If concluded, the Transatlantic Trade and Investment Pact (TTIP) would be the largest trade agreement in history. Proponents argue it could generate millions of new jobs and up to €120 billion worth of additional economic output across the EU. However, critics worry that creating the largest free-trade zone in the world (accounting for roughly one-third of global trade) could harm developing countries by reducing their access to European and US markets.
According to one study, countries such as Mexico could see their per capita GDP contract by as much as nine percent. The same study predicts that “virtually all” countries in Asia would suffer a decline in growth of between 0.5 and 2.5 percent.
A more recent study is slightly more optimistic about the impact of TTIP on developing economies, but nevertheless predicts that the region suffering the biggest negative economic impact from TTIP would be Southeast Asia.
To give you an overview of some of the numbers involved, we’ve put together an infographic of facts and figures related to EU-Asia trade as it currently stands. Click the image below for a bigger version.
We had a comment sent in by Tarquin, arguing that TTIP might be the only way for the EU to continue to have an impact in a rapidly globalising world, particularly in terms of setting global trade terms.
To get a reaction, we put Tarquin’s comment to Surin Pitsuwan, former Secretary-General of ASEAN (2008-2012). Was he worried about the negative impact TTIP could have on the economies of Southeast Asia?
Will TTIP hurt developing countries? Let us know your thoughts and comments in the form below, and we’ll take them to policymakers and experts for their reactions!