The situation has changed and the U.S is losing it economic powers in favour of Russia and China, These two massive countries seems to have done great economical advances these last years. The US and EU seem to be worries about this situation and are determined to find a solution before it’s too late. The plan is to create a free trade zone of transatlantic level, a solution which many see as an attempt to stop the advance of China, Russia and other developing countries such as Turkey, Brazil, and India… According to Russian experts in Finmarket site a new commercial monster could soon challenge the world according to RT. In July 2013 the U.S. and the European Union have already begun to develop priorities for this future project called the Transatlantic Trade and Investment.
In theory, a free trade area would benefit the countries on both sides of the Atlantic. The U.S. economy annually would receive an additional 90,000 million (EUR), and the EU budget would be complemented by an additional 100,000 million (EUR). According to European Commission estimations, if the area would be launched in 2015, Europe could create 400,000 new jobs, and every European household would get an increase in its income of about 545 euros.
What about the rest of the world?
European officials contend that the rest of the world would benefit from this project due to the free trade area. The world’s economy should increase by 100,000 million (EUR). However, developing countries should not be misleading as this solution could probably not be so beneficial after all, warns World Bank economist Aaditya Mattoo, who oversees trade integration in the World Bank is concerned about several aspects of the impending deal.
No Place for Russia and China
It is assumed that the new free trade zone will reduce taxes. Since the current level of U.S. commercial rates and Europe has already been lowered (less than 3% on average), the members can import goods virtually for free except specific items with tariffs, like shoes.
However, it will not be possible to import everything to the developed countries. Probably the U.S. and EU will establish high quality standards. It is possible that the importer has to obtain a certificate of compliance in each EU country. There are already examples of such agreements.
Although Brazilian oranges can be sold in Portugal, they would not get through to other European countries without additional control. To advance in Europe, the Brazilian companies have to literally beg dozens of European officials.
This means that, first, developing countries will suffer following the launch of the new free trade zone, predicts Mattoo. "If you were to create a transatlantic alliance, the most vulnerable are the products from China, India and Russia," said the economist.