Dynamic Sectors of Bulgarian Economy Expected to Benefit from TTIP
Wednesday, 29 April 2015
The proposed Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States will benefit the more dynamic sectors of the Bulgarian economy and those which already have a foothold on the US market, Institute for Market Economics (IME) Chief Economist Dessislava Nikolova said in a videotaped BTA interview on Tuesday.
These sectors include computer software development and various outsourced services which have been experiencing a major upturn in recent years, Nikolova said. TTIP will have a positive impact on Bulgaria's machine-building, electronic and electrical engineering industries which currently dominate Bulgarian exports to the US, she predicted.
She expects the TTIP talks to continue for another two or three years at least.
If customs duties are abolished as part of the future arrangement, this will have a direct positive influence on half of Bulgaria's exports to the US (which currently total 400 million dollars annually) and on 40 per cent of US imports to Bulgaria, Nikolova said. Although US imports to Bulgaria have grown rapidly over the last two years, Bulgaria still enjoys a 50 per cent surplus in bilateral trade, she said.
The free trade arrangement will have an indirect impact on investment, too. The US is the ninth-largest foreign investor in the Bulgarian economy, with 1.5 billion euro in gross investments made since 1996, Nikolova said.