As a native of Germany, who has managed large businesses on both sides of the Atlantic, I believe the Transatlantic Trade and Investment Partnership is of historic importance for both economies. This is true for my role as chairman, president & CEO of AGCO, a U.S. maker of farm equipment, as well as for my position as chairman of the German American Chambers of Commerce of the United States.
The goal of TTIP is to significantly reduce or eliminate tariff and non-tariff barriers between the world’s two most powerful economies. If passed, TTIP will be advantageous for both the European Union and the United States and create one huge market. Moreover, a successfully negotiated TTIP could help the E.U. and U.S. work together on new legislation and administrative regulations such as a coordinated legislative and regulatory approach for the future.
As such, it is a historic negotiation for the German American Chamber of Commerce of the United States. The German chambers in the United States help promote the economic and business interests of entities that work to develop and/or preserve ties between the U.S. and Germany. As Chairman of the GACC and CEO of AGCO, I see the passage of this landmark trade agreement as essential to continued collaboration between U.S. and German companies.
I anticipate TTIP to have many benefits for the U.S. and the E.U. The White House states that a TTIP will aim to boost economic growth in the U.S. and the E.U. and add to the more than 13 million American and E.U. jobs already supported by trans-Atlantic trade and investment. Furthermore, the German missions in the United States shows the commitment that the E.U. and the U.S. bring to negotiate the most comprehensive and largest bilateral trade and investment agreement ever.
In five years, according to the Business Coalition for Transatlantic Trade, an ambitious trade and investment agreement between the U.S. and E.U. would increase their exports to each other by more than $150 billion; economies would increase by about $250 billion and an additional 500,000 high-paying jobs would be generated. The coalition also expects a comprehensive and ambitious transatlantic trade agreement to open markets for trade in goods and services, investment, procurement, capital and people while creating a framework to bridge regulatory differences.
At AGCO, we have a unique perspective on the TTIP discussions. I think that the agricultural sector needs to play a larger role during the trade negotiations to help push through the possible stumbling blocks on the path to an agreement.
The TTIP negotiations will impact the agriculture business and the agricultural machinery sector significantly, and would serve the interest and protection of customers in the U.S. and the E.U.
Freer trade between the U.S. and the E.U. would reduce the red tape and many hoops a lot of us in industry currently have to jump through. Business production and transaction costs would be lowered, providing cost benefits to customers, as well as allowing the marketplace to become even more competitive. In doing this, farmers will benefit from better access to and have wider choices of farming equipment that will boost their productivity.