A transatlantic free trade agreement (TAFTA) between the EU and the US should foster economic growth, jobs and competitiveness on both sides of the Atlantic. For such an agreement different barriers to trade would have to be removed. In this regard, tariff rates are not the biggest obstacle. Non-tariff trade barriers (NTBs) and differences in internal market access (services, construction, public procurement, foreign direct investments and so on) constitute far larger barriers.
Switzerland which is not party to TAFTA will be affected by trade diversion. However, the country could also benefit in terms of growth from the stimulation in transatlantic trade.
The purpose of the study is to assess the preference erosion in EU und US markets companies operating out of Switzerland will experience for services, foreign direct investment (FDI) and public procurement in the case of a successful conclusion of TAFTA (knowing that some aspects of 2nd generation FTAs may amount to liberalisation erga omnes). The analysis of services, FDI and public procurement shall complement the CGE based analysis of the economic impact on Switzerland of TAFTA, TAFTA plus (EU, US, EFTA, Canada, Mexico, and Turkey) or TAFTAplus/TPP.
