The EU-US Transatlantic Trade and
Investment Partnership
(TTIP)
Istanbul
12 September 2013
Damien Levie
Deputy Chief
Negotiator
DG TRADE
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Disclaimer
All views expressed are purely personal and should not be considered as
representative of the European Commission’s official position. Neither the
European Commission nor any person acting on behalf of the Commission is
responsible for the use which might be made of the following information.
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1- Top trading partners
2 – TTIP Time
3 – How we got there?
4 – Economic findings
5 – A "21st century" trade agreement
6 – Timing
7 – EU negotiation mandate
89 - Transparency in trade negotiations
3
EU/US Trade: EU is the world's biggest trading power
Countries who have the EU, the US, China or Japan as their most important trade partner
EU as first trade partner
US as first trade partner
China as first trade partner
Japan as first trade partner
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Top trading partners
• World's largest trade market
• 50% of world GDP and 1/3 of world trade
• €1.8 billion/day and €723 billion/year of goods and
services traded
• 15 million transatlantic jobs
• €2,4 trillion of mutual investment stocks
However, relative importance is in decline
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EU imports from USA (2011)
6
EU exports to USA (2011)
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TTIP time
Not new: "old movie" of the 90ies
Trade = growth at minimal cost to taxpayer
• Irresistible given macroeconomic situation
Potential not fully exploited
• Tariff average: 3%
EU: 5.2%
US: 3.5%
• Trade-weighted tariff protection: EU: 2.8%
US: 2.1%
• Barriers at and behind borders : similar aims, different approaches
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TTIP time (2)
Ambitious bilateral trade and investment agendas
• Canada, Japan, India and ASEAN
• Trans-Pacific Partnership
DDA Impasse & need of new global trade rules
Stars aligned
• European Council and European Parliament
• 28 Member States
• Business
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How we got there? Preparations (1)
November 2011 EU-US Presidential Summit
• High-Level Working Group on Growth and Jobs
• Tasks: identify policies & measures to increase trade and
investment to support job creation, growth &
international competitiveness
• Timing: June & end of the year 2012 (US elections)
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How we got there? Preparations (2)
•
•
•
•
•
In-depth work
Scoping exercise
USTR & European Commission
Relationship between equals
Building on previous work, TEC, & > 60 sector-specific
regulatory dialogues
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How we got there? Preparations (3)
Interim report June 2012
• Preferred option: a comprehensive agreement
• Goal is highly ambitious liberalisation in all areas: goods,
services, public procurement, investment, regulatory issues and
non-tariff barriers.
• Rules for the 21st century: trade facilitation & customs,
competition and State-owned enterprises, labour &
environment, SMEs, supply chains, access to raw materials &
energy.
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Preparations (4)
Interim report June 2012
"If achievable"
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Preparatory Work (5)
Stakeholders' role
invited by the HLWG (interim report) to present concrete
proposals to address the impact of regulatory differences that
unnecessarily impede trade
Joint EU-US call
July 2012 call by USTR/DoC + TRADE / DG Enterprise & Industry
Good results
Legislators in the loop
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Preparatory Work (6)
Final report February 2013
Recommends start procedures to launch negotiations of a
comprehensive trade & investment agreement: "TTIP"
Key findings:
• Need break new ground to reap benefits & establish new
trade rules that are globally relevant
• Need innovative approaches, both to be creative, flexible &
open-minded
• Agreement in three parts
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Preparatory Work (7)
Final report February 2013
1. market access
2. Regulatory issues & NTBs
3. Rules addressing shared global trade challenges and
opportunities
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Preparatory Work (8)
Market Access
• Goods: "would be to eliminate all duties on bilateral trade …
substantial elimination of tariffs upon entry into force, phasing
out of all but the most sensitive in a short time frame … options
for … most sensitive products"
• Services: bind existing opening, and "achieve new market access
… long-standing market access barriers while recognising …
sensitive … sectors. Commitments on transparency, impartiality
& due process for licensing & qualification requirements &
procedures
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Preparatory Work (9)
Market Access ctd
• Investment: liberalization and protection provisions based on
highest standards
• Public procurement: "enhance business opportunities through
substantially improved market access to gov procurement .. At
all levels of government on the basis of national treatment
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Preparatory Work (10)
Regulatory issues & NTBs
• Important: "significant portion of the benefits" [equivalent to a
traditional tariff of 10-20%]
• Balanced ambition: move progressively to a more integrated
market place while respecting each side's "right to regulate in a
manner that ensures the level of protection of health, safety,
and the environment that each side deems appropriate"
• Shared objective: identify new ways to prevent NTBs from
limiting the capacity of U.S. and EU firms to innovate & compete
in global markets
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Preparatory Work (11)
Regulatory issues & NTBs ctd
• Need new processes & mechanism: promote greater
compatibility, including where appropriate, harmonization of
future regulations, & reduce burdens from existing regulations
through, where appropriate, mutual recognition or other means
• 5 elements
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Preparatory Work (12)
Regulatory issues & NTBs ctd
1.
2.
3.
4.
5.
ambitious SPS chapter
ambitious TBT chapter
Horizontal disciplines on regulatory coherence in goods and services…
upstream regulatory consultation, impact assessments, good regulatory
practices
Sectorial annexes: Commitments / steps => regulatory coherence
Framework … guiding regulatory cooperation … institutional basis for
future progress – "engine of the living agreement"
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Preparatory Work (12)
Rules addressing shared global trade challenges and
opportunities
1.
2.
3.
4.
IPR
Environment & labour
Other rules, principles, modes of cooperation in:
trade facilitation & customs, competition policy, State-owned
enterprises and other enterprises with special gov' granted
rights,localization barriers to trade, access to raw materials &
energy, SMEs, transparency
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Final report HLWG
• Endorsed by Presidents Barroso, Van Rompuy
and Obama
• Triggered internal procedures to launch
negotiations of a “Transatlantic Trade and
Investment Partnership” (TTIP)
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Impact Assessment - Economic findings
• Significant economic gains both EU & US:
• 0,5 % increase in EU GDP by 2027
• 68-119bio €/year (EU), 50-95bio €/year (US)
• 545€ extra disposable income for families
• Increased trade
• EU exports to US up by 28% (187 bio €)
• Total EU exports up 220 bio € (3rd countries included)
• Labour market: benefits (of overall wages and new
job opportunities for high- and low-skilled workers)
• RoW: GDP increase +100 bio/ €
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Impact Assessment – Sectoral Benefits
Output (in %)
US
EU
Agriculture forestry fisheries
Other primary sectors
Processed foods
Chemicals
Electrical machinery
Motor vehicles
Other transport equipment
Other machinery
Metals and metal products
Wood and paper products
Other manufactures
Water transport
Air transport
Finance
Insurance
Business services
Communications
Construction
Personal services
Other services
0.06
0.02
0.57
0.37
-7.28
1.54
-0.08
0.37
-1.50
0.08
0.79
0.99
0.44
0.42
0.83
0.25
0.17
0.53
0.26
0.28
0.00
0.05
-1.13
-0.40
-2.04
-2.78
0.83
1.66
0.45
-0.02
0.26
0.42
0.39
-0.11
-0.44
0.07
0.32
0.39
0.38
0.18
Bilateral exports (in Million EUR)
Bilateral exports (in %)
EU exports to US US exports to EU EU exports to US US exports to EU
15.10
0.60
45.50
36.20
35.00
148.70
25.50
6.60
68.20
19.90
22.80
6.80
1.60
8.50
8.30
2.30
0.90
3.10
2.30
-1.00
21.80
0.40
74.80
34.20
44.10
346.80
27.80
16.70
88.10
42.50
16.70
7.10
2.20
4.90
7.40
5.40
10.50
6.60
13.80
1.50
1,743
55
13,405
29,895
2,555
87,358
9,037
7,448
12,516
3,209
11,132
23
333
3,517
3,333
1,545
51
71
228
-491
1,102
41
4,083
27,273
8,304
65,903
10,318
7,810
18,778
2,918
6,170
42
374
1,240
264
1,931
685
155
964
744
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EU negotiation mandate
Negotiating directives set out in very broad terms the
topics and objectives to be achieved in the negotiations
Three main elements:
• Market access: tariffs, RoO, Services, PP, Investment
• Regulatory and NTBs: towards convergence?
• Trade rules addressing shared global challenges
 IPR, Trade and Sustainable Development + Other Globally
Relevant Challenges and Opportunities
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Tariffs
IPR
Other
Public
Procur
ement
21st Century
FTA
Invest
ment
Ingredients
TBT &
SPS Regulatory
Cooperation
Services
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Timing
Parallel launch procedures

Adoption of negotiation mandate (14 June 2013)
Letter of notification US Congress (90-day period)
Trade negotiations on one tank of gas
1st round of negotiations (July 2013)
2nd round 7-10 October
3rd round December
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Milestones on the way
No low-hanging fruit
Complex topics
• Agriculture, SPS, Regulatory convergence, NTBs, services,
public procurement
Elements of timing
• US presidential term
• EP elections June 2014
• College of Commissioners Oct. 2014
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Transparency in trade negotiations
• Democratic scrutiny and public involvement are encouraged at
all stages of negotiations
• During negotiations: public consultations, civil society dialogue,
SIA, Council and EP (INTA)
• Stay informed
 Commission's TTIP dedicated website
http://ec.europa.eu/trade/policy/in-focus/ttip/
 Follow us on Twitter @EU_TTIP_team
• Public debate before the deal is approved
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Negotiations: Working arrangements
• DG Trade will take the overall lead (and USTR)
• Negotiating teams are led by a Chief Negotiator
• Chief Negotiators set up negotiation rounds, normally alternating
between the EU and US
• Depending on the agenda, up to 70 people on the Commission side
• 1st round: 8-12 July in Washington
• All areas of negotiation covered
• DG Trade draws on expertise from across the Commission
• Strong cooperation between DGs
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THE END
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