Presentation on theme: "American Chamber of Commerce to the European Union (AmCham EU) Transatlantic Trade and Investment Partnership (TTIP) Agreement."— Presentation transcript:
American Chamber of Commerce to the European Union (AmCham EU) Transatlantic Trade and Investment Partnership (TTIP) Agreement
American Chamber of Commerce to the European Union (AmCham EU) What is it: Comprehensive trade agreement between the EU and USA Whats different: Beyond classic Free Trade Agreement of removing tariffs, opening markets on investments, services and public procurement Will also focus on aligning rules (regulations) and technical standards Why Now: Political Support Widow of opportunity (pause in the Doha Round) Financial Crisis – looking for new ways to stimulate economies Emerging Markets Transatlantic Trade and Investment Partnership (TTIP)
American Chamber of Commerce to the European Union (AmCham EU) Strong Economic Ties United States (US) and Europe Union (EU) account for nearly half of the global GDP and 30 percent of world trade. US and EU have invested more than 2.8 billion in each others economies.
American Chamber of Commerce to the European Union (AmCham EU) Significant Economic Gains Increase EU GDP by 0.5% and US GDP by 0.4% (source: EU) 86 billion annually for the EU 65 billion annually for the US translates to about an extra 545 in for each EU family and 655 per family in the US Creates jobs – more than 500,000 positions in EU and US Global benefits: global income could increase by 100 billion Eliminating tariffs alone could boost business production by 107 billion in the EU and 71 in the US (source: ECIPE 2012)
American Chamber of Commerce to the European Union (AmCham EU) Process ahead Phase I High-Level Working Group on Jobs and Growth issues report and recommends negotiating comprehensive trade agreement [Feb. 2013] EU and US agree to launch negotiations on the TTIP [Obama makes announcement during the State of the Union Address] European Commission obtains negotiating mandate from the Council US Government – notification to Congress (90 day notice period) Numerous Public hearings and Consultation (over 300 submissions submitted) Phase II Negotiating Rounds: I. July 2013 (DC) II. October 2013 (Brussels) III. December 2013 (DC) IV. March 2014 (Brussels) High Level Stock Taking– mid February 2014 Informal EU Trade Ministerial 28 February 2014 EU-US Summit 26 March 2014 End date? …… window of opportunity in 2015 Ratification Process
American Chamber of Commerce to the European Union (AmCham EU) Business is advocating for: elimination of tariffs and other border obstacles to trade in goods; Liberalisation of trade in services, including the data flows that underlie them; expanding and protecting investment; Opening of government procurement markets; stimulating innovation and protect intellectual property; enhancing capital markets; facilitating the movement of people; Improve market access on trade in services; and promoting regulatory cooperation and equivalence in standards (goal is to reduce the costs of conflicting regulations and strengthen standards through greater compatibility, transparency, and cooperation, without sacrificing high levels of health, satiety, and environmental protection). Goal: a comprehensive transatlantic trade agreement that opens markets for trade in goods and services (that will make it easier to by and sell goods), investment, procurement, capital and people, while creating a framework that will help us bridge regulatory differences.
American Chamber of Commerce to the European Union (AmCham EU) Challenges Maintaining the Political Momentum - support remains strong on both sides of Atlantic and across the political spectrum Addressing the Myths and Misconceptions – Transparency, lowering of consumer protection, ISDS Ensuring an open and transparent negotiating process - Allowing civil society to express its opinion Consumer Protection - Ensuring agreement will benefit consumers and not undermine existing standards (such as on food safety and medicines) Addressing Entrenched Interests - such as geographic indicators or culture and audiovisual industry Agriculture - only 30% enters US and EU duty free; tariff elimination could provide significant benefits (lower prices for consumers; efficiency gains) Health, Safely and Environmental Standards
American Chamber of Commerce to the European Union (AmCham EU) TTIP will not …. … lower present levels of protection … impact countries right to regulate … pose a threat to social rights, consumer rights and the environment … impose each others systems … replace internal standards by domestic US standards … increase administrative burden … lead to unequal outcomes TTIP is not deregulation at work, circumventing democratic principles
American Chamber of Commerce to the European Union (AmCham EU) TTIP could though…... increase economic growth - According to estimates, TTIP could boost the transatlantic economys GDP between 1.5 and 3.5 percent....increase in foreign trade - TTIP would significantly increase foreign trade between the EU and the US.... set global standards in industry and services - Common standards would improve the position of the transatlantic partners in regard to global trade.... strengthening innovation potential - a comprehensive would further strengthen innovation, research and development.... increase labour mobility - significantly influence the mobility of skilled and specialized professionals, addressing the shortage of skilled workers on both sides of the Atlantic.... create new jobs - Increases in exports and new investment opportunities would create new jobs in both economic areas.... create an investment boost - create new opportunities and incentives for companies to invest in the transatlantic marketplace..... provide welfare gains for everyone - comprehensive trade liberalization generates long term economic prosperity for partner states.... increase in competitiveness - the EU and the US could expand their position in international trade as the driving forces of the global economy.... help deepen transatlantic values – the transatlantic relationship that is based on trust, transparency and common principles would be further strengthened.
American Chamber of Commerce to the European Union (AmCham EU) Regulatory Convergence and Standards Goal: more integrated transatlantic market place through more compatible regulatory measures Avoid: new and reduce existing unnecessary restrictions to trade and investment Promote: regulatory cooperation, development of international regulations and standards Ensure: transparency and accountability of the process by involving all relevant stakeholders
American Chamber of Commerce to the European Union (AmCham EU) How to achieve this Ensure conditions for regulatory co-operation are in place Share information on significant regulatory and legislative initiatives Effective and timely dialogue between regulators – alow for comments and feedback Strengthen assessment of impacts on international / transatlantic trade Establish a strong institutional mechanism to monitor existing and enable new cooperation Ensure transparency: Stakeholder consultations, share information on legislative and regulatory initiatives