Potential impact of the Transatlantic Trade and Investment Partner (TTIP) on developing and emerging countries

The sheer size of the transatlantic economy means that TTIP will have an impact on developing and emerging economies. On the one hand, higher income in the EU and the USA will increase demand for goods and services in third countries, which should benefit them. On the other hand, the agreement can be expected to divert trade flows from TTIP partners away from third countries, which will be detrimental to them. On balance, there will be both winners and losers among the developing countries. However, the effects on both groups will be small; and several parameters can be adjusted to make the winner group as large as possible. In this study the Ifo Institute in Munich and the IAW Tübingen jointly explore how threats to emerging countries can be minimised and opportunities can be maximised, to turn the agreement into the core of a new and fair world trading system.