Abstract

This paper provides a reflection on Transatlantic Trade and Investment Partnership (TTIP) and its impact on European economy. Although TTIP has been promoted as producing substantial economic benefits for both sides of the Atlantic, gains in terms of growth premium appear quite limited and unevenly distributed between the EU and the US and inside the EU. In addition, the increase in bilateral trade flows between the EU and the US would be accompanied by a substantial diversion from intra-eu trade that could undermine the sustainability of the eurozone and would be detrimental for Southern European countries. Furthermore, adjustment and social costs, that have been overlooked by cge-based studies on TTIP impact, could be dramatically high.