1 September 2014 Edition
TTIP myths shattered by report
This is funded by the European United Left/Nordic Green Left (GUE/NGL) – Another Europe is possible
‘Left Responses to the TTIP’ reveals considerable risks associated with removing remaining trade tariffs
A NEW STUDY commissioned by the European United Left/Nordic Green Left (GUE/NGL) EU Parliament Group argues that the Transatlantic Trade and Investment Partnership (TTP) between the EU and the USA comes with high social costs and limited actual economic gain.
The ‘Left Responses to the TTIP’ document reveals considerable risks associated with removing remaining trade tariffs and very few actual economic gains from TTIP in terms of GDP, jobs, and real wages.
GUE/NGL MEP Helmut Scholz says:
“This report critically assesses predictions made by European Commission-supported reports about supposed positive impacts of TTIP on GDP, jobs, trade flows, and real wages. None of the studies take into account the social costs of TTIP.”
Lead author Werner Raza says:
“Not only do these estimates fall flat when we look at the methodology used (which is biased in our view), the predictions also don’t stand up when we see that 80% of these estimated economic benefits depend on the removal or harmonisation of regulations, administrative procedures, and standards – non-tariff measures (NTMs).
“Negotiating compromises on regulations and standards could see decades of gains in social and environmental protections rolled back, posing a serious threat to consumer health, public health, and environmental safety. If you eliminate regulations that serve public policy goals there is a social cost.”
The study also strongly criticises the proposal for an investor-to-state dispute settlement (ISDS) mechanism as part of TTIP as it could lead to governments abstaining from enacting regulation that run counter to multinationals’ interests. Such a mechanism could also see governments having to pay compensation to multinationals with taxpayers’ money.
The authors describe how TTIP will reduce trade between EU countries by up to 30% as EU countries’ exports won’t be able to compete with increased levels of cheap imports from the US.
The GUE/NGL-funded study also finds that unemployment would rise as a result of job displacement due to TTIP: over the 10-year TTIP implementation period, between € 5billion to €14billion of unemployment adjustment costs (lost revenue from tax and an increase in unemployment benefits) can be expected.
The full report can be read at: www.guengl.eu