TAFTA (Transatlantic Free Trade Area) was a major topic of political discussion a few years ago. Already in the early 1990s, talks began about the need to remove economic and trade barriers between the Old and New Continents.
TAFTA (Transatlantic Free Trade Area) was a major topic of political discussion a few years ago. Already in the early 1990s, talks began about the need to remove economic and trade barriers between the Old and New Continents. Further steps were taken in 2007, without success. further plans to have the project in place by the end of 2014.
The project has potential
Trade between Europe and the US is the backbone of the global economy. Therefore, a transatlantic free trade area has potential. It may become an opportunity to modernise legal solutions in various countries, influence the creation of new enterprises and, consequently, new jobs. This is a huge opportunity to get out of the crisis. The removal of barriers to trade, including the removal of customs duties, is of strategic importance. However, while the issue of customs duties should not cause many problems, non-tariff trade barriers may prove to be the biggest obstacle.
TAFTA though has raised serious questions among farmers in the Old Continent. Opening up to the US market, which allows genetic modification and the spread of products from cloned animals, could be lethal for a market that is squeezed by EU standards.
Another obstacle in the way of a transatlantic agreement could be the incompatibility of interests of potential partners in another field, namely climate policy and attempts to limit CO2 emissions made by European countries. The Americans, on the other hand, are not initiating such radical action on this issue. Milbradt also pointed out that if there was a single market, a government would be needed to coordinate it.
Since the end of World War II, the transatlantic partnership has been the basis for the US to develop common political and civilizational values, the vehicle for which during the Cold War was primarily the North Atlantic Alliance. In the 1990s there was a proposal to create a Transatlantic Free Trade Area (TAFTA), but TAFTA failed at this stage due to the commitment of both sides to establish global trade liberalisation mechanisms within the World Trade Organisation (WTO) and the favourable economic situation on both sides of the Atlantic
Just a year ago, the U.S. trade deficit with the union was $107 billion. TAFTA would change this by creating the conditions for increased exports, but looking at other, analogous U.S. agreements on trade issues, none of them have lived up to expectations. As George Monbiot of the UK Guardian points out – Obamas United States-Korea Free Trade Agreement (KORUS FTA) was supposed to boost US exports by $10 billion and give the economy 70,000 new jobs, but the former fell by $3.5 billion and the market shrank by 40,000 jobs. Clintons deal, the North American Free Trade Agreement (NAFTA), was supposed to create 200,000 new jobs – 680,000 have ceased to exist.