How will TTIP actually help my business?

TTIP aims to allow UK businesses  –  regardless of location or size –  access to US markets without having to pay the nuisance import duties which make their products uncompetitive. It also will cut the red-tape and regulations which are often prohibitive to market entry for small businesses. While larger organisations can  – due to their scale  – often cope with these costs, SMEs can be put at a disadvantage, often making it harder to compete in foreign markets. One of BritishAmerican Business’s key objectives through the road shows is to talk to SMEs about how TTIP can help them.

Specifically, a successful TTIP will:

  • Reduce tariffs, simplify and speed up customs and import procedures;
  • Reform regulatory processes which place disproportionate red-tape on SMEs and hold back their export potential;
  • Make it easier for companies to access government procurement markets;
  • Result in better value for consumers, who currently pay for the added costs created by
  • unnecessary bureaucracy;
  • Potentially benefit the EU economy by £100 billion (€119 billion) a year, which equates to an addtional £450 (€545) for each family of four across the EU.

Amongst TTIP’s prospective winners are:

  • Pharmaceuticals  – Key benefits here will be increased alignment of regulatory  approaches, for example, through the progressive recognition of/reliance on each other’s inspections to avoid unnecessary duplication.
  • Trade in Services  – Development of a system of mutual recognition of qualifications for the services sectors (such as architects and lawyers) on both sides of the Atlantic.
  • Automotive – Benefits would include tariff reductions and moves towards eliminating regulatory duplication, which currently adds to vehicle costs without necessarily adding to consumer safety. Under TTIP, the automotive sector could represent the largest share of auto production and sales ever covered by a single trade agreement. The reduction of tariffs and just a quarter of existing regulatory barriers alone could increase EU vehicle and parts exports to the US by 149% for the period 2017-2027.
  • Chemicals – The aim is to achieve tariff reduction and regulatory alignment including of EU-US standards with a view also to aligning with international standards. In the UK, TTIP is expected to provide a 1.65% increase in output for the chemicals sector. Chemical exports (which already account for 14% of UK’s exports to the US) could increase by nearly 7%.
  • Energy and Raw Materials – The negotiations are expected to cover access and trade in energy and raw materials through promoting non-discrimination, the elimination of import and export duties, liberalisation of trade and recycling markets and technologies.
  • Financial Services and Insurance – Current scope extends to market access under the general remit, with a prospect of greater specificity on issues such as rulemaking frameworks perhaps to follow.
  • Public Procurement – The aim is to increase access to public procurement markets in both the EU and the US and eliminate local content requirements while fostering greater transparency in tendering processes.
  • Agriculture  – Expanding agriculture markets will be a two-way street with benefits for both the EU and the US. EU exports to the US are mostly higher value food products like spirits, wine, beer and processed food (such as cheeses, ham and chocolate). In the UK alone, processed food exports are expected to increase by between 2-5%.   There will also be scope for enhanced cooperation around food safety checks for third country food supply chains.
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