The EU member states and the USA are showing a growing interest in intensifying transatlantic trade relations, especially as emerging economies like China and India gain competitiveness compared to the older industrialised states. Although the Europe-an Union and the USA have already concluded a series of free trade agreements with various countries, these agreements would be dwarfed by a Transatlantic Free Trade Agreement (TAFTA). “Such a set of rules and regulations would create a free trade area representing nearly 50% of global economic output” notes Prof. Gabriel Felber-mayr, head of the International Trade Department at the Ifo Institute.
To determine the effects of a far-reaching liberalisation of trade, the Ifo experts working with Felbermayr compared the trade creation, trade diversion and added prosperity effects of an internal market scenario featuring the removal of non-tariff trade barriers with the effects that would arise from merely abolishing customs duty. With the help of existing free trade agreements, researchers were able to draw conclusions regarding the potential effects of a comparable transatlantic trade agreement.
Munich, 02/28/2013 |Journal of economics| (Fragment)
In my opinion the trades agreement, well planned for all the countries members, provide good results, increasing the competitive, quality, and commerce. This to big markets, have high standards in the products and services, so I think the products will be well commercialized.
ResponderEliminarIt is also important, that all the members, have the opportunity to be, in an open market, because the competition, will be stronger, so, for the small companies, will be a challenge, to get into a new big business environment.