SIFMA and AFME believe it is essential to liberalise financial services trade and pursue compatible regulatory regimes within a US–EU agreement.
In the paper, SIFMA and AFME note that the financial industry strongly supports a comprehensive US-EU trade and investment partnership. A comprehensive partnership presents a unique opportunity to enhance the efficiency of the transatlantic financial markets, facilitate trade, and deliver lower cost products to investors. In order for such a partnership to deliver its full potential, it is imperative that provisions for the financial services sector are an integral part of the agreement.
The US and EU financial markets are the most developed and intertwined in the world, with an average of $87 billion of cross-border portfolio flows daily. The paper encourages negotiators to focus on questions of market access, non-discriminatory treatment, extraterritoriality, and enhancing regulatory efficiency.
SIFMA and AFME offer the industry’s recommended framework for financial services provisions for consideration in the negotiations, based on the following principles:
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full market access commitments, including provisions for commercial presence, cross-border business operations, consumption abroad, and regulatory transparency;
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regulatory coherence, including commitments that would incorporate the principles of financial regulatory reform negotiated through the G20; and
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ensuring appropriate investment protections for investors.
Additionally, the paper highlights how the protection of cross-border data flows and transfers, and the inclusion of investor-state dispute settlement commitments also warrant closer attention and are important for firms operating in the transatlantic marketplace.
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© SIFMA - Securities Industry and Financial Markets Association
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