The Transatlantic Trade and Investment Partnership (TTIP) refers to a trade agreement between the U.S. and the European Union. It aims at promoting trade and international economic growth, strengthening the relationship between the U.S. and the EU, and increase jobs. However, the negotiations on the TTIP have entered a complicated stage. There is an ongoing debate on the applicability of the agreement. The U.S. Senate plays a significant role in the nation’s trade policy regulation.
In regard to TTIP, the Senate should ratify the agreement since it will increase access to the European market for Americans. In particular, it will result in lower trade tariffs and quotas, reduced regulatory processes, and better customer experience. Besides, more products will be available, as well as increased job opportunities and wages are expected. At the same time, concerns about possibly decreased food quality, environmental hazards, and lower labor standards were expressed. Hence, the process of defining economic expectations of TTIP is still ongoing. Transparency of policies and regulations of the agreement can influence citizens’ attitudes and the negotiations’ outcome.
A regional trading group is a cooperative economic integration of countries located within a specific geographical boundary. Regional trading groups ensure the protection of the group members’ commercial interests from outside parties and can take the forms of preferential trade areas, free trade areas, customs unions, and common markets. The influence of regional trading blocks can be beneficial for organizations. In particular, foreign direct investment increases, advantaging the economies of the countries involved. The competition rates grow since more manufacturers are brought together. As a result, productivity within organizations increases, and markets become more efficient.
However, some drawbacks for companies are also associated with regional trading groups. Regionalism and the loss of sovereignty are the possible effects of regional trading agreements. Besides, organizations from non-member countries must make concessions to access the market. Finally, the interdependence of the block members can be harmful in the event of a conflict or natural disaster. Regional trading groups are expected to support global governance and ensure smooth cooperation. Still, the advantages and disadvantages of regional trading agreements need to be considered by the country which wishes to join one.