The Transatlantic Trade and Investment Partnership (TTIP) being negotiated between the European Union and the United States is a remarkable opportunity for the two economies and their respective chemical industries.
TTIP and Chemicals
The European chemical industry supports this ambitious partnership as the United States remains the European Union’s biggest chemical trading partner. The proposed elimination of chemical trade duties can impact the sector on both sides of the Atlantic. TTIP is unique because it goes beyond traditional trade agreements, aiming to facilitate trade by pursuing a flexible set of customs procedures and bringing about increased regulatory cooperation in the chemicals area.
Cefic and the American Chemistry Council have made proposals to promote efficiencies within and between the current legislations and to reduce costs. They aim to promote alignment, primarily by ensuring a common scientific basis for decision-making, without changing regulation. The proposals include clear policy requests and suggestions on how to implement a mechanism to decide on common methodologies for assessments, agree on common prioritisation principles, burden sharing and sharing of data.
This agreement between the EU and the US is expected to result in more jobs and more growth on both sides. Furthermore, TTIP could aid in modelling a much needed global trade rules framework. Both sides are hoping that by aligning standards through closer cooperation, they will not only be able to reduce regulatory costs, but also set benchmarks for developing global rules.
Download the Cefic position on Regulatory co-operation and chemicals in TTIP
Did you know?
The EU and the US currently make up around 40% of global economic output and their bilateral economic relationship is already the world’s largest. The two also make up 60% of global GDP. They are also the largest trading partners of most other countries around the world and account for a third of world trade in goods.