Adeline Hinderer, Trade Counselor Delegation of the European Union to the United StatesWITA Seminar, Washington DC, 9 September 2015 1

The Transatlantic Trade and Investment Partnership Agreement

• Globalisation - Including fragmentation of value chains

• Emergence of new economic powerhouses- China, India, Brazil..

• Economic downturn- Trade is part of the solution

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Why do trade agreements matter for the EU?

EU Bilateral trade agreements

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Why does TTIP matter?

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• Daily bilateral trade in goods, services and investment is worth EUR 1.7 billion

• Massive levels of mutual investment stocks: € 2 800 bn, 15M jobs

• Sales of US affiliates in Europe= double than sales in the entire Asia/Pacific

• EU= 57% of total US services sales

Why does TTIP matter ?

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• Various studies point to significant gains for both EU and US:

• 8% rise in US exports; 6% rise in EU exports in the short term, 30-40% after 20 years or so

• Around €120bn additional income generated every year once fully implemented (extra €655 in disposable income each year for a family of 4 in the US)

• 80% potential gains coming from reduction of non-tariff barriers.

Source: Centre for Economic Policy Research, London ‘Reducing Transatlantic Barriers to Trade and Investment: An Economic Assessment’, 2013

Trade negotiation process in the EU

The Commission negotiates • On behalf of the 28 Member States • Regular reporting to the Council and the European Parliament

Civil Society and Public Consultations

The Parliament co-decides • EP co-decides with the Council on trade legislations (except negotiating directives) • EP gives consent on agreements

The Council co-decides• Directives for negotiations• Follows the negotiation process• Council approve the results of the negotiation (generally by qualified majority)

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• Most ambitious negotiation to date for both sides• First agreement between two very large developed economies• Consolidating transatlantic partnership that relies on common

values: setting standards, geopolitical impact.

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TTIP: Key features

• Expanding market access: creating more business

opportunities (tariff, services, public procurement, investment)

• Regulatory issues: more consistent rules (making our regulatory systems more compatible, non tariff barriers, and sectoral issues – cars, pharma, medial devices, engineering, ICT, pesticides, cosmetics)

• Rules/systemic issues: improved trade and investment rules (IPRs, customs and trade facilitation, sustainable development, SMEs, competition & SOEs, energy

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TTIP: 3 pillars

• Negotiations launched in July 2013• G7 Statement June 2015 "accelerate work on all TTIP issues (…) ensuring progress in all elements of the negotiations, with the goal of finalising understandings on the outline of an agreement as soon as possible, preferably by the end of the year"

• Rounds take place every two months in the EU and US10th negotiating round in July in Brussels, 11th round mid October

• Regular Ministerial level discussions (next: 21/09 in DC)• Stakeholder sessions

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TTIP: Where we stand

3 main concerns:

• Transparency – led EU to publish position papers & negotiating proposals - see http://ec.europa.eu/trade/policy/in-focus/ttip/ for details

• Investor-to-state dispute settlement – EU launched consultation, 150.000 answers, & new approach

• • Ensuring that health & safety, environment, consumer

protection levels are not lowered – reassurances given by both EU and US

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Public debate on TTIP in the EU

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Dedicated TTIP information on the European Commission website

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