مرکز منطقه ای اطلاع رساني علوم و فناوري - THE EFFECT OF TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP AGREEMENT ON WORLD TRADE AND TURKISH ECONOMY

Abstract :

Transatlantic Trade and Investment Partnership Agreement (TTIP) which aims to create a free trade area between the European Union and the United States becomes one of the major issue for the international trade system. This pattern of cooperation is a reflection of geopolitical rivalry between the China and the Western block. TTIP has been characterized as an attempt by the EU and the US to challenge rising economies by deepening their economic integration. On the other hand, this agreement would not only aim to strengthen and renew transatlantic alliance but more ambitiously, aim to introduce a new generation of mega/regional free trade agreements. The World Trade organization system which established multilateral trade structure could not work efficiently especially after the Doha Round. As a result, the EU, the USA and the other rising regional powers decided to regulate their trade relations through regional free trade agreements which eliminate customs duties, improve the investment environment and protect foreign direct investments and intellectual property rights. This new system would transform the current trade rules which were constructed by the EU and the United States. In this framework, TTIP symbolizes a new era for the mega regional trade agreements. On the other hand, like the other regional agreements, TTIP can create trade diversion effect on the third countries. If the country’s economy depends on exports to the TTIP countries, it could be affected more strongly. Turkey economy also would be affected negatively because of the Turkey’s Customs Union Agreement with the EU. This current international issue is very vital for the Turkish economic interests. In this framework, this study aims to provide an evaluation for the TTIP agreement which would effect both international trade system andTurkish economy.