The European Council has adopted a mandate for the European Commission to negotiate a comprehensive trade and investment agreement with the United States, known as the "transatlantic trade and investment partnership" (TTIP), according to a press release issued Friday.
The mandate composes of a decision of the Council and representatives of the EU member states authorizing the opening of negotiations, as well as directives for the negotiation of the agreement. The directives foresee an agreement made up of three key components: market access; regulatory issues and non-tariff barriers; and rules.
According to the press release, the Council agreed that audiovisual services will not be covered in the mandate, but that the Commission will have the opportunity to make recommendations on additional negotiating mandates.
The EU is now ready to launch negotiations with the US. The Commission will negotiate on behalf of the EU and its member states, keeping the Trade Policy Committee and the European Parliament regularly informed and updated. The final agreement will be concluded by the Council and the member states after having obtained the 'consent' of the European Parliament.
The EU is the US's largest trading partner, while the United States is the EU's second-largest trading partner, with 17.6 % and 13.9 % respectively of each other's trade in goods in 2011. Together the EU and the United States account for almost half of global GDP and one-third of total world trade.
According to an impact assessment by the Commission, a comprehensive trade and investment agreement could increase EU GDP by between 0.27 % and 0.48 %, and EU gross national income by up to EUR 86 billion.
The decision to negotiate the comprehensive trade and investment agreement, or TTIP, stems from the recommendations of a high-level working group on jobs and growth, established following an EU-US summit in Washington DC in November 2011.
The working group led by US Trade Representative Ron Kirk and EU Trade Commissioner Karel De Gucht, was tasked to identify policies and measures to increase EU-US trade and investment to support mutually beneficial job creation, economic growth, and international competitiveness.
The final report of the Group, published on 13 February 2013, recommended launching the negotiations. Subsequently, the European Commission proposed negotiating directives to the EU member-states on 12 March 2013.
In May 2013, the European Parliament adopted a resolution that expressed its intention to follow closely the process and contribute to its successful outcome. The decision taken Friday by the EU Member States confirms the European Commission has all the necessary endorsement to use its negotiating powers and enter into the formal transatlantic negotiations as soon as possible.
The negotiations will strive for a comprehensive and ambitious agreement that addresses a broad range of bilateral trade and investment issues, including regulatory issues, with the aim of attaining market access that goes beyond what the US and the EU have achieved in previous trade agreements. The removal of unnecessary regulatory and non-tariff barriers will be a key objective, the press release added.
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