Transatlantic Trade and Investment Partnership

Question: Discuss about the Transatlantic Trade and Investment Partnership. Answer: Introduction: The North American Free Trade Agreement of NAFTA is considered as one of the most unpleasant agreement in United States. The agreement was signed by Mexico, United States and Canada. The American companies have advantage over this deal, especially countries having many lower wageworkers in foreign countries. In contrast, this agreement is criticized by the American workers, who have lost their employment and getting low wage. These labour unions raised their voice against this trade agreement, due to not getting any benefits from this agreement. Thus, the trend of business is changing frequently (Lahrech Sylwester, 2013). Moreoevr, the North American Free Trade Agreement is not also supported by Trump and Clinton, as the agreement is unable to meet their business expectation and Trade agreement. A number of previous literatures have represented approximately tenfold trade deficit between these two countries from $17bn to $175bn within 1993 to 2013. Due to the shifting of manufacturi ng facilities of American enterprises, jobs were expatriated outside of the country for pursuing low wage workers (Macleod, 2015). In contrast, a deal was signed between United States and European Union, known as Transatlantic Trade and Investment Partnership. Economy and Trading are two key aspects of these two developed countries. Both EU and US based companies has their branches and operates in the other country. It has been reported that the establishment of free trade between these two countries, always have a positive effect and results in reduction of unemployment with a free of cost package. This agreement between these two countries increased the economic growth and GDP of these countries by 0.5 % per annum (Akhtar Jones, 2013). The result is additional economic activity along with additional production of $200 bn per annum. For instance it has been revealed that due to the clearance of regulatory requirements, both the automobile industry and pharmaceutical industry revealed significant benefits from both sides. The trade agreement has also shown benefits for these two countries regarding the import t axes and tariffs. Therefore, after analyzing the efforts by the Transatlantic Trade and Investment partnership (TTIP), it can be interpreted that the agreement TTIP is advantageous to the countries, as these countries have experienced unemployment, lower economic growth and government issues. Thus, the free trade agreement will attempt to resolve these above mentioned conflicts from both sides. Thus, the labour unions of US are not opposing the TTIP agreement (Jarman, 2014). Reference List Akhtar, S. I., Jones, V. C. (2013). Proposed transatlantic trade and investment partnership (TTIP): In brief.Current Politics and Economics of Europe,24(1), 107-122. Jarman, H. (2014). Public health and the Transatlantic trade and investment partnership.The European Journal of Public Health,24(2), 181-181. Lahrech, A., Sylwester, K. (2013). The impact of NAFTA on North American stock market linkages.The North American Journal of Economics and Finance,25, 94-108. Macleod, D. (2015). Review of" The Selling of Free Trade: NAFTA, Washington, and the Subversion of American Democracy," by John MacArthur.Journal of World-Systems Research,10(2), 558-560.