10 Reasons why the Transatlantic and Trans-Pacific Partnerships are Good for America
4. TTIP Will Reduce Tariffs and Bureaucratic Red Tape
The impact of TTIP on the economies of the EU and US will depend on how comprehensive the final agreement is. If the agreement deals with extra tariffs, its impact will be considerable. Although some tariffs between the two blocs are already quite low — ranging between 3-4 percent on average, there are areas not covered by this rule. One major exception to these low tariffs is agricultural products. The EU imposes an average tariff of 18 percent on agricultural imports from the US, while American tariffs are about half of that for EU products. However, If the agreement also addresses non-tariff barriers (NTBs), it will have a greater impact than an agreement that only removes tariffs.
The Transatlantic Trade Partnership will also lead to a significant reduction of unnecessary red tape. For instance in the chemical industry, European and American regulators could agree to conduct tests on the same chemicals, and establish an agreement on how to classify and label chemicals. This would mean that companies on both sides of the Atlantic would save time and money, making products cheaper and more accessible.
