Sant demands European Commission plans on TTIP’s negative impact on Malta

Labour MEP Alfred Sant has asked the European Commission to provide information on its plans to counter possible negative impacts suffered by Malta and any individual member state of the European Union with the proposed Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States.

Sant told the EC that a 2016 study conducted by the World Trade Institute suggests that the impact of the TTIP will lead to a contraction in the Maltese economy and asked for information based on current economic indicators as well as negotiations’ forecasts, on: the expected impact on the national income level (GDP) of each EU member; expected changes in industries for each member state; and EU plans to counter negative impacts suffered by any individual member state.

The study carried out by the World Trade Institute and universities commissioned by the American Chamber of Commerce to the EU revealed that the TTIP is likely to boost member state income levels by an average of 0.5%, with the exception of Malta where it is predicted to slump by 0.3%. Investment is alarmingly predicted to decline by 0.7%.

The reason given is that Malta is situated along the Chinese-Western European trade route and trades more with China and Canada than it does with the US. The US is the second most important non-EU export destination for Maltese goods (12% of all goods exports, after China with 36%). It is also the second most important non-EU services export destination (14%, after Canada with 15%). The main export sectors for Malta to the US are office machinery, financial services and machinery.

Alfred Sant has called for a full debate and study on the potential effects of TTIP in Malta. “People need to be aware what the stakes are and what a reasonable position on the matter could be,” Sant told the general conference of the PL’s Valletta section, while citing the WTI’s study.

“TTIP has generated huge controversy in the US and the EU. Among the reasons for this, there has been the fact that negotaitions have been carried out in secret and because many believe that the agreement will override national laws. Meanwhile, a huge public relations effort has been unleashed to sell TTIP to EU and US citizens. The same has happened in Malta, where we have been assured that it will bring great benefits.”

Sant, who is head of the Labour delegation, has in the past declared he would abstain from voting on TTIP.