Leaders of the European Union and the USA have decided to widen their economic relationship and negotiate a new trade and investment deal. An agreement called Transatlantic Trade and Investment Partnership will aim to expand trade and investment between the two economic giants as well as to remove non-tariff barriers of trade. These barriers were identified as the most important barrier to transatlantic trade. According to studies, additional cost burden due to regulatory differences equals to approximately 10% to 20% tariff, whilst classic tariffs are at about 4%.
The Transatlantic Trade and Investment Partnership could bring overall annual gains of 0,5% increase in GDP for the EU and a 0,4% for the US by 2027. Negotiations will focus on three main areas – market access (higher levels of liberalization and investment protection), regulatory issues and non-tariff barriers (such as common technical, safety and environmental standards) and rules, principles and new modes of cooperation to address shared global trade challenges and opportunities (such as intellectual property rights, sustainable development). Both parties will now meet as soon as the European Commission and the US administration present the main goals to Council and Congress respectively.
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