Despite renewed commitment from both sides for a quick and successful conclusion of the negotiations for the Transatlantic Trade and Investment Partnership (TTIP), the process has partially lost momentum. Europe should not lose this opportunity. This paper intends to offer a new prospective for the EU on how to look at TTIP negotiations and boost them. By using a trade-in-value-added approach, the paper provides useful indications to the negotiating parties in order to focus on those areas which are really able to deliver much-needed economic benefits. TTIP negotiations should mainly be focused on reducing cost and improving logistics along the production chains of the firms that have production lines across the Atlantic.
Paper prepared for the Istituto Affari Internazionali (IAI) and presented at the international conference on "The Geopolitics of the Transatlantic Trade and Investment Partnership" organised by the IAI in partnership with the Italian Ministry of the Economic Development, ITA-Italian Trade Agency and the German Marshall Fund of the United States (GMF), Rome, 26 February 2015.
1. The relevance of TTIP negotiations
2. Trade in value added and global value chains
3. The trans-Atlantic economy: EU-US using TiVA statistics
4. The value chains nexus by sector
5. The value chains/investments nexus States and the significance of intra-firm trade
6. The significance of TTIP beyond bilateral transatlantic relations: EU global and transatlantic trade interests
7. The intersection of Europe’s comparative advantages
8. Trade barriers: why value chain approach matters
9. Value chains implications for SMEs in the TTIP