Transatlantic Trade & Investment Partnership: The Effects on SMEs Simos Anastasopoulos President American-Hellenic Chamber of Commerce For presentation at the US Embassy, Athens March 12, 2014

T TIP A trade agreement that is presently being negotiated between the European Union and the United States. It aims at removing trade barriers in a wide range of economic sectors to make it easier to buy and sell goods and services between the EU and the US. On top of cutting tariffs across all sectors, the EU and the US want to tackle barriers behind the customs border – such as differences in technical regulations, standards and approval procedures. TTIP would be the biggest trade deal ever and it could shape global rules on trade.

Main Goals 1.Expand trade in goods via the elimination of tariffs 2.Facilitate trade in goods via improvements in customs and supply chain regulations 3.Liberalize cross-border trade in services facilitated by the internet, a sector which accounts for over 70% of our economies 4.Enhance government procurement via guaranteeing non-discriminatory treatment and free transfer of funds 5.Improve transatlantic travel and tourism by facilitating visas straightforwardly 6.Strengthen intellectual property rights protection and address pending issues as such 7.Promote expansive regulatory cooperation via fostering an environment of trust and building confidence in one another

Agenda 4 th Negotiation Round 4 th Negotiation Round Economic Impact Assessment Economic Impact Assessment Effects on Trade Effects on Trade Beneficial for Startups & SMEs ? Beneficial for Startups & SMEs ?

4 th Negotiation Round Market access Agricultural & Industrial Goods Customs / Trade Facilitation Investment Regulatory aspects Government Procurement & State Owned Enterprises Energy & Raw Materials SMEs & Competition Trade Rules Sustainable Development Sanitary & Phytosanitary Measures Intellectual Property Rights & Dispute Settlement

Economic Impact Assessment EU benefits: bn per year bn per year EU exports to US increase by 187 bn (28%) EU exports to US increase by 187 bn (28%) EU exports to 3 rd countries increase by 33 bn EU exports to 3 rd countries increase by 33 bn 545 extra disposable income for every family 545 extra disposable income for every family Labor market: 400,000 job openings & higher compensation rates Labor market: 400,000 job openings & higher compensation rates

Effects on Trade Increase competitiveness via expansion of the US & EU positions in international trade Increase competitiveness via expansion of the US & EU positions in international trade Eliminate Tariffs, Quotas, Certification Requirements, Importing Procedures at Customs, and other TBTs Eliminate Tariffs, Quotas, Certification Requirements, Importing Procedures at Customs, and other TBTs Grow the Transatlantic Economy by 1.5% – 3.5% Grow the Transatlantic Economy by 1.5% – 3.5%

Effects on Trade Encourage Trade Diversion: Import from partners the goods that were previously imported from other exporters Encourage Trade Diversion: Import from partners the goods that were previously imported from other exporters Strengthen Innovation Potential: Facilitate export of innovative products through increase of standards compatibility and recognition of certifications Strengthen Innovation Potential: Facilitate export of innovative products through increase of standards compatibility and recognition of certifications

Beneficial for Startups & SMEs Maintain Competitive Prices in Market Maintain Competitive Prices in Market Export in Lower Prices, directly or as suppliers Export in Lower Prices, directly or as suppliers Import in Lower Prices Import in Lower Prices Export Innovative Products to US Export Innovative Products to US Request Funding From Abroad Request Funding From Abroad Develop International Partnerships Develop International Partnerships

Avoid NTBs (bureaucratic hurdles & unnecessary rules in regulations & standards) Avoid NTBs (bureaucratic hurdles & unnecessary rules in regulations & standards) Streamline & reduce burdens associated with customs procedures Streamline & reduce burdens associated with customs procedures Harmonize product standards Harmonize product standards Gain tailored support for regulatory compliance Gain tailored support for regulatory compliance Move labor easily Move labor easily Beneficial for Startups & SMEs

Transportation, Health & IPR Liberalization: Decrease of TBTs increases competition in such oligopolistic industries Liberalization: Decrease of TBTs increases competition in such oligopolistic industries Medical device & pharmaceutical industry will reach high regulatory convergence Medical device & pharmaceutical industry will reach high regulatory convergence 9 out of the worlds 10 top airlines are US or EU based 9 out of the worlds 10 top airlines are US or EU based Bridge and consolidate Intellectual Property Rights data; 4.7 trn arise from IPR in EU, 39% of its activities. Bridge and consolidate Intellectual Property Rights data; 4.7 trn arise from IPR in EU, 39% of its activities.