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The Transatlantic Trade and Investment Partnership is a hypothesis of trade agreement between the European Union and the United States.
They are two of the biggest economies of the world; together they produce the 60% of global GDP.
Why TTIP this is so controversial?
Because is concerns many variables and all of them has pros and cons.
Let’s analyze them!
According to the European Commission, the TTIP will:
- Remove all the tariff trade between EU and US.
- Equalize the rules of production, import and export between EU and US.
- Create a new quality standard.
- Lowering the cost of production and selling.
- Create new jobs.
- Help the EU firms to compete abroad.
(For the complete European Commission point of view, click here.)
Let’s see the cons…
The real problem is not the TTIP but how to do it.
The differences between the economy and quality standards (between EU and US) are huge! In particular, this type of agreement will increase the power of the big business (which US economy is based), lowering the power and competition on the market of medium/small business (which EU economy is based) and causing a potential privatization of public services.
This agreement is more attractive to enterprises instead of people.
Big business do not care about equality or standards, but we care!
Moreover, the TTIP will bring worries about environment because the increase of trading correspond to the increase of energy (carbon, oil, etc…).
Actually, there are no stable energy prices and the impact on the environment will be worse than every expectation.
In conclusion, the TTIP is a good idea but it is not practicable because it needs time, money and collaboration to be modified.
At the moment, neither or the attendants has the resources to complete it. Even in the opposite situation, are we sure that the gain will be higher than costs?
Nobody knows, it is better not taking this risk.