The deadline for completing the studies is June. Éva Palócz, head of Kopint-Tárki, said the aim of the economic study was to weigh up the potential advantages and drawbacks for Hungary of the agreement.

Besides the direct and indirect effects, they will examine the share of Hungarian products on the American market and which products would be affected by the dismantling of duties.

Separately assessed will be the impacts of the dismantling of non-trade obstacles, she noted. A focal point of the assessment will be opportunities for Hungary’s food industry, she added. Erik Szarvas, a legal expert, noted the EU and US face major competition challenges and are looking for means to strengthen their competitiveness.

The scrapping of duty on industrial products will not “mean all that much” to either side since average duties are very low in any case -- in the case of the EU, 5.2% while the US imposes just 3.5%, Szarvas added.

The TTIP pact is not primarily about facilitating the exchange of goods since free trade has already been established between the two continents for all intents and purposes, Marcel Szabó, the ombudsman for fundamental rights, said. Rather, the creation of legal harmony would be the real boon for large-scale investors, he said.

Yet increasing the flow of goods runs contrary to the idea of sustainable development, he argued, since local production ensures the survival of the Earth.

The agreement is also problematic since World Trade Organisation (WTO) legal thinking would gain precedence over Europe’s legal order, and the resolution of disputes in arbitration forums cannot provide adequate or fair treatment, he said, adding however that neither Hungary nor other EU member states would be able to block the signing of the TTIP agreement.

János Bencsik, a Fidesz lawmaker, said the proposed contract which promotes global equity interests would restrict the freedom of nation states, leading to “total war”.

The international agreement would try to obliterate nation states’ room for manoeuvre, signalling a “civilizational turning point”, he said.

Source www.hungarymatters.hu

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