Possible benefits of TTIP
TTIP can offer benefits for both people and businesses. Examples include improved purchasing power, more jobs, cheaper products and more opportunities for new and existing companies.
Possible benefits for people
Improved purchasing power through economic growth
Various studies have been done on the economic consequences of TTIP. Most predict positive effects. The Ecorys research agency conducted the study ‘EU-US High Level Working Group’ for the Dutch government. It forecast that TTIP could earn the Netherlands between €1.4 and €4.1 billion.
A study by Jeronim Capaldo of the Global Development and Environment Institute was less positive. Capaldo applied different basic assumptions to most other studies. He predicted that TTIP would hurt the EU in the long term. You can read more about this in the government’s letter to parliament of 28 January 2015 responding to the report on the economic consequences of TTIP.
Almost half of Dutch employees work in companies that export their goods and services. If international trade increases, these companies will increase their turnover. This can in turn lead to them investing more, which creates more jobs. You can find more information in the European Commission’s Impact Assessment Report on the Future of EU-US Trade Relations.
Cheaper products and more choice for consumers
TTIP will abolish import duties and other barriers to trade. This means that products from the US can be imported into the EU more cheaply.
Possible benefits for companies
Under TTIP, the EU and the US will abolish import duties. Trade between the EU and the US is worth €800 billion a year. Import duties are already low, averaging 3%. But their abolition will save companies billions of euros. This will give them greater scope to invest and expand. And they will need to hire more employees.
More opportunities for small and medium-sized enterprises and new businesses
Dutch small and medium-sized enterprises (SMEs) in particular stand to gain from TTIP. This was one of the findings of a study on TTIP by the European Commission from april 2015. SMEs account for 59% of total Dutch exports. They have smaller margins than large multinationals. This means they are affected more by different working methods and delays at borders.
New businesses will be able to export more easily. This will expand their markets and enable them to increase production. That will require more labour.
Lifting trade barriers will also benefit companies that do not (yet) export their goods and services. As part of the supply chain, they will share in the benefits of increased exports by larger companies.