U.S. and EU representatives are now negotiating the Transatlantic Trade and Investment Partnership (TTIP), an agreement to create the world’s largest free trade and investment region. Given that the U.S. and EU already trade more than $2 billion in goods and services every day, the agreement’s potential is enormous. And thanks to a set of provisions to the TTIP, its benefits could also extend to small- and medium-sized enterprises (SMEs).
While U.S. and EU SMEs are potent economic engines, they’ve long faced administrative and regulatory barriers when it comes to cross-border trade. The TTIP aims to knock down those obstacles and create a regulatory trade environment that reflects the demands of modern e-commerce. The Atlantic Council released a new study, commissioned by FedEx, with seven policy recommendations, including eliminating tariffs, raising the duty-free threshold to $800 and mutual recognition of safety standards.