Negotiations between the US and Europe to address transatlantic import duties, non-tariff barriers to trade and trade facilitation would lead to the elimination of import duties on the Eur48 billion ($64 billion) worth of chemicals traded in 2012 between both markets, the European Chemical Industry Council (Cefic) said Tuesday.
"These negotiations are important to the chemicals industry," said Cefic in a statement. The proposed Transatlantic Trade and Investment Partnership (TTIP) would eliminate import duties that contributed to a "considerable input cost, amounting to Eur1.5 billion, some of which concerns intra-company trade," Cefic said. The full elimination of all chemical tariffs should therefore be the ultimate goal, Cefic said.
UK Prime Minister David Cameron said at the G8 summit on Monday that formal negotiations on a vast trade pact between the US and the EU had been launched.
"We are talking about what could be the biggest bilateral deal in history," Cameron said, before US President Barack Obama said the first round of negotiations would take place in Washington next month.
Cefic president Kurt Bock said: "An EU-US agreement, which we hope will be concluded within two years, would provide a much-needed kick to the economic growth in both markets. This boost will help to enhance our position in an increasingly competitive global market."
Beyond tariff elimination, Cefic sees "significant" potential to enhance regulatory transparency and cooperation while minimizing cost and burden for governments and industry. The TTIP is also expected to address areas related to investment as well as regulatory cooperation and public procurement.
"Promoting regulatory cooperation through better alignment of regulatory processes or eventually the sharing of information and data would trigger job creation on both sides of the Atlantic, while maintaining high levels of human health and environmental protection standards," said Cefic.
"The foreseen enhanced regulatory cooperation in the agreement could be a catalyst towards global standards setting, especially in emerging areas like nanotechnology," said Bock.
Cefic added that it and its US counterpart -- the American Chemistry Council -- "are ready to contribute constructively to this work."
