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Vanderbilt University

Publication Date

Spring 2014

Program Name

Switzerland: International Studies and Multilateral Diplomacy

Abstract

The process of globalization and the liberalization of the global trade regime has become an integral part of the modern political and economic landscape. The Transatlantic Trade and Investment Partnership (TTIP) currently being negotiated between the United States and the European Union has the potential to be the most impactful free trade agreement of the 21st century as these blocks represent the two largest economies in the world. This paper analyzes the conceivable effects of this agreement on the uninvolved emerging economies and developing countries of the world. The two main theories on the outcome heavily involve the fate of the WTO as a central tool for multilateral trade negotiation or just another forgotten organization in Geneva grasping to hold on to its former influence. The rise of the BRIC countries (Brazil, Russia, India, and China) has led many experts to speculate on the creation of a dueling system of trade agreements outside of the WTO in response to TTIP, while others believe that the agreement will set a new standard for trade agreements and rekindle world interest in multilateral negotiations through the World Trade Organization. This paper finds that the outcome heavily depends on the final outcome of the agreement and whether it meets the comprehensive goals it set on. This will largely determine whether or not the WTO remains at the center of the global trade regime as well as whether or not TTIP contains an accessible accession clause for third parties to join the agreement.

Disciplines

Growth and Development | International Economics

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