IHS and ÖFSE predict job losses, agriculture most affected
The trade agreement between the US and Europe, TTIP, will have negative effects on employment and the biggest losses in jobs will be in the agricultural and food producing sectors. This is one of the main conclusions of a large study of the effect of TTIP on Austria by the Institute for Advanced Studies (IHS) and the Austrian Foundation for Development Research (ÖFSE). The study was commissioned by SPAR, BIO AUSTRIA, NÖM and Greenpeace and concludes that especially the small-scale local agriculture is threatened. Farms up to 20 hectares, and that is the average size of an Austrian farm, are in the danger zone. TTIP could lead to the loss of more than 4,600 jobs in the agricultural and food producing sectors.
“The study proves what we have been saying for quite some time: the (smaller) supermarkets in Austria are in danger,” comments Gerhard Drexel, CEO of SPAR, on the results. “The Austrian food culture, a part of our identity, is at risk.” Drexel gives the AMA label for quality meat as an example, the study quite clearly shows that the trade agreement with the USA will lead to a staggering increase of the import of USA beef. Austria is characterized by small-scale agriculture, while in the USA there are barely farms with fewer than 2000 cows. “The lower prices will be the main result of the trade agreement. And that is a battle our farmers, focused on quality, can’t win,” warns the CEO. It will create a negative spiral, a “race to the bottom.” The evidence in the study clearly shows that the price and quality go down and the Austrian quality meat and their producers will disappear. Drexel continues: “This new study should motivate our politicians to vote against TTIP.”
Gertraud Grabmann, chairwoman of BIO AUSTRIA, feels confirmed in her criticism of TTIP by the study: “The study shows that the Austrian economy will not benefit of the transatlantic trade agreement, and the negative effects of TTIP will effect agricultural and food producing sectors most. TTIP would lead to an economic zero-sum game at the expense of agriculture. So BIO AUSTRIA considers its negative attitude towards TTIP justified.” The increasing competition with products for dump prices will put pressure on quality producers such as organic farmers. The large price difference between the cheaper imported products and quality products will influence consumers’ decisions. “Quality is insufficiently protected against the negative consequences of TTIP. And there is a risk that TTIP will have a negative influence on the environment and sustainable agriculture due to the lowering of the environmental and consumer safety standards,” states Grabmann.
This is why Alexander Egit, managing director of Greenpeace, urges Minister Rupprechter to decide on a policy that immediately excludes all agricultural sectors from the TTIP negotiations. And several other problematic issues, especially the investor-state dispute settlement and cooperation rules, should be dealt with too. “It is unacceptable that the Minister still believes it is alright to wait for results of the negotiations. While farmers and the environment have nothing to gain and everything to lose,” concludes Egit.
Link the summary of the study