November 18, 2015
TTIP - Free trade for more economic growth
Global developments create prosperity through an international division of labor and trade. The participation in worldwide economic interdependencies is one of Germany’s and Bavaria’s main success strategies. Yet, in our view, increasing economic globalization heightens the need for bilateral trade agreements and other growth-enhancing structural reforms.
TTIP - opportunities for Bavaria, Germany and the USA
The Transatlantic Trade and Investment Partnership (TTIP) promises opportunities for Bavaria and Germany as well as the USA. The USA is the second-most important export market for Germany after France, with predictions that it will move into first place by the end of 2015. The elimination of customs duties on goods would save the German automobile industry over 1 billion Euros (around 1.5 billion US dollars) per year. These savings would not only benefit the economy but also bear advantages for consumers.
The Bavarian Industry Association (vbw) and The Bavarian Employers’ Assocations for the Metalkworking and Electrical Industries (bayme vbm) support the conclusion of a comprehensive free trade agreeement with the USA. The agreement will facilitate trade between the EU and the USA and generate positive economic stimuli as well as remove “behind the border” barriers to trade.
In our view, TTIP must therefore ensure
- the dismantling of customs duties and the reduction of trade barriers,
- guaranteed access for European businesses to public procurement procedures in the USA,
- the removal of bureaucratic hurdles for mid-sized businesses
- and the protection of investments via common protection standards. Here the regulatory rights of states have to be aligned with the protection of investors.
European and American quality requirements and safety provisions are not being questioned in the negotiations.
Read more about TTIP in upcoming issues
In upcoming issues we will outline the estimated benefits of TTIP for EU and US businesses, for consumers as well as for the economy more generally. In addition, we will explain how, in our view, trade will be stimulated by the elimination of non-tariff trade barriers and the development of joint norms and regulations.