U.S. Negotiations Across the Pacific and Atlantic In Your Backyard

The United States’ efforts to increase exports, boost productivity and gain additional access to foreign markets has resulted in its entry into two large region-wide free trade negotiations.

Per the request of one of ITE’s readers, this post will provide a comparison of both free trade agreements in one location.

What agreements are currently being negotiated by the United States?

The United States is negotiating two agreements at the same time. They are as follows:

  1. Trans-Pacific Partnership Agreement (TPP)
  2.  Transatlantic Trade and Investment Partnership Agreement (T-TIP)

Why should I care about the TPP and T-TIP?

These agreements are not just about eliminating tariffs on imports from member countries. Rather, negotiators are also discussing non-tariff measures that have an effect on our daily lives such as the consumer protection, data privacy and copyright law.

So all consumers of food, drivers, computer users and writers should have an interest in what rules pertaining to food safety, intellectual property, etc. are put in place during these international trade negotiations. (See Transatlantic Trade and Investment Partnership: The Regulatory Part)

Transparency has been a common critique of these two agreements though. (See Stopping the Trans-Pacific Partnership: Global Revolt Against Corporate Domination)

What other countries are negotiating with the United States?

TPP – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam

T-TIP – 28 members of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom)

How do they compare/contrast?

 TPPTTIP
First round of negotiationsMarch 15-19, 2010July 8-12, 2013
Expected end dateOctober 2013Fall 2014
OpportunitiesNote: These figures are based on the 10 TPP countries negotiating with the United States prior to Japan's entry

• Increase real U.S. income by a little over one percent
• Boost U.S. economy by $5 billion by 2015 and $14 billion by 2025
• Access to a market that represents 40% of world trade

Note: These figures are based on the EU-27, prior to Croatia’s entry into the EU on July 1, 2013

• Add to the 13 million jobs that have already been created as a result of transatlantic trade and investment
Challenges See Are Large Multilateral Free Trade Agreements Just Too Difficult to Complete See Tips on the T-Tip Trade Talks
Trade• TPP countries = US 4th largest export market

• Will represent $26.6 trillion in economic activity; combined GDP

• TPPs share of US trade flow will be over 40 percent
• EU and US represent 50% of world’s GDP and almost 1/3 of world trade flows

• U.S. exports to EU represent 21% of total goods and services exports

• US imports from the EU represents 19% overall goods and services and imports
Population700 million (excluding Japan)818 million (excluding Croatia)
Chief Negotiators Barbara Weisel (US)

11 chief negotiators for each other member country
Dan Mullaney (US)

Ignacio Garcia Bercero (EU)

Watch out for my next post about the Canada-EU free trade negotiations.

 

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About Dr. Sarita D. Jackson

is the President and CEO of the Global Research Institute of International Trade, a think-tank/consulting firm that examines trade policies and their impact on domestic businesses. Prior to heading GRIIT, Dr. Jackson was a tenured associate professor of political science in North Carolina and worked as a trade policy consultant for an Arlington-based consulting firm. She has participated in trade policy projects and conducted research on free trade negotiations in Botswana, Antigua and Barbuda, Dominica, Dominican Republic, Mexico and Panama. Dr. Jackson has also traveled to Chile and Argentina to study their political systems and economic integration policies.
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6 Responses to U.S. Negotiations Across the Pacific and Atlantic In Your Backyard

  1. James Ingran says:

    Why has most of the former Yugoslavia been left out of the EU?

    • Dr. Sarita D. Jackson says:

      Hello James. Good question. Croatia recently joined the EU on July 1, 2013. The other EU member state that was once a part of Yugoslavia is Slovenia. The other countries that were once a part of Yugoslavia have candidate status while waiting for negotiations to open up so that they can finally become official members of the EU. The delays that have occurred with some of these countries pertain to political disputes and/or the failure to undertake the political, economic, legal, etc. reforms necessary to satisfy the criteria for joining the EU.

  2. James Ingran says:

    What exactly are the qualifications? Is the entry a way to prevent a Greece situation and did the IMF have any impact on those countries with its” shock therapy” during the 90’s?

    • Dr. Sarita D. Jackson says:

      Hello James. In a nutshell, countries that seek accession to the EU must have an open-market economy, maintain a democratic government, and adopt all EU legislation. Specifics about EU membership could be found at this link. Croatia’s recent entry into the EU may be beneficial economically. However, it does not mean that EU membership automatically prevents the same situation as in Greece, considering that Greece is also a part of the EU. Other EU countries, such as Spain and Italy, have also been facing an economic crisis.

  3. James Ingran says:

    Oh forgot how much will this impact trade negotiations if they are accepted?

    • Dr. Sarita D. Jackson says:

      The entry of other former Yugoslav republics will not affect trade negotiations. These countries have had candidate status going as far back as 2003. Once they satisfy the criteria (e.g. free market economy) and join, trade negotiations will not be impacted one or way or another due to their membership. Keep in mind that the EU has its own trade officials that negotiate on behalf of the 28 member countries as one entity. Thanks for your question.

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