Opponents of the Trans-Atlantic Trade and Investment Partnership (TTIP) display a ‘Trojan Horse’ during a protest last August, in reference to the deal’s secretive nature and potentially far-reaching impacts.

The government remains committed to a controversial proposed trade agreement between the EU and the US despite new warnings that Malta’s GDP and foreign investment will both suffer as a result.

A new study into the impacts of the Trans-Atlantic Trade and Investment Partnership (TTIP), carried out by the World Trade Institute, reveals that Malta is likely to be the only EU country not to benefit from the agreement, if it is concluded.

According to the study, European economies will all benefit by an average of 0.5 per cent but Malta’s is likely to decline by 0.3 per cent, while investment is predicted to decline by 0.7 per cent.

The reason for the decline is that Malta does not have a very strong economic relationship with the US and is engaged in far more trade with Canada and China.

TTIP, which has been negotiated largely in secret since last February, aims at reducing the regulatory barriers to trade for big business, but critics fear it could lead to dangerous reductions in standards and give multinational companies the power to override national laws.

When contacted, a spokeswoman for Economy Minister Chris Cardona, who has welcomed the deal and said it would open up new opportunities for Maltese businesses, said that the government’s position remained unchanged, despite the new study.

“We will take note of this study and consider the next steps once the internal process of a review is exhausted,” the spokeswoman said.

The ministry said it would consider all aspects of the agreement, particularly regulation and how the investment sector could be promoted to benefit the economy. The European Commission will also be carrying out its own assessment on the impacts of TTIP by the end of the year.

However, Elena Portelli from the anti-TTIP front told the Times of Malta that the authorities could not continue to avoid discussing the issue on a national level.

“Their only argument so far has been the possible economic benefits; now we learn that this may not be the case at all,” Ms Portelli said. “Civil society has never been invited to discussions on the matter. Meetings we’ve scheduled with parliamentary representatives have been cancelled. Not even consumer groups were invited.”

Ms Portelli said the deal would represent a major step backwards for agricultural standards among other bones of contention. She also insisted that impact assessments should be carried out on a national level before discussions proceed.

On Sunday, MEP and former prime minister Alfred Sant voiced fears about the agreement in the wake of the new study, urging a public debate to take place on the subject.

“People need to be aware of what the stakes are and what a reasonable position on the matter could be, that will enhance Malta’s interests in the framework of EU free trade and investment agreements,” he said.

The Times of Malta reached out to the US embassy for comment but no response was received by the time of going to print.

What are the concerns about TTIP?

The agreement would bring food and environmental standards in the EU closer to those in the US, which has much lighter regulation on labour rights, GMOs, pesticides and even the use of potentially toxic substances.

Multinational companies would be able to sue national governments for policies which lead to a loss of profit, under a scheme called Investor-state dispute settlement (ISDS).

Critics say this would allow corporations to prevent democratically-elected governments from passing laws that would damage their business.

Europe’s public health, education and water services would be opened up to privatisation by US companies, regardless of possible consequences for welfare, in deals which some reports have said would be “effectively irreversible”.