The Great Scam of the NATO Economy, the TTIP

In the first part of this article, published on this blog on July 19, I pointed out how the Transatlantic Trade and Investment Partnership (TTIP) would cause serious damage to Europe, and to Italy in particular. This partnership would be detrimental insofar as it would ruin public welfare and public goods, and destroy the environment and the quality of agriculture — the kind based on short cycles especially.

In the second and last part of this paper, I would like to indicate other problems — at the economic and geopolitical levels — that stem from this treaty.

Firstly, the U.S would be the one to economically benefit the most from this policy, not Europe. Simply put, the average duties for European goods that enter the U.S. amount to 3.5 percent, while U.S. goods entering Europe have duties of 5.2 percent. Alongside this small difference, what must also be considered is the fact that the U.S. has a huge health and education system, which are essentially private. In the U.S., there are private companies able to colonize the European market in sectors where the public systems of Europe — and especially Italy — would be undermined by competition. Conversely, it is quite clear that an Italian local health authority or a public university could not compete in the U.S. if it tried to open hospitals or universities.

Second, this free trade agreement will reinforce the differences that exist in Europe. While exporting states such as Germany will see an increase of market outlets for their goods, more vulnerable states will literally see a takeover of their vital functions. The damage caused by neoliberal Maastricht Europe* would be further compounded by the enlargement of an unregulated market, particularly as far as social welfare, environment and agriculture are concerned. This brings back to memory the words from last summer of Mario Draghi, president of the European Central Bank, when he was holding forth on the fact that welfare is too expensive and that Europe must do away with it. The free market is the instrument that will eventually destroy the welfare state, the unions and a democracy functioning as a true popular sovereignty.

Thirdly, everyone has in mind that the construction of a transatlantic market — a real economic NATO — meets a specific geopolitical objective. In the evident crisis of neoliberal globalization, the U.S. is rebuilding its areas of influence and economic and military hegemony. First it created the Trans-Pacific Strategic Economic Partnership Agreement, which included all countries bordering the Pacific except China. Now comes this transatlantic treaty. If you look at those who remain outside these agreements, it becomes clear that the purpose of the U.S. is to create its own sphere of influence against the BRICS and especially China, Russia and Latin America.

Fourth, it is clear that the reorganization of the world around U.S. free trade areas to forge economic and military alliances will lead us directly to an intensification of the dangers of war. The trend is similar to that which led to the First World War; militaristic imperialism and globalized economic liberalism will form an explosive mixture. Everyone understands that the transition from an economic war to an aggressive war is not a long one.

For these reasons, I think the TTIP is a step toward the destruction of the level of civilization we’ve reached in Europe since the Second World War, as well as a danger to the rights of workers and large parts of our democracy. This will then contribute to the centralization of capital and a widening of the gap between rich countries and regions and weaker ones, bringing the certainty of a commercial warfare and the seeds to wage that war.

I think there is an alternative way to work with the information about the TTIP and criticism around it.

First, Europe needs to have an independent stance regarding peace in the global arena. Europe is the world’s largest producer and the world’s largest market and its importance is sufficient to define the playing ground. It must implement a policy of disarmament and cooperation with everyone, starting with the Mediterranean countries.

Secondly, Europe should withdraw from the WTO that has completely deregulated the global market and bring its own economic and financial sovereignty to the continent. As a challenge to the WTO, Europe should propose a system of international relations, as well as multilateral and bilateral cooperation that would improve the human condition while respecting the rights of labor and of nature.

Thirdly, Europe must change itself and go beyond the Maastricht Treaty and its subsequent neoliberal regulations. It must assume as a common objective the task of full employment, welfare development, the overcoming of domestic inequalities and the greening of the economy and means of production. To this end, we propose that Italy opt out of European treaties starting with the Fiscal Compact.

Are these considered utopias? In order to fight against the growing barbarity that results from capitalism’s inability to emerge from crisis, it is not enough to complain. It is necessary to have a vision.

*Editor’s note: This is a reference to the Maastricht Treaty that led to the creation of the Euro.