Publication

This commentary focuses on the negotiations for a comprehensive Transatlantic Trade and Investment Partnership (TTIP) to reduce tariffs and non-tariff trade barriers between the US and the EU. The authors argue that while the expected economic benefits for both sides would be more than welcome in an era of gloomy growth forecasts, a TTIP is not entirely without risks for global trade and the multilateral trading system. The talks could tie up a considerable portion of EU and US negotiating capacity and divert attention from the WTO Doha Round. More broadly, the effects of trade diversion could be detrimental to other trading partners.