Issue link: https://maltatoday.uberflip.com/i/304008
maltatoday, WEDNESDAY, 30 APRIL 2014 9 News Potential EU-US trade agreement could generate 1.3 million jobs across EU JAMES J. PISCOPO THE Ministry of Finance and the Malta-EU Steering Action Com- mittee (MEUSAC) yesterday held a public consultation seminar on a trade agreement that the EU is currently negotiating with the United States. At its earliest, the Transatlantic Trade and Investment Partnership (TTIP) could be finalised in two years' time and it aims to reduce trade barriers between the two. Representatives from the Eco- nomic Policy Department in the Finance ministry told those present that according to finan- cial estimates from the European Commission, this trade agreement would increase the EU's GDP by 0.5%, amounting to around €86 billion, while the US GDP will also increase by 0.4%, amounting to €65 billion. "The TTIP will also have a posi- tive impact on job creation within the EU, providing 1.3 million jobs. When you take the substantial increase of the EU's GDP it will mean an increase of €545 for every family," the director general of the economic department Iman Schembri said. At this point, PN candidate for MEP Ray Bugeja intervened and asked whether these estimates also applied for Malta. "Does the government have its own estimates on the subject? The Commission's estimates may not necessarily mean that member states will each have their own fair share of the cake," Bugeja said, to which David Sammut from the economic department answered in the negative. "The commission's estimates were taken in general spread over all the member states. There were no studies by Maltese authorities on the impact of the agreement on individual states," Sammut said. In his presentation, Sammut said the agreement had three aims, namely to enhance market access to goods and services, to develop a framework for dealing with regu- latory divergences and to discover new modes of cooperation be- tween the two parties. He said that EU-US trade is al- ready very open. For instance, the American market represents 4% of Malta's exports, amounting to roughly €170 million in 2012, mostly comprised of electrical machinery and pharmaceuticals. He added that however, certain concerns existed on certain tar- iffs, excessive red tape, burden- some customs requirements, cus- toms duties and other formalities. He mentioned that for example, some products are held by US au- thorities for up to six weeks. Sammut remarked that negotia- tions, which already the focus of four rounds of discussions, will also feature a specific chapter on SMEs which are disproportion- ately affected by trade barriers due to lack of resources." He said that the principal objective of the EU's online consultation is to identify these trade barriers. Another intervention from the f loor came from Peter Agius, head of the European Parliament office in Malta, who said that one should go ahead with this trade agree- ment. "The position of the European Parliament is clear: we should do it now. This proposal has been cir- cling in Brussels and Washington for too long, at least now it seems that there is political commitment from both sides," Agius said. Currently, the US and EU econo- mies jointly represent more than half the global GDP. The US and EU are the top trading partners of most other countries in the world and account for a third of world trade f lows. The fifth round of EU-US trade talks is expected to take place in Virginia, USA from 19-23 May 2014, while the last round took place last month. 10 years later… We are all European now Malta through funding which made basic amenities like sewage treatment plants a reality. One tangible effect of member- ship was that Malta no longer dis- poses sewage directly into the sea to the detriment of bathers and its tourism product. Even on immi- gration, Malta's budgetary allo- cation within the EU's 2014-2020 multi-annual financial framework stands at almost €80 million. Had Malta remained outside the Un- ion, it would have faced the prob- lem alone. For while Malta could have opted to remain out of the union, it could not change its geo- graphical position. Another tangible effect of mem- bership is the greater mobility of students in the European Union, something that has left a marked impact on the cultural horizons of young Maltese. EU membership has also constrained the spend- ing of national governments, thus bringing with it a greater fiscal discipline. The disappointments Still, despite these positive as- pects, the greatest social changes in the past decade – such as the introduction of divorce and civil unions – came not as a result of EU membership but due to a va- riety of local factors. Moreover although the EU was sold as the panacea to Malta's environmen- tal problems, the 2006 extension of building boundaries took place just two years after Malta joined the EU. The government was also cleared of any breach of EU direc- tives following a lengthy investi- gation by the EU commission. Moreover despite relatively low levels of unemployment Malta re- tains a high rate of under employ- ment, especially among women. It is only through the present gov- ernment's decision to invest in free childcare that this problem is being addressed. Even on something as basic as the EU-wide ban on spring hunt- ing, Malta has managed to apply derogation for the past 10 years. Although the European Com- mission did take Malta to the Eu- ropean Court of Justice in 2007, the ECJ's 2009 verdict did not change the Maltese government decision to allow spring hunt- ing. Ultimately, as was the case with divorce, change may come through a popular referendum. Moreover, despite the uproar generated by the IIP scheme, the deal clinched by the Maltese gov- ernment gives an EU certification to what effectively amounts to the commodification of European cit- izenship legitimised by a one-year residence of convenience. Still, in itself the commission's willing- ness to reach a deal with Malta dispels the myth of a European super state bent on trampling the rights of nation states. Despite the many positive aspects of EU membership, most significant social changes came about as a result of different social factors The Ministry of Finance and MEUSAC yesterday held a public consultation seminar on a trade agreement that the EU is currently negotiating with the US