A Transatlantic Trade Agreement or TTA is a proposed trade agreement between the United States and the European Union which aims to eliminate trade barriers, reduce tariffs, and streamline regulatory frameworks between the two economic giants. The TTA is seen as a landmark agreement that would create the world`s largest free trade area, with a combined GDP of $35 trillion, and encompass nearly a third of global trade.
The negotiations for the TTA started in 2013 and were expected to conclude by 2015. However, the negotiations faced numerous obstacles and were delayed several times. Critics of the agreement argue that it could harm small and medium-sized businesses and lead to job losses, while supporters believe that it would boost economic growth and create new opportunities for businesses on both sides of the Atlantic.
One of the key objectives of the TTA is to eliminate barriers to trade, such as tariffs and non-tariff barriers, which include regulations, standards, and other technical barriers that make it difficult for goods and services to move between the US and the EU. The agreement also aims to increase investment by simplifying rules and regulations for businesses operating in both regions.
Another important aspect of the TTA is regulatory convergence. This means that the two sides would work towards harmonizing their regulatory frameworks, which would help reduce the costs and complexities associated with doing business across the Atlantic. The TTA would also establish mechanisms for resolving any disputes that may arise between businesses and governments.
Perhaps the most controversial aspect of the TTA is the Investor-State Dispute Settlement (ISDS) mechanism. This allows foreign investors to sue governments if they believe that their investments have been harmed by government policies or regulations. Critics argue that ISDS could undermine national sovereignty and lead to a dilution of environmental and labor standards. However, supporters argue that ISDS is necessary to protect the rights of businesses and investors and assure them of a fair and predictable business environment.
In conclusion, the Transatlantic Trade Agreement is a major trade agreement that seeks to promote greater economic integration and cooperation between the US and the EU. While it faces numerous challenges, including opposition from some quarters, a successful TTA would create new opportunities for businesses, boost economic growth, and strengthen ties between two of the world`s largest economies.