Comprehensive Trade Facilitation Encouraged During TTIP Negotiations

Propositions such as streamlining customs systems and eliminating barriers like tariffs for small and medium-sized enterprises could boost world trade while generating more jobs, according to organizations like the U.S. Chamber of Commerce and the U.S. Council on International Business (USCIB).

Margaret Chorlins, Senior Director for Europe at the U.S. Chamber of Commerce, called TTIP “the most significant trade negotiation in years” at a public hearing conducted by the Office of the U.S. Trade Representative on May 30. She said that TTIP provided an opportunity for closer trade cooperation between the U.S. and the EU, which would spur economic growth and ignite new trade flows.

Additionally, Chorlins said closer transatlantic commercial ties would bring “substantial” economic benefits like “putting Americans back to work” by creating more manufacturing and farming jobs, which depend greatly on exports and overseas consumers.

In comments responding to an April 1 request (see 13032911), the Chamber of Commerce and the U.S. Association of Importers of Textile and Apparel directly address the issue of “chokepoints at the border”, which include trade barriers such as costly and cumbersome customs procedures, and inefficient security programs. According to a study by the World Economics Forum and Bain & Company called Enabling Trade Value Growth Opportunities, cited by the Chamber of Commerce and USCIB, reform of such trade barriers could increase world GDP by as much as 5 percent and international trade by 15 percent.

In order to decrease customs costs, both the Chamber of Commerce and USCIB suggested raising and harmonizing the de minimis value, the dollar amount designating the amount of goods that may be exported or imported without paying tariffs, to a minimum of $800 or its euro equivalent. Both groups also suggested the implementation of a modernized “single window” customs system with a common set of export and import data elements for customs, security, and other government agency data requirements. This system would “decrease the transaction cost of trade,” bolster efficiency and open markets to small and medium-sized businesses.

In regards to tariffs, the Chamber of Commerce said that the TTIP should either “eliminate virtually all consumer, industrial and agricultural tariffs upon entry into force” or “specify phase-out periods that reflect scheduled tariff elimination” under other U.S.-EU trade agreements. The U.S. Association of Importers of Textiles and Apparel was mainly concerned with tariff peaks in the EU and said that the TTIP should set a primary goal of eliminating such peaks and utilizing modern rules of origin, which would give consumers access to both American and European brands and “foster thousands of retail and apparel jobs” in the U.S.

Multiple organizations, including the National Council of Textile Organizations, also believe that the U.S. should include a provision in the TTIP that ensures “mutual recognition” by other signatories of ‘trusted trader’ status for companies who invest corporate resources instead of government resources in supply chain security programs. This mutual recognition would boost market integration while facilitating free trade movement.

Chorlins emphasized that the U.S. negotiating team for TTIP should “strive for a comprehensive, ambitious, high-standard agreement.” Chorlins defined “comprehensive” as meaning the agreement should cover trade in goods and services as well as in other areas like the protection of intellectual property rights (IPR).

In order to cover this area of IPR, the Chamber of Commerce recommended creating a framework with rules “on cloud computing and other ICT services, cross-border information flows, and prohibitions on requirements for local servers or infrastructure.” This structure would provide flexible methods for achieving privacy protection while continuing collaboration on security matters.