US academics expose human and economic costs of extremist pro-capital deal
TTIP, the secret trade deal being negotiated by Brussels and Washington, will cost Europe 600,000 jobs, according to US academics.
In Britain the deal will also cut wages by £3,300 and transfer seven per cent of gross domestic product (GDP) from labour to capital.
The research was carried out at Tufts University, US, and released in Europe by the World Development Movement.
The Transatlantic Trade and Investment Partnership (TTIP) is being is backed by David Cameron as a necessary boost to the British economy, but the paper by Jeronim Capaldo, senior researcher at the Global Development and Environment Institute at Tufts, predicts the deal will mean job losses, lower growth, lower wages and a more unstable economy.
It would mean greater European exposure to fluctuations in the US economy, more austerity, further forcing-down of wages, lower tax take, higher government deficits, spiralling asset prices and exacerbation of social tensions.
Negotiations on TTIP have prompted strong opposition — more than a thousand actions took place across Europe on Saturday October 11, including a thousand people protesting in London’s Parliament Square and dropping a banner across the length of Westminster Bridge.
In little over a month, more than 800,000 people across Europe have signed a petition calling for the deal to be scrapped.
Researcher Mr Capaldo said: “According to our study, TTIP will exacerbate, not solve, Europe’s economic problems — increasing unemployment, worsening inequality, reducing workers’ purchasing power, undermining the dynamism of intra-EU trade, and exposing European countries to asset bubbles and financial contagion from the United States.
“At this fragile time in Europe’s economic recovery, TTIP looks like a mistake.”
Guy Taylor, trade justice campaigner at the World Development Movement said: “TTIP falls down even on its own terms, as it’s supposed to bolster growth in the EU but in fact it will result in fewer jobs and lower wages.
“The research shows that some will actually benefit — profits for a small number of corporations grow at the expense of ordinary workers. This is truly a deal for the 1 per cent, and we have to stop it.”