GERMANY - The proposed Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States has been met with criticism and is viewed with suspicion.
However, a study by the Institut der deutschen Wirtschaft Köln (IW) shows that for Germany there are significantly more advantages than disadvantages by partnering just.
In addition, the TTIP - used properly – can have a positive impact on the future of the world trading system.
For Germany when it came to discussions over the TTIP, they mainly centred around the use of chlorine in chicken production despite the fact that agricultural products account for less than 1.2 per cent of Germany's trade with the United States and chlorine use on chicken carcases from a scientific perspective is harmless.
According to the IW Cologne in its assessment of the partnership it puts other aspects into focus.
German exports to the United States in 2013 reached just under €90 billion approximately eight per cent of total exports.
According to IW about 600,000 jobs depend either directly or indirectly on the US exports.
The TTIP on the one hand can help to secure jobs in the long term, according to the IW-study, on the other hand, the partnership can lead to more wealth among consumers and businesses on both sides of the Atlantic.
This is because the IW estimates that industrial goods traded are worth around €3.5 billion annually because of the tariffs between the two countries making the cost of the good unnecessarily more expensive.
In addition, trade has been unnecessarily inhibited by primarily legal regulations, such as different product standards.
According to IW director Michael Huether with the TTIP it is necessary to think in a larger context.
“For Europe and, therefore, for Germany the main question is a geopolitical one and whether we can together with the USA and China shape a G3 or whether we sit on the sidelines,” he said.
Moreover, as the authors of the study said, the TTIP could help to breathe new lif into the world trade order.
The Partnership should urge emerging economies to participate in more trade policy cooperation.
New multilateral or plurilateral agreements are possible and the EU and USA must make every effort to strengthen the world trading system.
TheMeatSite News Desk