Transatlantic Trade and Investment Partnership

Transatlantic Trade and Investment Partnership

Capitol Report: CalChamber Voices Support for Transatlantic Partnership Agreement

(February 4, 2015) The California Chamber of Commerce is urging United States and European Union leaders to advance the largest regional trading and investment relationship in the world.

In the latest CalChamber Capitol Report, Susanne Stirling, CalChamber vice president of international affairs explains that although these negotiations have been ongoing since 2013, with new EU officials in place, there is a sense of a fresh start for these particular negotiations which will create new opportunities for a range of companies.

The Transatlantic Economy 2019
U.S. Chamber, March 20, 2019

The Transatlantic Economy 2019 report from the U.S. Chamber of Commerce and the American Chamber of Commerce to the EU documents the strength of the transatlantic economy, but also warns that accumulating frictions between the United States and Europe are testing the resilience of the world’s largest bilateral commercial relationship.

This report underscores that the economic relationship between the U.S. and Europe remains by far the largest on earth. Transatlantic trade and investment supports 16 million jobs on both sides of the Atlantic and generates close to $5.5 trillion in commercial sales a year and accounts for half of total global personal consumption. Over $3.75 billion in goods and services is traded across the Atlantic every single day. No place in the world has attracted more U.S. foreign direct investment (FDI) than Europe, and Europe remains by far the largest source of investment into the United States.

CalChamber Urges State Congressional Delegation to Support Transatlantic Economic Partnership CalChamber, September 1, 2015

Letter to California Congressional Delegation in Support of TTIP

TTIP in US congressional districts

The Case for Investing in Europe 2015 AmChams in Europe, May 2015

Business Coalition for Transatlantic Trade

The European Union is by far America’s largest international economic partner, with more than $1.5 trillion in goods, services, and income receipts flowing between the United States and the EU annually. A comprehensive transatlantic trade and investment agreement will eliminate tariffs and nontariff barriers, improve the compatibility of the U.S. and EU regulatory regimes, and liberalize investment, services and procurement. The Business Coalition for Transatlantic Trade will amplify the U.S. business community’s interest in this proposed agreement. To join the coalition, visit: www.transatlantictrade.org.

Trade Pacts will Strengthen our National Security

Deeper trade ties strengthen our national security and enhance U.S. leadership. The more we cooperate with our friends, the less they’ll depend on our rivals. If we don’t write the rules of the global economy, somebody else will. On a broader level, trade agreements show other countries we’re trustworthy partners. In addition, trade agreements encourage other countries to adopt our values of free enterprise in a free world. In short, trade agreements will strengthen our national security because they demonstrate our commitment, support U.S. values, and rebuild our credibility.

Remarks by Chairman Paul Ryan of the Committee on Ways and Means, February 27, 2015

Current

The European Union (EU) consists of 27 countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and new members Croatia, Hungary, Poland, Estonia, Lithuania, Latvia, the Czech Republic, Slovakia, Slovenia, the Mediterranean Island of Malta and Cyprus, Bulgaria and Romania

The EU presidency rotates with each member country taking turns for six months at a time as chair of EU meetings and representing the EU at international events.

Impact

The trans-Atlantic economic partnership is a key driver of global economic growth, trade and prosperity, and represents the largest, most integrated and longest-standing regional economic relationship in the world. The U.S. and EU transatlantic economy support 16 million jobs, accounts for one third of world GDP, and 30% of world trade. 4.7 million jobs in the U.S. are directly supported by European companies in the U.S. (AmCham Europe Report). The trans-Atlantic relationship defines the shape of the global economy as a whole; either the European Union or the United States also is the largest trade and investment partner for almost all other countries.

According to the World Bank, the EU market represents 447.5 million people, and has a total GDP of $15.29 trillion, as of 2020. The United States has 331 million people and a Gross Domestic Product of $20.95 trillion.

Total bilateral trade between the European Union and United States was over $1 trillion in 2021, with goods trade accounting for $762.14 billion, the United States exported $271.7 billion worth of goods to EU member nations.

California exports to the EU were $27.4 billion in 2021. California is the second largest exporting state to the European Union, with computers and electronic products, chemicals,  agricultural products, and transportation equipment as our leading export sectors to the region. European Union countries purchase roughly 15 percent of all California exports.

Tariffs on goods traded between the U.S. and the EU average less than 3%, but even a small increase in trade could have major economic benefits. U.S. trade with Europe is much larger than with China. Although there are numerous issues such as agricultural subsidies, privacy, aircraft subsidies, obtaining agreements on issues such as uniform car safety testing could be a huge benefit.

A free trade agreement could increase economic output by 122 billion euros ($158 billion) a year for Europe alone and add 0.52% to the EU’s GDP in the long term, according to European Commission estimates, benefiting industries ranging from chemicals to automakers. EU-U.S. commercial links are unrivaled. Trans-Atlantic trade in goods and services is worth $700 billion a year. Total U.S. annual investment in the EU is higher than in all of Asia, while EU investment in the U.S. far outstrips EU investment in India and China combined.

According to the U.S Trade Representative’s Office, the United States and the European Union are the world’s largest sources and destinations for foreign investment. Trans-Atlantic investment benefits companies and workers by creating high-paying jobs, boosting exports, and spurring innovation in both the United States and the European Union.

And if you think trade can’t be fun…

See Buzz Feed piece on the layman’s guide to TTIP:

“15 Corgis with a Nose for Business.”

(Courtesy of Mr. Robin Newmann | Former Vice Consul,Director for West Coast Politics, Press & Public Affairs,British Consulate-General, San Francisco)

Anticipated Action

Europe and the United States are continuing to engage in trade talks this year to deepen the world’s largest trading relationship with focus on trade and investment initiatives including:

  • eliminating tariffs on trans-Atlantic trade in goods;
  • establishing compatible regulatory regimes in key sectors to address regulatory divergences that unnecessarily restrict trade;
  • a bilateral investment agreement;
  • liberalizing cross-border trade in services; and
  • bilateral expansion of government procurement commitments.

CalChamber Position

The California Chamber of Commerce, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business. New multilateral, sectoral and regional trade agreements ensure that the United States may continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.

Strengthening economic ties and enhancing trans-Atlantic regulatory cooperation through an agreement that would include both goods and services, including financial services, are essential to eliminating unnecessary regulatory divergence that may act as a drag on economic growth and job creation.

Trading Partner Portals

Resources