The market moment
A more pragmatic approach for the TTIP
By Carlo Pelanda*
The Transatlantic Trade and Investment Partnership (TTIP) certainly is the most effective solution for boosting growth both in the United States and in the EU because it will lower barriers and differences in the two markets and this will favor a general expansion of business. The language of the agreement currently in development looks very ambitious. It seems to be more similar to a "single market" treaty based on converging market standards than to a simple "free trade area". On one hand, this possible configuration of the agreement is necessary for unleashing the full economic potential of the Atlantic convergence. On the other, its complexity might make the negotiation process - that should be concluded by 2015 - vulnerable to delays and even to a write off. It would be wiser to adopt a more gradual approach: (a) to close as soon as possible (by 2014) a general agreement, with the format of a "platform", formalizing the commitment for completing the TTIP; (b) to immediately activate the trade convergence in those sectors where a consensus is easier to reach; (c) to activate step by step the most controversial sectorial agreements providing them with enough time for compromises. In conclusion, the recommendation is that of not trying to close all the TTIP in one shot, but of implementing it gradually in order to avoid failure.
*Prof. Carlo Pelanda, www.carlopelanda.com, is Director of the PH. D. Program in Geopolitical Economy, Marconi University, Rome, and Member of the Academic and Policy Board of the Oxford Institute for Economic Policy (OXONIA), Oxford.