Tag: EU

Regulatory Coherence Done Right Will Make TTIP a Win, Win, Win

Trade economist Hanna C. Norberg writes:

When it comes to the value of real estate, the three most important factors are said to be location, location and location. With regards to the Transatlantic Trade and Investment Partnership, it’s regulation, regulation and regulation. 

In her Cato Online Forum essay, which was published in conjunction with this month’s Cato TTIP conference, Dr. Norberg explains how firms, workers, and consumers in the United States, in the European Union, and crucially (for those concerned about trade diversion and other adverse externalities), in third countries, can share in the benefits of reduced regulatory compliance costs.  Achieving greater economies of scale, reducing the costs of under- or over-estimating market-specific demand, reducing barriers to entry for smaller firms, and creating efficiencies in portions of global value chains that will have ripple effects on other portions are all channels through which TTIP can drive global growth.

The associated cost savings from these efficiences, Norberg argues, “get passed on in the form of lower-prices, higher wages, more research and development, new and better quality products, and more investment.”

Read Hanna’s essay here.

Find the other essays here

The Strategic Opportunity and Strategic Imperative of TTIP’s Success

In her Cato Online Forum essay about the strategic dimensions of the Transatlantic Trade and Investment Partnership, Fran Burwell of the Atlantic Council sees both opportunity and necessity in its successful conclusion.  The opportunity comes from – among other things – combining the strength of the transatlantic economies (which currently account for 46% of global GDP) through greater economic integration, which will provide the leverage necessary for the United States and Europe to continue to exert dominance over global trade rulemaking and standards setting.

The necessity of TTIP’s success stems from the threat to Europe (and, thus, to the transatlantic relationship) posed by Vladimir Putin, who is working to subvert the deal.  ”[F]ailure of the negotiations,” Burwell writes, “would be one of the best indications possible to Vladimir Putin and others that the U.S.-European partnership is just rhetoric without the capacity for action.”

Read Fran’s essay here.

Read the other essays published in conjunction with Cato’s TTIP conference last week here.

Is TTIP the European Union’s Last Chance to Right the Ship?

Harvard University Center for European Studies fellow John Gillingham doesn’t exactly make the case that the European Union is worth saving, but he argues in his Cato Online Forum essay that a successful Transatlantic Trade and Investment Partnership agreement is essential to its survival. Among last week’s Cato conference participants, Dr. Gillingham was perhaps the most skeptical that the EU would be able to get its act together and achieve success, arguing that TTIP’s fate will hinge less on the deal’s specifics and more on the politics of the EU, which are poisonous.

Put quite simply, the adoption of TTIP, as it is presently conceived by the negotiating parties, would put the EU back onto a course of liberalization, from which it swerved in the mid-1990’s, and thereby bring it abreast of the concurrent globalization process being driven by China and the United States. Within Europe, the Single Market, something only half-complete, would become a reality. State interventionism would be sharply reduced and international competitiveness restored. Will this happen?

To help answer that question, check out the collection of essays from Cato’s TTIP conference participants.

How TTIP Will Affect the Structure of Global Trade Policy

Swedish economist Fredrik Erixon, an authority on international trade policy, who heads up the Brussels-based think tank known as ECIPE (the European Centre for International Political Economy), was a big contributor to the discussions held this week in conjunction with Cato’s TTIP conference.  Among many other trade topics, Fredrik has written extensively on TTIP, the WTO, and how the former may impact the latter.

In his conference essay, Erixon agrees with alarmed, “pure” multilateralists that the TTIP will supplant the WTO as “the organising entity of future trade policy,” but explains why that is not necessarily a bad thing.  While he dismisses fears that the United States and European Union may be turning toward an arrangement that excludes the rest of the world, and explains how they will “leverage TTIP for global trade liberalisation,”  Fredrik does worry that TTIP – if it “succeeds” in the area of regulatory harmonization – will result in the export of failed regulatory policies to the rest of the world.

His concluding remarks on that topic: 

Currently, the differences between EU and U.S. regulations and regulatory approaches are far too wide for the TTIP to be a realistic candidate for setting the global rules in this area. But TTIP will likely push trade agreements further in the direction of prescriptive regulatory conditionality, making it harder for trade agreements in the future to advance global commercial freedom through deregulation and simple, transparent rules.

Read Erixon’s essay here; see him discuss the issues during this conference session; see all the conference essays here.

What Is Meant by “Technical Barriers to Trade” and How Might TTIP Reduce Them?

One of the best presentations at the Cato TTIP conference on Monday was given by Michelle Egan, a professor at the American University’s School of International Service. Professor Egan managed to explain (in about 15 minutes) one of the most complex and possibly intractable subjects under negotiation in the Transatlantic trade talks: Standards-related trade barriers.

A major objective of the TTIP (as well as the TPP and other modern trade agreements) is to reduce “non-tariff barriers” (NTBs) of which so-called “technical barriers to trade” (TBTs) are an important subset. It turns out that differing product standards, which can act as TBTs, are more common than any other kind of NTB. According to Egan, “Governments, on average, impose TBTs on 30 percent of products. For firms active in international markets, different national requirements from conformity assessment measures can impede access to foreign markets.”

Will TTIP Wilt in the Shadow of the Aging German Voter?

In today’s Cato Online Forum essay, Iana Dreyer of the EU trade news service Borderlex marshals public opinion data to support a rather gloomy prediction about the chances for a robust and comprehensive TTIP outcome. Despite having “strong ‘Atlanticist’ instincts and the vision for Europe as a dynamic, globalized, economic powerhouse,” the EU’s business community and its cosmopolitan policy makers are likely to be thwarted by demographics: especially, by the aging German voter.

Iana concludes that the likely outcome will be a TTIP agreement that reflects the sensibilities of older, risk-averse Europeans who are unwilling to gamble with their social safety nets, even though those safety nets are not really on the negotiating table, which means a rather shallow and limited agreement at best.

The essay is offered in conjunction with a Cato Institute TTIP conference being held on Monday.  Read it. Provide feedback.  And register to attend the conference here.

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.