Effects of transatlantic trade and investment partnership agreement on containerized cargo flow in transatlantic

Abstract

Ever since the globalization influenced the world economy and international trade structure; liberal economy and production policies are established in organizations from micro level to macro level and became the key aspect to understand the behaviors of international organizations today. Not only the multinational firms but also the nations, even unions such as EU and US support the liberal economic policies because just like profit maximizing national and international firms, the nations are also living organizations with an aim of maximizing welfare and income of the society. Competitiveness became crucial in order to survive in our ear so that the numbers of nations that support protectionist policies decrease from one day to another. Under these circumstances, transatlantic trade and investment partnership (TTIP) between world’s dominant players of US and EU will play a crucial role whereas if two parties agree to sign, it could have an enormous impact on world economy and trade structure. The aim of this paper is to estimate the possible effect of TTIP on transatlantic seaborne trade activities in terms of TEU volume. Using the expected increase in export value according to CEPR’s research, SPSS statistical packaged used in order to generate a regression model to estimate the dependent variable of transatlantic trade volume in TEU.