A Worldwide Trend: Free Trade
Agreements
At least 110 countries are parties to negotiations
concerning more than 22 regional free trade
agreements.
Nonetheless, TTIP is of particular importance
because EU und USA account together for
44 % of global economic output and 60 % of
foreign direct investment
Transatlantic Trade: A Daily Success
Story
Every single day, goods worth approximately 1.8
billion Euros are being exchanged between the
US and Europe.
Tariffs are already very low: According to WTO
estimates, customs duties in the US are 3,5 %
on average, and in the EU 5,2 % on average.
This raises an obvious question: Why is a Free
Trade Agreement needed at all ???!!!
Currency Speculation: The True
Barrier To Trade
Currency speculation amounts to 5.3 trillion USDollars – every day
The entire world trade amounts to about 18.4
trillion US-Dollars – a year.
German Mark / Euro against the
Dollar
What TTIP aims at
TTIP focuses on so-called „non-tariff barriers“, i.e.
product regulations hindering the exchange of
goods.
An often cited example is the car industry: In
Germany, wing mirrors have to fold in – but not
in the US.
TTIP is not a job machine
A study for the EU commission came to the
conclusion:
A growth of 0,5 % is to be expected in the EU –
over the next 14 years till 2027.
This is 0,036 % per year
A Telling Detail: Major Industries Are
Not Keen on Free Trade
The talks relating to chemical products have
already been suspended. It turned out to be
impossible to agree on a uniform concept of
„risk“ that is acceptable to both the EU and the
US
Major trade unions are against TTIP because they
do not expect any significant advantages for the
export industry.
Thus the question remains: Why TTIP?
The real danger: TTIP will be a
„living agreement“
Step 1: Americans and Europeans will initially only agree on
standards which require little negotiating since they are
already similar on both sides of the Atlantic
Step 2: The agreement will stipulate that it is necessary to
examine at a very early stage of each new law whether it
has „material“ impact on trade relations.
This would allow European and American companies to
drastically expand lobbying activities – on both sides of the
Atlantic
What does TTIP mean for Greece?
Trade relations between Greece and the US are
rather weak. In 2010, Greece imported goods
worth 536 million Dollar and exported goods
worth 544 million Dollar (waterborne trade).
The main export good of Greece is tourism –
which is not included in TTIP.
Nonetheless, TTIP might be extremely dangerous
for Greece – due to the „investor protection
clauses“
Special Rights For Investors
Foreign companies can sue a country if they see
their investments in danger.
They can appeal to an international court of
arbitration
These courts have three members: a
representative of the investor, a representative
of the defendant state and a mediator
„Indirect Expropriation“
Investors can appeal to arbitration courts
whenever they believe to be „indirectly
expropriated“.
This can refer to consumer and environmental
protection, land and raw material use, or
minimum wages.
Just one example: The Swedish energy
corporation Vattenfall sued Germany to pay 3.7
billion Euro because it had to shut down two
nuclear power plants
Problems of a perverted law
Courts of arbitration are ad hoc tribunals.
In similar cases they come to very divergent
decisions.
Appeals are not permitted
Court procedures are secret
Governments often abandon laws if coprorations
threaten to appeal to an arbitration court
Foreign investors enjoy a privelege that domestic
investors do not have
Greece is very vulnerable
Greece is particularly vulnerable to compensation
claims: Due to the Euro Crisis the government
will be forced to intervene continuously into the
social and economic system