TTIP would lead to higher growth and more jobs
The free trade agreement with the USA is right and important – regardless of the current political irritation with the Americans. The VDMA has firmly supported the TTIP (Transatlantic Trade and Investment Partnership) since talks on the agreement began. 13 percent of EU exports to the USA are mechanical engineering products. In the past year, mechancal engineering accounted for a higher share of EU exports to the USA than the automobile industry. European companies could cut their costs by 5 to 20 per cent if the same standards applied on both sides of the Atlantic. This is why, at the sixth round of TTIP negotiations, the VDMA is also supporting the negotiation of a separate chapter for mechanical engineering that specifically addresses the needs of this industry.
The VDMA has repeatedly pointed out that harmonised standards for machinery could lead to a massive increase in trade between the EU and the USA. Instead of stoking concerns about TTIP, the main focus should be on the opportunities presented by a trade agreement of this nature. The aim of the agreement is to simplify rules and procedures that really do not make sense in their current form.
According to VDMA estimates, mechanical engineering firms currently incur additional costs of 5 to 20 per cent to adapt their products to the regulations of the US market. This is because of technical conversion and the need for local recertification, particularly for electrical components, even when approval has already been granted for the European market. The VDMA hopes to use its specialist expertise to make a meaningful contribution to simplifying trade in plant and machinery.
TTIP would lead to well-paid jobs on both sides of the Atlantic. Products and services could be offered at a lower price. The beneficiaries would very much include small and medium-sized mechanical engineering firms.
VDMA supports EU proposal for engineering annex in TTIP
20.07.2016 The EU has finally published a draft text which provides for the abolition of non-tariff barriers to trade in engineering products with the USA. VDMA has advocated for inclusion of an engineering annex in TTIP since the beginning of the negotiations.
TTIP – European Commission adheres to negotiation mandate
02.05.2016 The TTIP documents published show that the European Commission is adhering to the stipulations set out in the negotiation mandate, remarked Ulrich Ackermann, head of VDMA’s Foreign Trade department, in a position statement.
EUROMAP and SPI Sign a Declaration of Intent on Free Trade for Plastics Machinery
23.06.2014 Dismantled Tariffs & Harmonisation of Technical Standards to Safeguard 65,000 Manufacturing Jobs, Secure Position in Global Market
Transatlantic Trade and Investment Partnership: 10 reasons
So far mechanical engineering industries has been put aside by the negotiators in the course of the TTIP negotiationss. Given the facts, that Europe employs about three million people in this sector and that the sector itself generates a turnover of 630 billion € in Europe, this state of the negotiations is clearly not justified. More reasons on why mechanical engineering should play a vital role in the negotiations can be read in our paper.
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