TTIP is a comprehensive trade and investment treaty currently being negotiated between the US and EU.They account for nearly 50% of the world’s wealth and 30% of its trade. US foreign direct investment (FDI) in the EU is worth around $2.2 trillion, while EU Member States have invested $1.6 trillion in the US. Bilateral trade between the EU and US passed $1 trillion in 2012. With TTIP this will increase further.
People on both sides of the Atlantic would benefit through access to a greater choice of goods and services. They would have confidence that products and services meet the highest standards. The economic gains from TTIP will be made year-on-year; they would not be one-offs. By strengthening the economies of the EU and the US, TTIP will foster global growth and investment, providing an estimated €99bn boost for countries outside the transatlantic area.
Financial Services in TTIP
TheCityUK and EU and US financial services industry groups expect TTIP to cover trade barriers affecting the sector, where US barriers are currently 50% greater than for advanced manufactured goods. But TTIP also needs to improve regulatory cooperation, so that regulatory divergences can be tackled before they appear. This would benefit not only the financial services industry – one of the top two in the UK to gain from TTIP in terms of value and jobs – but also commercial users of financial services, who would face fewer restrictions to accessing a bigger capital pool to finance business.