The Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States would have a positive impact on both output and well-being in Finland, finds a recent study.
Philipp Engler, a researcher at the Free University of Berlin, and Juha Tervala, a researcher at the University of Helsinki, have estimated that the partnership would have a welfare effect equivalent to 1–4 per cent of the baseline gross domestic product. The welfare effect, they add, would allow the average EU citizen to make a one-off purchase of 460–1,160 euros.
Engler and Tervala believe the partnership would add 0.2–0.4 per cent to the gross domestic products of both the European Union and the United States, a finding that is in line with the results of previous studies on the output and trade effects of the TTIP.
Finland could consequently record an increase of 330–790 million euros in national output.
“The TTIP would promote trade between the EU and the US considerably, but its positive impact on output and well-being could only be moderate. The results of the study nevertheless provide support to the efforts to sign the TTIP,” the researchers say according to a press release from the University of Helsinki.
Previous studies on the subject have focused primarily on the effects of the partnership on international trade and gross domestic product. The welfare gains, meanwhile, depend on its effects on consumption and employment.
The researchers point out that important economic policy decisions should not be made based on the results of individual studies. “Several studies nevertheless corroborate the usefulness of the TTIP. Constructive discussion should focus on analysing what type of an agreement would best promote the well-being of residents in the EU and the US,” they say.
The partnership has also come under considerable criticism, with people warning that its economic benefits will be overshadowed by its possible adverse effects on consumer protection and the environment.
The European Union and the United States kicked off the free trade negotiations in 2013 and entered the 14th round of the negotiations in July. Anneli Jäätteenmäki (Centre), a Member of the European Parliament, estimated last week that the negotiations have all but collapsed. Sigmar Gabriel, the German Minister for Economic Affairs, went a step further by stating that the negotiations have failed altogether.
Aleksi Teivainen – HT
Photo: John Thys – AFP / Lehtikuva
Source: Uusi Suomi