Transatlantic Trade and Investment Partnership Harvard Case Solution & Analysis


The Transatlantic Trade and Investment Partnership (TTIP) is some sort of a trade agreement or an agreed upon document that entails to give trade benefit to the Atlantic region. The benefit that is described in this agreement is of clear nature and is very concrete and specific, but it also has some major implications. However, TTIP or to be more specific the Transatlantic Trade and Investment Partnership aims at cutting the trade barriers especially residing in the form of trade related cost or taxes. On the other hand, it can also be said that the major purpose of forming this trade agreement is to facilitate the Atlantic region by eliminating tariffs not particularly on specific products but on all products that will be traded across the Atlantic. There can be multiple benefits, which can be gained through this and there can be various issues that will occur with the implication of this agreement(Akhtar, 2013).

TTIP is considering eliminating or reducing all tariffs and tariff quotas on goods and services traded between the EU and the US. This scenario indicates that MNCs will be able to trade between this route very smoothly and will give certain cost benefits that will allow them to target such strong markets easily. However, the major production hubs are located in low cost countries and majority of such countries are situated in Asia. On the other hand, the South American region is also an attractive and lucrative opportunity for the future especially in regard to production and manufacturing. Therefore, the question arises that whether the benefit will restrict to this region only or particularly to US and EU. In contrast to the expansion of the agreement, allowing other countries to gain free trade agreement and utilize this benefit is possible that may change the scenario completely. Thus, it can be said that despite certain benefits there are some issues that pertains this agreement(Kryl, 2000).

The supreme authorities or the leaders from the US and the EU are trying to figure out the main concerns are aiming to make the agreement more concrete and strong enough that will allow to cover or address all the regulatory constraints or barriers. Also, they are brainstorming to resolve issues pertaining in accommodating commercially sensitive sectors that include the agriculture sector and the pharmaceutical industry in both of these regions. The US and EU are still in the planning phase to make the agreement more impressive for the business community and to make the agreement an attractive opportunity to conduct business. Apart from that, the leaders from both of the regions are negotiating to develop a comprehensive and a more ambitious agreement that will open new gates or breaks new ground in opening up the markets to businesses in both of these regions(Felbermayr G. H., 2013). There are three specific areas that TTIP has addressed, which can also be stated as the main objectives of the agreement. These three specific grounds or areas are described below.

  1. Providing market access to the business and allowing the business from both the regions to explore new battlefields or markets in these regions.
  2. Resolving all the regulatory issues that are associated with such practice and also to address the non-tariff barriers and rules regarding these aspects.
  3. Creating new methods or ways of increasing cooperation in order to deal with the challenges of global trade.

The major or the primary goal of establishing the agreement and the objective that is to be achieved through this agreement is to get closer to the possibility of removing of all duties either related with import or export on the transatlantic trade.Transatlantic Trade and Investment Partnership Case Solution

 The core of the objective or the main head of the goal that is to be achieved by the agreement is to remove the duties particularly from the industrial and agricultural goods and services. According to stamen that is presented by the World Trade Organization, the removal of barriers seems quite challenging as the complete removal of all the trade duties related with import and export is quite challenging and difficult task for any region. However, the impact, whichTTIP will impose on the businesses, will be beneficial for them as the duties or the tariffs will be very low that will eventually benefit the business in the form of low cost. The low cost benefit is very attractive sign for the businesses and will encourage them to carry out trade through this route and conduct more business practices in these regions(Felbermayr, 2013)..............................

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