Transatlantic Economic Integration (TEC/TABD)

© BDI

The reduction of non-tariff trade barriers is a long-term concern of German industry. Within the framework of the Transatlantic Economic Council (TEC), the BDI is working actively to achieve rapid implementation.

The USA is the largest sales market for German products outside the EU and the most impor-tant recipient country for German direct investment. Approx. 8% of German exports and 30% of foreign investment go to the USA. The USA and Europe are also the two largest economic regions in the world. Together they generate around 60% of the world gross national product and represent 70% of direct investment worldwide.

Reduction of non-tariff trade barriers

Nevertheless, trade barriers are still hindering economic relations, particularly in the non-tariff area. Reducing trade barriers and integrating the transatlantic economic area further could boost economic growth by more than 3% of GDP on both sides of the Atlantic. At the same time this would enhance the competitiveness of transatlantic business in the face of increasing competitive pressure.

Political Steps

The EU-US framework agreement on deepening transatlantic economic integration, concluded at the EU-USA Summit at the end of April 2007, aims to reduce current market access barriers and promote close cooperation. The framework agreement includes concrete measures (“lighthouse projects”) for cooperation in the areas of intellectual property, financial markets, regulatory cooperation, investment and secure trade, as well as innovation and technology.

Transatlantic Economic Council (TEC)

The Transatlantic Economic Council (TEC) was set up by Federal Chancellor Angela Merkel and US President George W. Bush to implement the framework agreement. The Council was conceived to define targets, set deadlines and monitor implementation progress twice a year. The TEC is a high-level political body aimed at directing economic co-operation between the EU Commission and US Administration. For the first time, the target of transatlantic economic integration has been integrated into an institutional framework. An Advisory Group also belongs to the TEC, as does the TransAtlantic Business Dialogue (TABD).

EU-US Innovation Dialogue

At its last meeting held in Washington on 27 October 2009 the Transatlantic Economic Council (TEC) agreed on at an EU-US innovation dialogue. The BDI explicitly welcomes the establishment of the EU-US innovation dialogue. This provides an opportunity to advance key issues important to German industry, e.g. electro-mobility, renewable energies/clean energy, energy-efficiency technologies, RFID and nanotechnology, within the transatlantic context. Involving business closely in the EU-US Innovation Dialogue is a key pre-requisite for the initiative to succeed. BDI therefore welcomed the opportunity to take part in the stakeholder consultation to identify priority areas and sectors for action. BDI submitted a position paper to the EU commission on the EU side and the Department of Commerce on the US side.

TransAtlantic Business Dialogue (TABD)

TransAtlantic Business Dialogue (TABD) is a group of thirty CEOs from European and American companies. The TABD’s objective is to create optimal framework conditions through closer commercial ties between the governments of the EU and the USA.

BDI Vice President Jürgen R. Thumann has been the TABD Chairman on the European side since June 2008 and in this capacity attends the TEC meetings as an advisor.

Further information on the TEC and the results of the TEC meeting can be found on the website of the European commission.