US & EU Trade Agreement
TTIP, European trade policy is active in promoting trade and investment in and out of the European Union.
The European Union (EU) and the United States (US) are in the process of negotiating a trade agreement called Transatlantic Trade & Investment Partnership (TTIP).
The foundation of the trade strategy and policy is to ensure an efficient and effective agreement to create new economic climate, opening up new prospects for effective negotiations and creating new interests and values. This will include technical conformity assessment procedures such as product verification, certification and inspections.
Importance of international trade for the Netherlands
Many Dutch companies are internationally operative. The CSB stated that 59% of the Dutch, works at a company that imports, exports or do both. Also foreign companies in the Netherlands employ 800,000 people. Clear agreements on (international) trade is very important for our Dutch economy.
The Transatlantic Trade and Investment Partnership (TTIP) between the EU and the US is one example.
Advantages of the TTIP
Netherlands and the rest of the EU countries can benefit from the trade agreement between the EU and the US. TTIP, the trade agreement between the EU and the US, may have benefits for both citizens and businesses. Such as more purchasing power, more jobs, cheaper products and more opportunities for (new) businesses.
TTIP Benefits for citizens
- More purchasing power through economic growth
There are several studies on the economic benefits of TTIP.
According to a report titled “Study on EU-US High Level Working Group” with the TTIP the Netherlands can benefit between € 1.4 billion to € 4.1 billion Euro’s.
- More jobs
Many Dutch work at a company that exports. When international trade increases, companies make more sales. This in turn can create more investment from companies and therefore more jobs.
- Cheaper products and greater choice for consumers
With the TTIP, import tariffs and other barriers will fade away. Products imported from the US will therefore cheaper in the EU.
Potential benefits for companies
- Lower costs for businesses
When the TTIP agreement comes into force, the EU and the US will abolish all import tariffs. Trade between the EU and the US is about € 800 billion a year. Import tariffs are already low, with an average of 3%. Still, removing these tariffs will save businesses billions.
- More opportunities for SMEs and new businesses
Especially the Dutch small and medium enterprises (SMEs) can benefit from TTIP. According to a recent study by the European Commission regarding TTIP. SMEs take up 59% of total Dutch exports. An SME, has smaller margins than a large multinational. They therefore encounter more disadvantages in the differences in process and waiting times at customs.
New companies will export more. Thereby increasing their market and grow production. This requires labor.
The disappearance of trade barriers is also beneficial for companies who (still) do not export. As part of the supply chain, they also benefit as export of large companies increases.
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