TTIP: No, thanks...
9/7/15 16:33![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
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talkpoliticsAt first sight, Silvia, a German friend of mine who co-owns a small textiles equipment workshop in Bavaria, should probably be feeling pretty enthusiastic about the impending trade agreement between the US and the EU, which is meant to enhance the movement of goods and services between the two sides of the Atlantic.
In reality though, she's concerned that the Transatlantic Trade and Investment Partnership that's now being forged in Brussels and Washington would give way too much power into the hands of the multinational companies at the expense of small businesses like hers. Her biggest concern of all is that the the details of the proposal are being discussed behind closed doors, not without the active participation of a number of large corporations. Her firm is one among thousands of small and mid-size businesses across Germany, which make up about 9/10 of the German exports and are basically the backbone of the most powerful economy in Europe.
Much like many of her peers, Silvia believes that while TTIP is meant to bring huge benefits for the multinational companies, it would hardly have the same positive impact on small and middle business. Her sentiment reflects the skepticism about this treaty that is prevalent throughout Europe, particularly Germany, where so far the media has been mostly focused on the protests of various unions and anti-globalists. Her opinion also outlines the main challenge to Angela Merkel, who's been trying to sort out her relations with her constituents regarding this treaty for quite a while now.
The advocates for the TTIP argue that it would create a shared market of 800 million people, and give a push to production, and counter-balance China's emerging economic power. But evidently, that still hasn't helped Germany make up its mind on the issue. And this is understandable, since it's among the few leading economies in the world that have actually increased their market share in the last decade and a half.
Merkel's problem is that people like Silvia are not few at all in their concerns. Most polls indicate that only a fraction of the small and middle business in Germany support the TTIP, and that support is dropping. And the majority of them believe Germany is not doing enough to defend their interests in the negotiations process. Their main problem is the question how potentially emerging disputes would be solved. They're concerned that the US-dominated multinational companies would be using the stipulation on sorting disputes between investors and states to circumvent national courts and blackmail governments for their own benefit.
The OECD estimates that the average expenses for judicial and arbitration in such court cases would exceed 7 million euro. And that is an impossible amount for most small and middle-sized enterprises.
They're not against free trade, and many of them actually support the purpose of the TTIP to remove tariffs and create common technical standards, because that would remove the necessity of separate research work and certification at the two sides of the Atlantic. But this liberalization would disproportionately help US companies who are exporting to Europe, to use the lowered entry threshold to their benefit, at the expense of their European counterparts. This is what's causing the most worries in many small and middle-sized firms. Because there is the wide-spread belief that the US companies would be in the far more favorable position, due to their easier access to resources, and the lower expenses on energy. So, having no tariffs any more does not necessarily mean that people would produce or buy more stuff for less money at this side of the ocean. In fact, chances are that the volume would remain much the same, only the trade balance would be tipped further into western direction.
In reality though, she's concerned that the Transatlantic Trade and Investment Partnership that's now being forged in Brussels and Washington would give way too much power into the hands of the multinational companies at the expense of small businesses like hers. Her biggest concern of all is that the the details of the proposal are being discussed behind closed doors, not without the active participation of a number of large corporations. Her firm is one among thousands of small and mid-size businesses across Germany, which make up about 9/10 of the German exports and are basically the backbone of the most powerful economy in Europe.
Much like many of her peers, Silvia believes that while TTIP is meant to bring huge benefits for the multinational companies, it would hardly have the same positive impact on small and middle business. Her sentiment reflects the skepticism about this treaty that is prevalent throughout Europe, particularly Germany, where so far the media has been mostly focused on the protests of various unions and anti-globalists. Her opinion also outlines the main challenge to Angela Merkel, who's been trying to sort out her relations with her constituents regarding this treaty for quite a while now.
The advocates for the TTIP argue that it would create a shared market of 800 million people, and give a push to production, and counter-balance China's emerging economic power. But evidently, that still hasn't helped Germany make up its mind on the issue. And this is understandable, since it's among the few leading economies in the world that have actually increased their market share in the last decade and a half.
Merkel's problem is that people like Silvia are not few at all in their concerns. Most polls indicate that only a fraction of the small and middle business in Germany support the TTIP, and that support is dropping. And the majority of them believe Germany is not doing enough to defend their interests in the negotiations process. Their main problem is the question how potentially emerging disputes would be solved. They're concerned that the US-dominated multinational companies would be using the stipulation on sorting disputes between investors and states to circumvent national courts and blackmail governments for their own benefit.
The OECD estimates that the average expenses for judicial and arbitration in such court cases would exceed 7 million euro. And that is an impossible amount for most small and middle-sized enterprises.
They're not against free trade, and many of them actually support the purpose of the TTIP to remove tariffs and create common technical standards, because that would remove the necessity of separate research work and certification at the two sides of the Atlantic. But this liberalization would disproportionately help US companies who are exporting to Europe, to use the lowered entry threshold to their benefit, at the expense of their European counterparts. This is what's causing the most worries in many small and middle-sized firms. Because there is the wide-spread belief that the US companies would be in the far more favorable position, due to their easier access to resources, and the lower expenses on energy. So, having no tariffs any more does not necessarily mean that people would produce or buy more stuff for less money at this side of the ocean. In fact, chances are that the volume would remain much the same, only the trade balance would be tipped further into western direction.
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Date: 9/7/15 13:41 (UTC)???
Date: 9/7/15 19:43 (UTC)RE: ???
Date: 9/7/15 20:06 (UTC)