Transatlantic Trade and Investment Partnership (TTIP) Who benefits from a free trade deal? – Part 1: Macroeconomic Effects

Summary:

From an economic point of view, the US and the EU would profit from dismantling tariffs and non-tariff trade barriers between both regions because real gross domestic product per capita and employment would increase. These economic gains do stand in contrast with economic losses in the rest of the world.

After a discussion of the methods used and a more detailed description of the scenarios, the authors examine the TTIP effects on the structure of world trade. They answer the question “Where does trade grow, where does it shrink and by how much?” The authors then turn our attention to TTIP effects on real per capita income, i.e., per capita Gross Domestic Product (GDP), which enables global welfare effects to be quantified. Finally, they report on the results of a model simulation that allows us to quantify the effects on unemployment rates.

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