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Transatlantic Free Trade: The View Point of Germany

Author

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  • Gabriel Felbermayr
  • Rahel Aichele
  • Gabriel J. Felbermayr

Abstract

The proposed Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States of America would be the largest preferential trade agreement in the world. Encompassing almost half of world GDP, it will have strong economic effects on Germany. In this paper, we put this trade policy initiative in its broader perspective. We argue that, despite appearances, the US-German trade potential is not exhausted. We survey existing studies and find that the project could increase per capita income in Germany by between 1 and 3%. We critically question the need for investor-state dispute settlement and argue that the TTIP will have discriminatory effects on at least some third countries. However, regulatory councils are important ingredients of the deal as they guarantee that the TTIP will indeed influence the setting of global standards in the future.

Suggested Citation

  • Gabriel Felbermayr & Rahel Aichele & Gabriel J. Felbermayr, 2014. "Transatlantic Free Trade: The View Point of Germany," CESifo Working Paper Series 5151, CESifo.
    • Handle: RePEc:ces:ceswps:_5151
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    Cited by:

    1. Gabriel Felbermayr & Wilhelm Kohler, 2015. "TTIP and Developing Countries: Threats, Potential and Policy Options," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(02), January.

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    More about this item

    Keywords

    Transatlantic Trade and Investment Partnership; preferential trade agreements; gravity; investor-state dispute settlement;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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