On 12 March 2013 the Commission decided to request the Member States' green light to open negotiations for Transatlantic Trade and Investment Partnership with the United States (TTIP) and released an impact assessment of the future of the EU-US trade relations.
The transatlantic trade relation is the backbone of the world economy. Together, the European Union and the United States account for about half of the world GDP (47%) and one third of global trade flows. Each day goods and services of almost € 2 billion are traded bilaterally, contributing to creating jobs and growth in both economies.
When negotiations are completed, this EU-US agreement would be the biggest bilateral trade deal ever negotiated - and it could add around 0.5% to the EU's annual economic output. This would be equivalent to €86 billion of added annual income to the EU economy.
According to a report released 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 €187 billion every year. Consumers will benefit too: on average, the agreement will offer an extra € 545 in a disposable income each year for a family of four living in the EU.
The EU and the US already enjoy the most integrated economic relationship in the world.
Total US investment in the EU is three times higher than in all of Asia. EU investment in the US is around eight times the amount of EU investment in India and China together. It is estimated that a third of the trade across the Atlantic actually consists of intra-company transfers.
The EU and the US economies account together for about half the entire world GDP and for nearly a third of world trade flows.
Negotiations will aim to achieve ambitious outcomes in three broad areas : a) market access; b) regulatory issues and non-tariff barriers; and c) rules, principles and new modes of cooperation to address shared global trade challenges and opportunities.
Both parties now envisage starting internal procedures leading to the actual launch of negotiations at the earliest possible moment. On the EU side, the European Commission will present draft negotiating directives to Council, on which the latter has to decide.
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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