The TTIP its potential impacts on the EU

Abstract

This dissertation puts forward the research question ''what will be the Transatlantic Trade Investment Partnership's (TTIP) potential economic impacts on the European Union's markets?". The TTIP can be one of the major milestones of the EU. It is an extremely ambitious step for the EU and thus, it was thought that the whole idea of a study on the potential free trade's agreement is important due to the fact that should the TTIP be realised, it will most likely change the EU's economy as we know it in a substantial manner. This brings the question whether the EU's economic markets are ready for such liberalisation. Will the United States market be too big for local EU markets to gain from the agreement? Will the EU cope with the potential new competition from the American markets? Or will the EU thrive under the TTIP and possibly become an even greater economic powerhouse on the global scene? This dissertation will analyse trade implications of different sectors in the EU and the US based on international trade theory, with particular focus placed on the countries' comparative advantage's formulas in production and concurrent specialisation and trade pattern. Specifically, the comparative advantages are calculated and compared to the protection levels of the markets. From the information gathered, it can then be concluded whether the EU is facing a potential economic rise or downfall as a result of the TTIP's market liberalisation.