By Martin Banks - 28th November 2011
It is more important than ever that the leaders of the EU and US be willing to take bold steps
AmCham EU
EU and US leaders have been urged to remove all tariffs and non-tariff barriers to transatlantic trade.
The demand is being made by the American Chamber of Commerce to the EU (AmCham EU) which says the economic crisis confronting both sides of the Atlantic requires "leadership and commitment" to push a jobs and growth agenda.
It comes ahead of a key summit of EU leaders and heads of state in Brussels on 8 December.
The transatlantic economy produces close to €3.7 trillion in total commercial sales a year and employs up to 15 million workers in the EU and the US.
"With so much at stake, we are calling on leaders to agree ambitious measures to generate employment and growth to restore consumer and business confidence," declared Hendrik Bourgeois, chairman of AmCham EU.
He said that given the stalemate in the Doha trade talks and the increase in bilateral trade agreements, AmCham EU believes that all tariffs and nontariff barriers to transatlantic trade should be eliminated.
While applied tariffs are relatively low, the European centre for international political economy says that when they are applied on such a large base, their elimination would raise US and EU exports by about 17 per cent.
Bourgeois said, "This would improve global competitiveness and the cash flow benefits, thereby expanding investment."
AmCham EU is also calling for the transatlantic 'open investment' climate to be maintained.
"Investment drives the transatlantic economy – the EU and US are each other's primary source and destination for investment," added Bourgeois
He pointed to data showing that by the end of 2010, US firms invested nearly €1.2 trillion in the EU and European firms invested an equivalent amount in the US.
The principles and safeguards of 'open investment', he said, need to be reconfirmed by delivering an agreed set of key principles.
He said, "Given the global economic crisis facing us, it is more important than ever that the leaders of the EU and US be willing to take bold steps to restore confidence in both economies and to promote the jobs and growth that are so urgently needed."
