Tag: EU

A Case for Making TTIP Better for Workers

In today’s Cato Online Forum essay, George Washington University Professor of Foreign Affairs Susan Ariel Aaronson argues that the “TTIP provides an opportunity to think differently about how policymakers in advanced industrialized economies can protect labor rights, encourage job creation, and empower workers.”  After describing some of the concerns workers have about the TTIP and explaining why certain parts of the agreement could serve to undermine labor rights, Susan provides some fresh recommendations for making the TTIP more appealing to workers.

Read it. Provide feedback.  And register for Cato’s October 12 TTIP conference.


Mismatch Between 20th Century Trade Negotiations and 21st Century Trade Threatens TTIP’s Success

In today’s Cato Online Forum essay, Per Altenberg from the Swedish Board of Trade makes an interesting political economy argument and a compelling practical case for why the Transatlantic Trade and Investment Partnership will be a tough slog. Altenberg argues that the old model for trade negotiations, premised as it is on mercantilist reciprocity, which leverages the interests of exporters against import-competing industries to secure domestic support for liberalization, is no longer functional in a world where trade is dominated by intermediate goods trade along global value chains. Today, openness to trade is seen as essential, and trade negotiations cover matters that probe deeply into domestic regulatory space. To sum up, Per writes:

Traditional 20th-century reciprocity in market access negotiations will thus not be an effective mechanism in the context of 21st-century deep integration negotiations such as TTIP. Instead, deep integration issues require new approaches to trade negotiations.

Per’s essay elaborates on those approaches.  Read it.  Provide feedback.  And please register for Cato’s TTIP conference on October 12. 

Europe Must Abide TTIP’s Geopolitical and Security Implications

In today’s Cato Online Forum essay, Judy Dempsey of Carnegie Europe argues that the geopolitical and security implications of TTIP are immense, and that the EU and its member states need to wake up, smell the coffee, and acknowledge reality. This is the third essay focused on the geopolitical implications of the TTIP published in conjunction with the Cato Institute conference taking place October 12.  Previous essays – to compare and contrast – were written by Phil Levy and Peter Rashish

Read them. Provide feedback.  And please register to attend the conference.

TTIP Could Rein in the Abuse of Tax Incentives to Attract Foreign Investment

I’ve written often about the global competition to attract foreign investment, and have made the point that investment flows to jurisdictions with good policies in place. Globalization of production and the mobility of capital mean that national policies (regulations, tax policy, immigration, trade, energy, education, etc.) are on trial, with net investment inflows rendering the verdicts.

But some countries (and some U.S. states) use tax holidays and other forms of tax forgiveness, in lieu of adopting good policies, to attract investment, which burdens taxpayers and subverts the process of matching investment to its optimal location. These are subsidies – like so many other programs – that distort markets and should be discouraged.

In today’s Cato Online Forum essay, which is associated with the TTIP conference taking place on October 12, Ted Alden from the Council on Foreign Relations puts forward a strong proposal to end this madness via the Transatlantic Trade and Investment Partnership negotiations.

Read it.  Provide feedback.  And please register to attend the conference.

Taxpayers and Transatlantic Trade: How TTIP Must Open Procurement Markets

In today’s Cato Online Forum essay, Gary Hufbauer and Tyler Moran explain why opening up more government procurement projects – especially U.S. procurement projects (and even more especially, state-level procurement projects) – to foreign competition is essential to a successful TTIP deal. Currently, even with the WTO Government Procurement Agreement in place, a treasure trove of U.S. business (in the trillions of dollars, unfortunately) is shielded from competition because it is “government spending” on “sensitive” projects.  

Those designations ensure that U.S. taxpayers get smaller bangs for their bucks, while entrenching inefficient firms as advantaged bidders.  Moreover, if TTIP fails to open U.S. procurement to more competition from EU firms, then EU negotiators will be less likely to meaningfully open their own markets to U.S. exporters and service providers.

Read it. Provide feedback. And sign up for the Cato TTIP conference on October 12.

How Will the Transatlantic Trade and Investment Partnership Affect U.S. Jobs?

Today’s Cato Online Forum essay comes from economist Laura Baughman, who laments the typical methodological approaches to estimating relationships between trade agreements and jobs, pointing out how those approaches seem to be used to validate a priori positions, either pro- or anti-trade, rather than reveal best estimates.  While economists are better at estimating the relationships between trade agreements and output or between trade agreements and trade flows, Baughman explains that if the likely impact of on jobs is sought, there is a more objective approach to take.  And the results of that method suggest that “it will be hard to argue that [TTIP] will not be a job ‘winner’ for the United States.”

Read it. Provide feedback.  And sign up for the Cato TTIP conference on October 12.


Forethought on Rules of Origin and Regulatory Coherence Essential to TTIP’s Success

Today’s Cato Online Forum essay takes a look under the hood – or, rather, describes what should be under the hood – of a Transatlantic Trade and Investment Partnership deal, if it is to succeed at minimizing trade diversion and spreading its benefits to third countries. In her essay, Inu Barbee explains why today’s globalized value chains necessitate smart rules of origin and inclusive regulatory standards in the TTIP. Read it. Comment. And register to see and hear more at Cato’s TTIP conference on October 12.