The successful adoption of the EU-US trade agreement promises both parties massive gains of up to $159 billion, but the profits could come at the expense of the everyday consumer, who could see the quality of their products diminish as a result.
Over 50 US officials are in Brussels to negotiate the
Transatlantic Trade and Investment Partnership (TTIP), which, if
signed, will create the world’s largest free-trade area, which
has also been dubbed an “economic NATO”. Officials meeting in Brussels this
week will hammer out details to reduce trade limiting
The new round of talks will focus on reducing trade barriers on
investment, energy, services, and raw materials, and key
agreements will be announced Friday.
‘Non-tariff barriers’ increase the cost of business, whether it’s
adjusting the voltage on an electronic device, changing a car’s
exhaust system to comply with local environmental regulations or
a difference in opinion of which chemicals are "harmful" or
"hazardous" in the respective territories.
By limiting health, safety and environmental regulations in order
to boost trade, the US and EU are “putting the corporation
above the nation,” Glyn Moody, journalist and author, told RT
in an on-air interview.
“That’s a very big assumption. People may not want to have
their food less safe or environment polluted for the sake of more
money,” Moody told RT.
Moody also warns the trade agreement could behoove giant
corporations like Monsanto, who could use the new ‘de-regulation’
to sue the EU for billions of dollars if they refuse to import
The EU says the TTIP could bring annual benefits of $159 billion
(€119 billion) to its 28 member states. This breaks down to an
extra $730 (€545) in disposable income for a family of four in
Europe and an extra $875 (€655) per family in the US, according
to a March 2013 study on “Reducing Transatlantic Barriers to
Trade and Investment”.
There would be fewer constraints and companies will benefit, but “the public will pay in terms of regulation reduced protection and that is never calculated in these trade agreements, it’s always about the bottom lines of the big companies,” Moody said.
The week-long round of negotiations were originally scheduled for
October but postponed due to the US government shutdown.
On December 16-20 officials will meet in Washington DC for
another round of talks. The first round was held in Washington in
July after the G8 Summit in Northern Ireland.
The trade flow of goods and services between the two blocs
reached about $2.7 billion per day in 2012, according to the US
Office of Trade and Commerce. Total trade in 2012 was $647
The agreement could boost employment on both sides of "the pond",
as increasing exports usually creates more jobs.
The European Commission has brazenly promised the deal could
boost gross domestic product in the dilapidated EU by 1 percent.
Auto trade will especially benefit from jettisoning regulations.
Turnover between the US and Germany could double if the trade
agreement makes more umbrella standards- for example, if a
car is crash-tested in America, it need not be again tested in
North America is an important destination for Foreign Direct
investment, and is home to about one third of European foreign
direct investment. Investment activity between the EU and US
suffered after the financial crisis in 2008, and both sides will
also try to find a balance on trade regulation to save big bucks.
Limited trust over the fall out of the NSA spying scandal may
also put a hamper on negotiations between the trade giants.
The feasibility of the deal came under question after NSA
whistleblower Edward Snowden leaked information showing the
extent of espionage
on allies abroad. France announced the wanted to
postpone the talks over snooping, but they proceeded as
The spying row shouldn’t affect US-EU trade talks, US Secretary
of State John Kerry said as the trade partnership is “really
separate from any other issues”. The US hasn't provided any
guarantees it will curb spying on its allies.