Impact study lauds TTIP
9. 5. 2016 | Source: BusinessInfo.cz
An impact study has concluded that the proposed Transatlantic Trade and Investment Partnership (TTIP) between the EU and US would benefit the Czech Republic by toppling regulatory barriers to trade.
Depending on the degree by which obstacles were removed, the country’s real GDP would grow by anywhere between 0.05 and 0.71 percent, it contends. In financial terms, the annual GDP improvement would thus be between USD 32m and USD 895m. The study was commissioned by the Ministry of Industry and Trade [MPO]. It more or less backs up similar conclusions reached by assessments made by European institutions.
Any visible macroeconomic impacts on overall output, employment levels or the national wealth would only come about if Czech exports across the big pond were substantially strengthened by cut tariffs and the removal of non-tariff and administrative obstacles. “That does not mean, however, that we should not strive to see the treaty pass. The study shows that the more ambitious the treaty, the greater its impact on the Czech Republic. Although the important thing will be the degree to which Czech business is able to take advantage of arising opportunities,” said deputy trade minister Vladimír Bärtl.
The fresh figures contradict anxieties that the TTIP would destroy Czech jobs. On the contrary, a swelling demand for workers is projected. Easier access to the European market that would be enjoyed by American firms could of course mean tougher competition for Czech companies on some European markets. “But it is not expected that Czech exports to these countries would be edged out to any notable degree by US rivals. Exports from the US and the Czech Republic to the rest of the EU do not overlap significantly,” stated Vilém Semerák, one of the study authors.
Areas in which this country could most gain from the treaty include mechanical engineering, the automotive, pharmaceutical, chemical and food industries and agriculture. Exports to the US of Czech foodstuffs and agricultural products are negligible.
Given that the structure of the domestic industrial sector is close to that of Germany, the Czech Republic has similar interests to its big neighbour. “As long as the final treaty benefits Germany, there’s no reason to believe it would not benefit the Czech Republic just as well,” concluded Semerák.
Originally published in E15 weekly, economic and business newsmagazine. Author: Jan Stuchlík