Germany’s chemical industry – Europe’s largest – has come out strongly in favour of the US-European trade agreement Transatlantic Trade and Investment Partnership (TTIP).
While some across people, in particular protectionist politicians and trade unions, are sceptical about the agreement, with some even calling some of its provisions ‘an affront to democracy’, VCI, the German chemical industry association, said European chemical companies believe TTIP could bring positive benefits to the region’s economy, in particular tariff reduction, reduction of non-tariff trade barriers, and stimulation of the overall economy.
At the same time, however, VCI president Karl-Ludwig Kley emphasised that “there can and must be no compromise to lower the protection standards”.
Regulatory co-operation with a long-term approach would be the decisive advantage and a basis for lasting impulses for the chemical industry, Kley believed. “This is where TTIP could bring entirely new perspectives. It would be desirable to establish a permanent process where the possibilities are explored for an approximation of rules and regulations in the medium to long run,” he said.
According to the VCI’s own calculation, the German chemical industry would benefit from TTIP, potentially creating a further 2,000 jobs, a €2 billion boost to production, and additional value creation of €600 million. Kley said experience shows that the greatest benefits would be seen by the workforce, with 70 percent of the additional value creation going to labour compared with a 30 percent gain in company profits.