Free trade agreements (FTAs) have the declared aim of seeking to increase global trade and promote economic growth. Historically, economic growth has led to improved population health. Yet this link is now weakening, and attention is being focused on assessing the effect of FTAs on health and the ability of government to mitigate against negative impact.
A study by Usman Khan, Robert Pallot, David Taylor and LSE’s Panos Kanavos was managed by LSE Enterprise for the European Public Health Alliance. The authors undertook a structured and systematic rapid evidence assessment and a targeted stakeholder engagement process to assess the health impact of the proposed FTA between the United States and the European Union.
The Transatlantic Trade and Investment Partnership (TTIP) between the US and the EU constitutes the largest ever FTA of its kind. TTIP is considered by proponents and opponents to be fundamentally different to other FTAs on the basis that:
- The majority of projected gains are to accrue from regulatory as opposed to tariff reform;
- US and EU trade representatives describe it as being a blueprint for future FTAs; and
- It is described as being a ‘living agreement’ that will see structures established to oversee ongoing regulatory reform subsequent to initial ratification.
For proponents, these three features will help to deliver growth alongside improved regulation, whilst critics argue that they could lead to a reduction in regulatory standards as well as restricting the ability of the state to regulate in the public interest.
The study explored areas including trade in goods, sanitary issues and intellectual property, suggesting priorities for the European public health community when responding to the TTIP negotiating process. It found very limited evidence of direct potential health benefits, whilst the indirect effect of any broader economic growth that may result from TTIP is likely to be highly dependent on how any increase in GDP is deployed, and more particularly on how it can help to foster innovation in health goods and services.
By comparison the risks from TTIP do carry with them the potential to reduce health outcomes and negatively impact on the ability of government to regulate for public health improvement. Yet in most cases the proposed provisions within TTIP are likely to compound rather than create problems and the policy development process has started a dialogue with regards to how best to marry trade and health goals.
- Download the TTIP International Trade Law Health Systems and Public Health report
- Visit the Modus Europe and European Public Health Alliance websites
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