BRUSSELS: A ‘TTIP-like’ trade deal with Russia would be crucial for Europe to shift the economic focus towards Europe as a center of trade, rather than the Pacific Ocean, according to the head of Austria’s influential business lobby.
European Union countries must form a TTIP-like trade deal with Russia, according to Georg Kapsch, the head of the Federation of Austrian Industry, an influential business lobby in Austria.
The TTIP (Transatlantic Trade and Investment Partnership), is an exclusive deal between the United States and EU countries concerning business regulation, reduction of tariffs and settlement of disputes between states and corporations. In addition to the TTIP, the US is negotiating a TPP (Trans-Pacific Partnership), a potentially more comprehensive agreement with countries in Asia and the Americas.
“I am convinced of that. We need a TTIP-like deal with Russia. We need to create this bridge, otherwise we have no chance to compete with Asia,” Kapsch told Austrian business daily WirtschaftsBlatt in an interview.
Current trends in trade and economic development have shifted the focal point of trade and investment away from Europe and toward Asia, according to Kapsch.
“Yes, we need a free trade zone with Russia, the US and Canada. That would shift the center of gravity, which has continued to move toward the east, back towards the Atlantic,” Kapsch said.
Kapsch, who himself is CEO of international logistics company Kapsch Inc., added that failure to make a similar deal with Russia would lead to less growth and fewer jobs in the EU.
