At its 7th session, chaired by State Secretary Machnig, the TTIP Advisory Group at the Federal Ministry for Economic Affairs and Energy today discussed the risks and opportunities of the for developing countries. Prof. Felbermayr, external expert from the ifo Institute in Munich, had been invited to present the results of a study commissioned by the Federal Ministry for Economic Cooperation and Development. According to this study, emerging economies and developing countries can benefit from simplifications and common standards in EU-U.S. trade and from greater demand. On the other hand, however, bilateral free trade agreements can also result in trade diversions, Prof. Felbermayr underlined. The members of the Advisory Council agreed that it is important to keep an eye on the impact on developing countries and emerging economies both during the negotiations and after the conclusion of the agreement.
State Secretary Machnig also emphasised how important it is to advance the multilateral free trade efforts in the context of the WTO apart from TTIP: "During the meeting of the Advisory Group, we had a lively debate on the possible impact of the agreement on third countries. As TTIP is a bilateral agreement involving the world's two largest trading blocs, it will of course also impact on developing countries. Therefore, we should make sure that companies from third countries can also benefit from simplifications and common standards. It is also important that we continue to rely on international negotiations and standards agreed at international level and gradually make progress in the difficult discussions at WTO level, in parallel to the negotiations on TTIP."