A comprehensive Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union would significantly boost exports from 14 key U.S. industrial sectors, according to a new study conducted by the Atlantic Council, the Bertelsmann Foundation and the British Embassy in Washington, D.C.
The study examines the potential economic impact of TTIP on sectors in which the U.S. is internationally highly competitive, such as business services, personal services, machinery, motor vehicles, metals, chemicals, processed foods and transportation services.
Of the sectors covered in the study, the motor vehicle industry would experience the largest growth in exports, with an estimated increase of up to 350 percent. The metals and processed foods sectors would more than double their exports, with growth of 125 percent and 102 percent, respectively. Chemicals, non-automotive transportation services, machinery, electrical machinery and communications services would also see considerable export growth as a result of a new trade pact.
The TTIP would also have a significant impact on U.S. insurance services exports. Implementation of an ambitious TTIP by 2027 is expected to increase U.S. insurance services exports to the EU by $340 million annually when fully implemented.
The vast majority of these gains would result from the reduction of non-tariff measures (NTMs) that restrict access to the EU market. It is estimated that these NTMs are equivalent to a 10.8 percent tariff on U.S. exports.
Overall, the study expects TTIP to provide $198 billion in export growth in all analyzed U.S. sectors over the 15 years following implementation of the agreement. The motor vehicle industry alone would see an increase of almost $85 billion in exports.
A previous report by the Atlantic Council, the Bertelsmann Foundation and the British Embassy in Washington, D.C. estimated that an ambitious TTIP would add nearly 740,000 American jobs in total through lower tariffs, EU-U.S. regulatory convergence and greater access to EU procurement markets.
More information can be found at: www.atlanticcouncil.org/publications/reports/ttip-yields-significant-export-gains-in-key-us-industrial-sectors.
Source: The Atlantic Council