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European Commission Fires Starting Gun for EU-US
Trade Talks
The European Commission today agreed the draft
mandate for the Transatlantic Trade and Investment Partnership Agreement with the
United States ,
effectively firing the starting gun for what is hoped to be a relatively quick
negotiation. The draft mandate will now
be sent to the Council for the Member States to approve it before negotiations
can start.
"I
am very pleased that just one month after the announcement by the EU and the US
to go for this ‘game-changing’ trade deal, the European Commission is ready
with a proposed mandate for the future negotiations. We can now roll up our
sleeves up and get down to the business of preparing negotiations," said European Trade Commissioner Karel De Gucht. "I hope that Member States will now quickly
decide to open negotiations so work can begin with the United States before the
summer break."
Last month, President of the United States of
America Barack Obama, European Commission President José Manuel Barroso and
European Council President Herman Van Rompuy announced they were each starting the
internal procedures necessary to launch negotiations on the much awaited trade
agreement (MEMO/13/95). The negotiations will be based on the work of the EU-US
High Level Working Group on Jobs and Growth co-chaired by Commissioner De Gucht
and United States Trade Representative Ron Kirk.
Background
The EU and the US make up 40% of global economic
output and their bilateral economic relationship is already the world’s largest. The aim of the high-standard Transatlantic
Trade and Investment Partnership is to liberalise trade and investment between
the two blocs.
According to a report released today by the
European Commission (Reducing Transatlantic Barriers to Trade and Investment), the
final agreement could see EU exports to the US rise by 28%, earning its
exporters of goods and services an extra €187bn every year. Consumers will
benefit too: on average, the agreement will offer an extra €545 in disposable
income each year for a family of four living in the EU.
The European Union and the United States will
have their eyes on more than just removing tariffs. Tariffs between them are already low (on
average only 4%) so the main hurdles to trade lie 'behind the border' in
regulations, non-tariff barriers and red tape. Estimates show that 80% of the overall
potential wealth gains of a trade deal will come from cutting costs imposed by
bureaucracy and regulations, as well as from liberalising trade in services and
public procurement.
That's why the two trading giants will reinforce
their regulatory cooperation, so to create similar regulations rather than have
to try to adapt them at a later stage.
The aim is to build a more integrated transatlantic marketplace, while
respecting each side's right to regulate in a way that ensures the protection
of health, safety and the environment at a level it considers appropriate. Both sides hope that by aligning their
domestic standards, they will be able to set the benchmark for developing
global rules. Such a move would be
clearly beneficial to both EU and US exporters, but it would also strengthen the
multilateral trading system.
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