can be a solution for this problem.
The greatest number of new jobs is projected to occur in California, Texas, New York and Florida states. In California the highest growth will be in the business services (15,750 new jobs) and financial services (1,540 new jobs), in Texas business services (10,600 new jobs) and manufacturing (3,500 new jobs), and in New York and Florida business services (8,500 and 7,600 new jobs) and financial services (1,500 and 1,000 new jobs). The model showed that roughly 1 in every 160 jobs will be directly related to