Format for Write-up (Macro) Case Solution & Answer

Format for Write-up (Macro) Case Solution

1.Immediate Issue(s) or Problem(s):

In 2016, the US and EU had a free trade agreement over the transatlantic trade and investments partnership (TTIP),which started in 2013 but could not be proceeded further up till now and due to the delay; negotiation were postponed for several underlying reasons, which is where the concept of TTIP was established. With the elections approaching soon with  opposition in public; there are higher possibilities for such a comprehensive trade agreement tobe executed.

2. Basic Issue(s) or Associated Issue(s)

There are some issues:

 1: Regulatory Issues:If an automobile manufacturer makes a new model of car in the US then it would have to reach the standards of EU before exporting it to the EU region and vice versa  Both these big economic consumers would suffer because if the products or goods do not match the standards of either the US or EU, which would result in unacceptable of the good in both the significant markets.

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2: Tariff: They act as barriers, making the new investments much harder in both the regions. For example: if EU has to export the x-ray machine to the US; it would have to spend millions of dollars in the compliance cost before selling it in the US market.

Solutions:

So,this is where TTIP was launched, in which both of the countries made 16 trillion of goods and services and discussion were held on these Regulatory and Tariff issues,in order to bring an improvement in the market conditions.

 Issue(s) Analysis or Information Summary

TTIP transatlantic trade & Investments Partnership is the trade agreement between the US and EU.

AIM: To promote trade and multilateral growth.

The agreement is currently under the negotiation and its three broad areas are: Market Access, Specific Regulation, and Mode of co-operations. The negotiations were to be finalized in 2014, but due to some reasons; these regulations were not finalized till 2020. And according to economist; the TTIP would benefit the US by 90 B and EU by 120 B.

TTIP is basically a single free trade investment region where the world’s two big economies USA and EU are doing trade. Together they represent 50% of world’s GDP, from which, over 600 million are the richest consumers.In 2016, the United States and the European Union fought to agree over the Transatlantic

Trade and Investment Partnership (TTIP) begun in June 2013, but TTIP dealings’ finalization’s took much longer time than expected, with decisions going ahead the two sides of the Atlantic and a rising hostility in the general assessment…………………….

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