Perspective on the TPP

The Transatlantic Trade and Investment Partnership (TTIP):
Can help Future Iowa's Economic Growth
By:  Damien Levie, Head of the Trade Section at the EU Delegation in Washington, D.C. Damien.Levie@eeas.europa.eu
 
International trade has always been an important part of Iowa's economy, and an agreement currently being negotiated by the United States and the European Union could help expand Iowa's exports even further.  Transatlantic Trade and Investment Partnership (TTIP) negotiators aim to go much further than simply slashing tariffs:  we want regulations to be much more compatible and remove unnecessary barriers to trade in a combined market that accounts for more than 800 million people and nearly half of world GDP.  If completed, the opportunities for Iowans are boundless.
 
In 2015, the EU purchased nearly $2 billion worth of Iowa goods – nearly 15 percent of total Iowa exports.  Services exports add more than a $1 billion to Iowa's exports to the EU.  Key export sectors like machinery, metals ores, and chemicals will benefit from eliminated tariffs, converging rules and regulations and improved trade facilitation.  According to a study by the Atlantic Council, an ambitious TTIP agreement could boost Iowa's exports to the EU by nearly 27 percent and boost net employment by up to 7,500 jobs.  In the leading machinery sector, exports could increase by 16.7 percent.
 
In our agricultural talks, negotiators seek to boost transatlantic trade by ensuring that sanitary and phytosanitary rules are more convergent, reducing tariffs and improving market access for farmers on both sides of the Atlantic.
 
TTIP also recognizes the important role of foreign direct investment in the transatlantic relationship.  Indeed, three EU Member States are amongst the top five sources of foreign direct investment, generating nearly 19,000 jobs for Iowans.  A successful TTIP agreement will encourage the continued flow of transatlantic investment, creating more jobs and more opportunities for Iowans.
 
Notably, many of these benefits will accrue to small and medium sized enterprises.  The U.S. Commerce Department estimates that 83 percent of the Iowan companies that export are classified as SMEs.  TTIP recognizes these phenomena with a special chapter on SMEs, and a recognition that governments must nurture these companies. 
 
If you would like more information about TTIP, please contact Damien Levie, Head of the Trade Section at the EU Delegation in Washington D.C., at Damien.Levie@eeas.europa.eu or visit our website euintheus.org.