The European Union as an International Actor: Trade and Relations

This report examines the European Union's role as an international actor, focusing on the transatlantic relationship, particularly the Transatlantic Trade and Investment Partnership (TTIP). It analyzes the economic and strategic implications of the EU-US partnership, considering factors such as China's role and internal challenges within the US. The report discusses the potential benefits and challenges of TTIP, including job creation, regulatory harmonization, and the impact on various sectors, including pharmaceuticals and small businesses. It also highlights the specific case of Malta, examining the country's perspective on TTIP and its potential effects on trade, investment, and agriculture. The report further explores the concerns of Maltese farmers and consumers regarding increased competition and potential changes in agricultural standards. It concludes by emphasizing the importance of cooperation and the need to address regulatory differences to generate economic development.

The European Union as an
International Actor
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TABLE OF CONTENTS
SIMULATION PAPER ..................................................................................................................3
REFERENCES .............................................................................................................................13
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SIMULATION PAPER
The Transatlantic Relationship: strategic partners or drifting away?
The evolution of the transatlantic economic association is considered as the new
concept emerged in the global economic environment. The mutual partnership between the US
and EU is overriding from dual aspects in relation to commercialism and also trade. Though such
relation seems to become less applicable in relation with distribution of the worldwide GDP. The
mentioned trade as well as financial partnership to make investments that has to be eventually
subscribed in 2015 is considered as major constituent related with prospective convergence
among both the nations of EU and US in upcoming time. The increase in significance of the
pacific region for the US as well as the internal problem of nation associated with US with
respect to inactive development and adverse state of affairs towards profound economical
consolidation can minimize the attractiveness of EU as an essential partner. The China's part as
third major partner at economical level all across the world cannot be ignored (Meng and et. al.,
2016). However it early to make prediction of do China would act along with the new regulative
norms that would be fixed by TTIP. Because of all these reasons, it is projected that the
transatlantic economic terms will be able to maintain the position towards last long alliance.
Though doubtful situation with respect to ultimate result of the TTIP and economic betterment
within EU makes suggestion that can head to greater structural state conditions.
The Transatlantic Trade as well as finance Partnership presently under discussions by the
US as well as EU that has promised to relinquish momentous chances for generating
occupations, business as well as rendering funds all over the Atlantic. TTIP in centre is
considered as the economic integration that eventually would support or tumble on the
advantages in economic terms. Still, TTIP is reflecting a broader new transatlantic agreement
that is world which has developed primary transatlantic confederation is weakening at faster rate.
Along with this there is greater importance that Americans and Europeans need to work upon
thus on urgent basis for building partnership which is more effective in making generation of
economic opportunity as well as confidence at home (Kikutani and et. al., 2016). It is also for the
sake of engaging power of others, strengthening as well as widen elementary criterion and
guiding laws that leads global scheme. Such kind of broad aim is likely to affect the ultimate
nature of TTIP as well as content. Further political considerations are not only the economic
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concretion but are components that fortify or diminish the assistance in relation with TTIP
between the key constituencies both insider as well as outside the community of transatlantic. A
flourishing TTIP would provide sizable geo strategic merits to US as well as EU. However it
also experience significant challenges. TTIP is not referred to as new idea. Discussion over
aspirant transatlantic trade has expanse back all over the cardinal period of time since 10 years.
A serious EU and US discussion never took place. These is because of two criticism. This initial
proposed that the transaction will be very stretchy, soaking the bipartite system as well including
various problems and arriving in Americans and European societies (Fezeu and et. al., 2015).
This will invite the opposition by too many interest groups. However it has been argued by
others that the deal will be very petite as transatlantic duties and other obstructions to trade were
not that eventful.
Every controversy has gone down. Although the US as well as European government will
prefer planetary concord on much more stretched trade, the Doha round of bipartite
commercialism negotiations is tumbled. The bilateral system that is being managed by WTO is
in the challenge specifically by the number of increasing flourishing nations that present small
who demonstrate little interest in the new market inaugural initiatory and does not make sharing
of the midpoint principles or fundamental composition that are underlining open regulation
supported commerce. Because of this the worldwide economy is unsettled perilously with
respect to sue of international prejudiced trade, regulative as well as investment activities (Jones,
2014).
The second one is that even though the transatlantic duty might be less, the transatlantic
economy is very vast that even minimization in the smaller tariffs has mor e importance than big
tariffs cuts within small high growth markets. Further elimination of the tariffs is easier towards
tackling regulatory differences, when more substantial transatlantic economic gains can be made.
In addition to this the American and EU economies are troubled towards the recovery from the
vast inflation. TTIP provides chances towards generating occupations as well as development
without stilting on the extra liabilities of the government (Fairhurst and et. al., 2014). TTIP is so
considered as ample discussion. But the actuality among the deeper integration among US as
well as EU economies implies that greater alignment as well as coherence on the issues that
ranges from various employment and funding to regulative distinctions can act more towards
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generating the occupation and economic development than wide emphasis over the conventional
commercial obstructions alone.
At last how there are regulative or various difference among US and EU on equilibrium
like differences weaken as compared with distinctions every one possess several other nations
(Perkin and et. al., 2015). The inclusion of the 4 billion citizens to widen economy and increase
in different powerfulness, along with present western economic upheavals has induced US as
well as decision makers of Europe who provide the chances can be closed depending over the
capability of the Western countries for maintenance of advanced labour, customer health,
security as well as biological standards and also to progress the major standards related with
tolerant regulations supported orders till the US and EU act in an effective manner together.
Within Malta the US trade alone amounts to across €300 million years. The Malta is
regarded as Chamber of Commerce which is striving towards putting TTIP at the forefront of the
discussion on national level due to its potential benefits towards smaller open economy as Malta.
The smaller economy that is Malta is to a greater extent depends on the foreign direct
investment. The representatives of the Maltese business feels that TTIP will provide them with
huge opportunities for FDI. US business has already made employment of over 2000 people
within Malta. Greater number of theme are working for franchises are involved. Higher level of
efficiency assist foreign firms within Malta in making production at greater competitive cost.
They often carries out manufacturing of complex products that need lot of technical capability
(Smith, 2015). TTIP can make expansion in the commercial activities among Malta and US by
making reduction in the barriers to investment for the smaller and large firms alike. Malta will
naturally gain advantage from the reduction in the tariffs as such will alleviate the excessive
costs for wider range of the local industries that possess the desire to make export in US
specifically in the areas that are having higher tariffs the one affecting SMEs. By the means of
removal of the non tariff barriers to trade will have the similar impact on the Maltese business. A
concrete example in relation with the main advantage expected of TTIP is in relation with the
pharmaceutical sector. Presently the development of the new pharmaceutical products needs two
separate approval procedure because of the detail heavy regulations (Angrave and Charlwood,
2015). The regulatory harmonization will significantly make reduction in the cost of
development of the new products. Regulatory harmonization will significantly result in reducing
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the cost of developing new products. Moreover consumers are being expected to gain advantage
from the availability of the wider choice of the products and service as well as decreasing prices.
TTIP can result towards marginal enhancement in GDP as well as investment within the
country. Malta is regarded as the only EY member stated that has fared badly because of TTIP, a
projected autonomous trade among EU as well as US. It has been assessed that TTIP is apt to
hike the financial gain levels of the member state by averaging of 0.5% with exclusion to Malta
for which it has been expected to slack by 0.3%. The investment has atrocious decrease by 0.7%.
it is because Malta is located along with Chinese- Western European trade route as well as
commercialism more in China as well as Canada than it does in US. United States is regarded as
the second most significant non EU export destination for the Maltese goods (Georghiou, and et.
al., 2014). It is considered as next most significant outer EU services exportation terminus. The
major sectors of export for Malta to US includes federal equipments, fiscal services as well as
machinery. The agreement in relation with TTIP has expected to result towards lower costs for
EU as well as US producers through reduction in the differences within the regulatory regimes,
enhancement in the information exchange as well as by alignment of conformity assessments and
process of certification.
Small business enterprise are regarded as the backbone of both US as well as European
economies. The popular image in relation with the international trade is being dominated by the
multinational firms (Åkerlund, Lipkina and Hall, 2015). Small business enterprise is accounting
for important share of the trade. The most important opportunity that is emerging from TTIP
would be reducing in the non tariff barriers that is considered as the main barrier in the
expansion of the small business enterprise in to transatlantic market.
The present TTIP negotiations among the EU as well as United stated has been devised
for the sake of increasing business and funding around the Atlantic through minimizing and
making possible, elimination of the leftover obstruction towards transatlantic trade as well as in
all funding even if it has the duties that on the workplace or the goods manufactured, limitations
on overseas provisionors or limitation over the opportunities of giving funds. Flourishing
concord would result in making generation of new opportunities related with job for and growth
through increasing access towards the market as well as better maintaining capability when
assisting the improvement of global standards (Conrad and Cassar, 2014). Through liberalization
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of most the sectors of transatlantic economy involves manufacturing of the goods, cultivational
products, work and investment- on mentioned accord would help in eliminating the major
hindrance related with trading of past but it is looking forward for future, Further it makes
prevention of the new regulatory barriers, establishment of the mechanism that enables economic
integration over time. In addition to this it includes the enhancement of cooperation towards the
improvements of norms as well as generalisations on the worldly issues which are of joint
consideration.
The TTIP among US as well as EU has threatened the Maltese farmers as well as
consumers. By the means of Transatlantic trade as well as investment partnership negotiations
the agribusiness in US is lobbying towards removal of the mercantilism limitation within
European farming plan of action. These alterations will influence the farmers, consumers and
alterations in the agricultural landscapes (Stigka, Paravantis and Mihalakakou, 2014). The TTIP
deal among the European unions as well as United States can have considerable influence on the
manner in which food as well as trade goods are being manufactured, traded as well as regulated
with consequence for farmers as well as for customers on dual aspects. The farmers within Malta
has raised their voice showing the concern towards increase in the competition from larger EU
producers has resulted in loss of the profits, that is resulting in causing greater struggle in the
agricultural sector. Removal of the tariffs on the US produce will increase imports within EU
that leads to value added to European agriculture to fall by 0.5%. Because of some cheaper
standards related with presentation, products of USA are economical and this reflects partial
contention to the local as well as EU framers.
The US is allowing the practices within animal farming which is strictly banned in the
EU. The streamlining of the legislation can result for the EU to lift these bans. However in case
tariffs are removed when keeping existing standards over both sides of the Atlantic, European
farmers would be experiencing higher cost in comparison with the US farmers.
TTIP- the full form of TTIP is transatlantic trade and investment partnership. It helps in
enjoying the economic benefit to countries. European countries in the business sector believes in
a deep and comprehensive TTIP so that they can improve their economic condition. It is beyond
the trade agreement and would have a major impact on the global trade. It is helpful; in maintain
good relation but also reduces the bureaucracy. Because Malta has small economy so, they have
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to largely depend upon on the foreign direct investment. Malta representative believes that with
the help of TTIP they can earn more and more FDI. High level of efficiency helps foreign
countries to produce more in Malta at competitive cost. They often require to produce those
products which require a lot of technical capability (Leonhardt and et. al., 2013). TTIP can help
in increasing more commercial activities in between Malta and US, so that it reduces the
obstacles for large and small companies investment. Malta started to remove their tariff, so, it
helps them to increase the business opportunities in Malta. A perfect example of TTIP is a
pharmaceutical sector. Due to heavy regulation, the two pharmaceutical projects have require
two separate approval processes. Regulatory harmonization reduce the cost of new and emerging
products which are newly developed in the market. Furthermore, consumers are expected to have
wider range of products so, that they can choose from large range also, they want those products
at low and decreased price.
TTIP is regarded as the proposed trade agreement among the European union as well as
United states with the aim to promote trade as well as multilateral economic growth. The
agreement is going under negotiations. It possess three broader areas that is comprised of market
access, specific regulations as well as broader rules as well as principles and mode of
cooperation. Such negotiation is planned to get finalized by the end of the year 2014 but this
would not be finished until 2019 or 2020. After the entry of Donald Trump the fu7ture of the
controversial TTIP among the EU and US has been thrown under greater doubt.
TTIP is no longer featured on the White house website as the President has wiped out Mr
Obama's legacy. A number of TTIP talks has already been help in secret under administration of
Obama but such appears that hours of diplomacy as well as negotiations have been wasted. Mr
Trump possess the critic of multilateral trade deals, and has planned to withdraw from Trans
pacific partnership on his initial day to office (Martorano and et. al., 2014). The prime minister
of small power international negotiation strategy will probably peruse a foreign policy on non
alignment with military guarantees and economic which are provided by Italy and other West
European states also.
The investment of US in EU is higher than the Asia. In trade, transatlantic relationship
defines the shape of global economy. As US either European Union is the largest investment and
trade. Both the EU and US economies are accounted together for the entire world of half GDP
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and approximately one-third of trade flows are done by together. Trading with US require some
rules and requirements to import and export the goods (Naude, Santos-Paulino and McGillivray,
2014). The non tariffs barrier are deriving form the regulatory system of EU and US which are
related with the certain aspects of consumer protection and security of the country.
The transatlantic economy makes generation of $5 trillion in total commercial sales year
as well as it employs upto 15 million employees. It is considered as the biggest as well as
affluent market within the overseas market. It accounts for 3 quarters of the worldwide fiscal
market and 50% of the commercialization across the globe. It amounts to about half of the
global GDP as per the value as well as 40% in consideration of potential to purchase. However,
in addition to this can be carried out towards lowering tariffs and non duty impediments, prod
services as well as investment towards tackling unneeded and expensive regulative distinctions.
TTIP is considered as the primary and front most economic discussion that seeks agreement
within three pillars (Sari, Karaduman and Firat, 2015). The initial pillar is one that takes into
account all those trade related issues and barriers to make trade relations. The intermediate seeks
at reduction, where workable, non dutiful obstructions and to determine cohesion, occurrences or
the acknowledgment of the significant equality positions among the United states and European
union formulation towards particular regulative content. The third principle searches common
understanding on various policies and rules with respect to all problems as investment, rational
property rights, prejudiced industry plan of action as well as government enterprises. Several
such modular are apt to expand existing regulations of WTO. Others can go on the far side of
prevailing bilateral standard.
The economic impact of TTIP is dependent on the final nature of any arrangement.
However in case TTIP makes elimination of most transatlantic tariffs, lower service economy
barriers, aligns inefficiencies within regulatory discrepancies as well as makes sure continues
higher standards within fields that is comprised of labor, health, safety, consumer as well as
environment. This increases opportunities for job and development in an significant manner.
TTIP has greater importance towards generating the job, enhancing growth and energize the
economies that is US and European, such makes promise towards generating renewed
confidence in the publics as well as elites certain governmental dysfunction that upset several
western societies. The growth of the economy can assist towards re-legitimizing the European
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union before voters of Europe as well as restoring efficacy related with democratic institutions
within US. TTIP cannot comply with such alone but this is the part of efforts broadly based
towards reinvigorating economies of western region. Recovery in terms of political and economy
advanced in the TTIP- specifically in case this is being viewed towards boosting the middle class
as well as medium and small sized companies will underscore to voters the advantages related
with openess as well as international engagement instead of protectionism and turning inward
(Åkerlund, Lipkina and Hall, 2015). TTIP demonstrates a increase in recognition on the two
sides related with Atlantic which US as well as European Union needs for investing within new
forms associated with transatlantic collaboration for the purpose of strengthening many-sided
rules and assist the standards on international level. Transatlantic economy, size and scope,
standards the United States negotiate as well as EU are quickly becoming the benchmark for the
global models, reduction of the likelihood which other would impose more stringent.
With the election of Trump the final nail regarding the transatlantic is within the coffin.
The bond among the US as well as Europe is already on the life support before the votes were
being cast in the November. Today the transatlantic partnership has faded in significance. While
several as bemoaned the particular development, such is not much a political failure but instead it
is sign of what transatlantic ties have attained in transformation of the international community.
As US has entered the initial 100 days of Donald Trump's presidential term , transatlantic
association has faced greater uncertainty than any other time as the aftermath of the second
world war.
TTIP is considered more than trade. It is related with creation of more strategic, dynamic
as well as holistic relationship among US and EU which to a greater extent is confident, efficient
in involvement of third countries. Further it address challenges at regional and global level.
Along with this it boost the root of the order at international level. TTIP plays an essential role
for EU and US relationship. It is rooted within the core truth. Apart from increase in the several
powers the United States as well as Europe remains at pin of the economy across globe. EU
association is considered as the foundational element of the world's economy. Further it is
essential is underpinning stronger rules based international order (Azzopardi and Nash, 2016).
Americans and Europe literally are not able to ignore such. TTIP is considered as the fact that
two partners are being bound up towards opening transatlantic markets,boost the rules at global
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level and leveraging growth at international stage. Apart from the capability as well as ability of
US and EU association on continuous basis fall beneath its weight and let down towards
capitalizing on the important opportunities towards Americans and citizens of Europe, firms,
workers, consumers as well as many-sided system they assisted in bringing to living.
The association has been troubled within the present time through challenges emerging in
the economy on every area of the Atlantic. Absence of fiscal solvency of US, growth of
economy, creation of job is considered as kind of agreeable, partner looking outward which is
needed and wanted by Europeans. United States possess similar share in the success of Europe.
also its institution as well as derail support of American in relation with main transatlantic
initiatives. The individual most essential effort the partners can make towards bringing
improvement within the capability to perform unitedly abroad is for each for the sake of gaining
its acts jointly at home. The degree to which TTIP boost development as well as restore
confidence mutually act as an aid in getting the association back on track.
The TTIP is severing towards reassuring every side of the Atlantic about one another.
Within the recent years the transatlantic association is being challenged less due to either
partners assigned lesser value to one another because in particular towards shifting far from
Europe being central theater of the world affairs to greatly spread out globe that is modified by
the mixture of ethnic and generational alteration in politics of America with respect to cohorts
who put lesser values over the relations in Europe (Bartkowska and Tiemann, 2015). The
challenge is lesser which rise antipathy than extent of apathy, not greater conflict but less
priorities.
TTIP is considered as the most important for every partner and their target. US for
instance is making negotiation on economic agreement that is second mega regional with the
other Asia Pacific partners. In case of success of TTIP the US as well as its partner would
possess open trade as well as investment around both Atlantic and Pacific in nations accounting
related with thirds of the outcomes at international level. Being US the only party to initiative
negotiation offers Washington unique merit in leveraging of the problem in single forum for
advancing the interest in other when reinvigorating effectively global leadership of US. The EU
is involved in negotiation of various extra trade agreements with Asian and other partners. TTIP
provides European Union with additional leverage in negotiation with the third countries
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(Mainwaring, 2014). The role of TTIP is important towards making generation of growth as well
as opportunities in Europe, for wining greater popularity support for the EU specifically within
countries such as UK whose motive is to spur the execution associated with certain EU's goals
like accomplishment of the one market. TTIP has importance in sense that it presents the manner
in which how transatlantic partners unitedly can effectively relate towards rising powers,
specifically the emerging growth markets. TTIP is essential in relation with US and EU relations
(Martorano and et. al., 2014). Along with this is initiative that are valued based would boost
western economic as well as social connection, increase commitment of US towards Europe,
boost energy of transatlantic as well as making greater contribution to huge effectiveness that is
related with Western model.
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