Transatlantic Trade & Investment Partnership: The Effects on SMEs Simos Anastasopoulos President...

Transatlantic Trade &Investment Partnership:

The Effects on SME’s

Simos AnastasopoulosPresident

American-Hellenic Chamber of CommerceFor presentation at the US Embassy, Athens

March 12, 2014

T TIP

A trade agreement that is presently being negotiated between the European Union and the United States. It aims at removing trade barriers in a wide range of economic sectors to make it easier to buy and sell goods and services between the EU and the US.

On top of cutting tariffs across all sectors, the EU and the US want to tackle barriers behind the customs border – such as differences in technical regulations, standards and approval procedures. TTIP would be the biggest trade deal ever and it could shape global rules on trade.

Main Goals

1.Expand trade in goods via the elimination of tariffs

2.Facilitate trade in goods via improvements in customs and supply chain regulations

3.Liberalize cross-border trade in services facilitated by the internet, a sector which accounts for over 70% of our economies

4.Enhance government procurement via guaranteeing non-discriminatory treatment and free transfer of funds

5.Improve transatlantic travel and tourism by facilitating visas straightforwardly

6.Strengthen intellectual property rights protection and address pending issues as such

7.Promote expansive regulatory cooperation via fostering an environment of trust and building confidence in one another

Agenda

•4th Negotiation Round

•Economic Impact Assessment

•Effects on Trade

•Beneficial for Startups & SME’s ?

4th Negotiation Round

•Market access• Agricultural & Industrial Goods• Customs / Trade Facilitation• Investment

• Regulatory aspects• Government Procurement & State Owned Enterprises• Energy & Raw Materials• SME’s & Competition

• Trade Rules• Sustainable Development• Sanitary & Phytosanitary Measures• Intellectual Property Rights & Dispute Settlement

Economic Impact Assessment

EU benefits:•€ 68-119 bn per year

•EU exports to US increase by € 187 bn (28%)

•EU exports to 3rd countries increase by € 33 bn

•€ 545 extra disposable income for every family

•Labor market: 400,000 job openings & higher compensation rates

Effects on Trade

• Increase competitiveness via expansion of the US & EU positions in international trade

•Eliminate Tariffs, Quotas, Certification Requirements, Importing Procedures at Customs, and other TBT’s

•Grow the Transatlantic Economyby 1.5% – 3.5%

Effects on Trade

•Encourage Trade Diversion: Import from partners the goods that were previously imported from other exporters

•Strengthen Innovation Potential: Facilitate export of innovative products through increase of standards compatibility and recognition of certifications

Beneficial forStartups & SME’s

•Maintain Competitive Prices in Market

•Export in Lower Prices, directly or as suppliers

• Import in Lower Prices

•Export Innovative Products to US

•Request Funding From Abroad

•Develop International Partnerships

•Avoid NTB’s (bureaucratic hurdles & unnecessary rules in regulations & standards)

•Streamline & reduce burdens associated with customs procedures

•Harmonize product standards

•Gain tailored support for regulatory compliance

•Move labor easily

Beneficial forStartups & SME’s

Transportation,Health & IPR

•Liberalization: Decrease of TBT’s increases competition in such oligopolistic industries

•Medical device & pharmaceutical industry will reach high regulatory convergence

•9 out of the world’s 10 top airlines are US or EU based

•Bridge and consolidate Intellectual Property Rights data; €4.7 trn arise from IPR in EU,  39% of its activities.