Comments due by Nov 9, 2014
2014 should be a transformational year for the transatlantic partnership. The United States and the European Union continue to slog through an underwhelming economic recovery, while conflicts from Ukraine to Iraq to North Africa have forced themselves onto to-do lists in Washington and Brussels. Much like in 1945 or 1989, the decisions made today by President Barack Obama and European leaders will have ramifications that reach far beyond the shores of the North Atlantic.
NATO commanders and strategists conferred recently in Britain to discuss ways to reestablish peace in the face of these threats. This week, European and American negotiators are meeting in Washington on a very different issue: How to jumpstart economic growth and create high-quality jobs on both sides of the Atlantic. Understanding that economic prosperity and international security are inextricably linked, the world’s two largest economic powers – the United States and the EU – are working to establish the Transatlantic Trade and Investment Partnership to set a global gold standard of free trade and regulatory cooperation. Clearly, the trade partnership is not just about economics; as geopolitical tensions across the world worsen, it is vital to show a united transatlantic front bridging security, politics and commerce.
Other nations are watching closely as the United States and the EU negotiate a comprehensive agreement designed to spur growth and send a strong message: The democratic free market economic model can still deliver. Alternative systems that emphasize a greater role of government control and little room for democracy are arising in much of the world. It is crucial that the United States and Europe regain their economic dynamism. Nothing less than our future global leadership and credibility is at stake.
Economic ties across the Atlantic already run deep. Over $2 billion in goods and services crosses the ocean each day, and over 13 million American and European workers already owe their jobs to transatlantic trade and investment. Still, the time is right to deepen our engagement. The United States and Europe will not constitute almost half of global gross domestic product forever. This may be our last and best chance to preserve the kinds of high standards in product safety, digital and data privacy and environmental and labor protections that our citizens justifiably hold dear.
Given its global ramifications, the Transatlantic Trade and Investment Partnership should not be viewed as just another trade agreement. If successfully negotiated, the partnership could provide the platform for another century of transatlantic prosperity. We must not fail. After all, if we cannot agree with our closest partners, what incentives will China, Brazil, India and others have to return to the global negotiating table?
Without question, there are major challenges to overcome, particularly in Europe. Americans and Europeans do not agree on everything; just look at the fallout from last summer’s National Security Agency revelations or differing opinions on the safety of genetically-modified foods. Government leaders have struggled to find a path forward on vital issues like financial regulatory cooperation. The two sides must find a way to partner on energy as Russia continues its aggression in Ukraine. Europe faces a serious threat to its energy supply, but thanks to the shale gas revolution, the United States can eventually become a key partner as the continent diversifies its supply
Public opinion polls show that a majority of Europeans and Americans believe in the idea of an integrated transatlantic market, but that majority erodes when asked to adapt their own rules and regulations to make it a reality. The devil, then, is in the details. It is up to negotiators to find solutions which make it easier to do business across the Atlantic, invest and hire workers without lowering standards. Congress and the European Parliament must then consider the agreement on its merits before approving it.
We should not let our relatively minor disagreements stand in the way of the most significant strategic opportunity in decades to strengthen the economic foundations of the transatlantic alliance. In today’s gridlocked political environment, Republicans and Democrats alike have indicated their willingness to support an agreement that strengthens the U.S. economy and strengthens the transatlantic partnership.
Research from the Atlantic Council, conducted in partnership with the British Embassy in Washington, and the Bertelsmann Foundation, shows that every U.S. state gains jobs and increases their exports once an ambitious agreement is implemented. In all, close to 750,000 U.S. jobs will be added due to increased trade alone. A necessary first step requires the administration and Congress to work together to secure Trade Promotion Authority, which will strengthen the U.S. government’s ability to negotiate an ambitious agreement.
One needs to look no further than the hundreds of millions of people lifted out of poverty over the course of recent decades to realize just how linked peace and prosperity have become. International trade and global economic engagement have given hope and opportunity to countless young people who otherwise might have considered dangerous religious fanaticism or insular nationalism as alternatives. In order to prevent a lost decade of economic stagnation in Europe, fight against a rising wave of political populism and reengage a generation of unemployed youth, the United States and Europe desperately need the kind of deficit-neutral stimulus that only the Transatlantic Trade and Investment Partnership can provide.
Transatlantic leaders have responded strongly together to the global threats represented by Russia and the Islamic State group. Now, leaders must invest time and energy in support of this transatlantic partnership. Only a vibrant, competitive and prosperous transatlantic economy will extend our security and global strategic influence well into the future. This will require hard work and difficult political decisions to inspire and lead an informed public debate on the merits of expanded transatlantic commerce. The Transatlantic Trade and Investment Partnership represents a rare chance to put the U.S.-European economic relationship on par with our mutual commitment to transatlantic security. Let us hope that our leaders do not miss this historic moment.
European and American negotiators are meeting to discuss economic growth and create high-quality jobs through the creation of the TTIP, which will allow them to set a global standard for “free trade” and regulatory cooperation. The TTIP also focuses on both countries showing a united front in terms of security, politics and commerce especially at a time when conflict around the world is so prominent. The US and EU are already have great economic ties, trading over $2 billion in goods and services every day. Therefore the TTIP agreement would strength this partnership. In this article the point of view is that this agreement might just be one of the greatest trade agreements if it is successfully negotiated. It portrays the Americans and the Europeans as very influential countries that must not only lead by example for other developing countries like China, Brazil and India but also preserve the high standards that they have set for themselves.
ReplyDeleteIf the Europeans and the Americans can’t agree with each other, why should we expect other developing countries will want to negotiate trade agreement with the US and EU. The Americans and Europeans do not always agree such as the safety of genetically-modified foods. While the public believe that the idea of the TTIP is a good one they do not want to make it a reality. No one wants to give up specific rules and regulations that are beneficial to them. I personally think that the agreement will likely be more beneficial to the two major parties involved. I think that the US and EU will be able to eventually agree of specific terms that benefit them both but this article does not explain the effects the agreement will have on other countries’ economies. It is clear that the article supports the creation of the TTIP. I am just slightly worried that only large corporate companies benefit. The creation of the 750,000 US jobs and the decreased number of people that are poor would be a great benefit for the US, yet I am unsure that this will be a result of the TTIP.
-Arbenita Misini
It’s not surprising that the USA and The EU wants to reestablish a trading partnership as means for bringing economic prosperity and strengthening international security. This should be easy as both entities are the economic superpowers of the world who have set and maintained “high standards in product safety, digital and data privacy and environmental and labor protections” These two unions have always been at the forefront of these standards and while the USA and the EU knows that they will not account for nearly half of the world’s global GDP for eternity, but want to be able to preserve these high standards. Atlantic trade will always exist as the USA and EU produce many high-value commodities that the BRIC Nations may not be able to produce as efficiently or meeting certain quality standards. Of course, there are many challenges that both parties on each end of the pond will have to overcome as they do not always see eye to eye on everything, from clauses within agreements to the metric system. History has shown that “International trade and global economic engagement has resulted in lifting people out of poverty by creating jobs and opportunities” European countries not part of the EU will be missing out on a lot of potential.
ReplyDeleteIt is seen that European and American sides negotiate and they argue about the economic growth and they point on creating qualified jobs thanks to TTIP. It lets them create global standards for free trade and cooperation. TTIP points on the issue of both countries with the united front in terms of security, policy and trade specifically when there is huge conflict in the world. The economic relationship of EU and US is already good because they trade over $2 billion in services and products. And TTIP agreement makes this relationship even stronger. The article points on the greatness of the agreement if it can be negotiated truly. It shoes that America and Europe have strong countries and they can keep the standards set for them. When Europeans and Americans do not agree on certain points, how can other emerging countries make agreements with EU and USA? The TTIP is appreciated as an idea but it is not put into reality. There are some rules and regulations that the countries do not want to leave. However, it will be good to give up some of these rules and regulations because this agreement is important in terms of economic prosperity and growth.
ReplyDeleteEstablishing strong bonds in trade is a very important part of economic success. The US and the EU are trying to negotiate a way to form jobs and create economic growth through trade and a democratic free market. The TTIP agreement looks to do just that. The article speaks of how this has been happening already, and also how they want to better it. According to the article, $2 billion worth of goods and services cross the ocean each day, and 13 million jobs are had between the US and Europe because of international trade. This seems to be a good idea to further growth and strengthen a democratic economy. Not to mention, this could potentially create in excess of 750,000 jobs for US citizens. I hope they can agree on something that is beneficial to all parties, including the little people.
ReplyDeleteThe cementing together of the US and the EU through the Transatlantic Trade and Investment Partnership (TTIP) is, as said in this article, extremely important to not only economic prosperity, but also to display for the rest of the world that faces increasing levels of political unrest (which, in turn, has effects on the US and the EU) "...a united transatlantic front bridging security, politics and commerce." The US and EU have held the top sports for global GDP, but shouldn't rest on the laurels of their "superiority" in the increasingly competitive global marketplace. While the polls in both the US and EU show support for TTIP, what is needed is a convergence of rules and regulations toward a unifying set of standards that can be established and enforced between both superpowers. While the article points out that, "We should not let our relatively minor disagreements stand in the way of the most significant strategic opportunity in decades to strengthen the economic foundations of the transatlantic alliance," it is important to recognize that while disagreements on hot button issues (such as GMOs) may seem relatively minor in comparison to the global ramifications of the TTIP, to those individuals who hold these views, and make up the countries, these views are extremely important and personal. We must tread carefully when merging the regulations and rules of the US and EU, least we create more of the unrest we are working so hard to stand strongly in the face of.
ReplyDeleteAccording to this blogpost, both the United States and the European Union are attempting to establish a transatlantic trade agreement between many international countries, in order to help stabilize and maintain the economic prosperity that has resulted as of the strengthened international relations. With the current political instability that has been ongoing in the Middle East and Southeast Asia, it is only crucial to attempt to set up a stable agreement that all countries will abide by, to help keep the 13 million jobs that have provided for workers by international trade. The western worlds are beginning to disagree with each other over certain matters, so this can only cause relations with Asia to deteriorate, hence why an agreement needs to be reached as soon as possible. Also, the establishment of an agreement will cause in increase of 750,000 jobs and help decrease poverty issues internationally.
ReplyDeleteThe author of this article has an entirely different view on the TTIP agreement compared to the author of the previous article visited earlier in the course "Is TTIP a Zombie Agreement." According to this article, a strategic alliance between the United States and the European Union, through the TTIP agreement, is crucial for the economic well-being of both superpowers and the world alike. This agreement will not only preserve democracy and eliminate any bureaucratic impediments of trading across borders, but it may act as a substantial precedent for potential international negotiations among nations.
ReplyDeleteThe TTIP will foster growth for both parties; creating jobs, increasing output, and possibly destroying trade barriers. These benefits should have significant gains for Europe, whose growth is relatively less than that of the United States. For both parties, especially the United States, the TTIP will fuel investments, thus leading to an explosion of global growth markets. As a result, companies will enjoy economies of scale, exchange more goods, services, and ideas, and reduce costs.
The general public is inquisitive about the impact that this agreement will have on the rest of the world. Despite political unrest occurring, the TTIP will garner much demand for imports from other countries and stimulate exports from the European Union and United States. This agreement has the potential of injecting billions into the global economy if both parties agree to finalize it. It may also define a set of trading standards that the rest of the world may deem necessary to adopt to.
Despite the substantial benefits, the TTIP will not be successful if both sides fail to find a common ground. While the United States and European Union must acknowledge differences, it's important that they determine how to transform these differences into similarities.
It is important that the United States and Europe develop a link amongst one another, in order to increase their economical standpoint within the world. The Transatlantic Trade and Investment Partnership is important as the article said “The Transatlantic Trade and Investment Partnership should not be viewed as just another trade agreement…if successfully negotiated, the partnership could provide the platform for another century of transatlantic prosperity.” It is said that there are over $2 billion dollars worth of goods and services that cross the Atlantic on a daily basis, while 13 million American and European workers have given their jobs to transatlantic trade and investment. “Public opinion polls show that a majority of Europeans and Americans believe in the idea of an integrated transatlantic market…” We have seen a lot of disagreeing occur during the western countries, so this agreement would be important helping keep some stability amongst the countries. The TTIP will bring more imports from the neighboring countries and exports to the US and EU. I think that this agreement is very beneficial for the global economy, but the two countries need to work out an agreement in order to increase the economic growth of the world in the long run.
ReplyDeleteThis article pinpoints various issues which stay true in today’s world economy. The key question is, can trade agreement benefit both parties while not affecting the world at large? As we have previously learned, even if there is free trade there will always be inequality of income because perfect competition does not exist. The United States and the European Union are two world powers, whose GDP makes more than half of the world. Because both are strong advocates of the TTIP they are concerned in preserving high standards in product safety, digital and data privacy and environmental and labor protection for its citizens. Another issue that seems to be of great concern to Europe is a threat of its energy supply. It becomes a laborious task to partner on energy as Russia continues its aggression in Ukraine. Hence, negotiators need to find a solution to make it easier to do business across the Atlantic without affecting the relations that both hold with Russia. The TTIP can be an outlet for creating jobs and increasing export from these two countries. Again, we should take into account that this agreement will define a set of trading standards for the global market. Such ambitious plan needs to be evaluated because if it’s not implemented properly some countries may gain more than others. Most importantly, countries that are very capital intensive as the US can gain more than those that are labor intensive, labor intensive countries should be helped by implementing policies that protect their economies.
ReplyDeleteEurope and the United States have to come to terms which will satisfy both regions and global economy. I feel there is a lot that has not been discussed yet. The main part is the transatlantic market which both need to work on to help each other. Also, the author's opinion shows that for the success of TTIP both Europe and United States should fix the problems they are having. Overall international trade will lead to prosperity and peace which is needed. People will get jobs and this may lead to less violence. Still, Europe and United States need to find a means behind this agreement so that it can encourage them to make the right decisions. The sooner they finish the discussion and make decisions the better. This opportunity can help more than just these two regions.
ReplyDeleteLike most trade agreements the TTIP stands to increase economic growth and job growth throughout both the EU and US. The TTIP can allow both parties to set a global standard for regulations and expand free trade. Both the EU and the US already have vested interest in each others economies prior to this agreement thus it is not surprising that public opinion supports the idea of an integrated transatlantic market. One potential hurdle to creating the TTIP is agreement on safety and financial regulations between both the US and EU. Although both parties are known to produce high-end capital intensive goods there are still some disagreements over the standards of these goods, such as the safety of GMO food. As mentioned in the previous article, “Is TTIP a Zombie Agreement” human rights, environmental protection and cultural policies are just some of the issues that need to be considered in making a trade agreement which benefits society as a whole. The success of negotiations between the US and EU stand as model for potential success or failure of these developed nations making trade agreements with the BRICS nations. If these two powers cannot agree on global standards or free trade then there is little hope for a successful agreement between the developed and developing countries.
ReplyDeleteThe topic of international co-operation seems to be very important to the writer of this article.it's true, this topic is very crucial to the state of global economics. If these negotiations between the US and the EU go well, it may prove to be very beneficial for the world. Not only in terms of the economy, but in the general well being of things. However, as the author has stated: " The devil is in the details." The minor details in these negotiations may prove to be the dent in the track. The road towards this "Peace and prosperity" will not be an easy one due to the fact that countries will never be able to completely agree on everything. I have a strong empathy for the author of this article. It seems as though getting past these differences and disagreements is the best way of insuring the stability and prosperity of this worlds economy.
ReplyDeleteAfter reading this article I did more research on the agreement between the United States and the European Union. Many discuss how this agreement can be a threat to democracy. If the EU has a democratic insufficiency, then you can't give negotiators free reign. It has to be referred to the democratic body piece by piece. There's a huge agency problem and I do not know why we need to use the US standard for doing business. Congress is dysfunctional. The EU parliament is not and has a relatively high level of inter-group co-operation. Just because the US doesn't have a working parliament doesn't mean we shouldn't use ours. As governments on both sides of the Atlantic are disputing for standards to be cut, not raised, any conflicts between the standards in the US and the EU are likely to be resolved by cutting whichever is highest.
ReplyDeleteDue to the similar political system, us and EU can surely form a reliable parternership. As says in the article, when there is a greater good ahead, us and eu should overcome the difficulties.
ReplyDeleteOn one hand the developing country like China and India is eating up the interest pie which owned by eu and us.
On the other hand, the ruissian is giving pressure to Ukraine frontline as well struggle to fight over the energy issue.