|
 The world's largest free-trade deal would seek to bridge regional
differences in rules governing everything from seatbelts to factory
site inspections and stop manufacturers having to double up on
compliance.
Negotiators have not yet started on the fine print of the proposed
deal, which would encompass nearly half the world's economic output,
but have begun a short list of sectors which seem particularly ripe
for common ground in terms of regulation.
So far this includes autos, pharmaceuticals, cosmetics, medical
devices, textiles, chemicals and information and communications
technology, negotiators said.
"These are sectors (where) both sides have indicated an interest in
moving forward in terms of specific sectoral commitments," Ignacio
Garcia Bercero, the EU's chief negotiator, told reporters as the
third round of talks wound up in Washington.
Economists estimate an ambitious trade accord could boost economic
output in both the EU and the United States by more than $100
billion a year, with the bulk of gains from cutting costs imposed by
bureaucracy and regulation.
But there are many thorny issues to resolve, including agriculture,
food standards, consumer protection, data privacy and environmental
concerns.
Negotiators, who hope to finalize the Transatlantic Trade and
Investment Partnership (TTIP) by the end of 2014, have stressed the
deal is not about deregulation, but are keen to ease the burden on
exporters, who must often comply with two sets of rules on different
sides of the Atlantic.
"In certain areas it may well be that the two sides have the same
level of protection, but different regulatory ways of achieving
that," said U.S. chief negotiator Dan Mullaney.
"In other areas the focus may be more on whether you can ... arrive
at a point where a product can be tested just once and not twice
before it comes into the market," he said.
Automakers told the negotiators that their industry — the largest
manufacturing and exporting sector in their respective regions — had
a big stake in the outcome of the talks.
[to top of second column] |
"To realize the economic promise of TTIP, meaningful U.S.-EU auto
regulatory convergence must be a priority," the U.S. Alliance of
Automobile Manufacturers, the European Automobile Manufacturers
Association and the American Automotive Policy Council said in a
presentation this week. They were among more than 350 stakeholders
giving input to the talks.
Two-way trade in passenger vehicles and parts is worth billions and
experts estimate non-tariff barriers to trade, such as differing
regulations on how to conduct safety tests, equate to a tariff of 26
percent.
For its part, the pharmaceutical industry has asked the EU and
United States to recognize site inspections of factories and improve
processes for sharing the results of clinical trials.
Industry group Pharmaceutical Research and Manufacturers of America
(PhRMA) is also pushing for tough intellectual property safeguards
to prevent the proliferation of cheap generic drugs.
The talks this week spanned issues from services and market access
to intellectual property and government procurement.
One area where the two sides are still far apart is including
financial regulation within the purview of the TTIP — something the
EU is pushing for but U.S. officials oppose. The EU is also keen to
include U.S. gas exports in the agreement to help ease pressure on
European energy prices.
Mullaney said the talks could offer opportunities for increased
energy trade, "but of course ultimately whether trade actually takes
place will depend on customers and pricing, private sector actors."
(Reporting by Krista Hughes; additional
reporting by Elvina Nawaguna; editing by G Crosse)
[© 2013 Thomson Reuters. All rights
reserved.] Copyright 2013 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
