Transatlantic Trade & Investment Partnership (TTIP) Presented to the County of Riverside by Bernadette Greene, Deputy Consul General, British Consulate-General, Los Angeles UNCLASSIFIED

“America and Europe have done extraordinary things together before. And I believe we can forge an economic alliance as strong as our diplomatic and security alliances, which, of course, have been the most powerful in history. And, by doing that, we can also strengthen the multilateral trading system…. This Transatlantic Trade and Investment Partnership is going to be a priority of mine and my administration. It is important that we get it right, and that means resisting the temptation to downsize our ambitions or avoid tough issues just for the sake of getting a deal.” President Barack Obama “...there is no more powerful way to achieve [economic growth] than by boosting trade. And there’s no better way than by launching these negotiations on a landmark deal between the European Union and the United States of America…” PM David Cameron “Our joint endeavour is part of our overall agenda for growth and jobs to both sides of the Atlantic by boosting trade and investment. It is also a powerful demonstration of our determination to shape an open and rules based world.” President (European Commission) José Manuel Durão Barroso UNCLASSIFIED

Consumer Benefits TTIP brings consumer benefits without lowering consumer protection by reducing costs from businesses having to comply with both EU/US regulatory standards: TTIP will mean: An extra $1,000 per year for an average family of four Lower prices Greater choice of products and suppliers Easier on-line purchases from the EU Stronger consumer protection when you buy from the EU TTIP will NOT mean: Lowering consumer safety, labour or environmental standards. UNCLASSIFIED

Business Sector Benefits Two key objectives identified by Riverside Country’s Economic Development Strategic Plan which could benefit from TTIP: Create a Business Attraction Plan focused on the Priority Industry Sectors : Advanced Technology Renewable Energy Logistics Manufacturing Expand Access to Global Markets, including elevating awareness of banking and investment opportunity for the international investor. UNCLASSIFIED

Personal Services (Tourism) At more than $960 billion, the personal services sector accounted for about 6.3% of total US GDP in In 2011, the United States exported $29.1 billion worth of travel services to the EU, up from $26.6 billion in Top US states exporting personal services to the EU include California, New York, Texas, and Nevada. Approximately $1 out of every $4 in US travel services exports went to the EU in Implementation of TTIP is expected to increase US personal services exports to the EU by $1.2 billion pa, a rise of over 4%. UNCLASSIFIED

Chemicals (Healthcare) At more than $960 billion, these products accounted for almost 6.2% of US GDP, and made up over 16.8% of US manufacturing shipments in 2012, including pharmaceuticals ($167 billion). In 2012, the United States exported $57 billion worth of chemicals to the EU: Pharmaceuticals ($27.7 billion), basic chemicals ($15.3 billion), and synthetic resins ($5.3 billion) accounted for the majority of these exports. Top US states exporting these goods to the EU include Texas, Indiana, California, Pennsylvania, and Illinois. Nearly $1 out of every $4 in U.S. exports of these products went to the EU in Implementation of TTIP is expected to increase US chemical exports to the EU by more than $35 billion pa, an increase of over 61% from 2012 levels.

Manufactured Goods At nearly $1.3 trillion, these industries accounted for 8.4% of total US GDP and 22.2% of US manufacturing shipments in In 2012, the United States exported $42.4 billion worth of miscellaneous goods to the EU, primarily other durables ($19.7 billion) and petroleum and coal products ($18.2 billion). Top US states exporting other durables include New York, California, and Massachusetts. Nearly $1 out of every $5 in US exports of these products went to the EU in Implementation of TTIP is expected to increase US miscellaneous manufactured goods exports to the EU by $7.9 billion, a rise of 19% from 2012 levels.

Professional/Business Services At $1.4 trillion, the business services sector accounted for about 9.5% of total US GDP in In 2011, the United States exported $50.7 billion worth of business services to the EU. Top US states exporting business services to the EU include California, Texas, and New York. Approximately $2 out of every $5 in US business services exports went to the EU in 2011 Some sectors of the EU market is significantly more important: 65% of advertising; and 49% of management and consulting exports went to the EU in Implementation of TTIP is expected to increase US business services exports to the EU by $2.5 billion pa, a rise of almost 5% percent from 2011 levels.

Financial Services In 2011, these sectors added $720 billion to the US economy, or about 4.8% of total US GDP. In 2011, the United States exported $27.0 billion worth of financial services to the EU, up 10% from $24.5 billion in Top US states exporting financial services to the EU include New York, California, Illinois, and Massachusetts. More than $1 out of every $3 in US financial services exports went to the EU in Implementation of TTIP is expected to increase US financial services exports to the EU by $1.6 billion pa, an increase of almost 6%.

Electrical Machinery At nearly $460 billion, electrical machinery accounted for over 3% of US GDP and 8% of US manufacturing shipments in led by electro-medical, measuring and control instruments ($79.3 billion), semiconductors ($42.5 billion), and electrical equipment ($36.9 billion). In 2012, the United States exported $38 billion worth of electrical machinery to the EU. Top US states exporting to the EU include California, Texas, Massachusetts, New York, and Illinois. Approximately $1 out of every $7 of US electrical machinery exports went to the EU in Implementation of TTIP is expected to increase US electrical machinery exports to the EU by $10.7 billion pa, a rise of over 28%.

Non-Automotive Transportation Equipment At $200 billion, this sector accounted for 3.5 percent of US manufacturing shipments in 2012, led by civilian aircraft and parts ($118 billion). In 2012, the United States exported $30.8 billion worth of aerospace and other non-automotive transportation equipment to the EU. More than $1 out of every $4 in US exports of these products went to the EU in 2012 Implementation of TTIP is expected to increase US transportation equipment exports to the EU by $13.3 billion pa, a rise of over 40% from 2012 levels.

Labour Benefits The 75,000 new jobs forecast for California come mainly from zeroing out tariffs and cutting read tape by 25%. When we eliminate the barriers to trade, California’s (thus Riverside’s) leading industries will be able to flourish. Let’s be clear – TTIP is not a trade deal that risks American jobs being lost due to lower pay and labour standards elsewhere. The EU and US economies are on an equal footing – in fact, the EU’s labour rules are largely admired by American Unions. Companies are not going to replace American workers with European ones. Boosting trade really is a win-win.

Where are we? There have now been 7 rounds of TTIP negotiations. The first round started in June 2014; and the last took place at the end of September The key hope continues that an ambitious deal can be completed in 2015, with implementation starting then and continuing over a period of several years. The key objective remains: broad agreement that eliminates the vast majority of tariffs on trade between the two markets and reduces other unnecessary barriers to trade without lowering standards of consumer, environmental or employment protection, on either side of the Atlantic. UNCLASSIFIED

STAKEHOLDERS – SPEAK UP The UK and our European counter-parts will keep championing this ambitious trade agenda, not just because we think it’s good for the EU, but because we think it’s good for all of us. But that won’t be enough... We need to make sure ALL stakeholders get involved. Lots of people don’t listen to politicians (dare I say). We need the business community to speak up too about how TTIP will be an engine for growth. We need to explain to the man/woman on the street how TTIP will make their lives easier. I hope we have gone some way today to making it easier for everyone to understand the benefits and costs of this ambitious agenda.

In June last year, at the G8 Summit in Lough Erne, PM Cameron said TTIP was: “(...) a once-in-a-generation prize, and we are determined to seize it.” You can all help.

Thank you for your attention! Further information: and-the-fifty-states-jobs-and-growth-from-coast-to- coast and-the-fifty-states-jobs-and-growth-from-coast-to- coast UNCLASSIFIED