14 June 2013

Council gives green light to launch free-trade talks with the United States

Scope of the TTIP mandate

The EU negotiating mandate for the TTIP focuses on three broad themes:

1. market access
2. regulatory issues and non-tariff barriers (such as differences in standards)
3. the rules under which the pact would operate.

The Council agreed that audiovisual services would not be covered in the mandate, but that the Commission would have the opportunity to make recommendations on additional negotiating mandates. Trade is an exclusive power of the European Union, whereby the Commission negotiates international deals on the EU's behalf.

The mandate agreed unanimously by Member States on Friday consists of three parts:

• a Council decision authorising the opening of negotiations
• the EU Member States' decision authorising the Commission to negotiate, on their behalf, those provisions of the EU-US TTIP that fall outside the limits of EU competence
• the negotiating directives.

Conclusion of the agreement

The Council will conclude the final agreement after the European Parliament has given its consent and Member States have ratified the text.

Estimated impact of the TTIP

When completed, the TTIP will be the biggest bilateral trade deal ever negotiated. According to an impact assessment by the Commission, a comprehensive trade and investment agreement could increase EU GDP by up to 0.48 per cent and boost EU gross national income by up to €86 billion.

Current size of EU-US trade

The EU is the US's largest trading partner, while the United States is the EU's second-largest trading partner, with 17.6 per cent and 13.9 per cent respectively of each other's trade in goods in 2011. Together the EU and the United States account for almost half of global GDP and one third of total world trade.

Council press release - Highlights

Council press release

Council conclusions

Commission press release

"The aim is to increase trade and investment between the EU and the US by unleashing the untapped potential of a truly transatlantic market place. The agreement is expected to create jobs and growth by delivering better access to the US market, achieving greater regulatory compatibility between the EU and the US, and paving the way for setting global standards. If such an ambitious agreement were achieved, it is expected that every year an average European household would gain an extra €545 and our economy would be boosted by 0.5 per cent to up to 1 per cent of GDP, or €119 billion annually, once fully implemented.

In more concrete terms, the goal will be to eliminate duties and other restrictions for trade in goods. Freeing up commercial services, providing the highest possible protection, certainty and level playing field for European investors in the US, and increasing access to American public procurement markets are also objectives. Removing unnecessary regulatory constraints on trade is a key issue for the EU, as are obtaining stronger protection of European Geographical Indications, facilitating customs formalities and addressing competition rules.

Sustainable development will be an overarching objective. We aim to ensure that the agreement respects international environmental and labour agreements and standards, and promotes high levels of protection for the environment, works and consumers. We will not encourage trade or investment by lowering any such standards."

Press release (including main elements of mandate) © European Commission

FAQs

TTIP-webpage

President Barroso said: "I am delighted we have a mandate to negotiate an agreement on trade and investment with the United States. These negotiations can be a game changer. It shows that where there is a will there is a way.

"We are already each other's biggest trade and investment partners. Strengthening this relationship will bring more jobs, more growth to Europe and the United States. The potential economic gains for the EU are estimated at around €120 billion a year. And the real beauty of this deal is that it will offer real returns of around €545 per average household in Europe almost for free. This makes it the cheapest stimulus package one can imagine.

"Both sides come to these negotiations with their own priorities and interests. But I am convinced that, if both sides show the political will, we can reach an agreement that fully respects our sensitivities. Beyond the economic benefits, this is also about our place in the world. An agreement will forge a shared future based on our common values and our common commitment to open trade. The European Commission will take these negotiations forward. We will work quickly while ensuring that the substance is right."

Press release © European Commission

Minister Richard Bruton said: “I am delighted to announce that we have reached agreement among EU Trade Ministers on the mandate to start talks on an EU-US Transatlantic Trade and Investment Partnership. Reaching agreement among EU Trade Ministers on the terms of the EU’s negotiating mandate has been a top priority for the Irish Presidency since January. The priorities for the Irish Presidency are Stability, Growth and Jobs and an EU-US trade agreement holds massive potential in each of these areas. A comprehensive Trade and Investment Partnership could over time boost EU GDP by 0.5 per cent per annum and help create approximately 400,000 jobs in the EU.”

“The transatlantic trading relationship is the most significant in our global economy, accounting for more than 15 million jobs on either side of the ocean. But its full potential is far from being tapped. A new deal offers significant opportunities to indigenous firms in all sectors to export to the huge US market. It will also benefit US firms in Ireland who already employ over 115,000 people directly.” 

Press release © Irish Presidency

EU Trade Commissioner De Gucht stated: “I am delighted that the Council has today decided to give the European Commission ’the green light’ to start trade and investment negotiations with the United States. Today's decision sends an important signal to people across Europe that we are united in our determination to create jobs and strengthen our economies on both sides of the Atlantic. Our aim is to release the untapped potential of a comprehensive transatlantic trade and investment partnership (TTIP) by bringing our economies closer together than ever before. We will achieve this through increased access to the US market, by working with the US towards setting global standards and by greater compatibility between our respective regulations.

"In short, this deal will be about streamlining our economies where it makes sense to do so by making it easier and faster for our companies to do business together. In turn, that will have the knock-on effect of real savings for consumers as well as the creation of tens of thousands of jobs for Europeans.

"At the same time, Europe is going into these negotiations enthusiastically, but realistically. Domestic environmental, labour, privacy or safety standards, and policies to protect consumers cannot and will not be lowered as a means to promote trade and investment.

"Latest estimates show that a comprehensive and ambitious agreement between the EU and the US could bring overall annual gains of between 0.5 per cent and 1 per cent in GDP for the EU. This would be equivalent to at least €86 billion of added annual income for the EU economy. In other words, by reducing red-tape and lowering consumer prices, a future trade deal with the United States would put almost an additional €545 per year on average in the pockets of a European family."

Press release © European Commission

See also: Cecilia Malmström, EU Commissioner for Home Affairs EU and US will set a Transatlantic group of experts to discuss the US programmes more in details © European Commission