Ttipslovenia florina telea european comission

The EU-US Transatlantic Trade and Investment Partnership (TTIP) Round Table on TTIP for 25th Anniversary of ZPS Ljubljana, 16 June 2015

Florina Telea Trade Affairs Manager 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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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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EU and US top trading partners • EU-US: 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 • EU had trade in goods surplus of €92bn with US in 2013

• 15 million transatlantic jobs • €2,4 trillion of mutual investment stocks However, relative importance is in decline 5

Why now?

Ambitious bilateral trade and investment agendas • Canada, Japan, South Korea, Singapore, wider ASEAN, Latin America, India • For the US, the Trans-Pacific Partnership negotiations

WTO impasse, need for new global trade rules Stars aligned • European Council, European Parliament, 28 Member States • US Administration, US Congress • Business on both sides of the Atlantic 6

Why TTIP matters?

• Potential not fully exploited - Tariff average: 3% (equals 6bn Euros paid just in duties every year) - Barriers and behind borders: similar aims, different approaches

• Contribute to growth in the EU: - 0,5% increase in GDP by 2027 - Equals 120bn Euros more GDP in each year for the EU economy

• Labour market: benefits (wages / new job opportunities for high and low skilled workers) 7

What could TTIP achieve?

• Increased trade - EU exports to US up by 28% (€187 bn) - Total EU exports up €220 bn (3rd countries included)

• Significant economic gains both EU & US: - 0,5 % increase in EU GDP by 2027 - €68-119bn (EU), €50-95bn (US) - Rest of the world: GDP increase €100 bn 8

For example: sectoral benefits

Full analysis: http://trade.ec.europa.eu/doclib/docs/2013/march/tradoc_150737.pdf

Benefits for consumers • Economic benefits -

Lower prices and wider choice of goods and services Increased competition: more companies selling products in EU and US Labour market: higher overall wages, new job opportunities €545 extra disposable income per EU family by 2027

• Safegurads from the EU and national governments - Products are safe and of high quality - They respect the environment - Consumers are treated fairly 10

A long way to travel

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Timing

 Parallel launch procedures (EU negotiating mandate, US Congress notification) in June 2013  Trade negotiations moving ahead – privilege substance over speed: Rounds 1-3: July, November and December 2013 Rounds 4-7: March, May, July, October 2014 Round 8-10: February, April, July 2015

 November 2014 political changes: new Commission, US Republicans in control of Senate  Next US election in 2016 12

What are we negotiating?

EU objectives for the negotiations: Three main elements – single undertaking •Market access: tariffs, rules of origin, services, public procurement, investment •Regulatory and non-tariff barriers: better cooperation •Trade rules addressing shared global challenges, e.g. sustainable development, IPR, energy and raw materials, small business, state-owned enterprises 13

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21st century agreement:Market Access Open markets: a real boost for exports and growth Tariffs EU interest: non-agricultural market access Services/Investment EU interest: cross-sector, but in particular market access in maritime transport and aviation Public Procurement EU interest: substantially improved market access both at federal and sub-federal level.

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21st Century Agreement: Regulatory Cluster Better EU-US cooperation could save time for business and workers, costs for consumers Horizontal Cluster EU interest: better consultation between regulators Sectoral Cluster Common interest: Specific cooperation in key sectors such as cars, pharmaceuticals, cosmetics, medical devices, chemicals and financial services 16

21st Century Agreement: Rules High EU-US standards could influence the world, e.g.

Energy and Raw Materials: a detailed chapter, including removal of export restrictions to the EU on oil and gas.

Geographical Indications: a practical solution Sustainable Development: ambitious commitments on labour and environmental standards Customs & Trade Facilitation: a strong chapter to benefit small and medium enterprises (SMEs) as well as big traders 17

Investment protection / ISDS • EU and US invested c. EUR 1.65 trillion in each other's economies in 2013 • Investment crucial to global economy and trade – so countries have designed rules to protect it • ISDS is a mechanism to enforce these rules – EU MS party to 1400 bilateral investment treaties • Following 2014 consultation, Commission proposes several ways to improve the rules and the mechanism…

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Investment protection / ISDS • Right to regulate – clear in the text of the agreement • How tribunals work – stricter rules for selecting arbitrators • Appeals – setting up an appellate mechanism to ensure correct and predictable rulings • Link with domestic courts – avoiding parallel claims 19

Three fundamental points • TTIP will not lower standards protecting people (workers, consumers, health, safety) or the environment • The EU and the US will maintain their respective rights to regulate in future to reach high(er) levels of protection • TTIP will not impose one system on the other 20

How do we negotiate?

• DG Trade has overall lead for EU, USTR for US • Negotiating teams are led by a Chief Negotiator • A negotiating "round" is a week of around 25 simultaneous discussions, convened in either Brussels or Washington • All areas of negotiation covered at each round – continuous • Depending on the agenda, up to 200 people involved on both sides • Round every 2-3 months on current schedule

• DG Trade draws on expertise from across the Commission • Regular consultation with Council (Member States) and 21 Parliament

Who negotiates?

Cecilia Malmstrรถm and Michael Froman

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Who negotiates?

Dan Mullaney and Ignacio Garcia-Bercero

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Who judges?

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How does the EU work together?

• The European Commission (the EU's civil service) takes the initiative and negotiates on behalf of the EU: one single negotiator • The Council of Ministers (representing Member States): decides on the negotiating mandate, follows the negotiation, decides to sign (by QMV) (if needed) and to provisionally apply the agreement, and to ratify it after the European Parliament’s consent • The European Parliament (directly elected MEPs) follows the negotiation alongside Member States – its consent is needed for the agreement to come into force 25

Get involved • Democratic scrutiny and public debate strongly encouraged • During negotiations: public consultations, civil society dialogue, Sustainability Impact Assessment, new TTIP advisory group, Council (Member States) and European Parliament (INTA) • After negotiations: public debate on final text, European Parliament ratification, ongoing civil society monitoring • Stay informed  Commission's TTIP dedicated website http://ec.europa.eu/trade/policy/in-focus/ttip/  Follow us on Twitter @EU_TTIP_team 26

Questions?

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