EUROPE: EU and US in negotiations over free trade agreement

Wednesday February 13 2013

It has been announced that the European Union and the US will begin formal talks on a free-trade agreement, paving the way for the biggest trade deal in history.

European Commission President Jose Manuel Barroso made the joint announcement following President Barack Obama`s State of the Union address.

The agreement is based on based on recommendations from the U.S.-EU High Level Working Group on Jobs and Growth, which concluded that a comprehensive agreement that addresses a broad range of bilateral trade and investment issues, including regulatory issues, and contributes to the development of global rules, would provide the most significant mutual
benefit. The Working Group highlighted the need for negotiation on a large number of points, but particularly concerning market access, regulatory issues and non-tariff barriers and rules, principles, and new modes of cooperation.

The Transatlantic Trade and Investment Partnership will aim to go beyond the classic approach of removing tariffs and opening markets on investment, services and public procurement. In addition, it will focus on aligning rules and technical product standards which currently form the most important barrier to transatlantic trade.

Both parties will now envisage starting internal procedures leading to the actual launch of negotiations at the earliest possible moment. On the EU side, the European Commission will present draft negotiating directives to Council, on which the latter has to decide. This is scheduled to take place towards the second half of March. The US administration plans to send a notification to Congress triggering a 90-day layover period. Both sides aim to advance fast once negotiations are started.

Click on the above link for the press release. Click here for the Final Report of the High Level Working Group on Jobs and Growth