TTIP: Barely afloat as German and French ministers withdraw their support - ING
Daniel Bosgraaf, Economist at ING, notes that the TTIP support is waning, both the German and French ministers of trade have withdrawn their support for the negotiations.
Key Quotes
“After German Minister of Economic Affairs and Vice-Chancellor Sigmar Gabriel stated last Sunday that Transatlantic Trade and Investment Partnership (TTIP) negotiations have de facto failed, his French colleague Matthias Fekl went further by calling for a halt of the negotiations. Prime Minister Francois Hollande, however, was more reserved but stated the negotiations are bogged down. While one minister openly denouncing TTIP casts severe doubts on the future of TTIP, the second one to do so may have given TTIP the final blow, especially since the ministers represent Germany and France, the two largest economies in Europe.
Although the European Commission holds the mandate to negotiate TTIP, it is hard to see negotiations continuing without the support of Germany or France. Both countries hold elections in 2017, and TTIP is not popular with the public.
We think that with the European Union not winning any popularity contests and TTIP being one of its least loved children, other politicians could be quick to withdraw their support for TTIP as well. Even if the EU ministers of foreign affairs decide at their next meeting on 22/23 September in Bratislava that the negotiations will continue, there are severe doubts about the viability of this trade agreement. After all, neither Trump nor Clinton support the trade deal. For now, TTIP remains barely afloat.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
