Essay On Transatlantic Trade And Investment Partnership

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Transatlantic Trade and Investment Partnership
An Assessment of International Economic Relations
Michael N. Chaoui
University of La Verne

In a globalizing world where state economies become more interdependent, it is important to understand the steps that are taken to optimize the trade activities that occur between trade partners. State governments impose duties, import taxes, and other trade barriers in order to bring goods from beyond their borders. In many cases, such fees add up and discourage firms from too much trade activity abroad. The solution that some regions have found, however, are in the establishment of trade agreements with one or multiple partner states. Such trade agreements allow for participating trade partners to reduce trade barriers in an effort to promote international trade and benefit economic relations. The Transatlantic Trade and Investment Partnership (TTIP) that is currently in negotiations between the United States and European Union (EU) is similar to many trade agreements. What separates this from other trade agreements such as the North American Free Trade Agreement (NAFTA), is that if installed, it will be the largest and most comprehensive trade agreement of its kind. The question that is addressed is whether the TTIP is beneficial to the United States and if such an agreement will enhance international cooperation between the U.S. and European Union.
The Transatlantic Trade and Investment Partnership would not only benefit the U.S. economy, but in accordance with the liberal economic theory of trade, will provide opportunities for specific U.S. industries and firms to collaborate further with its EU partners in the badly needed economic recovery for both trade participants; ...

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...lly, the free market economies of the US and EU strongly advocate and participate in numerous bilateral and multilateral free trade agreements. This, however, is not sufficient in justifying that the TTIP will resolve NTBs and financial regulations due to the political implications that are imposed by the individual state governments in the three decision-making institutions of the EU. If there are to be such reforms within the political economy between the US and EU, they will not be concluded and integrated as quickly as expanding market access or tariff reduction and elimination; it will require more time and cooperative negotiation. With this is kept in mind, the Transatlantic Trade and Investment Partnership will be beneficial to both economies in terms of enhancing trade relations and joint economic recovery.

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