CORPORATE PROGRAM 2 Atlantic Council Advantage “We have been tested. We must reform. But as we reform, let us protect and serve the economic interests of our citizens and our credibility as leaders in an increasingly complex world. The founding principles of the Atlantic alliance can still be our guide now perhaps more than ever.” JOSEF ACKERMANN CHAIRMAN OF THE MANAGEMENT BOARD AND THE GROUP EXECUTIVE COMMITTEE DEUTSCHE BANK AG (GLOBAL LEADERSHIP CIRCLE) The Atlantic Council’s corporate program engages the private sector as a crucial partner in its mission to renew the Atlantic community for global challenges. Through corporate membership and substantive partnerships, it brings companies and the Council together by offering the following: PRIORITY ACC CCESS CESS TO GLOBAL A DECISION-M MAKERS Companies enjoy priority access to the Council’s hundreds of public and private events, meetings, conference calls, and working dinners with world leaders and key decision-makers held in the United States and abroad. These networking opportunities allow them to meet and gain insights from top leaders in government, business, the military, and academia. THOUGHT LEADERSHIP The Council knows that business leaders depend on well-informed and timely analysis. Companies can engage with the Council’s first-class experts on business issues and partner with them in creatingg intellectual capital. p p Companies p are invited to contribute to Council research, participate p p in Council task forces and strategy g sessions, p partner with the Council to publish reports and issue briefs, and explore their areas of interest. REPUTATION AND IMPACT In five decades, the Council has built a strong reputation and community of influence, earning it respect and high praise from global leaders. This unique position allows companies to increase their visibility and presence in Washington, DC and key global capitals. 5 3 Corporate Membership The Atlantic Council’s corporate membership engages companies in its activities and exposes them to the work of its various programs and centers throughout the year. These relationships simultaneously provide opportunities for public-private sector engagement while giving companies an unprecedented level of information and access. MEMBERSHIP LEVELS AND BENEFITS Executive Circle ($15,000) President’s Circle ($25,000) Chairman’s Circle ($50,000) Global Leadership Circle ($100,000) Acknowledgment of corporate support on the Council’s website and its collateral materials 9 9 9 9 Invitations for senior executives to the Council’s hundreds of public and private events, meetings, roundtables, and conference calls with top US and foreign leaders based on company profile and interests 9 9 9 9 Council individual membership for a senior executive (number of memberships dependent on level)*. Benefits include: t *OWJUBUJPO UP "OOVBM .FNCFST $POGFSFODF t *OWJUBUJPO UP NFNCFST NPOUIMZ DPOGFSFODF DBMMT BOE RVBSUFSMZ roundtables, which convene top policymakers, business leaders, and journalists for firsthand insights into current affairs t $PNQMJNFOUBSZ DPQJFT PG $PVODJM QVCMJDBUJPOT (upon request) t 1SFTJEFOU NPOUIMZ VQEBUF PO $PVODJM BDUJWJUJFT 1 2 3 4 Opportunity pp y to feature a senior executive as a speaker p or introducer in Council conference calls on newsworthy developments 9 9 9 Request a briefing on an issue, region, or event by Council experts at a company function (number of briefings dependent on level) 1 2 3 Opportunity pp y to feature a senior executive with relevant experience p to the topic p as a speaker p or introducer at a Council public p event, roundtable, or strategy session with top US and foreign leaders 9 9 A special invitation for the CEO or designate to the Council’s Annual Board Dinner 9 9 Rotation of company logo on the homepage of the Council’s website 9 Request one private roundtable or conference call by Council experts tailored to the company’s needs 9 Request priority meetings and/or calls with the Council’s President and CEO 9 Opportunity to customize your benefits package in collaboration with the Council (see Corporate Partnerships) 9 *An individual member serves as a company’s representative and is directly involved with the Council’s activities and network. We ask that a company selects an individual who would most benefit from and contribute to the membership program. 11 4 Corporate Partnerships Publications ISSUE BRIEF A succinct document analyzing a specific, relevant topic with an emphasis on recommendations for policymakers (3,500 words or less). REPORT Presents an analysis of focused content to a specific audience, often pinpointing lessons learned and drawing salient conclusions (more than 3,500 words). SPECIAL PUBLICATION An illustrated publication tailored to a specific purpose or event, often highlighting outcomes of a conference or speaker series. NEW ATLANTICIST The Council’s public policy blog features expert analysis and opinions on the most pressing issues facing the transatlantic community from its staff, board, affiliated scholars, and friends. The Atlantic Council also publishes in external publications (e.g., journals). CORPORATE SPOTLIGHT CORPORATE SPOTLIGHT THOMSON REUTERS PWC Global Financial Reform Healthcare and Workforce Development Thomson Reuters and the Council have worked in close partnership in the wake of the global financial crisis to spotlight the importance of transatlantic cooperation in rewriting the rules for global finance. Our joint projects combine Thomson Reuters’ world class analytics with the Council’s global influence to define the dangers that diverging rules pose for the global financial architecture, and to engage US and EU lawmakers, regulators, and industry experts on these issues. PwC and the Council partner in areas at the core of PwC’s business strategy and the Council’s policy agenda. First, we work to engage the healthcare industry and government policymakers on strategies to reduce costs while improving care. Second, we are working with business, academia, and the private sector to build a 21st century workforce. Both these efforts aim to enhance economic competitiveness and address the pressing challenges of fiscal sustainability and unemployment. 5 Corporate Partnerships Events Companies have the opportunity pp to partner p with the Atlantic Council in substantive areas. The Council works with them to develop p their substantive required to meet narrative and determine the types p of tools and products p q their goals g and needs. The Council Tool Kit and Products include different categories of events and publications outlined below. SPEAKER SERIES Series of events with remarks by a prominent government, military, or business leader followed by a moderated conversation with the audience (can be open to the public or members-only). CONFERENCE Half day, full day, or several days of meeting sessions covering different issues, often followed by a networking/closing reception (can be open to the public or members-only). FORUM A panel discussion of top leaders and experts who provide their views on and insights into a specific topic (can be open to the public or members-only). CONFERENCE CALL A multi-party call led by a moderator and speaker who provide insights into a particular issue, region, or event, allowing callers located in different parts of the world to engage and ask questions (can be on- or off-the-record and open to the public or members-only). ROUNDTABLE A moderator and speaker lead a discussion on a specific topic around a circular layout, encouraging all participants to actively engage. PRIVATE WORKING MEALS Small, intimate gatherings over lunch or dinner of high-level leaders to engage in off-the-record discussions with a featured guest or speaker. STRATEGY SESSION Convenes a group of outside experts to offer off-the-record strategic advice on a particular policy issue or set of issues. All participants follow a set agenda and spend most of the session engaged in open, moderated discussion. 6 “I call it the golden triangle: the golden triangle of business, of government and of civil society. And we need more of it every single day as the world gets more complex, and as things also connect faster around the world. Partnership, actually, for a better future.” MUHTAR KENT CHAIRMAN AND CEO, THE COCA-COLA COMPANY (GLOBAL LEADERSHIP CIRCLE) 6 Corporate Partnerships Events “The way forward is Private Sector Diplomacy, in which business shares the stage with government and NGOs to find solutions. The Atlantic Council recognizes this need for collaboration and has been instrumental in bringing groups together to build consensus on critical global issues.” RICHARD EDELMAN PRESIDENT AND CEO, EDELMAN (PRESIDENT’S CIRCLE) TRANSITION SEMINAR Convenes a small group of senior experts and former policymakers to provide advice and counsel to an official transitioning into a new position. These off-the-record sessions follow a discrete agenda that addresses a particular set of issues likely to be challenging for the official. WORKSHOP/SEMINAR A meeting or series of meetings that brings together a limited number of participants to produce a concrete outcome or deliverable through discussion and the exchange of ideas. WORKING GROUP/TASK FORCE Assembles a group of interdisciplinary experts for a set period of time to research and analyze a specific issue in order to develop standards and solutions, usually resulting in a final report. BRIEFINGS Council experts brief senior government, congressional, or business officials on a particular issue of expertise or the findings of their research. COUNCIL-SPONSORED TRIP High-level Council members travel abroad to deepen their understanding and knowledge of topics relating to their substantive focus. CORPORATE SPOTLIGHT DEUTSCHE BANK Mapping the Economic and Financial Future Beginning in March 2009, the Council and Deutsche Bank have partnered in hosting a speakers’ forum entitled “Mapping the Economic and Financial Future,” which helps build the intellectual foundation for understanding the recent global financial and economic crisis, and drive the debate on how the global economy can return to growth. For the past two years, the speaker series has featured top minds from business, government, and global financial institutions, including Christine Lagarde, managing director of the International Monetary Fund; Robert Zoellick, World Bank president; and Christopher Dodd, Senate Banking Committee chairman. In June 2011, the Council produced a report summarizing two years’ worth of rich and deep discussions from the speaker series, focusing on the causes of the crisis, its effects, and possible solutions. 7 General James L. Jones, USMC (Ret.) Former US National Security Advisor Air Chief Marshal Sir Stephen Dalton Chief of the Air Staff of the Royal Air Force, UK Kathleen Sebelius US Secretary of Health and Human Services 2009 National Security Series (in partnership with BAE Systems) 2011 Commanders Series (in partnership with Saab AB) 2011 Bending the Cost Curve Conference (in partnership with PwC) CORPORATE SPOTLIGHT NESTLÉ SA Creating Shared Value Forum 2011 The Council partnered with Nestlé to co-host Nestlé’s third annual Creating Shared Value Forum in Washington, DC on May 19, 2011. This day-long forum addressed the crucial role that business can and must play in global economic development, especially in the areas of food, water, and rural development. Global business leaders and top government officials offered fresh thinking on how businesses can create shared value for the communities in which they work, and for shareholders. This requires governments and business to work in concert to close the gap between development goals and commercial needs. The Forum featured numerous high-level panelists, including Peter Brabeck-Letmathe, chairman of Nestlé; Luis Alberto Moreno, president of the Inter-American Development Bank; and Ernesto Zedillo, former President of Mexico and director of the Center for Globalization at Yale University. Thomas H. Glocer, CEO, Thomson Reuters and US Senator Mark R. Warner Peter Brabeck-Letmathe Chairman, Nestlé SA 2010 Report Launch of “The Danger of Divergence” (in partnership with Thomson Reuters) Creating Shared Value Forum 2011 (in partnership with Nestlé SA) 8 Mikael Hagström, Executive Vice President, Europe, Middle East, Africa, and Asia Pacific, SAS and Frances G. Burwell, Vice President and Director, Atlantic Council Maciej Witucki, President and CEO, Polish Telecom and Frederick Kempe, President and CEO, Atlantic Council Dr. Thomas Enders President and CEO Airbus SAS Robert E. Moritz, Chairman and Senior Partner, PricewaterhouseCoopers LLP and H.E. Aleksander Kwaśniewski, former President of Poland Muhtar Kent, Chairman and CEO, The CocaCola Company and Robert D. Hormats, US Under Secretary of State for Economic, Business, and Agricultural Affairs Senator Chuck Hagel, Chairman, Atlantic Council and Josef Ackermann, Chairman of the Management Board and the Group Executive Committee, Deutsche Bank AG Warrior. Craig CAPT USN OSD OUSD ATI. From: Steven atlanticcounciiorgs Sent: Tuesda 5 11:35 PM To: ol USAF DSD OUSD ATE. Subject: Industry outreach 0n and Colonel- A key member of my Corporate Strategy Forum; Pater Flory of Qinetlu NA, has been trying to contact Mary Margaret with questions and contributions on QinetiQ?s behalf about the formulation and implementation of both and the Would one of you please connect to Peter and channel his inquiry into the right person? Thanks. Peter?s contact details are, Peter CW. Flory Vice President, International Qinetiu North America 19980 Highland Vista Drive, Suite 175 Ashburn VA 20147 Steven Grundman MA. and George Lund Fellow 1030 15th Street, NW, 12th Floor Washin on, DC 20005 1? c: @AtlanticCouncil Foreign Corporate Donors 2013 Disclosure 10 which have provided funding to the Atlantic Council in the past five years Foreign Corporate Funding ACE Group AES Enerji Ltd. Afren African Rainbow Minerals Agaoglu Holding A A DISCUSSION WITH Michael Andersson President Ind CEO Saab North America, Inc. Peter Lengyel Pm?ent and CEO Safnn USA, Inn Judy Marks Pm?ent and ED Stem Gwemment Tectmologles, Inc. Alan Pellegrini President and CEO Thales USA. Inc. MDDERATED Steven Grundman MA. and George lund Fellow Atlantic Councll June 24, 2015 4:30 - 6:00 pm. 13 From: Steven Grundman _imatlanticcouncilorgb- Sent: Monday. January 06, 2014 5:34 PM To: Broitman, Elana SEE (US) Cc: Davies, Ryan CTR 05D OUSD ATL Battaglinl, Ailean CTR DSD OUSD ATL Subject: LU NCHEON INVITATION: Atlantic Council Captains of Industry Series Featuring Textron Systems CEO Ellen Lord President 8: CEO of Textron Systems to Speak in January Elana, I hope that you will be able to attend a private luncheon hosted by Atlantic Council CEO Fred Kern pe following Ellen Lord's Captains of Industry address at the Council next Wednesday, January 15th {announcement below}. i appreciate very much your attendance at both of the two previous iuncheons in this series, and hope that lightning will strike a third time enabling your attendance next week. The luncheon will be in the Boardroom of the Atlantic Council's of?ces {1030 15th St NW, 12th Floor] and will begin immediately following Ellen?s address at approximately noon. i am expecting 15 to 20 other Council members and directors, business executives, and government of?cials to join this roundtable discussion, where we will engage Ellen's comments about the place of multi-indusn'ial companies in defense. RSVP simply by replying to this message. Ifyou are unable to attend, please recommend another BSD executive you think would be a suitable representative in your stead. I hope we ca look forward to seeing you next Wednesday. Thanks, Steve Steven Grundman MA. and George Lund Fellow 1030 15th Street, NW, 12th Floor Washington, DC 20005 - --. @AtlanticCouncil A DISCUSSION WITH Ellen Lord Ellen Lord President and CEO Tektron Systems MODERATED BY Steven Grundman MA. and George Lund Fellow 14 Atlantic Councii CAPTAINS OF INDUSTRY Save the Date: January 15,2014 10:00am Registration -11:45arn Program 1030 15th Street NW 12th Fioor (West Tower Elevator] Washington, DC The Captains of Industry Series is a platform for senior defense industry executives to address the pubiic interests their companies serve and the public policies that shape their markets. Ev engaging the perspective of business ieaders about issues at the interface of defense ministries and industries, the series will cultivate a constituency for practicai solutions to these problems. Ellen Lord is president and chief executive officer of Textron Systems, a Textron Inc. company, as well as a member of the Textron Executive Leadership Team. Prior to taking this position in Detoher 2012, Lord was senior vice president and general manager ofTextron Defense svstems, an operating unit of Teatron Systems. Lord took over the leadership of Teatron Defense Systems after serving three vears as the senior vice president and general manager of MI Corporation, another operating unit of Testron Systems. Prior to joining AAI, she served as vice president of integration management for Testron Systems. In that position, she led the team responsihie for managing the integration of into the Testron familv of businesses. 15 Wrestler. Craig CAPT USN OSD OUSD ATL Front: Steven Grundrnan metIanticcoundLorga Sent: Thursday. May 15. 14 :0 To: Steven Grund man Subject: LUNCHEON INWTAHON: The Role of Service Contractors in the US and Around the World with Steven F. Ga?ney. Chairman and CEO of DynCorp International Please make plans to join a private luncheon I am hosting following DynCorp CEO Steven Ga?ney's Captains of Industry address next Thursday, May 22nd, here at the Atlantic Council on 15th Street. The luncheon will begin immediately following Steve Gaffney's public address (see below} at approximately noon, and it will conclude by 100pm. lam expecting 15 to 20 of the Council's directors and members, business executives, and government of?cials to join this roundtable discussion. where we will engage the DynCorp CEO in discussion in response to his remarks about the role of service contractors in US and international security. RSVP simpiy by replying to this message, indicating if you are planning to come to the address, the luncheon. or both (and if you have any dietary restrictions]. I hope we can look forward to seeing you on April 1?th. Please call me if you have any questions. Thanks, Steve Steven Grundman MA. and Lund Fellow 1030 15th Street ashington, DC 20005 1? 5: @AtlanticCouncil 16 Mag 22. 2014 10:30 am. - 11:45 am. Atlantic Council 1030 1501 Street NW 12th Floor {West Tower Elevator) Washington. DC ATLANTIC COUNCIL CAPTAINS OF INDUSTRY SERIES The Role of Service Contractors in the US and Around the World Timed with Memorial Day, Steven F. Gaffnev, chairman and CEO of Danorp international, will discuss the contributions of service contractors in the United States and around the world. As the drawdown in Afghanistan continues, Mr. Gaffnev will discuss the role of US service contractors here at home, how the industry is changing. and future expansion into global and commercial markets. Gaffnev is chairman of the board of directors and chief executive officer of Danorp International, a leading global services provider headquartered in Mctea n, VA. He joined Danorp as chairman of the board in July 2010, and was named chief executive of?cer in August 2010. Since joining Dvncorp, he has focused on leadership development. building high-performing teams and process improvement- 17 Membership currently consists of nearly 100 companies, of which senior corporate leaders serve as individual members who are directly involved with our activities and network. These relationships all together provide opportunities for public-private sector engagement while giving companies timely information and access to thought leaders. Global Leadership Circle ($100,000 and above) Chairman's Circle ($50,000-$99,999) 21st Century Fox ACE Holdings ANA Holdings, Inc. Bank of America BlackRock Eni Engie North America Finmeccanica/DRS Technologies First Eastern Investment Group Hanesbrands, Inc. Ihlas Holding Krauss-Maffei Wegmann S&P Global JP Morgan & Co Novartis Pfizer Promontory Financial PSJ Raytheon Richard Attias & Associates RTI International Metals, Inc. Safran SA SAIC Severstal Group SICPA Holdings SA Target Textron Thales The Blackstone Group The Coca-Cola Company Tishman Speyer 18 President's Circle ($25,000-$49,999) Avascent Boeing BP PLC ConocoPhillips Devon Energy ExxonMobil Edelman Etihad Airways FirstData Fluor Corporation Guggenheim Partners Huntington Ingalls Industries Hunton & Williams LLP Kohlberg Kravis Roberts & Co. L-3 Communications Leidos, Inc LexisNexis Mannheim LLC Marsilli MBDA Incorporated McLarty Associates MetLife Northrop Grumman Aerospace Systems Occidental Petroleum Penguin Random House Pioneer Natural Resources Renaissance Strategic Advisors Rigoni di Asiago Rolls Royce Sam's Club SAS Institute Inc. Simpson Thacher & Bartlett Shell Statoil Temasek United States Chamber of Commerce Our corporate brochure includes a list of membership levels and benefits. Please contact Vice President of External Relations David Ensor for more information. Wevlel, Craig CAPT USN OSD OUSD ATL (US) From: Steven acus.org> Sent: Wednesday. September 25, 2013 1:44 PM To: Broitrnan, Elana SE5 (US) Cl: _crn oso ouso ATL Haipern, Paul} cw oso ouso ATL (US) Subject: The Business of Defense in an Age of Austerity - 10/2 Elana, it was my pleasure meeting you at Brett's awards ceremony at the end of last month. The purpose of this note is to bring to your attention a speaker series that we're launching at the Council next week and which i hope you and as many of your staff as possible can attend. As you can read in the announcement below, we're calling it the Captains of Industry series, and Exelis CEO Dave Melcher has agreed to deliver the inaugural address The purpose of these CED addresses is aimed directly at the portfolio of responsibility you now hold, so I do hope it?s something you can fit in. Also, please do share the invitation with others you think may be interested and available to attend, because it's a openlpublic event that requires only an advanced registration to attend. Thanks. Do please give me a call if you have any questions. Steve Steven Grundman MA. and George Lund Fellow 1030 15th Street NW 12th Floor Washington, DC 20005 a? @AtlanticCouncil Wednesday, October 2 Captains of Industry Series The Business of Defense in an Age of Austerity: Perspectives from the Mid-Tier An address and discussion with David F. Melcher Chief Executive Of?cer and President Exeiis Inc. Dear Eric, +VMZ 19 Greetings from Warsaw. Here is a quick response to your email. Sorry about the delay as I've been traveling. The premise of your question is incorrect: The events referenced in the chain of email messages you sent us are neither exclusive to our donors nor to any other particular interest, nor do they promise or facilitate private access. Captains of Industry is a public speaker series which is advertised and recorded on our website and to which anyone who registers may attend. The luncheons or dinners that sometimes follow these events include people having a common interest and expertise in a particular topic who may be from the Atlantic Council, from government, from non-profits, and from private companies--who may or may not be donors to the Council, with the goal of getting diverse perspectives into the room for an informative discussion. As I believe I've mentioned, the Atlantic Council's mission is to bring people together, including companies, government officials, civil society leaders, and members of the media, to foster conversation and debate among varied expert voices on some of the world's most pressing challenges. (Something we are doing this week in Warsaw with young leaders, trying to bring along a future generation of global leadership following Brexit and amid the NATO summit) . The programs are not designed, nor do they provide occasion, for the promotion of particular interests with respect to matters over which the public officials in attendance have purview. Instead, to the extent that these events involve public officials at all-and many of them do not-their participation allows these officials' views to contribute to the diversity of views and interests that are expressed. A company, or any individual for that matter, doesn't need to be a donor or supporter to be included. You yourself point out that some of the companies listed aren't donors. The goal and result is to convene a participants of diverse perspectives for an informative discussion. As for the corporate brochure, which is several years old now, I'm not exactly sure what specific language you're referring to. Nothing I read indicates to me anything like the Council is gauranteeing access to government officials. Instead, the brochure reiterates the Council's mission of bringing people together to learn and debate approaches to our shared challenges. Let me know if there is specific language you think conveys a different meaning. I certainly don't see where we offer exclusive, private access, as you indicate. That's not how we operate. To answer your question, this isn't a form of lobbying. We don't lobby for corporate interests. At the same time, we are proud to have companies as donors and partners for our important work. Let me know if that answers your questions, or if you have any other follow ups. All best, Fred My Profile Shipping Tracking Manage Learn FedEx Office Support Locations English 20 Search or tracking number ® About FedEx FedEx Newsroom Choose a region: Global ź Share FedEx Lauds Start of U.S. – EU Transatlantic Trade and Investment Partnership Negotiations July 8, 2013 MEMPHIS, Tenn., July 8, 2013 – As a connector of economies around the globe, FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, applauds the start of U.S. – EU Transatlantic Trade and Investment Partnership (TTIP) negotiations this week in Washington, D.C., emphasizing the opportunity for leadership and economic growth. “Connecting the U.S. and the EU is a large and important component of FedEx business, and we look forward to the TTIP facilitating trade and advancing our continued expansion and innovation in the services we offer our customers on both sides of the Atlantic,” said Michael L. Ducker, chief operating officer and president, International, of FedEx Express. “An ambitious, high-standard TTIP covering such a large proportion of global economic output will break down trade barriers and create alignment between the U.S. and EU on 21st century trade issues. The U.S. and EU must seize this moment to capitalize to the fullest on this global leadership 21 opportunity, as the rewards will be enormous. enormous.” The value of trade in goods and services between the U.S. and EU already accounts for close to $1 trillion each year, and together the economies account for approximately half of global economic output. Connecting 95% of world’s economies within 72 hours, FedEx is experienced in the movement of goods across borders and recognizes the economic efficiencies that can result from this agreement. This is a primary consideration as products are increasingly manufactured with components from several countries before export to other countries, with the cost of goods moving across borders often affecting the cost of the final product multiple times during product development. Today, 60% of world trade is made up of components that are part of the global supply chain. “We encourage the TTIP negotiators to adopt and implement best practices to better facilitate trade and harmonize regulations affecting international commerce,” Ducker said. “Ensuring unfettered market access and open and fair competition among delivery service providers will lead to greater economic efficiencies in the U.S. and EU for businesses and customers alike.” The express delivery service provided by FedEx enables customers to realize the efficiencies of “just-in-time” delivery strategies, reduces amounts of capital tied up in nonproductive inventory stockpiles, and maximizes the potential of global value chains. 22 Michael L. Ducker Executive Vice President & Chief Operating Officer FedEx Express TESTIMONY TO THE U.S. SENATE COMMITTEE ON FINANCE 215 Dirksen Senate Office Building “The Transatlantic Trade & Investment Partnership: Achieving the Potential” October 30, 2013 Thank you Chairman Baucus, Ranking Member Hatch, and distinguished members of the Senate Committee on Finance. My name is Mike Ducker and I am the Executive Vice President and Chief Operating Officer for FedEx Express. Thank you for the privilege of testifying today to share FedEx’s strong support for negotiation of the Transatlantic Trade & Investment Partnership (T-TIP) with the European Union. FedEx is proud to be a founding member and Corporate Co-Chair of the Business Coalition for Transatlantic Trade (BCTT), an organization established to promote growth, jobs, and competitiveness on both sides of the Atlantic through an ambitious, comprehensive and highstandard trade and investment agreement between the United States and the European Union. The BCTT includes hundreds of companies and associations which recognize T-TIP’s tremendous economic potential. While I’m testifying today solely on behalf of my own company, the themes reflected in my remarks comport with the positions endorsed by the Coalition. The FedEx Perspective It should hardly be surprising that FedEx is an enthusiastic supporter of the T-TIP. Trade is at the heart of our business, and expanding opportunities for trade enables FedEx to create more jobs for U.S. workers, more export opportunities for our customers, and increased value for our shareholders. FedEx provides individuals and businesses worldwide with a broad portfolio of transportation, ecommerce and business services. Our network connects 95% of global GDP within 72 hours. FedEx has more than 300,000 team members who serve our customers and run our global networks. FedEx Express is the world's largest express transportation company, providing fast and reliable delivery to every U.S. address and to more than 220 countries and territories, including all Member States of the European Union. We operate nonstop widebody all-cargo flights between our U.S. hubs and European gateway airports at Paris, Cologne, London, Frankfurt, and Milan, with connecting flights using dedicated aircraft between our European gateways and 39 additional European airports. FedEx works to provide its customers access to new markets, new consumers, and new opportunities around the world. Our worldwide express network is a critical element of the global value chain infrastructure for thousands of U.S. and EU companies, from many small- and medium-sized enterprises (SMEs) to the largest Fortune 100 companies, linking our customers with their suppliers, manufacturers, distributors, retailers, and consumers. 23 FedEx’s U.S. operations, and our more than 230,000 American team members, support both our domestic services and our global express delivery network. Expansion of global trade strengthens FedEx and enables continued growth of our U.S. operations and workforce. As we grow around the world, we create jobs here in the United States. Without global trade, FedEx would be a shadow of our current operations, and our domestic work force would be dramatically smaller. Moreover, as our global network expands, we purchase new planes such as our new fleet of Boeing 777 freighters, new trucks, new equipment, new supplies and new services. We are constantly innovating to provide our customers the world’s most advanced global air cargo, delivery and logistics network. Our growth abroad increases our demand for goods and services from our suppliers and vendors here in the United States, many of which are SMEs, helping them grow their businesses and work forces. FedEx champions trade and foreign investment liberalization to help our customers reach new markets so they can grow their business and to increase demand for our services. Therefore, we strongly support trade negotiations and trade promotion agreements that create new commercial opportunities for our customers and in turn for ourselves. At FedEx we have seen the results from the trade promotion agreements currently in force, and we forecast similar positive impacts from the T-TIP negotiations. After implementation, two-way trade flows increase between the United States and its trade agreement partners, demand for our services to and from those countries increase, as do our package volumes, and we expand our operations in the United States and in the partner country to accommodate that growth – it really is as simple as that. T-TIP Presents an Opportunity We Can’t Afford to Miss Because the U.S. and EU together account for almost half of global economic output, and the value of their trade already exceeds $1 trillion per year, the T-TIP is a trade initiative of unique and unprecedented magnitude. According to a report issued in September 2013 by the Bertelsmann Foundation in conjunction with the Atlantic Council and the U.K. Government, a comprehensive and ambitious T-TIP would lead to the creation of new jobs in every one of the 50 states, 740,000 new U.S. jobs in total, a figure equal to the entire working population of the State of New Hampshire. And as President Obama noted in June 2013 in announcing the launch of the T-TIP negotiations, this initiative will enable the U.S. and EU to “forge an economic alliance as strong as our diplomatic and security alliances, which, of course, have been the most powerful in history.” The decision to pursue trade and investment liberalization with Europe is an obvious choice. Moreover, the T-TIP has the potential, as a practical matter, to eventually set the standards to govern an even larger proportion of global trade, since other countries will likely see the benefit of conforming to its standards in order to gain access to this enormous combined market. Where the U.S. and Europe can agree on common approaches and high standard disciplines particularly with regard to such emerging issues affecting global trade as state-owned enterprises, cross-border data flows, and competition policy, T-TIP holds the promise of setting a high bar for international trade rules other countries will want to meet. High-standard transatlantic trade disciplines and standards which apply to close to half of the world’s economy will have a powerful persuasive impact on both U.S. and EU trading partners by challenging those countries, some of which have adopted mercantilist trade and regulatory policies, to pursue trade agreements modeled after T-TIP, which are ambitious and comprehensive. Thus, our rules-based trading system will be strengthened, and all economies will benefit. -2- 24 The T-TIP is distinct from many other recent trade agreements in that it will be between two highly advanced economies, both enjoying comparable standards of living, following broadly similar economic systems, and embracing democratic values. As a consequence, these negotiations are building from a position of considerable commonality on broad economic and political views. Therefore, it is less likely that it will be as difficult to reach consensus on many of the issues which have proven contentious in recent trade negotiations between developed and developing economies, such as environmental standards, labor standards, investment, services market access, and investorstate dispute settlement. Nonetheless, there is a host of other issues expected to prove sensitive in the T-TIP negotiations, including public procurement, state support for audio-visual and cultural industries, food and agriculture regulation and policy, and data privacy. Also, the T-TIP is expected to be far more ambitious than any earlier trade agreements in seeking to achieve greater compatibility of each side’s regulatory regimes, such that producers of goods and services in both the U.S. and Europe can sell into each other’s markets more efficiently and cost-effectively. The T-Tip Pillars: Tariffs, Services, Investment, and Regulatory Compatibility There are four principal pillars to the T-TIP: compatibility. tariffs, services, investment, and regulatory Tariffs: Reducing tariffs, the traditional mainstay of trade negotiations, should be less problematic in the T-TIP context than in many other trade negotiations, because tariff levels in both the U.S. and EU are already relatively low. Nonetheless, given the massive volume of trade already occurring between the two partners, which will surely grow once the T-TIP enters into force, the economic consequence of eliminating even single-digit tariff rates will be enormous. It is estimated that U.S. businesses currently pay $6.4 billion each year in tariffs on goods exported to the EU. The simple stroke of a pen on the T-TIP agreement will eliminate this burden, immediately rendering U.S. exports that much more competitive in the European market. Moreover, approximately 40 percent of U.S. – EU trade is intra-company, which means that in many cases, companies are paying duties on both sides of the Atlantic for goods they’re shipping to themselves. Services: The U.S. and EU economies are increasingly dependent on services and major advancements in express delivery, computer networks, and telecommunications have driven this shift. The services sector generates 75% of GDP and employs 75% of the working population in both the U.S. and the EU. One of the great success stories of the U.S. economy is the global leadership American businesses in the services sector have achieved, including my own company, FedEx, which has become the world’s largest express delivery carrier, but also many familiar brands in computer services, banking, securities, insurance, health care, education, management consulting, and other services industries. The services industry is a facilitator of trade, representing a growing share of value added in the manufacturing and agriculture sectors and enabling companies of all sizes, from SMEs to the largest corporations, the ability to transition from local establishments to international businesses that are able to participate in today’s global value chains. During 2012, the U.S. exported $193 billion in services to the EU, representing 30% of total U.S. services exports, while the EU exported $149 billion in services to the U.S., accounting for 25% of its total services exports. Despite these impressive figures, trade in services represents only 36% of total trade between the U.S. and EU, trailing significantly the extent to which services are represented in the overall economy, and leaving us with ample room for future growth. -3- 25 That growth is inhibited by the rules governing trade in services, which seriously lag behind those established in other sectors. In order for trade in services to realize its full potential, the T-TIP needs to reflect principles conducive to continued investment, competition, and innovation in the services sector. Such rules would provide for commitments to accord full market access and national treatment to service suppliers from the other jurisdiction, as well as providing disciplines for state owned enterprises that prohibit them from using their position to engage in anti-competitive conduct. The U.S. and the EU both have strong global express delivery companies and the T-TIP presents a unique opportunity for us to agree on high standard disciplines in this area that can eventually become the global standard. Investment: With regard to investment, both the U.S. and EU have adopted measures which generally ensure a secure, stable, fair, and predictable legal environment applicable to direct investments. Pursuant to this regime, bilateral investment already totals a massive $3.9 trillion. The more than $2 trillion invested by U.S. firms in the EU represents approximately one-half of all U.S. foreign direct investment and generates $3 trillion in annual sales for U.S. business. Meanwhile, European investment in the U.S. creates employment directly for more than 3.5 million U.S. workers, and for many multiples of that number when supplier relationships are factored in. To capitalize on this already impressive bilateral investment relationship and lay the groundwork for even greater investment in the future, the T-TIP should incorporate a complete and ambitious investment promotion and protection chapter. This would include: x A broad definition of investment; x The right to establish and operate investments on a non-discriminatory basis, across the full range of economic sectors traditionally encompassed by trade agreements, including agriculture, mining, manufacturing, and services; this should be done on a “negative list” basis, with only limited and tightly defined exceptions; x The right to transfer funds related to an investment; x The right to transfer, process, store and manage data related to an investment; x Allowing expropriation only for a public purpose, on a non-discriminatory basis, with due process, and with prompt, adequate and effective compensation for the fair-market value of the investment; x High standard disciplines regarding competition with state-owned or state-controlled enterprises; and x A robust investor-state dispute settlement (ISDS) mechanism. Enshrining these principles in the T-TIP will enhance even further the favorable investment climate which exists in both the U.S. and EU, while also setting a strong example for third countries and for any multilateral framework that may be negotiated in the future. Regulatory Compatibility: The subject of regulatory compatibility may hold the greatest potential of all for the T-TIP to confer economic gains, but is also likely to be one of the most difficult on which -4- 26 to reach agreement. Most people believe that regulatory issues are the primary impediment to increased transatlantic trade and that if we can reduce these regulatory barriers to a substantial degree we can greatly increase our two-way trade. To be successful we don’t need fundamental changes in our respective regulatory approaches. Regulatory compatibility is about finding areas where there are unnecessary and redundant regulations on both sides of the Atlantic that can be reduced in order to simplify and facilitate trade, while maintaining the same high standards of consumer, investor and environmental protections. Regulatory compatibility is also about improving regulatory cooperation, transparency and best practices in order to reduce regulatory barriers in the future. This will require that our regulatory agencies participate in the process and help identify and support areas where progress can be made. This will be difficult work and we hope that both sides are genuinely committed to tackling these issues constructively. The devil is in the details, and the benefits will be in the details as well. But the rewards will be substantial, in terms of making the transatlantic market that much more competitive. Trade Facilitation: Low Hanging Fruit that Can Jump-Start GDP Growth A subject that holds great potential to enhance the competitiveness of the U.S. and European economies and increase GDP on both sides of the Atlantic is trade facilitation. Earlier this year, the World Economic Forum, in conjunction with the World Bank and Bain & Company, issued a report which concluded that eliminating all remaining tariffs in the world would increase global GDP by less than one percent, while instituting best practices in terms of trade facilitation could increase global GDP by almost five percent. The reason this is possible is that tariffs essentially serve to reallocate resources from one location to another, while improving trade facilitation actually eliminates the waste of resources. Getting rid of unnecessary red tape that raises the cost of trading across borders holds enormous potential for economic growth on both sides of the Atlantic. The “gold standard” for objectively measuring a country’s trade facilitation practices is the World Bank’s annual “Doing Business” Report, one of the sections of which specifically focuses on ease of trading across borders. According to the 2013 Doing Business Report, only one jurisdiction within the T-TIP area, Denmark, ranks among the top five countries in the world for trade facilitation best practices (the others making the top five were Singapore, Republic of Korea, Hong Kong Special Administrative Region, and the United Arab Emirates). The United States ranks 22nd out of the 185 economies studied in the Report – not bad, but leaving substantial room for improvement if we want to catch-up with the Singapore’s of the world. Of the 28 EU Member States, ten rank higher than the U.S., and 18 rank below us, with three EU Members finding themselves in the bottom 50% of the world according to the study. So we in the U.S., as well as most of our friends in Europe, have a ways to go in this area to bring our competitiveness up to world class standards. One particular reform which needs to be included in the T-TIP is a commitment to an ambitious and commercially meaningful “de minimis” level – the threshold below which goods can enter the country without the need for a formal customs entry or payment of duties and taxes. The principle underlying de minimis is that the total administrative cost of requiring low value shipments to comply with complicated customs entry procedures designed to apply to large commercial shipments, considering the burden on the shipper as well as the government in processing all of this paperwork, may actually exceed the amount of duties and taxes payable. Therefore, common sense calls for simply “waiving-in” such low value shipments. In the U.S., the current de minimis level is $200, and legislation is pending in both Houses of Congress, with bipartisan support, to raise it to $800. This would be in line with the amount returning travelers may bring back to the U.S. duty free, and would still be below the de minimis level of some of our trading partners such as Australia, which has a -5- 27 1,000 Australian Dollar level (approximately $962 U.S. at current exchange rates). In Europe, the de minimis level with respect to customs duties is €150 (or $207 U.S.), but it is a mere €22 ($30.36 USD) with respect to taxes in most EU Member States, and as low as €10 ($13.80 U.S.) in some Member States. Thus, a U.S. consumer or small business wishing to purchase goods online from a European-based web site can do so up to a value of $200 without having to engage a customs broker, pay duties or taxes, or otherwise incur the burdens of making a formal U.S. customs entry. But a European consumer or small business seeking to make a similar purchase from a U.S.-based web site finds that their transaction generally becomes subject to payment of value added tax as well as the need to involve and pay a broker in order to collect the tax, once the value exceeds $30. Engaging a broker to complete all this paperwork could easily double or triple the cost of a $30 or $50 purchase, thus making it much more expensive and thus less attractive to the consumer. In an economy where ecommerce every day plays a larger role in empowering consumers and businesses to comparison shop and secure the greatest possible value from the dollars or euros they have to spend, it is critical the continued growth of e-commerce not be stymied by de minimis levels set too low to be commercially useful. All recent U.S. trade agreements, including those with the Republic of Korea, Panama, Colombia, and Peru, have included mutual commitments to establish de minimis levels of $200 – the de minimis level reflected in U.S. law at the time those agreements were negotiated. As noted previously, bipartisan legislation is pending in Congress to increase the U.S. de minimis level to $800. Accordingly, the Business Coalition for Transatlantic Trade is calling for the T-TIP to reflect mutual commitments by the U.S. and EU to institute an $800 de minimis level,, a proposal which FedEx fully supports Such action is needed to achieve competitive parity for online retailers selling into the supports. other market, to spare consumers and SMEs from disproportionate administrative costs in making low-value purchases from sellers based in the other jurisdiction, and to position the economies on both sides of the Atlantic to maximize their global competitiveness. It is also a matter of reciprocity; if the U.S. is moving towards a higher de minimis level, our trading partners should at least be moving in the same direction. While establishment of an ambitious de minimis level is perhaps the most compelling trade facilitation measure the T-TIP needs to address, other commitments which should be incorporated include: x adopting a risk-based, multi-layered approach to customs processes, harmonized among all EU Member States, which facilitates legitimate trade while impeding illicit activities; x committing to separate physical release of goods from payment of any duties and taxes owing; x committing to pre-clearance of imports based on advance data submission; x establishing a “single window” for border clearance whereby all government agencies with responsibility for entry of goods coordinate their actions and consolidate their data submission requirements; -6- 28 x enhancing coordination and mutual recognition of “trusted trader” programs such as U.S. Customs & Border Protection’s Customs-Trade Partnership Against Terrorism (C-TPAT); and x committing to a separate and expedited procedure for clearance of express shipments. Conclusion The T-TIP presents a once-in-a-generation opportunity to boost economic growth, create jobs, and raise standards of living, for both the U.S. and our European partners. The U.S. and Europe have much in common, but we also have differences which, if appropriately reconciled in an ambitious and comprehensive T-TIP agreement, will provide a solid foundation for future economic growth, and assure the leadership of our two economies in establishing a trade regime that serves as an example to the world of a truly 21st century “gold standard” trade agreement. I urge the United States and the European Union to seize the moment to negotiate and conclude as promptly as possible such an agreement. FedEx stands ready to fully support the Administration’s support for this important initiative. I would also add that FedEx fully supports passage of new Trade Promotion Authority (TPA). An ambitious trade agenda is critical to America’s economic growth and vitality and TPA is an important part of that agenda. Much has changed since 2002 when TPA was last updated. A new TPA will give us an opportunity to update our trade objectives to better fit the rapidly evolving global economic and commercial landscape. Chairman Baucus, Ranking Member Hatch, and distinguished members of this Committee, thank you for the opportunity to share FedEx’s views on this critically important initiative. I would be happy to respond to any questions you may have. -7- 29 TTIP and Small Businesses: Advancing the Transatlantic Trade Agenda Benefits All Proposal: The Atlantic Council, in cooperation with FedEx, ǁŝƚŚ ƚŚĞ ƐƵƉƉŽƌƚ ŽĨ ƚŚĞ ƵƌŽƉĞĂŶ ŵĞƌŝĐĂŶ ŚĂŵďĞƌ ŽĨ ŽŵŵĞƌĐĞ EĞǁ zŽƌŬ͕ is producing an 8-10 page report that will: ƒ Identify key barriers that American and European SMEs (small-and medium-sized enterprises) currently face in trading and investing across the Atlantic; and ƒ Outline what elements or measures might be included in TTIP to effectively address and minimize these obstacles. Purpose: The report will explore how TTIP can specifically address the concerns of SMEs and the potential benefits of an eventual agreement for small businesses, both of which have received only limited attention in the TTIP discussion thus far. It will continue a series of publications produced by the Atlantic Council on the Transatlantic Trade and Investment Partnership (TTIP). The focus on the SME dimension of TTIP will help to: ƒ ƒ ƒ ƒ Underline the importance of SME-specific solutions to transatlantic trade barriers to the broader policymaking and business communities on both sides of the Atlantic; Broaden support for TTIP beyond conventional business constituencies and raise awareness among small business associations, local chambers of commerce, and SMEs themselves; Strengthen educational outreach on TTIP to members of Congress and the European Parliament who a) may traditionally be more ambiguous about international trade which they may perceive as the predominant domain of multinational corporations; and/or b) have constituencies with economies dominated by small business; Preempt potential criticisms that TTIP would only benefit “big business.” Background and Significance: According to the US Census Bureau, small and medium–sized businesses (companies with no more than 500 employees) represent roughly 98 percent of all exporting firms and 33 percent of all US export value. There is a striking correlation between exporting and the economic success of SMEs, as demonstrated by the International Trade Commission calculation that small exporting firms averaged 37 percent revenue growth between 2005 and 2009, whereas non-exporting small firms’ revenue declined by 7 percent. SMEs, more so than larger institutions, struggle significantly when faced with trade barriers, given their more limited ability to cover compliance costs. Despite these problems, a recent National Small Business Association (NSBA) survey of US-based SMEs showed a marked increase among non-exporters who said they would be interested in exporting their goods and/or services from 43 percent in 2010 to 63 percent today. Format: In its analytical section, the report would include the following key elements: ƒ ƒ ƒ ƒ An overview of the importance of small businesses to growth, jobs and innovation in the transatlantic economy. An overview of key findings in publicly available analyses of trade barriers specific to SMEs; this would include a basic overview of the impact of previous trade agreements concluded by the US and/or the EU on SMEs, specific instances of trade barriers being lifted, and examples of SMEs that have benefitted from these prior agreements. Follow-up interviews with small business representatives, either by phone or through small roundtables hosted by partner associations. The interviews or exchanges would serve to explore sectoral issues or specific barriers and their effects in greater details. Case studies of specific small and medium businesses from both sides of the Atlantic that would span different sectors and countries showcasing both success stories and companies held back by existing 30 obstacles to transatlantic SME trade. The case studies will thus complement the more general points discussed in the overview section, helping to make SME challenges tangible for policymakers. The report would close with a “recommendations” section that would outline specific policies that should be included in TTIP, which would expressly address existing barriers affecting SMEs. Partnerships: Partnering with business and/or SME associations as well as US and EU government agencies focused on SME policies would greatly enhance the project, not least with a view to the effectiveness of the case studies, identifying businesses for case studies, and maximizing the distribution of the report’s findings. Partners will be recognized through an “acknowledgements” section at the outset of the report and will be recognized on the Atlantic Council’s webpage. Partner organizations are also invited to help share and distribute the report once finished. Roll-Out Event: The impact and reach of the report would be maximized by a roll-out event that will combine the following elements: ƒ ƒ Part I – Public report launch launch with member(s) of Congress from one of the relevant Committees (Small Business, Ways and Means Trade Subcommittee), and representatives from FedEx and the Atlantic Council, including a presentation on the key findings of the report. Part II – Discussion/Roundtable with participation from representatives of small business, associations, the US government (via USTR, Commerce, or SBA), and FedEx on the findings of the report and progress in TTIP negotiations on SME–related issues, aggregating additional commentary and input which would be published online. Distribution and Outreach: ƒ ƒ ƒ ƒ ƒ Congressional Outreach – the Atlantic Council would schedule short briefing sessions on the report with staff on key committees and interested Member offices. Congressional distribution – hard copies of the report would be provided to the offices of all members of Congress on relevant committees (Ways and Means, Small Business, Energy and Commerce). A “Dear Colleague” letter could be circulated for general distribution on Capitol Hill. Permanent Atlantic Council TTIP platform – the report would form an integral part of the Atlantic Council’s growing portfolio of TTIP resources and analysis which is increasingly being used by policymakers on both sides of the Atlantic and regularly prompts requests for briefings, off-the-record background conversations, and group presentations from government and private sector counterparts, thus continuously raising the profile of the report among a wider community of TTIP stakeholders. stakeholders Online distribution – The report would further be referenced in the TTIP Action newsletter reaching over 12,000 recipients on both sides of the Atlantic, and on the TTIP Action website. Media outreach – either in combination with the above-mentioned roll-out of the report or as followup to generate media coverage in local and regional print media beyond the beltway͘ 31 CONTACT US OTHER CHAPTERS JOIN OUR MAILING LIST BECOME A MEMBER New York (212) 808.2707 ABOUT EVENTS News COMMITTEES MEMBERSHIP NEWS RESOURCES Opportunity to Participate in SME Focused TTIP Survey As negotiations towards an ambitious Transatlantic Trade and Investment Partnership (TTIP) move forward, the Chapter News Atlantic Council is conducting research on the prospective impact of this agreement on small and medium-sized enterprises, like yours, in both the United States and European Union. Member News SMEs represent the vast majority of all firms in both the US and EU and account for an outsized proportion of job creation, New York Related News TTIP Related yet they face significant barriers when attempting to export their goods and services across the Atlantic. Unlike large companies, which often have foreign affiliates in both markets and can afford to pay additional costs related to regulatory divergences, SMEs are sometimes unable to hurdle these considerable barriers. With that in mind, our friends at the Atlantic Council are conducting a survey of American and European SMEs to identify the specific challenges that they have faced when exporting across the Atlantic, costs that may have even prevented these companies from being able to export to the US or EU at all. They will highlight specific company cases in order to personally communicate the very real obstacles faced by these businesses and emphasize the opportunity to address them through TTIP. The Atlantic Council has reached out to the European American Chamber of Commerce New York to help identify and reach out to a select group of companies and invite them to participate in this important survey. How You Can Help > Company Profile The challenges that your company faces are indicative of the kinds of problems experienced by SME’s across sectors on both sides of the Atlantic. With that in mind, the council is looking to spotlight several companies and their particular experiences in doing transatlantic business. If you agree, our partners at the Atlantic Council would be honored to profile your company via a short phone or video interview. > Survey They would be delighted if you would be able to take approximately 10 minutes out of your busy schedule to help inform this project by filling out our brief SME survey online. Please let me know if you’re willing and I will connect you with the team at the Atlantic Council managing the survey. Background The survey will be sent to companies from a number of industries and highlight a number of case studies from across the United States and European Union. By highlighting these significant hurdles, the Council will develop a number of policy recommendations to ensure that American and European negotiators address the most pressing problems facing SMEs. Our Goals: > Emphasize the outsized positive impact that a comprehensive agreement would have on American and European small businesses; > Focus on informative case-studies to identify several key barriers that SMEs face when doing business across the Atlantic; > Produce an effective policy report, with specific policy recommendations, that helps inform US and European policymakers, business leaders, and the media. 32 Timeline: Our partners at the Atlantic Council are hoping to start surveying companies ideally by mid July. If you are interested to participate please let us know at your earliest convenience, you can reach us either via email at ybr@eaccny.com or by phone at 212 808 2707. More Information Please take a moment to review this informational pamphlet with additional information on this project. We hope that many of our members and SME’s in the Tristate Area will take advantage of the opportunity to make an impact on the TTIP negotiations. We look forward to working with you in this effort, and would like to sincerely thank you for your help as we move this important project ahead. Your EACCNY Team! The Atlantic Council: TTIP and SME Survey August 6, 2014 Like Filed under: Exporting,Latest News 33 Posted by: Jody Milanese 3 As negotiations toward an ambitious Transatlantic Trade and Investment Partnership (TTIP) move forward, the Atlantic Council, a nonpartisan policy research organization based in Washington, D.C., is conducting research on the prospective impact of this agreement on small and medium-sized enterprises (SMEs), in both the U.S. and European Union. The Atlantic Council’s Global Business and Economics Program works to build upon and strengthen the already deep economic integration between Europe and the United States as well as promote transatlantic leadership in the global economy. Bringing together top business leaders, government policy makers, and economic experts, the program explores transatlantic and global issues of importance to the U.S. and European business community. Their aim is to identify areas for cooperation as well as convergence in policy in an effort to promote an open and mutually beneficial environment for transatlantic business and trade. SMEs represent the vast majority of all firms in both the U.S. and EU and account for an outsized proportion of job creation, yet they face significant barriers when attempting to export their goods and services across the Atlantic. Unlike large companies, which often have foreign affiliates in both markets and can afford to pay additional costs related to regulatory divergences, SMEs are sometimes unable to hurdle these considerable barriers. In collaboration with the Small Business Exporters Association (SBEA), among others, the Council is conducting a survey of American and European SMEs to identify the specific challenges that they have faced when exporting across the Atlantic, costs that may have even prevented these companies from being able to export to the U.S. or EU at all. They will highlight specific company cases in order to personally communicate the very real obstacles faced by these businesses and emphasize the opportunity to address them through TTIP. The Councils goals are: • Emphasize the outsized positive impact that a comprehensive agreement would have on American and European small businesses; • Focus on informative case-studies to identify several key barriers that SMEs face when doing business across the Atlantic; • Produce an effective report, with specific policy recommendations, that helps inform U.S. and European policymakers, business leaders, and the media. By highlighting these significant hurdles, the Council will develop a number of policy recommendations to ensure that American and European negotiators address the most pressing problems facing SMEs. SBEA encourages those members who have experience in doing transatlantic business, to take a few minutes out of your busy schedule to help inform this project by completing their brief SME survey online here. 34 From: Garrett Workman W?atlanticcouncikor21 Sent: Wednesday, September 03, 2014 6:11 PM To: Rosen, Rebecca T. Cc: Jorn Fleck Subject: RE: Call with Mr. Kempe and USTR Yes, that's it exactly. Definitely inviting Congressional staff, and hopefully at least Paulsen (plus maybe another co-chair) would speak. I kind of doubt we'll get members to just attend, but it's not impossible. We?ll have a draft we can share with you next week, but it won?t yet have graphics or be designed. Basically still just a word doc. is that The event would either be here at the Council, with about 100 guests, or on the Hill in a committee room (probably less attendance due to space restrictions). We're inviting a few of the small businesses to come speak as well, yes, but have to figure out how we're paying for them to come. Working on that with In case it? 5 helpful, our American case study companies are: 0 NuStep - Michigan Now Health Group - Lightning Eliminators - Colorado Paulson Manufacturing California Health Enterprises - Massachusetts If it?s easier, we can chat on the phone tomorrow. 35 Thanks again, and have a good night, Garrett From: Rosen, Rebecca T. [mailtozRebecca T. Rosen@ustr.eop.gov] Sent: Wednesday, September 03, 2014 6:05 PM To: Garrett Workman Cc: Jorn Fleck Subject: RE: Call with Mr. Kempe and USTR Hi Garrett, Let me check in with our team here and I'll circle back. Just to make sure I explain it correctly: it would be a launch event around the SME report (which you can hopefully share a draft next week) here in Washington, D.C. open press with invited members of Congress as well. Do you have a sense of approximate size/location? Would you invite any of the actual small businesses as well? Thanks again! Becca --?--Original From: Garrett Workman [mailto@atlanticcouncil.org] Sent: Wednesday, September 03, 2014 6:00 PM To: Rosen, Rebecca T. Cc: Jorn Fleck Subject: RE: Call with Mr. Kempe and USTR OK thanks, so it sounds like we should wait until we have more clarity on the date Or is it worth checking his calendar already for October 9 and/or the week of November 17? Obviously if we could get Ambassador Froman here, that would make our timing decision easier Thanks! Garrett 36 Caldwell, Jacaui From: Rosen, Rebecca T. Sent: Tuesday, October 14, 2014 6:34 PM To: 'Garrett Workman' Cc: Jorn Fleck; Brammer, Georgette; Jasrasaria, Jyoti; Montelongo, Natalie Subject: RE: Call with Mr. Kempe and USTR Attachments: SME Report Launch Keynote Invitation - Froman.pdf Hi Garrett, I?m going to loop you in with our scheduling team here regarding the request thanks so much for following up! I know Ambassador Froman has a lot of travel coming up that they are working through, but we were of course interested in the event. BesL Becca @atlanticcouncil.org] From: Garrett Workman [mailto: Sent: Tuesday, October 14, 2014 6:31 PM To: Rosen, Rebecca T. Cc: Jorn Fleck Subject: RE: Call with Mr. Kempe and USTR Hey Becca, I wanted to check in with you and see if it would be possible for Ambassador Froman to join us on November 14 for our SME report launch here in We?re going to have the event in the morning, so a keynote would be around 8:30 or 9:00 am. Thanks for checking and let me know if you have any questions. Please let me know if you?d rather i send directly to Georgette or someone else, as well. Thanks, Garrett @Atlantic Council Garrett Workman Associate Director, Global Business and Economics Managing Editor, TTIP Action 1030 15th Street, NW, 12th Floor Washington, DC 20005 Cell: Etmatlanticcouncilprg I @AtlanticCounciI @TTIPAction From: Garrett Workman Sent: Monday, September 08, 2014 6:16 PM To: 'Rosen, Rebecca 39 Seville, Christina From: Garrett Workman Sent: Thursday, October 30, 2014 5:15 PM To: Seville. Christina Cc: Rosen, Rebecca Fran Burwell Subject: RE: Atlantic Council Breakfast Invitation with Congressman Paulsen on TTIP - November 14 Attachments: SM ES - report as of 10.30 -- with all case studies no tracked changesdocx; THP and SM Es Report Launch Agenda v2.docx Categories: Red Category Hi Christina, The breakfast will be panelists, as well as a few Atlantic Council board directors and supporters. Our CEO Fred Kempe will say hello and then let Congressman Paulsen give an overview of what the Hill is thinking for a couple minutes, then questions. I think it?ll be about 20 people total. I can get you a list closer to the time. I?m attaching an agenda here for you. We have an hour and 15 minutes or so for the panel, which is you, Damien, FedEx, and 2 of our representative case studies Paulson Manufacturing and NuStep. I think you probably know Rov Paulson and Elena Stegemann already? I think everyone should plan on speaking for around 5-10 minutes, then a conversation after that. We can all go through this together on the phone next week. And Ilies, our conversations with you and your colleagues were very helpful. We tweaked several of the recommendations, and Trevor?s advice on outreach has been really useful as well. Here?s an updated draft {attached}. Thanks and let me know if you have questions. Can I count you in for the breakfast? Garrett From: Sevilla, Christina Sent: Thursday, October 30, 2014 1:02 PM To: Garrett Workman Cc: Rosen, Rebecca Fran Burwell Subject: RE: Atlantic Council Breakfast Invitation with Congressman Paulsen on 'l'l'lP - November 14 Thanks Garrett, who is invited to the breakfast, is it just the panelists or a larger group? Please remind me the format of the panel, how many minutes should I plan on speaking, about 8? Also, would vou kindly you share with us an updated version of the report before it is finalized/released? I know that Rachel Shub and other USTR folks provided some suggestions. Best From: Garrett Workman ImaiIt-Qatlanticcounciloml 37 Sent: Thursday, October 30, 2014 12:5? PM To: Sevilla, Christina Cc: Rosen, Rebecca Fran Burwell Sublect: Atlantic Council Breakfast invitation with Congressman Pauisen on November 14 Dear Christina, We're really looking forward to this event on TTIP and small businesses on November 14th, and are very glad you are able tojoin us as a panelist. I hope you'll be able to make it a bit early for a small breakfast roundtabie we'll be hosting as an opportunity for a brief off-the-reeord conversation with Congressman Paulsen. Please let me know if you're able to join and we'll set up a call soon to discuss the details of the event. Sincerely, Garrett @Atlantic Council Dear Christina: October 30, 2014 On behalf of the Atlantic Council, it is our pleasure to invite you to a small, private coffee and breakfast toundtable Congressman Erik Paulsen on November 14 from 3:00 to 3:30 am. The breakfast will precede our public event launching our new report on the many opportunities for small and medium?sized enterprises that an ambitious Transatlantic Trade and Investment Partnership could create, which will begin at 3:30 a.rn. Bom events will take place at Atlantic Council headquarters located at 1030 15"' Street, NW on the 12" floor in Washington, DC. Breakfast will provide the opportunity for an informal off-the-record conversation with Congressman Paulsen as well as other distinguished trade policy,r experts. As co?chair of the Congressional Caucus, Congressman Paulsen will give an insider's perspective on Congressional priorities for the ongoing negotiations, as well as the prospects for progress on trade promotion authority, and the political and economic implications of the global trade agenda. 2 38 This roundtable will give guests an opportunity to ask some of their unanswered questions as TTIP and other trade agreements move forward. We hope that you can join us. Please con?rm your participation with Garrett Workman, associate director of the Council?s Global Business and Economics Program and the author of the new report at Best regards, {5&7 Fran Burwell Vice President and Director Program on Transatlantic Relations Garrett Workmn Associate Director Global Business and Economics Program 4O Sevilla, Christina I From: Fran Burwell IMQatlz-inticcouncilorgs Sent: Wednesda er 12, 2014 4:19 PM To: de?seuropaeu; Roy Paulson; Stegemann, Elena; Sharon Young; Sevilla, Christina Cc: Garrett Workman; Jorn Fleclc, Marie Kasperek Subject: Re: Connecting the TTIP and SME event panel Categories: Red Category Dear All, many thanks to all who sent in bullet points. Here is a brief rundown of the panel. After I present the report, all of you will join me on stage. Our events staff usually puts a label on each chair seat, so you will know where to sit. After we are settled, I will say a few intro sentences it will have just presented the report, so i will not say much}. I will then introduce each of you. Your bios will be available to the audience, so my intro will not be long. Let?s aim for 7-3 minutes per panelist, but not all in one go; that is, I will ask each of you two questions and you should plan to split your time between those. I'll ask to two questions and after the answers move on to the next panelist. i will turn to Roy to open, and will ask him how he got started in exporting to Europe, how important is it for his company? As a second question, I'll ask what obstacles he has faced, and how could TTIP address them. Elena will come next; I'll start by asking her how exporting differs for a small company vs a large company; what is special about the SME experience? Then ask about SME's can reach out to potential customers, and how might the government help with that? Raj will be next. He will have said a few things in introducing the report, so I'll start by asking if what Roy and Elena have said seem pretty typical in his experiences with SMES, since FedEx reaches so many of them. Other experienced he would like to share? Then I may ask something specifically about facilitation, unless Raj or Sharon comes back with another suggestion. On to Christina: now that you have heard the perspectives of SME representatives, can you tell us how will help overcome the obstacles they have identified? My follow up will be either on something I felt wasn't clear or on how SMEs have been part of global supply chains and does that present obstacles that TTIP should address. Last. but certainly not least, Damien. will first ask whether there are any significant differences or special circumstances for EU SMEs. I will ask about your view on the prospects that TTIP will address SME concerns. After this round, we will open the floor to the audience. EvEryone will be asked to identify themselves. Questions can be directed to the whole panel or speci?c panelists. We will generally do one question and then the response but may sometimes gather 2-3 questions. At the end of the panel, I will ask all the panelists to make some concluding comments of 2-3 minutes, so you will each have a chance to address anything you think is important. Many thanks for agreeing to be on the panel! We are looking forward to an excellent discussion. if you have any questions, please be in touch. I'll be on a plane tomorrow, but will answer as soon as I can. Best Fran Fran Bunivell 41 Eevilla, Christina From: Garrett Werkman ?atlanticcouncilorge Sent: Wednesday, February 25, 2015 11:53 AM To: Sevilla, Christina Subject: RE: Atlantic Council Invitation - Discussing T09 and SM Es with EuroChambres - March 4 Categories: Red Category Dear Christina, Thanks for letting me know, and I'm definitely glad they are meeting with you. Hi absolutely save the date of April 21, that sounds like a really good opportunity to discuss next steps! And thanks so much for the kind words about the report, I?m really glad everyone can use it as a resource. I'm working with FedEx at the moment on a series of European conversations about it with local SMEs and policymakers - likely at the end of May in London, Brussels, and Berlin. If you happen to be In Europe, it would be great to have you there. Otherwise, maybe Elena Bryan could join us. I?ll get you more info when we have it! Have a great week, Garrett @Atlantic Council Garrett Workman Associate Director, Global Business and Economics Managing Editor, Action 1030 15 W, 12th Floor 1 Washington, DC 20005 T: 1.20 I Can: I EWM ceb ok.corn At ounc @Atla?ticggungil 1 @TTIPAction From: Seville, Christina Sent: Wednesday, February 25, 2015 11:47 AM To: Garrett Workman Subject: RE: Atlantic Council Invitation - Discussing TM and SMEs with EuroChambres - March 4 Dear Garrett, I was just literally thinking about you! I was about to send you a Save the Dave of Tuesday April 21 for the US-EU SME Best Practices Workshop in DC, invite and draft agenda to follow. Hope you can plan to attend! My Profits Supp-oft Locations Eng=:sh lentil . Eu 53 Shipping Traciting Manage Learn *FedEx Office 42 About FedEx FedEx Blog 3 About FedEx Home hare a UUF 310W i. Tags: Adanir'c- Gounod. export, import, trade our People p. Small Business Needs TTIP To Overcome Obstacles . . EiyRajSubramaniam November12.2014 America and Europe have more than just history culture and values in common. Our economic health depends on ourtaiting every opportunity to increase trade between the continents. After all. the United States and the European Union are each other?s largest economic partners ?trading over SE Billion in goods and services every day. Point of View 3? Newsroom IIWhat's holding us bacl-ttrom more? COHEN US To begin with. the sheer complexity of divergent regulatory systems creates bottlenecks to transatlantic trade. The US and EU each have rules on the booits that create obstacles tor small and medium-sized businesses attempting to trade across the Atlantic. Search Tariffs are generally low, except in some areas apparel, food products and auto parts where protectionist measures continue to increase costs to consumers. Add customs red tape contradictory registration requirements. and duplicate safety certi?cations and many SivtEs just give up on export opportunities. I I 3mg, Eiutthe Transatlantic Trade a Investment Partnership agreement (?l?ile presents an historic opportunity to unlock transatlantic trade for SMEs and resolve a host of modern issues associated with the tremendous growth in globalized trade through the internet and e-commerce. A new reporttrom the Atlantic Council. commissioned by FedEx otters up examples from a handful of SMEs in the US and EU highlighting their frustration with existing import-export rules from a cabinetmaiter in France who has to retest and recertity his windows to a small Michigan t'irrn facing recertitication of exercise equipment: from an oven matter in Sweden having to repeat energy efficiency tests to an malter of vitamins considered a food or a medicine depending on which side ofthe Atlantic you're on. Or a German company that maites crankshafts in a plant in Mississippi who's charged various duties for intermediate parts as they are exported. imported and re?exported in this newera of globally produced goods The stories represent tangible examples where SivtEs could expand or contribute to job growth it the US-EU markets were more open and the regulatory processes simplified. Achieving these objectives may require a new approach in the next year. starting with the recognition that the American-European relationship is a strategic partnership not an adversarial one. if the US and EU can identity bottlenecl-ts and unnecessary red tape and then devise creative ways to bridge the differences. small and midsize businesses on both sides ofthe Atlantic will bene?t. There are no more one-way streets in globalized trade. We need to free up the business tools SiviEs need in orderto have open. uncomplicated access to customers on both sides of the Atlantic. We all come out ahead when we see trade as a two-way street. Raj Subramaniam View all Raj Subramaniam?s blog posts I: - Atlantic Council 43 Programs Initiatives Experts F?Liollcations alogs Events 13 2t?! Mi? New Atlantic Council Report Shows Bene?ts of Transatlantic Trade Agreement for Small Businesses 'I'iail'. mu: {3 Print I [mm [Int]: co?mnu?m 190.? According Lo a wpurl uiilitiud Eng- i'r Stu ,pi fore firm?. for Sottl'tElrisln-ess so?! and media. l'l'l stud 91 built tin.- Stan-s and bmupuan Union would bL-ri-i:lil sitjoi?rsiirrl?l from the implementation oFan Transaltnole'. Trade .0. I I .- Ill'h'l'??i?lL?f? Fartrm'isliip Using dala1rutla chgL'tL'd suruqr and lltiL'l't'lL'V? catniieted with EMF executnnes. on both sides of the study cites mm GUIDE 2016 all! ?lms lifters-mos and comradrcaory registration requirements 'Aa lwu ltglily-coitwl?ivt: iturily makes sense the [rolled States and Fiimpean Union eorlem-orto reorio'u'e some. :21 the uttituutaisaitr tsltiurs that still llnutl' acclaidiriy in associate direc?la' o?fthe Atty-m: Cutocil's Global Business and tcuriuttc's plugruitl and author study which was supputu? by f-L'd'l-J ttaat its "to tirsttiirit.? Dial oi izut LlpL'd'lt trait: ?glUL'lttL'l'li. Wlii include ti specific chapter on anri penictiiet rec rmrrieocl?ait'oru to help SMES based In dtu Stan's- and Hi EurUpL'arI Union trade and investment between the world's two lagersth ?erl'tthe tremendous increase in online SW :1 ts crit'u'e?ig to our stud]. and nuances customers iriAitieriuit arid LLlupt: lltal Wt: street-tine niies ctit red tape lower tariffs and nun-noise recpilat'uts to ntalte Irarlsallarilit: trad: antiplcr. cl'imipc'r aticl l'l'lUl'L? Beanies-J 'said Ha] FecIFit executive president The goal Ls to create a bunL'hCIal agiL-c'ltIL-ttl lltat Will open up more giu'mli arid on both side-t. ofthe i'tihntm The truth.I also provides key policy recommendations. including Eliminating transatlantic tari'i'l's i Raism duty-free threshold [or snipe-1g to 5800, a: rips- 'lbL -IIJt?ues a product testing and safety certi?cation processes. 1' Recognising Willem across the Atlantic and ?m min?? twin ?may. (I: Making the regtlmorv FIDC ess me 'i'reti?ilr' r' htses the In addition the report dtat den-rimming dte export primess by 55"5 rer Iliictea pro-riding sinned information and an iitlugratL-d. mamm- wtitrsite of avaiL?t?e expcin assistance seruic e5. across the lini'bed States and am" mm" ?'qu :i?Elt?lIln oreiqo Fahc'. humps-art Uruutl Wlii L'iiabb: Shit:- Litxuriti: acllw; export-rs. creating I I Dung-tn '3 NBC (In iual'it'L-littri Jrisof'l'jlusli' stutamahle ecnnomu'. growth on hath sides of the Atlantic W'er TTll? can make a real difference in the transatlantic economy the successful agcomont goes far beyond Htr: Ltacl?c relmmahip the author notes It sends ?a strong message to intematiooal partners that ore-n mattets paired with ef?cient regilmory regimes hacked l'rgr ti? rule ul law iernairi llt'l'.? mild'a mutt-t elite: titre usurth "an flit.- rt.1)ott tit: laumtltud at at Alt 'rI? It Wu?hll'lyl?l'l uri i-iiday. Noueml?ier at 30 a FST Speakers include Enricpessman F'atlsen CD?Eilil oi Lie: HP caucus. saltiot oliiciai's from US and "It: Delegation to Washington as well as senior small business executives from Michigan and UaliltJiriia Dwiilua? Ute-slutty ll'.'lI. Abouttho?tiamie Council's lobal Business and Economics Program: I heAuarttic Umll'l wants Iti deep economic integratim hen-item Fiimpe and the United Slain a win! oat pluan leadership in ill: Mal rammingI Lirltgirig together top business ietcien?. government maker?s .1111 economic experts the prugiarri cap-lotus traltsadarilii.? and global issm?s Eu 1h;- US and Fiimpean business community Our aim is to areas fr] cooperation as we! as L'utvL'rgL'itL'c in policy ll an that Lu pruntulr: art opt-ti and nlnuatly bet-refit: ial environment iortraneatlantic hiieitmss About: FadEtt: =3.ch INYSE: FDXI provides customers and businesso-sworldwido with a broad portiolioof transportation. econtittace and business services. annual revenues of $15 billion. the company o?ers Magritte-d business applications through operating con?panies competing coiectrueli- ano managed coitaoorauuetr. inrler llte respected FedFtr Consisteoliy ranked among Iheworld?s moist altituch arid i.l its-led uitployurs. F- Udiut It'lipll L15 its nu than WU [cant members to remain "absolutely posilwely"frr.iised on safety- Ihe highest ethical and standards and tin: l'lL'L?d?j all [hair i: ustorriL-r's and c'ciit'ltutiliL-s rI(l l~i1nnil 01in am My Eng=sh Ir; to Hi: Shipping - Tracking - Manage Learn *FedEJt Office About FedEx 44 FedEx Newsroom GI hat 1 About FedEx Home Choose a reglon' 0 Share II El Our Story 5 . . TTIP: Big Opportunity for Small Busrness Our People November 13, 2014 . . . .. According to a new report by the Atlantic Councrl somal conducted in both the United States and the European Union small and medium businesses based in both Point of View America and Europe would bene?t from passage of the . Transatlantic Trade 8. investment Partnership In 8109 survey research and interwews conducted with Si-.-tEs on fig. both sides of the Atlantic the study" cites three core challenges for lack of clarity on how to get started. Newsroom problems ?nding the right clients and what the report calls a "confusing mix of regulatory differences and 3 Latest News contradictory registration requirements "Astwo highly-regulated highly?competitive. and highly-integrated markets. it only makes sense the United States and European Union endeavorto remove some of the unnecessary barriers that still exist between them." said Garrett Workman. author ofthe study commissioned by FedEx. News Archive Media Requests and Resources To address modern e-commerce trade issues. the ?I?riP agreement. now in negotiation. will for the ?rst time include a chapter on Sit-lEs and speci?c recommendations and reforms in customs and regulatory coherence to help SMEs based in the US and the 28-member EU countries increase exports between the two largest in the WUFIU. Media Downloads Contact Us "\Nl?ih the tremendous increase in onlihe shipping. ll is critically important to our small and medium-sized business customers in America and Europe that we streamline rules. cut red tape lower tariffs and harmonize regulationsto make transatlantic trade simpler. cheaper and more seamless." said Raj Subramaniam. executive vice president. FedEx "The goal oft?TIP is to create a mutually bene?cial agreement that will open up more economic growth and opportunities on both sides of the Atlantic." The study aLso provides key policy recommendations. including: - Eliminate transatlantic tariffs . All 0 Newsroom . Ellog Search - Raise duty-free threshold for shipping to 5800 - Simplify product testing and safety certi?cation processes - Recognize equivalent standards - Make regulatory process more transparent in addition. the report says demystifying the export process by providing better shared resource information and an integrated regularly-updated website of available services across the US and EU markets will enable more SMEs to become active exporters While can make a real difference in ?jumpstartihg" the transatlantic economy the effect or a successful 'l'l'lP agreementgoes beyond the US-EU trade relationship. say the author it sends i'a strong message to international partners that open markets paired with efficient regulatory regimes backed by the rule of law remain the worlds most effective economic model. ?The Transatlantic Trade and investment Partnership: Big Opportunities for Small Busmess" by Garrett Workman. GlODal 8: Economics Program, Atlantic Council. To download the study. click here. US-EU trade is over $2 billion every day What's holding us backirom more? Read Raj Views. About FedEx FedEx Corp. FDXJ provides customers and businesses worldwide with a broad portfolio of transportation. e?commerce and business services. With annual revenues of S46 billion. the company offers integrated business operating companies competing collectively and managed collaboratively. underthe respected FedEx brand Consistently ranked among the world's most admired and trusted employers FedEx inspires its more than 300.000 team members to remain "absolutely, positively" focused on safety the highest ethical and professional standards and the needs of their customers and communities. For more information. vrsit newstedexcom. About the Atlantic Council The Atlantic Council's Global Business and Economics Program works to strengthen the already deep economic integration between Europe and the United States as well as promote transatlantic leadership in the global economy. Bringing togethertop business leaders. government policy makers. and economic experts. the program explores transatlantic and global issues of importance to the US and European business community. Our aim is to identity areas for cooperation as well as convergence in policy in an effort to promote an open and mutually bene?cial environment tortransatlantic business and trade. Events Upcoming Events I Past Events Distinguished Leadership Awards NOVEMBER 14. 2014 TTIP Big Opportunities for Small .. .. Business [3 Like a meet Print Email Register for this event here. Read the report here. On Friday. November 14. the Atlantic Council released its newest Em exploring how an ambitious Transatlantic Trade and Investment Partnership (TTIP) can help small and mediumsized businesses in both the United States and Europe. The Transatlantic Trade and Investment 0 A COUNCIL IN THE NEWS March 3,2015 Cohen Joins The Right to Know on Russia's Tilt: Channel to Discuss LJS-Russia Relations Energy Policy. and the Con?ict In Syria March 3. 2055 Dungan Joins Radio Classique to Discuss Super Tuesday Election Results 5 1:41:52 y'gum The Transatlantic Trade and Investment Partnership: March 3. 2015 Dungan Joins Radio Africa to Discuss Super Tuesday Election Results Big Opportunities for Small Business Keynote Speaker: Congressman Erik Paulsen Marc? I Joyner in Real Clear Detense (TO-Chair The Forgotten Veterans of Desert Congressional Caucus Storm March 3. 2016 Ashooh In FOI. The Decade? US Foreign Policy In the Middle East Toward the 20205 Panel Disc ussion with: Mr. Damien Levie Head of the Trade and Agriculture Section Delegation of the European Union to the United States Dr. Christina Sevilla. Deputy Assistant USTR for Snraii Business Of?ce of the US Trade Representative I'Ir?lr. Raj Subramaniam Executive Vice President FedEx Report Overview and Moderator: Dr. Fran Burwell Vice President and Director. Program on Transatlantic Rotations Atlantic Council SMEs represent the vast majority of all firms on both sides of the Atlantic and are responsible for over two-thirds of net new job creation over the last decade in both the United States and the European Union. Yet, they face signi?cant barriers when attempting to export their goods and services. Our new report uses a case study approach, examining the export experiences of American and European businesses front a range of industries to identify concrete challenges that SMEs must overcome when trying to trade across the Atlantic. By recognizing the most significant challenges. we can outline spec ific policy recommendations to ensure helps to remove the roadblocks. Please hec P: out the webc ast to view our interesting and liver disc ussion of the opportunities that could provide small businesses. 45 46 {?gAtlantic Council Friday, November 14, 2014 TTIP: Big Opportunities for Small Business 830 am Atlantic Council Headouarters Paul Adar-neon Forum Global Usman Ahmed eBay Inc Ashley Allen FedEx Robertus Anders American University Erik Andersson SACC USA Steve Andrews Congressional-Executive Commission on China Diego Anez Washington International Trade Association Yumi Aralti The Yomiuri Shimbun Eleftheria Arietotelous Embassy oi Cyprus to the United States Chuck Ashley Of?ce of the United States Trade Representative Frederic Barley Sano? Olivier Baldauff Embassy of Luxembourg to the United States Laura Barele US Department of State Asha Bazil Oxley Consulting Brian Beary his event is supported by FedEx. Meredith Beatrice JDA Frontline Jim Berger Washington Trade Daily Jonas Embassy of Sweden to the United States Alexander Bonke Swedish-American Chambers of Commerce George Bouboulls Personal Care Products Council Terri Breland US Department of Customs and Border Protection Of?ce of Intemational Trade Wolf Brueckmann AmCham Germany Chris Bryant Bergeson and Campbell Paul Bucher US Department of Commerce Fran Burwell Atlantic Council Olivia Coalition of Services Industries Rosalind Camplon Embassy of Great Britain to the United States Ralph Carter FedEx Yola nda Castillo Research Michael Chadwick US Department of State Arthur Chambers US International Trade Cemmission Xiaol?ang Chen Legal Daily Lily Chol Embassy of Canada to the United States Andrew Chrismer Atlantic Council leabet Clevero Embassy of Spain to the United States Ami Copeland Business Forward Cody American University Vassilia Coutifaris The Brookings Institution Inga Czerny PAP Polish PreSs Agency Katarzyna Czop Embassy of Poland to the United States Valeria D'Agestlno Embassy of Italy to the United States Anna Dai United States Senate Sofia Delta Embassy of Portugal to the United States Lola Deviatshoeva Aga Khan foundation Atlanlic Councrt Member Atlantic Cannot! Boar-c Director Brigitte Dias Ferreira Deere and Co Maury Donahue FedEx Maury Donahue FedEx Colin Dunn JDA Fronttine Naz Durakoglu US House Committee on Ways and Means Subcommittee on Europe. Eurasia, and Emerging Threats Brita Endrud Koch Companies Public Sector. LLC Paige Ennis Atlantic Councrl Tamara Esaayyad Infrastructure Jom Fleck Atlantic Council Claudia Fontana Tobiassen Embassy of Switzerland to the United States Trevor Francis JDA Frontline I'i'iontque Frazier HSBC Teresa Fuchs Representative at German Industry and Trade EviFue?e Trans-Atlantic Business Council Silvia Fuselli Guizzetti and Associates Floyd Gaibler US Grains Council Nicholas Galbraith Squire Patton Boggs Marie Geiger US Department of Commerce Sven Gentner Delegation of the European Union to the United States Patrick Gleason Public Citizen. Global Trade Watch Melinda Goforth Embassy of Great Britain to the United States Nate Graham Procter and Gamble Boyden Gray Boyden Gray and Associates Jamie Grigg Goddard Gunster Stefan Grebe Euronews Hugo Grondel Embassy the Netherlands to the United States Jeff Grove ASTM International Karin Grundskog SACC USA Karen Grunstra UL Ayelet Haran Fontl'ieirn International, LLC Geoffrey Harris European Parliament Liaison Office with US Congress Beniamin Harrison Delegation of the European Union to the United States Tomas Hart Embassy of the Czech Repubtic to the United States Hauser Policy Connections International LLC Jet.r Heatey Atlantic Council 47 Bernhard Hechenberger Embassyr of France to the United States Jack Herron Embassy of lsrael to the United States Carolina Hidea US Department of State Stefanie Holland US Chamber of Commerce Gro Holm Norwegian Broadcasting Krista Hughes Reuters Fred Hutchison LNG Allies Maia Ifland German Marshall Fund Scott Jacobs Albright Stonebridge Group Louise Jacobean Embassy of Denmark to the United States Stavrart Je?eriea Google Elizabeth Johnson Representative of German Industry and Trade Filip McCain Institute Jessica Jones BT Cathi Jones Congressional Research Service Leila Kamgar US Department of State Natalie Kamphaus Of?ce of Congressman Dave Reichert (R-WA) Nesiihan Kaptanoglu Turkish Union of Chambers and Commodity Exchanges Kunihilto Kawazu Embassy of Japan to the United States Matthew Keller Embassy of Liechtenstein to the United States Erin Kelly The European Institute Frederick Kempe Atlantic Council Elizabeth Kerr Business Forward hro Konstantinov Embassy of Bulgaria to the United States Zoran Konstantinovic Embassy of Croatia to the United States Justine Korwek Trans-Atlantic Business Council Justina Krutulyte Embassy of Lithuania to the United States Jeanene Lairo Konrad Adenauer Stittung Katelyn Lameon American Carl Lankoweki Foreign Service Institute Egils Leimants Embassy of Latyia to the United States Damien Leyie Delegation of the European Union to the United States Larry Li US Chamber of Commerce Mirea Lynton Grotz US Department of the Treasury Andrew MacLeod Embassy of Canada to the United States Marcelo Magnou Embassy of Uruguay to the United States Lance Mengum FedEx Annette Ma resh Expert-Import Bank oi the United States Williams Martin Atlantic Council Dorottya Martenffy-Nagy Embassy of Hungary to the United States Carina Mazzucato Embassy of Austria to the United States Roric McCorrietln Heinrich Boll Foundation Emma McEyoy Embassy of Belgium to the United States Michael Meier Friedrich Ebert Stiftung Lucas Menut Embassy of France to the United States Jody Milanese Small Business Exporters Association Susan Molinari Google Rebecca Mend Toy Industry Association Andrea Montanino Atlantic Council Manassinee Moottatarn Georgetown University lanara Mote Pinto Magellan Association Chelsea Murtha The Stern Group 48 Ryan Natty Embassy of Great Britain to the United States Sigurd Neubauer 805 International LLC Fernanda Nicola American University Jose Osorio The Washington Center Tugba Ozaydln Musiad USA Hick Paritth US Department of State Erik Pauleen US House of Representatives Roy Pauleon Paulson Manufacturing Agnes Pawelkowska Green Gate Consulting. LLC Sandra Pejic Embassy of Serbia to the United States Jack Pteiffer FedEx Wolfgang Pordzik DHL Abby Pratt Adyaltlled ?Daniel Price Rock Creek Global Advrsors. LLC Lin Dlu Embassy of China to the United States Rand FedEx Bill Reinsch National Foreign Trade Council Gorazd ?encelj Embassy oi Slovenia to the United States Jennifer Riccardi Embassy of Luxemboiurg to the United States Jennifer Rice Atlantic Council Vernon Robinson Jr. Of?ce of Congressman Doug Collins Sergio Rodriguera Jr. District Ventures Carlo Romeo Embassy of ltaly to the United States Andrew Russell FedEx David Salmonsen American Farm Bureau Hilary Sama Trans?Atlantic Business Council l?liiartir Sama Trans-Atlantic Business Council Bachiien Scanlan Nordson Corporation Salvatore Schiano United Macedonian Diaspora Jens Schulz AICGS Tanel Sepp Embassy oi Estonia to the United States Seda Serdar Deutsche Weile Turkish Service Caroline Sevier National Governors Assocmtioa Christina Seville Of?ce at the United States Trade Representative Shabnam Sharbatoghlie GE Rachel Shula Of?ce of the United States Trade Representative Anthony Silberl'eld Bertelsmann Foundation Morten Sl-troejer Embassy of Denmark to the United States Dontai Smalls UPS Margaret Spicer State of Florida Jessica Stallings Institute of International Finance Sylvia Staneva Center for Transatlantic Relations Josh Stanton Bertelsmann Foundation Katerina Stegemsnn NuStep Elena Stegernann NuSteo Victoria Stickelberger Emlsassyr of Austria to the United States Mike Stober Office of Congressman Paulsen 49 Greg Sto?to FedEx Raj Subramaniam FedEx Just-gins Swiss US Department of Commerce Michelle Sylvester-Jose US Commercial Services David Talbot Eli Lilly and Co. Joanne Thornton Policy Connections International. LLC Chip Thresher Thomson Reuters Erin Truxal FedEx Ibrahim Uyar Musiad USA Jordan Vetoes Podesta Alex Veneziano Airbus Group Emilio Viano Goldmark international inc Upcoming AmCham event on TTIP in Strasbourg Hope to see you there! Thursday, November 13th, 2014 14:00 – 18:00 at CCI de Région Alsace - 10 place Gutenberg, Strasbourg In July 2013, the European Union (EU) and the Unites States of America (U.S.) launched negotiations on a Transatlantic Trade and Investment Partnership (TTIP). The aim is two-fold: simplify trade and encourage investment. Our conference - to be held in Strasbourg - focuses on the small and medium entreprises (SMEs) as they are the drivers of future growth and employment. Around 530 businesses from Alsace already export to the U.S. Looking to 2022, the U.S. will be the most important market for French business exports, ahead of China, and far ahead of Germany, Japan and the United Kingdom. 50 Public opinion often lingers on the notion that this type of agreement 51 only benefits multinational corporations. However, the challenges for SMEs are more prominent. What is TTIP? And where are we now in the negotiations? Who will benefit from this agreement? Why should my business be interested in this project? What are the current trade barriers between the EU and the U.S.? Will tariff barriers significantly decrease? Is it possible to bring the EU and the U.S. standards closer? What can we expect in terms of opening up the public procurement markets? And in terms of customs and trade facilitation? Two expert panels will discuss and delve deeper into these questions. The first will be composed of the major actors in the negotiations (the European Commission, the French and American government authorities). The other will comprise of business leaders of the Alsace region. Caroline Kellner, journalist at France 3 Alsace, will moderate the debate. Our speakers include : • Patrick Dancourt, President, AmCham Alsace-Lorraine • Jean-Louis Hoerle, President, CCI de la région Alsace • François Loos, Vice President of the Alsace Regional Counsel, Conseiller Municipal and Former Commerce Minister 52 • Christian Schmurr, Directeur of Development, Française de Gastronomie • Andreas L.J. Povel, Managing Director, American Chamber of Commerce in Germany • Denis Redonnet, Chief of Unit, European Commission, member of the negotiation team • Caroline Ryan, Managing Director, American Chamber of Commerce in France • Kim Tuminaro, State Department T-TIP Coordinator in Washington • Mark van der Horst, Director, European Affairs, UPS Europe • Amy P. Westling, General Consul of the US in Strasbourg • Garrett Workman, Associate Director, think-tank Atlantic Council in Washington • Larry Lemoine, US Tax Partner, KPMG This event is free. Registration is compulsory. Places are limited and will be assigned on a first come, first served basis. Register by emailing Caroline Pierret ( ) by November 6th 2014, stating 53 Atlantic Council GLOBAL BUSINESS & ECONOMICS PROGRAM The Transatlantic Trade and Investment Partnership Big Opportunities for Small Business Garrett Workman 54 The Transatlantic Trade and Investment Partnership Big Opportunities for Small Business “Among the many beneficiaries of TTIP, perhaps small businesses stand to gain the most. Small businesses are hugely important sources of innovation, employment, and growth, but they lack the resources of large firms to navigate what can feel like a maze of regulations and obstacles to trade.” —US Trade Representative Ambassador Mike Froman at the Dialogue on TTIP in Rome, October 14, 2014 “Small and medium-sized enterprises are likely to be some of the biggest beneficiaries of this deal all across the board. Smaller firms will benefit proportionately more than their larger counterparts. Why? Because they find it much harder to get over barriers to trade since they have fewer resources to find ways around them.” —Former European Commissioner for Trade Karel De Gucht to the German Bundesrat European Affairs Committee in Berlin, May 22, 2014 ‘˜‡„‡” ʹͲͳͶ ‡•‹‰‡† „› ”‹… ‡ŠƒǤ ‘˜‡” ‹…‘• ƒ†‡ „› ‡…–‘”‰”ƒ’Š‹– ˆ”‘ ™™™ǤϐŽƒ–‹…‘Ǥ…‘Ǥ ƒ‰‡• Ž‹…‡•‡† —†‡” ”‡ƒ–‹˜‡ ‘‘• ͵ǤͲǤ ǣ ͻ͹ͺǦͳǦ͸ͳͻ͹͹ǦͲ͹ͲǦ͸ ̹ ʹͲͳͶ Š‡ –Žƒ–‹… ‘—…‹Ž ‘ˆ –Š‡ ‹–‡† –ƒ–‡•Ǥ ŽŽ ”‹‰Š–• ”‡•‡”˜‡†Ǥ ‘ ’ƒ”– ‘ˆ –Š‹• ’—„Ž‹…ƒ–‹‘ ƒ› „‡ ”‡’”‘†—…‡† ‘” –”ƒ•‹––‡† ‹ ƒ› ˆ‘” ‘” „› ƒ› ‡ƒ• ™‹–Š‘—– ’‡”‹••‹‘ ‹ ™”‹–‹‰ ˆ”‘ –Š‡ –Žƒ–‹… ‘—…‹Žǡ ‡š…‡’– ‹ –Š‡ …ƒ•‡ ‘ˆ „”‹‡ˆ “—‘–ƒ–‹‘• ‹ ‡™• ƒ”–‹…Ž‡•ǡ …”‹–‹…ƒŽ ƒ”–‹…Ž‡•ǡ ‘” ”‡˜‹‡™•Ǥ Ž‡ƒ•‡ †‹”‡…– ‹“—‹”‹‡• –‘ǣ –Žƒ–‹… ‘—…‹Ž ͳͲ͵Ͳ ͳͷ–Š –”‡‡–ǡ ǡ ͳʹ–Š Ž‘‘” ƒ•Š‹‰–‘ǡ ʹͲͲͲͷ This report is written and published in accordance with the Atlantic Council Policy on Intellectual Independence. The author is solely responsible for its analysis and recommendations. The Atlantic Council, its partners, and funders do not determine, nor do they necessarily endorse or advocate for, any of this report’s particular conclusions. 55 ACKNOWLEDGEMENTS ‡ ™‘—Ž† Ž‹‡ –‘ –Šƒ FedExǡ ™Š‘•‡ ϐ‹ƒ…‹ƒŽ •—’’‘”– ‘ˆ –Š‡ –Žƒ–‹… ‘—…‹Žǯ• ™‘” ‘ ƒ†‡ –Š‹• ”‡’‘”– ’‘••‹„Ž‡Ǥ ‘–Š –Š‡ ‘—…‹Ž ƒ† ‡† š •Šƒ”‡ ƒ …‘‘ „‡Ž‹‡ˆ –Šƒ– –Š‡ ˆ—–—”‡ ‘ˆ …‘’‡–‹–‹˜‡‡•• ‘ˆ –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ ‹• ‘ˆ ’ƒ”ƒ‘—– ‹’‘”–ƒ…‡ –‘ ‘—” …‹–‹œ‡•ǡ „—•‹‡••‡•ǡ ƒ† •Šƒ”‡† ‰Ž‘„ƒŽ Ž‡ƒ†‡”•Š‹’Ǥ ‹–Š –Šƒ– ‹ ‹†ǡ –Š‡ ‘—…‹Ž ‹• …‘‹––‡† –‘ ‡…‘—”ƒ‰‹‰ –Š‡ ƒ†‘’–‹‘ ‘ˆ ƒ ƒ„‹–‹‘—• ƒ‰”‡‡‡– –Šƒ– •–”‡‰–Š‡• „‘–Š —”‘’‡ ƒ† –Š‡ ‹–‡† –ƒ–‡• ˆ‘” ›‡ƒ”• –‘ …‘‡Ǥ ‡ ƒ”‡ ˜‡”› ‰”ƒ–‡ˆ—Ž –‘ –Š‡ †‘œ‡• ‘ˆ Ž‡ƒ†‹‰ ‡”‹…ƒ ƒ† —”‘’‡ƒ •ƒŽŽ „—•‹‡••‡• –Šƒ– ’ƒ”–‹…‹’ƒ–‡† ‹ ‘—” •—”˜‡›Ǥ ’‡…‹ƒŽ –Šƒ• ‰‘ –‘ –Š‡ „—•‹‡••‡• –Šƒ– ™‡”‡ ˆ‡ƒ–—”‡† ƒ• …ƒ•‡ •–—†‹‡•ǡ ™Š‘•‡ ‡š‡…—–‹˜‡• ˜‘Ž—–‡‡”‡† –Š‡‹” –‹‡ –‘ „‡ ‹–‡”˜‹‡™‡† ƒ† •Šƒ”‡† –Š‡‹” ‡š’‡”‹‡…‡• ™‹–Š —•Ǥ Jörn Fleckǡ ƒ••‘…‹ƒ–‡ †‹”‡…–‘” ‘ˆ –Š‡ –Žƒ–‹… ‘—…‹Žǯ• ”ƒ•ƒ–Žƒ–‹… ‡Žƒ–‹‘• ”‘‰”ƒǡ †‡†‹…ƒ–‡† …‘—–Ž‡•• Š‘—”• ‘ˆ ”‡•‡ƒ”…Š ƒ† ‡‡”‰› –‘ –Š‹• ’”‘Œ‡…–ǡ ƒ† Š‹• …‘–”‹„—–‹‘• –‘ –Š‡ ”‡’‘”– …ƒ‘– „‡ ‘˜‡”•–ƒ–‡†Ǥ Šƒ• ƒ• ™‡ŽŽ –‘ ‘—” ’ƒ”–‡”• ƒ– –Š‡ US Chamber of CommerceǢ –Š‡ European-American Chamber of CommerceǢ –Š‡ US National Small Business AssociationǢ –Š‡ Small Business Exporters AssociationǢ AmCham FranceǢ AmCham SwedenǢ –Š‡ German Chambers of Commerce and IndustryǢ ƒ† –Š‡ European Association of Craft, Small, and Medium-Sized Enterprises ˆ‘” …‘‡…–‹‰ —• –‘ •—…Š ‹‘˜ƒ–‹˜‡ ƒ† ‹•’‹”‹‰ …‘’ƒ‹‡•Ǥ ‹ƒŽŽ›ǡ ™‡ ™‘—Ž† Ž‹‡ –‘ ‡š–‡† ‘—” ‰”ƒ–‹–—†‡ –‘ –Žƒ–‹… ‘—…‹Ž ‹–‡”• Marie Kasperekǡ Jennifer Riceǡ Anjuli Gidwaniǡ Cale Rogoyskiǡ ƒ† Katelyn Lamson ˆ‘” –Š‡‹” –‡””‹ϐ‹… ƒ† ‡••‡–‹ƒŽ ”‡•‡ƒ”…Š ƒ••‹•–ƒ…‡Ǥ 56 EXECUTIVE SUMMARY ‹–Š ”ƒ•ƒ–Žƒ–‹… ”ƒ†‡ ƒ† ˜‡•–‡– ƒ”–‡”•Š‹’ ‡—–”ƒŽ •–‹—Ž—• –Šƒ– –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ ‡‡† ȋ Ȍ ‡‰‘–‹ƒ–‹‘• —†‡”™ƒ›ǡ –Š‡”‡ ‹• ƒ ‹…”‡ƒ•‹‰ ˆ‘…—• –‘ ”‡–—” –‘ •—•–ƒ‹‡†ǡ ”‘„—•– ‡…‘‘‹… ‰”‘™–ŠǤ ‘ –Š‡ ’”‘•’‡…–‹˜‡ ‡…‘‘‹… „‡‡ϐ‹–• ƒ† ’‘–‡–‹ƒŽ ’‘Ž‹…› ‘ †ƒ–‡ǡ ”‡Žƒ–‹˜‡Ž› ˆ‡™ • ‹ „‘–Š …Šƒ‰‡• ”‡•—Ž–‹‰ ˆ”‘ ƒ ƒ„‹–‹‘—• –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ ƒ”‡ ƒ‰”‡‡‡–Ǥ Š‹Ž‡ ‘†‡”‹œ‹‰ ˆ—ŽŽ› ƒ™ƒ”‡ ‘ˆ ‡‰‘–‹ƒ–‹‘• ‘” –”ƒ†‡ ”—Ž‡• ™‹ŽŽ „‡‡ϐ‹– „—•‹‡••‡• ‘ˆ Š‘™ ƒ ƒ‰”‡‡‡– …‘—Ž† Š‡Ž’ –Š‡‹” ƒŽŽ •‹œ‡• ‘ „‘–Š •‹†‡• ‘ˆ –Š‡ –Žƒ–‹…ǡ „—•‹‡••‡•Ǥ Š‘•‡ –Šƒ– Šƒ˜‡ Š‡ƒ”† ™‹ŽŽ „‡ ‡•’‡…‹ƒŽŽ› …”‹–‹…ƒŽ ˆ‘” ‘ˆ –Š‡ ‡‰‘–‹ƒ–‹‘• –‡† –‘ „‡Ž‹‡˜‡ •ƒŽŽ ƒ† ‡†‹—Ǧ•‹œ‡† ‡–‡”’”‹•‡• –Šƒ– ‹• †‡•‹‰‡† ’”‹…‹’ƒŽŽ› ȋ •Ȍ –Šƒ– ‘ˆ–‡ •–”—‰‰Ž‡ ™‹–Š –Š‡ –‘ Š‡Ž’ Žƒ”‰‡ …‘’ƒ‹‡•ǡ ‡˜‡ ƒ• —‡”‘—• ƒ†‹‹•–”ƒ–‹˜‡ǡ Ž‡‰ƒŽǡ ƒ† ‡‰‘–‹ƒ–‘”• ƒ‡ ƒ …‘…‡”–‡† ‡ˆˆ‘”– ”‡‰—Žƒ–‘”› „ƒ””‹‡”• –‘ ‡š’‘”–‹‰ –‘ ˆ‘…—• ‘ •Ǥ ‘”‡ ”‘„—•– –Šƒ– •Ž‘™ †‘™ –”ƒ†‡ ƒ† Š‹†‡” ƒ† ‹ˆ‘”‡† †‹ƒŽ‘‰—‡ ƒ„‘—– –Š‡ ‹‘˜ƒ–‹‘Ǥ ‹˜‡ –Š‡‹” Ž‹‹–‡† ‘’’‘”–—‹–‹‡• ˆ‘” • –‘ ‡š’ƒ† ϐ‹ƒ…‹ƒŽ ƒ† Š—ƒ ”‡•‘—”…‡•ǡ –Š‡‹” „—•‹‡•• ƒ…”‘•• –Š‡ –Žƒ–‹… ‹• •ƒŽŽ „—•‹‡••‡• •–ƒ† –‘ ‰ƒ‹ ‡‡†‡†ǡ ƒ† •ƒŽŽ …‘’ƒ‹‡• —•– ‡š’‘‡–‹ƒŽŽ› ˆ”‘ ƒ –”ƒ•ƒ–Žƒ–‹… „‡ „‡––‡”Ǧ‹–‡‰”ƒ–‡† ‹–‘ –Š‡ ’‘Ž‹…› ƒ‰”‡‡‡– –Šƒ– •–”‡ƒŽ‹‡• †‡„ƒ–‡ ‘˜‹‰ ˆ‘”™ƒ”†Ǥ Š‹• ”‡’‘”– ”‡‰—Žƒ–‘”› ƒ† …—•–‘• ’”‘…‡••‡•Ǥ ‹• ‹–‡†‡† ‹ ’ƒ”– –‘ Š‡Ž’ ‹…Ǧ•–ƒ”– • ™‹–Š ˆ‡™‡” –Šƒ ϐ‹˜‡ Š—†”‡† –Šƒ– …‘˜‡”•ƒ–‹‘ ™‹–Š ƒ† ƒ‘‰ ‡’Ž‘›‡‡• ˆ‘” –Š‡ „ƒ…„‘‡ ‘ˆ –Š‡ •Ǥ ‡”‹…ƒ ƒ† —”‘’‡ƒ ‡…‘‘‹‡•Ǥ ‘”‡ –Šƒ ͻͻ ’‡”…‡– ‘ˆ ƒŽŽ „—•‹‡••‡• ‹ „‘–Š –Š‡ ‹–‡† ”‘ —Ž› –‘ …–‘„‡” ʹͲͳͶǡ –Š‡ –Žƒ–‹… ‘—…‹Ž …‘†—…–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ ƒ”‡ …Žƒ••‹ϐ‹‡† ƒ• •Ǥ ƒ –ƒ”‰‡–‡† •—”˜‡› ƒ† ‹–‡”˜‹‡™• ™‹–Š •ƒŽŽ „—•‹‡•• Š‡•‡ •ƒŽŽ …‘’ƒ‹‡• ƒ……‘—– ˆ‘” –Š‡ ˜ƒ•– ƒŒ‘”‹–› ‘ˆ ‡š‡…—–‹˜‡• ˆ”‘ ƒ…”‘•• –Š‡ —”‘’‡ƒ ‹‘ ƒ† –Š‡ ‡’Ž‘›‡– ƒ† Šƒ˜‡ …‘–”‹„—–‡† ƒŽ‘•– –™‘Ǧ–Š‹”†• ‘ˆ ‹–‡† –ƒ–‡•Ǥ Š‡•‡ „—•‹‡••‡• ”‡’”‡•‡– ƒ ”ƒ‰‡ ‘ˆ ƒŽŽ ‡– ‡™ ’”‹˜ƒ–‡ •‡…–‘” Œ‘„ …”‡ƒ–‹‘ ‹ –Š‡ ‹–‡† –ƒ–‡• ‹†—•–”‹‡•ǡ ˆ”‘ …‘•—‡” ‰‘‘†• ƒ† ƒ—ˆƒ…–—”‹‰ –‘ ‘˜‡” –Š‡ ’ƒ•– –™‡–› ›‡ƒ”•ǡ ƒ††‹‰ ‘”‡ –Šƒ ͳͶǤ͵ ‹ŽŽ‹‘ ’Šƒ”ƒ…‡—–‹…ƒŽ•ǡ ƒ—–‘‘–‹˜‡ –‡…Š‘Ž‘‰›ǡ ƒ† ™‡„ †‡•‹‰Ǥ ‡™ Œ‘„• –‘ –Š‡ ‡…‘‘›Ǥ  —”‘’‡ǡ • ’‡”ˆ‘”‡† ŽŽ ‘ˆ –Š‡ …‘’ƒ‹‡• •—”˜‡›‡† ‹†‡–‹ϐ‹‡† –Š‡ •ƒ‡ …‘”‡ ‡˜‡ „‡––‡”ǡ …”‡ƒ–‹‰ ͺͷ ’‡”…‡– ‘ˆ ƒŽŽ ‡™ —”‘’‡ƒ Œ‘„• …ŠƒŽŽ‡‰‡• –‘ †‘‹‰ „—•‹‡•• ƒ…”‘•• –Š‡ –Žƒ–‹…ǣ „‡–™‡‡ ʹͲͲʹ ƒ† ʹͲͳͲǤ • ƒ”‡ …”‹–‹…ƒŽ ‡‰‹‡• ˆ‘” » Žƒ… ‘ˆ …Žƒ”‹–› ‘ Š‘™ –‘ „‡‰‹ ‡š’‘”–‹‰ –‘ ‡™ ‹‘˜ƒ–‹‘ ƒ† ‡…‘‘‹… ‰”‘™–Š ˆ‘” „‘–Š –Š‡ —”‘’‡ƒ ƒ”‡–•Ǣ ‹‘ ƒ† –Š‡ ‹–‡† –ƒ–‡•Ǥ TTIP could provide exactly the kind of deficit-neutral stimulus that the United States and Europe need to return to sustained, robust economic growth. ‹˜‡ –Š‡ ‹’‘”–ƒ…‡ ‘ˆ •ƒŽŽ „—•‹‡••‡• –‘ „‘–Š –Š‡ —”‘’‡ƒ ƒ† ‡”‹…ƒ ‡…‘‘‹‡•ǡ ‹– ‹• ˜‹–ƒŽ –Šƒ– ‡‰‘–‹ƒ–‘”• ‘– ‘Ž› ‰‡– –Š‡ †‡–ƒ‹Ž• ”‹‰Š– ™Š‡ …”ƒˆ–‹‰ ƒ …Šƒ’–‡”ǡ „—– ƒŽ•‘ ‡•—”‡ –Šƒ– –Š‡› ƒ††”‡•• –Š‡ •’‡…‹ϐ‹… ‡‡†• ‘ˆ •ƒŽŽ „—•‹‡••‡• –Š”‘—‰Š‘—– –Š‡ ‡–‹”‡ ƒ‰”‡‡‡–Ǥ Š‡ †‡ƒŽ —•– ˆƒ…‹Ž‹–ƒ–‡ –”ƒ†‡ ƒ† ‹˜‡•–‡– ˆ‘” •ƒŽŽ …‘’ƒ‹‡• •‘ –Šƒ– –Š‡› ƒ”‡ ƒ„Ž‡ –‘ –ƒ‡ ƒ†˜ƒ–ƒ‰‡ ‘ˆ ƒ ‘”‡ ‹–‡‰”ƒ–‡† –”ƒ•ƒ–Žƒ–‹… ƒ”‡–’Žƒ…‡Ȅ …”‡ƒ–‹‰ Œ‘„• ƒ† •—•–ƒ‹ƒ„Ž‡ ‡…‘‘‹… ‰”‘™–Š ™Š‹Ž‡ ’”‘˜‹†‹‰ “—ƒŽ‹–› ‰‘‘†• ƒ† •‡”˜‹…‡• ƒ– Ž‘™‡” ’”‹…‡• ˆ‘” ƒŽŽ …‘•—‡”•Ǥ Š‹• ‹• ‡•’‡…‹ƒŽŽ› —”‰‡– ƒ– ƒ –‹‡ ™Š‡ „‘–Š ‡…‘‘‹‡• ƒ”‡ ‹”‡† ‹ ƒ •Ž—‰‰‹•Š ƒ† —‹•’‹”‹‰ ”‡…‘˜‡”›Ǥ …‘—Ž† ’”‘˜‹†‡ ‡šƒ…–Ž› –Š‡ ‹† ‘ˆ †‡ϐ‹…‹–Ǧ » †‹ˆϐ‹…—Ž–‹‡• ‹†‡–‹ˆ›‹‰ ’‘–‡–‹ƒŽ ’ƒ”–‡”• ƒ† …—•–‘‡”•Ǣ » …‘ˆ—•‹‰ ƒ† •‘‡–‹‡• †‹˜‡”‰‡– ”‡‰—Žƒ–‹‘•Ǣ ƒ† » …‘–”ƒ†‹…–‘”› ”‡‰‹•–”ƒ–‹‘ ”‡“—‹”‡‡–•Ǥ • ™‹ŽŽ …‡”–ƒ‹Ž› „‡‡ϐ‹– ˆ”‘ ƒ ’‘–‡–‹ƒŽ –Šƒ– ”‡†—…‡• –”ƒ†‹–‹‘ƒŽ „ƒ””‹‡”• –‘ ƒ”‡– ƒ……‡•• ƒ† ”‡•‘Ž˜‡• ”‡‰—Žƒ–‘”› †‹ˆˆ‡”‡…‡• ˆ‘” „—•‹‡••‡• ‘ˆ ƒŽŽ •‹œ‡•Ǥ –‹ŽŽǡ —…Š ‘”‡ …ƒ „‡ ‰ƒ‹‡† „› ‡•—”‹‰ –Šƒ– ‡š’”‡••Ž› ƒ††”‡••‡• ƒ† Š‡Ž’• –‘ ƒŽŽ‡˜‹ƒ–‡ –Š‡ ƒ› „ƒ””‹‡”• ƒˆˆ‡…–‹‰ • ‹†‡–‹ϐ‹‡† ‹ –Š‹• •–—†›Ǥ 57 TABLE OF CONTENTS INTRODUCTION: THE IMPORTANCE OF SMES TO THE US AND EU ECONOMIES TAKING THE PLUNGE: SME-SPECIFIC CHALLENGES TO EXPORTING 1 4 WHAT IS TTIP AND WHY SHOULD SMES CARE? 7 POLICY RECOMMENDATIONS 9 BIG OPPORTUNITIES FOR SMALL BUSINESS 58 • 1 INTRODUCTION The Importance of SMEs to the US and EU Economies ‹–Š ”ƒ•ƒ–Žƒ–‹… ”ƒ†‡ ƒ† ˜‡•–‡– ƒ”–‡”•Š‹’ ȋ Ȍ ‡‰‘–‹ƒ–‹‘• —†‡”™ƒ›ǡ –Š‡”‡ ‹• ƒ ‹…”‡ƒ•‹‰ ˆ‘…—• ‘ –Š‡ ’”‘•’‡…–‹˜‡ ‡…‘‘‹… „‡‡ϐ‹–• ƒ† ’‘–‡–‹ƒŽ ’‘Ž‹…› …Šƒ‰‡• ”‡•—Ž–‹‰ ˆ”‘ ƒ ƒ„‹–‹‘—• ƒ‰”‡‡‡–Ǥ Š‹Ž‡ ‘†‡”‹œ‹‰ –”ƒ†‡ ”—Ž‡• ™‹ŽŽ „‡‡ϐ‹– „—•‹‡••‡• ‘ˆ ƒŽŽ •‹œ‡• ‘ „‘–Š •‹†‡• ‘ˆ –Š‡ –Žƒ–‹…ǡ ™‹ŽŽ „‡ ‡•’‡…‹ƒŽŽ› …”‹–‹…ƒŽ ˆ‘” •ƒŽŽ ƒ† ‡†‹—Ǧ•‹œ‡† ‡–‡”’”‹•‡• ȋ •Ȍ –Šƒ– ‘ˆ–‡ •–”—‰‰Ž‡ ™‹–Š –Š‡ —‡”‘—• ƒ†‹‹•–”ƒ–‹˜‡ǡ Ž‡‰ƒŽǡ ƒ† ”‡‰—Žƒ–‘”› „ƒ””‹‡”• –‘ ‡š’‘”–‹‰ –Šƒ– •Ž‘™ †‘™ –”ƒ†‡ ƒ† Š‹†‡” ‹‘˜ƒ–‹‘Ǥ ‹˜‡ –Š‡‹” Ž‹‹–‡† ϐ‹ƒ…‹ƒŽ ƒ† Š—ƒ ”‡•‘—”…‡•ǡ •ƒŽŽ „—•‹‡••‡• •–ƒ† –‘ ‰ƒ‹ ‡š’‘‡–‹ƒŽŽ› ˆ”‘ ƒ –”ƒ•ƒ–Žƒ–‹… ƒ‰”‡‡‡– –Šƒ– •–”‡ƒŽ‹‡• ”‡‰—Žƒ–‘”› ƒ† …—•–‘• ’”‘…‡••‡•Ǥ • ™‹–Š ˆ‡™‡” –Šƒ ϐ‹˜‡ Š—†”‡† ‡’Ž‘›‡‡• ˆ‘” –Š‡ „ƒ…„‘‡ ‘ˆ –Š‡ ‡”‹…ƒ ƒ† —”‘’‡ƒ ‡…‘‘‹‡•Ǥͳ ‘”‡ –Šƒ ͻͻ ’‡”…‡– ‘ˆ ƒŽŽ „—•‹‡••‡• ‹ „‘–Š –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ ƒ”‡ …Žƒ••‹ϐ‹‡† ƒ• •Ǥʹ Š‡•‡ •ƒŽŽ …‘’ƒ‹‡• ƒ……‘—– ˆ‘” –Š‡ ˜ƒ•– ƒŒ‘”‹–› ‘ˆ ‡’Ž‘›‡– ƒ† Šƒ˜‡ …‘–”‹„—–‡† ƒŽ‘•– –™‘Ǧ–Š‹”†• ‘ˆ ƒŽŽ ‡– ‡™ ’”‹˜ƒ–‡ •‡…–‘” Œ‘„ …”‡ƒ–‹‘ ‹ –Š‡ ‹–‡† –ƒ–‡• ‘˜‡” –Š‡ ͳ Š‡ ‹–‡† –ƒ–‡• †‡ϐ‹‡• • ƒ• Šƒ˜‹‰ ͷͲͲ ‘” ˆ‡™‡” ‡’Ž‘›‡‡•ǡ ™Š‹Ž‡ –Š‡ †‡ϐ‹‡• –Š‡ ƒ• Šƒ˜‹‰ ʹͶͻ ‡’Ž‘›‡‡• ‘” ˆ‡™‡”Ǥ ʹ ˆϐ‹…‡ ‘ˆ –Š‡ ‹–‡† –ƒ–‡• ”ƒ†‡ ‡’”‡•‡–ƒ–‹˜‡ǡ Dz ǣ Š‡ ’’‘”–—‹–‹‡• ˆ‘” ƒŽŽ ƒ† ‡†‹—Ǧ ‹œ‡† –‡”’”‹•‡•ǡdz ƒ”…Š ʹͲͳͶǡ Š––’ǣȀȀ™™™Ǥ—•–”Ǥ‰‘˜Ȁ•‹–‡•Ȁ †‡ˆƒ—Ž–Ȁϐ‹Ž‡•ȀͲ͵ͳͶʹͲͳͶǦ Ǧ‘’’‘”–—‹–‹‡•Ǧˆ‘”Ǧ •Ǥ’†ˆǤ Previous Agreements— SMEs Win Following the implementation of NAFTA, American SME exports to Canada and Mexico skyrocketed. Small businesses represent over 95 percent of all US exporters to the NAFTA market. Early research shows similar jumps in SME exports to Korea after the implementation of the US-Korea Free Trade Agreement which came into force in 2012. In Europe, exports to Korea increased by 24 percent in the first year after implementation of the EU’s trade deal with that country, despite many products facing long implementation delays before their tariffs were phased-out. A TTIP agreement which goes further than previous American and European free trade deals on regulatory issues would be an even greater boon to SMEs in the United States and across Europe. ’ƒ•– –™‡–› ›‡ƒ”•ǡ ƒ††‹‰ ‘˜‡” ͳͶǤ͵ ‹ŽŽ‹‘ ‡™ Œ‘„• –‘ –Š‡ ‡…‘‘›Ǥ͵  —”‘’‡ǡ • ƒ…–—ƒŽŽ› ’‡”ˆ‘”‡† ‡˜‡ „‡––‡”ǡ …”‡ƒ–‹‰ ͺͷ ’‡”…‡– ‘ˆ ƒŽŽ ‡™ —”‘’‡ƒ Œ‘„• „‡–™‡‡ ʹͲͲʹ ƒ† ʹͲͳͲǤͶ • ƒ”‡ …”‹–‹…ƒŽ ‡‰‹‡• ˆ‘” ‹‘˜ƒ–‹‘ ƒ† ‡…‘‘‹… ‰”‘™–Š ˆ‘” „‘–Š –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘Ǥ ƒŽŽ „—•‹‡••‡• ƒ‡ —’ –Š‡ ˜ƒ•– ƒŒ‘”‹–› ‘ˆ …‘’ƒ‹‡• ‘ „‘–Š •‹†‡• ‘ˆ –Š‡ –Žƒ–‹…ǡ ›‡– –Š‡› ‘’‡”ƒ–‡ ƒ– ƒ •‡˜‡”‡ †‹•ƒ†˜ƒ–ƒ‰‡ ™Š‡ ‹– …‘‡• –‘ ‡š’‘”–‹‰Ǥ ‡•’‹–‡ –Š‡ …Ž‘•‡ ‹–‡‰”ƒ–‹‘ ‘ˆ –Š‡ —”‘’‡ƒ ‹‘ǯ• •‹‰Ž‡ ƒ”‡–ǡ ‘Ž› ʹͷ ’‡”…‡– ‘ˆ —”‘’‡ǯ• ‘”‡ –Šƒ –™‡–› ‹ŽŽ‹‘ • ‡š’‘”– „‡›‘† –Š‡‹” ƒ–‹‘ƒŽ „‘”†‡”•Ȅƒ† ‘Ž› ͳ͵ ’‡”…‡– ‡š’‘”– „‡›‘† —”‘’‡Ǥͷ ‘™‡˜‡”ǡ —”‘’‡ƒ ϐ‹”• ƒ”‡ ‘”‡ ‡š’‘”–Ǧ‘”‹‡–‡† –Šƒ –Š‡‹” ‡”‹…ƒ …‘—–‡”’ƒ”–•Ǥ  –Š‡ ‹–‡† –ƒ–‡•ǡ –Š‡”‡ ƒ”‡ ƒ’’”‘š‹ƒ–‡Ž› ʹ͵ ‹ŽŽ‹‘ •Ǥ͸  ʹͲͳͳǡ ƒ……‘”†‹‰ –‘ –Š‡ –‡”ƒ–‹‘ƒŽ ”ƒ†‡ †‹‹•–”ƒ–‹‘ǡ ‘Ž› ƒ„‘—– ͳǤ͵ ’‡”…‡– ‘ˆ –Š‡•‡ „—•‹‡••‡• ‡š’‘”–‡† ƒ– ƒŽŽǡ ƒ† Ž‡•• –Šƒ ŠƒŽˆ ‘ˆ ͳ ’‡”…‡– ȋŒ—•– ͻͷǡͲͲͲ ϐ‹”•Ȍ ‡š’‘”–‡† –‘ –Š‡ —”‘’‡ƒ ‹‘Ǥ͹ Ž‡ƒ”Ž›ǡ –Š‡”‡ ‹• —…Š ”‘‘ ˆ‘” ‰”‘™–ŠǤ Š‡ …‘–‹—‡† ‡…‘‘‹… †‘™–—” ‹ –Š‡ ™ƒ‡ ‘ˆ –Š‡ ϐ‹ƒ…‹ƒŽ …”‹•‹• ƒ† •Ž—‰‰‹•Š †‡ƒ† ‹ •ǯ Š‘‡ ƒ”‡–• Šƒ˜‡ „‡‡ •‘‡ ‘ˆ –Š‡ ‡› †”‹˜‡”• ’”‘’–‹‰ •ƒŽŽ „—•‹‡••‡• –‘ ‹…”‡ƒ•‹‰Ž› Ž‘‘ ƒ„”‘ƒ† –‘ ϐ‹† ‡™ ƒ”‡–• ‹ ‘”†‡” –‘ ”‡ƒ‹ ’”‘ϐ‹–ƒ„Ž‡Ǥ  ”‡…‡– ›‡ƒ”•ǡ •—”˜‡›• „› –Š‡ ƒ–‹‘ƒŽ ƒŽŽ —•‹‡•• ••‘…‹ƒ–‹‘ ƒ† –Š‡ —”‘’‡ƒ ••‘…‹ƒ–‹‘ ‘ˆ ”ƒˆ–ǡ ƒŽŽǡ ƒ† ‡†‹—Ǧ ‹œ‡† –‡”’”‹•‡• Šƒ˜‡ •Š‘™ ƒ ƒ”‡† ‹…”‡ƒ•‡ ‹ –Š‡ —„‡” ‘ˆ • ™‹•Š‹‰ –‘ ‡š’‘”–Ȅƒ† ‹ –Š‡ —„‡”• ‘ˆ „—•‹‡••‡• –Šƒ– Šƒ˜‡ •–ƒ”–‡† –‘ †‘ •‘Ǥͺ ͵ ƒŽŽ —•‹‡•• †‹‹•–”ƒ–‹‘ ˆϐ‹…‡ ‘ˆ †˜‘…ƒ…›ǡ Dz ”‡“—‡–Ž› •‡† —‡•–‹‘• ƒ„‘—– ƒŽŽ —•‹‡••ǡdz ƒ”…Š ʹͲͳͶǡ Š––’ǣȀȀ™™™Ǥ•„ƒǤ‰‘˜Ȁ•‹–‡•Ȁ†‡ˆƒ—Ž–Ȁϐ‹Ž‡•Ȁ ̴ ƒ”…Š̴ʹͲͳͶ̴ͲǤ’†ˆǤ Ͷ —”‘’‡ƒ ‘‹••‹‘ǡ –‡”’”‹•‡ ƒ† †—•–”›ǡ Dz ‡”ˆ‘”ƒ…‡ ‡˜‹‡™ǡdz Š––’ǣȀȀ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ‡–‡”’”‹•‡Ȁ’‘Ž‹…‹‡•Ȁ•‡Ȁˆƒ…–•Ǧϐ‹‰—”‡•ǦƒƒŽ›•‹•Ȁ ’‡”ˆ‘”ƒ…‡Ǧ”‡˜‹‡™Ȁ‹†‡š̴‡ǤŠ–͓Ǥ ͷ ƒ”•ŠƒŽŽ •‹ƒǡ Dz —’’‘”– ˆ‘” –Š‡ –‡”ƒ–‹‘ƒŽ‹•ƒ–‹‘ ‘ˆ —”‘’‡ƒ •ǣ –—†› ‘ ’’‘”–—‹–‹‡• ‹ –‡”ƒ–‹‘ƒŽ ƒ”‡–•ǡdz —”‘’‡ƒ ‘‹••‹‘ǡ —•‹‡•• ‘‘’‡”ƒ–‹‘ ƒ† —’’‘”– • ƒ† –”‡’”‡‡—”•Š‹’ ‹”‡…–‘”ƒ–‡ǡ —‡ ʹ͹ǡ ʹͲͳͳǡ Š––’ǣȀȀ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ‡–‡”’”‹•‡Ȁ’‘Ž‹…‹‡•Ȁ•‡Ȁƒ”‡–Ǧƒ……‡••Ȁϐ‹Ž‡•Ȁ…‘ˆ‡”‡…‡̴ •–—†›̴„ƒ…‰”‘—†̴‡Ǥ’†ˆǤ ͸ ‹–‡† –ƒ–‡• ‡•—• —”‡ƒ—ǡ Dz –ƒ–‹•–‹…• ‘ˆ —•‹‡••‡•ǡdz Š––’ǣȀȀ™™™Ǥ…‡•—•Ǥ ‰‘˜Ȁ‡…‘Ȁ•—•„ȀǤ ͹ ‡’ƒ”–‡– ‘ˆ ‘‡”…‡ǡ –‡”ƒ–‹‘ƒŽ ”ƒ†‡ †‹‹•–”ƒ–‹‘ǡ Dz š’‘”–‹‰ ‘’ƒ‹‡• ʹͲͳͳǡdz Š––’ǣȀȀ™™™Ǥ–”ƒ†‡Ǥ‰‘˜Ȁƒ•Ȁ‹ƒȀ•‡‘—–Ž‘‘Ȁ‹†‡šǤƒ•’Ǣ ˆϐ‹…‡ ‘ˆ –Š‡ ‹–‡† –ƒ–‡• ”ƒ†‡ ‡’”‡•‡–ƒ–‹˜‡ǡ ’”‡•• ”‡Ž‡ƒ•‡ǡ Dz –‡”ƒ–‹‘ƒŽ ”ƒ†‡ ‘‹••‹‘ ‡Ž‡ƒ•‡• ‡’‘”– ‘ ‘™ ‹ŽŽ ‡‡ϐ‹– ƒŽŽ —•‹‡••‡•ǡdz ƒ”…Š ʹͲͳͶǡ Š––’ǣȀȀ™™™Ǥ—•–”Ǥ‰‘˜Ȁƒ„‘—–Ǧ—•Ȁ’”‡••Ǧ‘ˆϐ‹…‡Ȁ’”‡••Ǧ”‡Ž‡ƒ•‡•ȀʹͲͳͶȀ ƒ”…ŠȀ Ǧ ‡Ž‡ƒ•‡•Ǧ ‡’‘”–Ǧ ‘™Ǧ Ǧ ‹ŽŽǦ ‡‡ϐ‹–Ǧ ƒŽŽǦ —•‹‡••Ǥ ͺ ƒ† ǡ DzʹͲͳ͵ ƒŽŽ —•‹‡•• š’‘”–‹‰ —”˜‡›ǡdz Š––’ǣȀȀ™™™Ǥ•„ƒǤ „‹œȀ™’Ǧ…‘–‡–Ȁ—’Ž‘ƒ†•ȀʹͲͳ͵ȀͲ͸Ȁ š’‘”–‹‰Ǧ —”˜‡›ǦʹͲͳ͵Ǥ’†ˆǤ 2 • BIG OPPORTUNITIES FOR SMALL BUSINESS ”‹–‹…ƒŽŽ›ǡ —”‘’‡ƒ ‘‹••‹‘ ƒ† –‡”ƒ–‹‘ƒŽ ”ƒ†‡ ‘‹••‹‘ †ƒ–ƒ •Š‘™ –Šƒ– –Š‘•‡ •ƒŽŽ „—•‹‡••‡• –Šƒ– †‘ ‡š’‘”– ƒ”‡ ‡š’‡”‹‡…‹‰ •‹‰‹ϐ‹…ƒ– ‰”‘™–Š ƒ• …‘’ƒ”‡† –‘ ”‡˜‡—‡ †‡…Ž‹‡• ˆ‘” ‘‡š’‘”–‹‰ ϐ‹”•Ǥ ‘” ‡šƒ’Ž‡ǡ „‡–™‡‡ ʹͲͲͷ ƒ† ʹͲͲͻǡ ‡š’‘”–‹‰ • ‰”‡™ –Š‡‹” ”‡˜‡—‡ „› ͵͹ ’‡”…‡– ™Š‹Ž‡ –Š‘•‡ ˆ‘…—•‡† ‡š…Ž—•‹˜‡Ž› ‘ –Š‡ †‘‡•–‹… ƒ”‡– …‘–”ƒ…–‡† „› ͹ ’‡”…‡–Ǥͻ ‘”‡‘˜‡”ǡ ‹–‡”ƒ–‹‘ƒŽŽ› ˆ‘…—•‡† • ƒ”‡ ƒŽ•‘ …”‡ƒ–‹‰ ‘”‡ Œ‘„•Ǥ  –Š‡ —”‘’‡ƒ ‹‘ǡ • –Šƒ– ‡š’‘”– ƒ”‡ ‰”‘™‹‰ –Š‡‹” ’ƒ›”‘ŽŽ• „› ͹ ’‡”…‡– ƒ—ƒŽŽ› ƒ• …‘’ƒ”‡† –‘ ‘Ž› ͳ ’‡”…‡– ˆ‘” –Š‘•‡ –Šƒ– ˆ‘…—• ‡š…Ž—•‹˜‡Ž› ‘ –Š‡‹” †‘‡•–‹… ƒ”‡–ǤͳͲ Š‡ –‹‡ ‹• ‘™ ˆ‘” ‘”‡ • –‘ ‰‘ ‹–‡”ƒ–‹‘ƒŽ ƒ† –ƒ‡ ƒ†˜ƒ–ƒ‰‡ ‘ˆ –Š‡•‡ ‘’’‘”–—‹–‹‡•Ǥ Š‡ –‡”‡– ˆ—…–‹‘• ƒ• ƒ ’‘™‡”ˆ—Ž ’Žƒ–ˆ‘” ˆ‘” • –‘ ”‡ƒ…Š ‡™ ƒ”‡–• ƒ† ‡™ …—•–‘‡”•Ǥ •‹‰ ™‡„•‹–‡• Ž‹‡ ‡ ƒ›ǡ –•›ǡ ƒœ‘ǡ ƒ† ‘–Š‡”•ǡ …‘’ƒ‹‡• ƒ† …—•–‘‡”• ˆ”‘ ‡ƒ––Ž‡ –‘ –‘…Š‘Ž ƒ”‡ ƒ„Ž‡ –‘ “—‹…Ž› ƒ† ‡ƒ•‹Ž› …‘‡…– –‘ „—› ƒ† •‡ŽŽ –Š‡‹” ‰‘‘†• ƒ† •‡”˜‹…‡• ‹–‡”ƒ–‹‘ƒŽŽ› ‘Ž‹‡Ǥ —•– ‡•—”‡ †ƒ–ƒ ƒ† ‹ˆ‘”ƒ–‹‘ …‘–‹—‡• –‘ ϐŽ‘™ ˆ”‡‡Ž› ƒ…”‘•• –Š‡ –Žƒ–‹… –‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‹• ‡™ –”ƒ†‡ǡ ƒ† –Š‡ ”‡‰—Žƒ–‘”› ‡˜‹”‘‡– —•– ƒ†ƒ’– –‘ –Š‡ –Š‘—•ƒ†• ‘ˆ ‡™ …‘’ƒ‹‡• ‡š’‘”–‹‰ ˆ‘” –Š‡ ϐ‹”•– –‹‡ –Šƒ• –‘ –Š‡ ‰Ž‘„ƒŽ …‘‡…–‹˜‹–› ‘ˆ –Š‡ –‡”‡–Ǥ 59 A Case-Study Approach One of the best ways to understand the realworld challenges that SMEs face when doing business across the Atlantic is to speak directly with executives facing these barriers on a daily basis. The Atlantic Council interviewed several representatives of American and European SMEs from a range of industries on the most significant problems they faced when beginning to export their goods and services. The experiences of these companies offer insights into the kinds of issues that all SMEs eventually face when taking their business abroad. Both European and American companies continued to underline the same four core challenges to exporting across the Atlantic: » » » » ͻ –‡”ƒ–‹‘ƒŽ ”ƒ†‡ ‘‹••‹‘ǡ Small and Medium-Sized Enterprises: Characteristics and Performance ȋ ƒ•Š‹‰–‘ǡ ǡ ‘˜‡„‡” ʹͲͳͲȌ Š––’ǣȀȀ™™™Ǥ —•‹–…Ǥ‰‘˜Ȁ’—„Ž‹…ƒ–‹‘•Ȁ͵͵ʹȀ’—„ͶͳͺͻǤ’†ˆǤ ͳͲ —”‘’‡ƒ ‘‹••‹‘ǡ –‡”’”‹•‡ ƒ† †—•–”›ǡ Dz ”‘‘–‹‰ –‡”ƒ–‹‘ƒŽ …–‹˜‹–‹‡• ‘ˆ ǡdz Š––’ǣȀȀ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ‡–‡”’”‹•‡Ȁ’‘Ž‹…‹‡•Ȁ•‡Ȁƒ”‡–Ǧƒ……‡••Ȁ ‹–‡”ƒ–‹‘ƒŽ‹•ƒ–‹‘Ȁ‹†‡š̴‡ǤŠ–Ǥ lack of clarity on how to begin exporting to new markets; difficulties identifying potential partners and customers; confusing and sometimes divergent regulations; and contradictory registration requirements. Importantly, each company profiled also detailed its own unique and innovative solutions to these challenges while offering ideas for how the TTIP negotiators could address these barriers. Case Study: Paulson Manufacturing Headquarters: Temecula, CA Industry: Protective Equipment and Industrial Safety Products Number of Employees: 140 Paulson Manufacturing produces safety equipment specializing in eye and face protection used in a variety of sectors, including law enforcement, fire departments, medicine, and construction. In 2004, the family-owned business established its international arm in Frankfurt, Germany, to get easier access to the EU’s twenty-eight-country internal market, and signal “our commitment to our [life-saving] products through a brick and mortar presence in Europe,” says company president Roy Paulson. He further decided to establish an engineering department at its German subsidiary, to ensure compliance not only with EU and international standards but also so-called ghost standards, or specifications required by individual public sector customers that go beyond regulatory requirements. “It’s also these more obscure and sometimes unwritten rules that cause US companies to fail in exporting to the EU,” Paulson stressed, adding, “we concluded we simply couldn’t hit that target all the way from California.” Next, the small business owner became a policy entrepreneur, helping the relevant German statutory associations design a new industry standard for safety products that were unregulated to that point—an innovative yet lengthy and costly process. Paulson is excited about TTIP, hoping that the agreement will bring the US and Europe closer and open the eyes of the business community to the opportunities of European distribution. “I know that for my own company I would expect to see a dramatic increase in my European sales due to this TTIP agreement,” Paulson stressed. BIG OPPORTUNITIES FOR SMALL BUSINESS 60• 3 SMEs: Driving the US and EU Economies Country Share of exporting SMEs to total exporting enterprises (%) Value share of SME exports to total exports (%) Austria 95% 35% Belgium 69% 34% Bulgaria 86% 33% Cyprus 73% 65% Czech Republic 60% 22% Denmark 89% 35% Estonia 61% 64% Finland 91% 24% France 94% 33% Germany 59% 28% Greece 62% 37% Hungary 92% 17% Ireland 79% 57% Italy 90% 49% Latvia 97% 53% Lithuania 98% 39% Luxembourg 76% 12% Malta 91% 49% Netherlands 91% 41% Poland 93% 27% Portugal 94% 47% Romania 87% 36% Slovakia 87% 16% Slovenia 88% 38% Spain 65% 44% Sweden 94% 26% United Kingdom 90% 27% Total EU 81% 34% United States 97.88% 33% % of companies that are SMEs % of employment in SMEs European Union 99.8% 67.4% United States 99.9% 48.5% *The European Union defines SMEs as firms with 249 or less employees, while in the United States, a company with 500 or fewer employees is designated as an SME. **Research reflects EU data prior to Croatia joining in 2013. Sources: US Census Bureau, “Statistics of US Businesses,” http://www.census.gov/econ/susb/; Lucian Cernat, Ana Norman-López, and Ana Duch T-Figueras, “SMEs Are More Important than You Think! Challenges and Opportunities for EU Exporting SMEs,” European Trade Commission, http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152792.pdf; ECORYS, EU SMEs in 2012: At the Crossroads (Rotterdam: European Commission, September, 2012), http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performancereview/files/supporting-documents/2012/annual-report_en.pdf, p. 15. 4 • BIG OPPORTUNITIES FOR SMALL BUSINESS 61 TAKING THE PLUNGE SME-specific Challenges to Exporting ‘•– •ƒŽŽ „—•‹‡••‡• ‹‹–‹ƒŽŽ› ˆ‘…—• ‘ –Š‡‹” †‘‡•–‹… ƒ”‡–• ƒ• –Š‡› †‡˜‡Ž‘’ ƒ† ”‡ϐ‹‡ –Š‡‹” ‰‘‘†• ƒ† •‡”˜‹…‡•Ǥ – ‹• ‹’‘”–ƒ– ˆ‘” –Š‡ –‘ ‰ƒ‹ ƒ •—•–ƒ‹ƒ„Ž‡ ˆ‘‘–Š‘Ž†ǡ “—‹…Ž› ƒ† ”‡Ž‹ƒ„Ž› ”‡Žƒ–‡ –‘ –Š‡‹” …—•–‘‡”•ǡ ƒ† Ž‡ƒ” –‘ ”‡•’‘† ”ƒ’‹†Ž› –‘ …Šƒ‰‹‰ ƒ”‡– †‡ƒ†•Ǥ Šƒ–‡˜‡” –Š‡ ‘–‹˜ƒ–‹‘Ȅ‡•–ƒ„Ž‹•Š‹‰ ‹–‡”ƒ–‹‘ƒŽ ’”‘†—…– Ž‡ƒ†‡”•Š‹’ǡ ƒ ‡…‘‘‹… •Ž‘™†‘™ ƒ– Š‘‡ǡ ‘” ƒ •—……‡••ˆ—Ž ‡‡–‹‰ ƒ– ƒ ‹–‡”ƒ–‹‘ƒŽ –”ƒ†‡ •Š‘™Ȅ • ™‹ŽŽ ‡˜‡–—ƒŽŽ› ™‡‹‰Š –Š‡ „‡‡ϐ‹–• ‘ˆ ‰‘‹‰ ‰Ž‘„ƒŽǤ …‡ –Š‡•‡ • ƒ”‡ ”‡ƒ†› –‘ †‹˜‡ ‹–‘ –Š‡ —…‡”–ƒ‹ ™ƒ–‡”• ‘ˆ ‹–‡”ƒ–‹‘ƒŽ …‘‡”…‡ǡ –Š‡› ˆƒ…‡ •‹‰‹ϐ‹…ƒ– Ž‡‰ƒŽǡ ƒ†‹‹•–”ƒ–‹˜‡ǡ ƒ† ”‡‰—Žƒ–‘”› „ƒ””‹‡”• –Šƒ– ‡‡† –‘ „‡ •—……‡••ˆ—ŽŽ› ‹†‡–‹ϐ‹‡† ƒ† ƒ˜‹‰ƒ–‡†Ǥ ŽŽ –Š‡ ‡š‡…—–‹˜‡• ‹–‡”˜‹‡™‡† ˆ‘” –Š‹• •–—†› ‡’Šƒ•‹œ‡† –Š‡‹” †‡–‡”‹ƒ–‹‘ –‘ ’Žƒ› „› –Š‡ ”—Ž‡•Ǥ —– ‘”‡ ‘ˆ–‡ –Šƒ ‘–ǡ ϐ‹†‹‰ǡ Ž‡– ƒŽ‘‡ —†‡”•–ƒ†‹‰ǡ –Š‡ ”—Ž‡„‘‘ ’”‘˜‡† †‹ˆϐ‹…—Ž–Ǥ ‘˜‡”‡– ™‡„•‹–‡• ƒ”‡ ‘ˆ–‡ ™‘‡ˆ—ŽŽ› ‘—– ‘ˆ †ƒ–‡ǡ ˆ”ƒ‰‡–‡†ǡ ƒ† —…‘‘”†‹ƒ–‡†Ǥ ƒ‰—ƒ‰‡ „ƒ””‹‡”• ƒ”‡ ”‡ƒŽ ƒ† ’‡”•‹•–‡–ǡ ‡•’‡…‹ƒŽŽ› ™Š‡ ‹– …‘‡• –‘ Ž‡‰ƒŽ ‹••—‡•Ǥ ‹†‹‰ Žƒ„‡Ž‹‰ǡ •Š‹’’‹‰ǡ …‡”–‹ϐ‹…ƒ–‹‘ ”‡“—‹”‡‡–•ǡ ƒ† ƒŽŽ ‘ˆ –Š‡ ‘–Š‡” ”‡Ž‡˜ƒ– ”—Ž‡• –Šƒ– ƒ’’Ž› –‘ ‡˜‡ –Š‡ ‘•– „ƒ•‹… ‰‘‘†• ‹• ƒŽ‘•– ‹’‘••‹„Ž‡ǡ ‡˜‡ ˆ‘” ‡š’‡”‹‡…‡† ‡š’‘”– ƒƒ‰‡”•Ǥ ˜‡ ƒ• –Š‡› ’‹‡…‡ –‘‰‡–Š‡” –Š‡ ”—Ž‡„‘‘ǡ ‡š’‘”–‡”• •–‹ŽŽ —•– ƒ••‡•• –Š‡‹” ‡™ –ƒ”‰‡– ƒ”‡– ƒ† †‡–‡”‹‡ –Š‡‹” …Šƒ…‡• ˆ‘” •—……‡••Ǥ ‹†‹‰ ‡ˆˆ‡…–‹˜‡ ‹Ǧ…‘—–”› †‹•–”‹„—–‹‘ ’ƒ”–‡”• ‹• ‡› –‘ ‹†‡–‹ˆ›‹‰ ‡™ …—•–‘‡”• ƒ† —†‡”•–ƒ†‹‰ †‹ˆˆ‡”‡– ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–•Ǥ  ƒ††‹–‹‘ǡ …‘’Ž‹ƒ…‡ …‘•–• ƒ”‡ •‹‰‹ϐ‹…ƒ– ‡˜‡ ™Š‡ ”—Ž‡• ‘ ‡‹–Š‡” •‹†‡ ‘ˆ –Š‡ –Žƒ–‹… ƒ”‡ „”‘ƒ†Ž› ‡“—‹˜ƒŽ‡–Ǥ ˆ ’”‘Œ‡…– ƒƒ‰‡”• ƒ”‡ •’‡†‹‰ ˜ƒŽ—ƒ„Ž‡ –‹‡ ƒ† ‡‡”‰› ”‡†‡•‹‰‹‰ ƒ ’”‘†—…– ˆ‘” –Š‡ ‡”‹…ƒ ‘” —”‘’‡ƒ ƒ”‡– •‹’Ž› –‘ …‘’Ž› ™‹–Š ƒ •Ž‹‰Š–Ž› –™‡ƒ‡† ”‡‰—Žƒ–‹‘ǡ ‹– ‡ƒ• –Š‡› ƒ”‡ ‘– ˆ‘…—•‹‰ –Š‡‹” Ž‹‹–‡† ”‡•‘—”…‡• ‘ ‹‘˜ƒ–‹‰Ǥ • ƒ”‡ †‹•’”‘’‘”–‹‘ƒ–‡Ž› ƒˆˆ‡…–‡† „› –Š‡•‡ ƒ††‹–‹‘ƒŽ ’ƒ’‡”™‘” ”‡“—‹”‡‡–•ǡ ”‡‰—Žƒ–‘”› †‹˜‡”‰‡…‡•ǡ ƒ† ‡••‡–‹ƒŽ• ‘ˆ „—•‹‡•• ’Žƒ‹‰ ƒ• –Š‡› Šƒ˜‡ ˆ‡™‡” ”‡•‘—”…‡•ǡ Ž‹‹–‡† ‹ǦŠ‘—•‡ ‡š’‡”–‹•‡ǡ ƒ† Ž‡•• ‡š’‡”‹‡…‡ ‹ ‡š’‘”–‹‰ –Šƒ Žƒ”‰‡ …‘’ƒ‹‡•Ǥ – ‹• ‘ˆ–‡ †‹ˆϐ‹…—Ž– –‘ ‡˜‡ †‡–‡”‹‡ ™Šƒ– –Š‡ Ž‡‰ƒŽ †‹ˆˆ‡”‡…‡• ƒ”‡ǡ ‘” ™Šƒ– ƒ††‹–‹‘ƒŽ ”‡“—‹”‡‡–• ‡š‹•–Ǥ ƒ› …‘’ƒ‹‡• •‹’Ž› †‡…‹†‡ –Šƒ– –Š‡ …‘•–• ‘ˆ †‘‹‰ „—•‹‡•• ‹–‡”ƒ–‹‘ƒŽŽ› ‘—–™‡‹‰Š –Š‡ „‡‡ϐ‹–•ǡ ‡•’‡…‹ƒŽŽ› ™Š‡ ƒ††‹–‹‘ƒŽ ‡š’‘”– …‘’Ž‹ƒ…‡ …‘•–• ‡–‹”‡Ž› ™‹’‡ ƒ™ƒ› ”ƒœ‘”Ǧ–Š‹ ’”‘ϐ‹– ƒ”‰‹•Ǥ Once SMEs are ready to dive into the uncertain waters of international commerce, they face legal, administrative, and regulatory barriers that need to be successfully identified and navigated. Case Study: Health Enterprises Headquarters: North Attleboro, MA Industry: Healthcare Products and Medical Devices Number of Employees: less than 50 Health Enterprises develops and manufactures innovative consumer healthcare products and distributes these for sale globally to more than fifty countries. When exporting to the European Union, the company cites regulatory differences as the most costly barriers to greater trade. Needing to reregister even the most basic, lowest risk Class I medical products in Europe—items as simple as a finger splint, which are already FDA-registered—is incredibly costly and time-intensive. Not only does this process cost several thousands of dollars in fees, but registration is often required in more than one EU member state, without any further benefit or enhanced safety for the consumer. Mr. Brooke Fishback, Health Enterprise’s director of international sales, suggests that these basic Class I medical devices are among the best places for transatlantic regulatory cooperation to start. “If it’s legally sold in the US, it should be legally sold in the EU, and vice versa. If companies could register their products in this category with their home country regulator only, it will immediately save companies money and enhance competitive pricing to the benefit of the consumer.” BIG OPPORTUNITIES FOR SMALL BUSINESS 62• 5 WHAT IS TTIP? And Why Should SMEs Care? Š‡ —”‘’‡ƒ ‹‘ ƒ† –Š‡ ‹–‡† –ƒ–‡• ƒ”‡ –Š‡ ™‘”Ž†ǯ• –™‘ Žƒ”‰‡•– ‡…‘‘‹‡•ǡ ™Š‹…Š –‘‰‡–Š‡” ”‡’”‡•‡– ƒ …‘„‹‡† Ͷͷ ’‡”…‡– ‘ˆ ‰Ž‘„ƒŽ Ǥͳͳ ‘”‡ –Šƒ ̈́ʹǤͷ „‹ŽŽ‹‘ ‹ ‰‘‘†• ƒ† •‡”˜‹…‡• ƒ”‡ ‡š…Šƒ‰‡† „‡–™‡‡ –Š‡ –™‘ ƒ”‡–• ‡ƒ…Š †ƒ›ǡ ƒ† ‘˜‡” –Š‹”–‡‡ ‹ŽŽ‹‘ ‡”‹…ƒ ƒ† —”‘’‡ƒ Œ‘„• ƒ”‡ †‹”‡…–Ž› –‹‡† –‘ –”ƒ•ƒ–Žƒ–‹… –”ƒ†‡ ƒ† ‹˜‡•–‡–Ǥͳʹ ‡–ǡ –Š‡ –‹†‡• ‘ˆ –Š‡ ‰Ž‘„ƒŽ ‡…‘‘› ƒ”‡ …Šƒ‰‹‰Ǣ –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ ™‹ŽŽ ‘– ƒ‹–ƒ‹ –Š‹• ’”‡‡‹‡– ’‘•‹–‹‘ ˆ‘”‡˜‡”Ǥ  ‘”†‡” –‘ „‘Ž•–‡” –Š‡ ˆ—–—”‡ …‘’‡–‹–‹˜‡‡•• ‘ˆ „‘–Š ‡…‘‘‹‡•ǡ –Š‡ –™‘ •‹†‡• „‡‰ƒ ‡‰‘–‹ƒ–‹‘• ˆ‘” Žƒ•– ›‡ƒ” –‘ ”‡‘˜‡ †—’Ž‹…ƒ–‹˜‡ ”‡‰—Žƒ–‘”› „ƒ””‹‡”• ƒ† ‡Ž‹‹ƒ–‡ ƒŽŽ ”‡ƒ‹‹‰ –ƒ”‹ˆˆ• „‡–™‡‡ –Š‡ –™‘ ”‡‰‹‘•Ǥ ƒ”‰‡ —Ž–‹ƒ–‹‘ƒŽ …‘”’‘”ƒ–‹‘• ƒ”‡ ƒ„Ž‡ –‘ •—……‡••ˆ—ŽŽ› Š—”†Ž‡ –Š‡ „ƒ””‹‡”• –Šƒ– ‡š‹•– –‘†ƒ›Ǥ Š‡› ‘ˆ–‡ Šƒ˜‡ ˆ‘”‡‹‰ ƒˆϐ‹Ž‹ƒ–‡•ǡ ‹ǦŠ‘—•‡ Ž‡‰ƒŽ ƒ† –‡…Š‹…ƒŽ ‡š’‡”–‹•‡ǡ ‘–Š‡” •—’’‘”– •‡”˜‹…‡•ǡ ƒ† ƒ› ›‡ƒ”• ‘ˆ ‡š’‡”‹‡…‡ –Šƒ– Š‡Ž’ –Š‡ ‡‡– ‡š‹•–‹‰ †‹˜‡”‰‡– ƒ†‹‹•–”ƒ–‹˜‡ ƒ† ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–• „‡–™‡‡ –Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ Ǥ Š‹Ž‡ –Š‡› ƒŽ•‘ •–ƒ† –‘ „‡‡ϐ‹– ˆ”‘ ‰”‡ƒ–‡” ƒ”‡– ƒ……‡•• ƒ† ”‡†—…‡† ”‡‰—Žƒ–‘”› †‹˜‡”‰‡…‡• —†‡” ǡ Žƒ”‰‡ …‘”’‘”ƒ–‹‘• ™‹ŽŽ „‡ ƒ„Ž‡ –‘ …‘’‡ ‹ˆ –Š‡•‡ –”ƒ†‡ –ƒŽ• ˆƒ‹ŽǤ ͳͳ —”‘’‡ƒ ‘‹••‹‘ǡ —”‘•–ƒ–ǡ Dz Š‡ ‹ –Š‡ ‘”Ž†Ȅ …‘‘› ƒ† ‹ƒ…‡ǡdz Š––’ǣȀȀ‡’’Ǥ‡—”‘•–ƒ–Ǥ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ•–ƒ–‹•–‹…•̴‡š’Žƒ‹‡†Ȁ‹†‡šǤ’Š’Ȁ Š‡̴ ̴‹̴–Š‡̴™‘”Ž†̴Ǧ̴‡…‘‘›̴ƒ†̴ϐ‹ƒ…‡Ǥ ͳʹ —”‘’‡ƒ ‘‹••‹‘ǡ ‹”‡…–‘”ƒ–‡Ǧ ‡‡”ƒŽ ˆ‘” ”ƒ†‡ǡ Dz „‘—– ǡdz Š––’ǣȀȀ ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ–”ƒ†‡Ȁ’‘Ž‹…›Ȁ‹Ǧˆ‘…—•Ȁ––‹’Ȁƒ„‘—–Ǧ––‹’ȀǢ ˆϐ‹…‡ ‘ˆ –Š‡ ‹–‡† –ƒ–‡• ”ƒ†‡ ‡’”‡•‡–ƒ–‹˜‡ǡ Dz Š‹–‡ ‘—•‡ ƒ…– Š‡‡–ǣ ǡdz —‡ ʹͲͳ͵ǡ Š––’ǣȀȀ™™™Ǥ —•–”Ǥ‰‘˜Ȁƒ„‘—–Ǧ—•Ȁ’”‡••Ǧ‘ˆϐ‹…‡Ȁˆƒ…–Ǧ•Š‡‡–•ȀʹͲͳ͵ȀŒ—‡Ȁ™ŠǦ––‹’Ǥ Exporting: Where to Begin? Companies just starting out face: » difficulties obtaining information on differing regulatory requirements; » a lack of knowledge of different customs procedures and tax systems; » inconsistency in the application of export rules and regulations; » problems linking up with competent and reliable international distributors, and; »an inability to cost-effectively conduct necessary market research. Case Study: Revent Headquarters: Upplands Väsby, Sweden Industry: Machinery Manufacturing Number of Employees: 125 From its humble beginnings in Sweden, Revent has grown to become one of the leading rack oven producers in the world. The company opened a US office in 1992, initially to better protect its intellectual property in the United States, which has become the largest among Revent’s fifty foreign export markets. Lengthy, burdensome customs processing and the resulting delays persuaded the company to begin manufacturing for the North American market at its New Jersey plant. Although duties on the company’s US imports are low at around 3.5 percent, tariff elimination through TTIP would nevertheless make a difference because “that is still an important margin for us in a highly competitive market,” according to Revent Incorporated CEO Daniel Lago. He points out that tarifffree trade would also yield efficiency gains for Revent and other manufacturing companies, allowing them to better balance production volumes and inventories across the Atlantic. The largest potential gains from TTIP for Revent, however, lie in greater regulatory coherence and cooperation across the Atlantic. “A small company like ours spends a lot of resources and time to ensure our products comply with different and divergent standards, from safety and electrical to energy efficiency requirements. It is a major cost driver to have to design two different versions of the same product to two different specifications in the EU and the [United States],” Lago says. 6 • BIG OPPORTUNITIES FOR SMALL BUSINESS 63 ‡†‹—Ǧ•‹œ‡† „—•‹‡••‡•Ȅ™Š‹…Š ˆƒ…‡ ƒŒ‘” „ƒ””‹‡”• –‘ –”ƒ†‡ ™‹–Š ˆƒ” ˆ‡™‡” ”‡•‘—”…‡• –‘ †‡ƒŽ ™‹–Š –Š‡ȄŠƒ˜‡ —…Š ”‘‘ –‘ †‡‡’‡ –Š‡‹” ‡‰ƒ‰‡‡–Ǥ ‡…‘‰‹œ‹‰ –Š‹•ǡ –Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ Šƒ˜‡ ƒ†‡ ˆƒ…‹Ž‹–ƒ–‹‰ ‡š’‘”–• ƒ …‘”‡ ‡‰‘–‹ƒ–‹‰ ‘„Œ‡…–‹˜‡Ǥ †‡‡†ǡ ™‹ŽŽ „‡ –Š‡ ϐ‹”•– ‹–‡”ƒ–‹‘ƒŽ –”ƒ†‡ ƒ‰”‡‡‡– ˆ‘” –Š‡ —”‘’‡ƒ ‹‘ –Šƒ– ™‹ŽŽ Šƒ˜‡ ƒ Ǧ•’‡…‹ϐ‹… …Šƒ’–‡”Ǥ Š‡ ‹–‡† –ƒ–‡• ‹• ƒŽ•‘ ‡‰‘–‹ƒ–‹‰ ƒ …Šƒ’–‡” ‹ –Š‡ ”ƒ•Ǧ ƒ…‹ϐ‹… ƒ”–‡”•Š‹’Ǥ Š‹• ‡™ ‡’Šƒ•‹• ‘ •ƒŽŽ „—•‹‡•• …”‘•• ƒŽŽ ‹†—•–”‹‡•ǡ ”‡‰—Žƒ–‘”› ƒ† ƒ†‹‹•–”ƒ–‹˜‡ ‡š’‘”–• —†‡”Ž‹‡• –Š‡ …‘‹–‡– ‘ˆ „‘–Š •‹†‡• –‘ –Š‡ …ŠƒŽŽ‡‰‡• ƒ”‡ Š‘Ž†‹‰ –”ƒ†‡ǡ ‹˜‡•–‡–ǡ ƒ† ‹‘˜ƒ–‹‘ ‹••—‡Ǥ „ƒ…Ȅ™‹–Š ƒŒ‘” …‘•‡“—‡…‡• ˆ‘” ‡…‘‘‹… ‰”‘™–Š ƒ† ‡’Ž‘›‡– ‹ „‘–Š –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ ƒ– ƒ ˆ •—……‡••ˆ—Žǡ …‘—Ž† ƒ‡ ‹– •‹‰‹ϐ‹…ƒ–Ž› ‡ƒ•‹‡” –‘ †‘ –‹‡ ™Š‡ ‡‹–Š‡” …ƒ ƒˆˆ‘”† –Š‡Ǥ ‰ƒ‹•– –Š‹• „ƒ…†”‘’ǡ „—•‹‡•• „‡–™‡‡ –Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ Ǥ ‡‘˜‹‰ ‡‰‘–‹ƒ–‘”• ˆ”‘ „‘–Š •‹†‡• ƒ”‡ —†‡”•–ƒ†ƒ„Ž› Š‡ƒ˜‹Ž› –Š‡ ”‡ƒ‹‹‰ –”ƒ•ƒ–Žƒ–‹… –ƒ”‹ˆˆ• ™‘—Ž† ‡Šƒ…‡ –Š‡ ˆ‘…—•‡† ‘ …”ƒˆ–‹‰ ƒ ƒ‰”‡‡‡– –Šƒ– ƒš‹‹œ‡• –Š‡ ƒ„‹Ž‹–› ‘ˆ ‡”‹…ƒ ƒ† —”‘’‡ƒ …‘’ƒ‹‡• –‘ •‡ŽŽ ’‘•‹–‹˜‡ ‹’ƒ…–• ‘ˆ –Š‡ ’”‘’‘•‡† ƒ‰”‡‡‡– ˆ‘” •Ǥ ’”‘†—…–• ‹ ‡ƒ…Š ‘–Š‡”ǯ• ƒ”‡–•Ǥ –”‡ƒŽ‹‹‰ …—•–‘• ’”‘…‡†—”‡• ™‘—Ž† ‰‡– ’”‘†—…–• –‘ ƒ”‡–• …Š‡ƒ’‡” ƒ† Š‡”‡ ƒ”‡ ƒ› ‘’’‘”–—‹–‹‡• ˆ‘” ‡”‹…ƒ ƒ† —”‘’‡ƒ ‘”‡ ‡ˆϐ‹…‹‡–Ž›Ǥ …”‡ƒ•‹‰ ”‡‰—Žƒ–‘”› …‘‘’‡”ƒ–‹‘ ƒ† „—•‹‡••‡• ‘ˆ ƒŽŽ •‹œ‡• –‘ †‡‡’‡ –Š‡‹” –‹‡• ƒ…”‘•• –Š‡ —–—ƒŽ ”‡…‘‰‹–‹‘ ‘ˆ ‡“—‹˜ƒŽ‡– •ƒˆ‡–› ’”‘–‡…–‹‘• –Žƒ–‹…Ǥ Š‡ Žƒ”‰‡•– ‡”‹…ƒ ƒ† —”‘’‡ƒ …‘’ƒ‹‡• ™‘—Ž† ƒŽŽ‘™ • –‘ ˆ‘…—• ’”‡…‹‘—• ”‡•‘—”…‡• ‘ ’”‘†—…– ƒ”‡ ƒŽ”‡ƒ†› ™‡ŽŽǦ‹–‡‰”ƒ–‡† ‹ „‘–Š ƒ”‡–•ǡ „—– •ƒŽŽǦ ƒ† †‡˜‡Ž‘’‡– ƒ† ‹‘˜ƒ–‹‘Ǥ › ™‘”‹‰ –‘‰‡–Š‡”ǡ –Š‡ –™‘ •ǡ Š‘™‡˜‡”ǡ ƒ› ‘– Šƒ˜‡ –Š‹• Ž—š—”›Ǥ ‹–Š‘—– –Š‡ •ƒ‡ ‹–‡”ƒŽ ”‡•‘—”…‡• ‘” …ƒ’ƒ„‹Ž‹–‹‡•ǡ •ƒŽŽ …‘’ƒ‹‡• —•– ‡‹–Š‡” Š‹”‡ ‘—–•‹†‡ Š‡Ž’ ‘” ”‡ƒŽŽ‘…ƒ–‡ Ž‹‹–‡† •–ƒˆˆ –‹‡ ƒ™ƒ› ˆ”‘ …‘”‡ ”‡•’‘•‹„‹Ž‹–‹‡•ǡ ™Š‹…Š …ƒ ƒ‡ –Š‡ …‘•–• ‘ˆ ‡š’‘”–‹‰ ’”‘Š‹„‹–‹˜‡Ǥ ƒ‰”‡‡‡– –Šƒ– ‡Ž‹‹ƒ–‡• †—’Ž‹…ƒ–‹˜‡ ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–• ƒ† Šƒ”‘‹œ‡• ‡“—‹˜ƒŽ‡– •–ƒ†ƒ”†• ™‘—Ž† Šƒ˜‡ ƒ ‘—–•‹œ‡† ’‘•‹–‹˜‡ ‹’ƒ…– ‘ •Ǥ Case Study: NOW International Headquarters: Bloomingdale, IL Industry: Dietary Supplements and Health Foods Number of Employees: approximately 50 in the international division NOW International is a family-owned producer of dietary supplements and health foods with annual sales of over $250 million. The company exports to nineteen EU countries, including the Netherlands, Poland, Spain, Italy, Portugal, and the United Kingdom. While expanding into the European market, NOW International found additional product safety testing requirements and regulatory differences in the treatment of supplements—e.g., the United States considers supplements to be food products and regulates them accordingly, while the EU applies more of an over-the-counter medicine approach to regulations. Limits on ingredients and ingredient combinations all combine into a major challenge. Since the European Food Safety Authority considers supplements as medicines, the company is unable to use garlic in products destined for Europe, even though garlic is obviously safe for human consumption as food. Further transatlantic divergences are exacerbated by additional, and often different, national stipulations by individual EU member states: in the case of garlic, EU member states have their own standards, where some allow garlic to be sold as a supplement, while others treat it as a medicinal herb and therefore restrict sales. For Philip Pittsford, NOW’s international sales manager, “the United States and Europe are so close philosophically compared to the rest of the world that when it comes to regulation, bringing both sides closer together through TTIP really makes sense for our company.” He points to the example of the 2012 US-EU Organic Equivalency Arrangement, which stipulates that products marked as organic in one market can automatically be marketed as organic in the other. Perhaps a similar model could be replicated in other areas. Finally, Pittsford underlines that the lack of easily understandable information can exacerbate these challenges. Many of the EU directives overseeing supplements and medication are written in vague terms subject to interpretation by local customs officials. Challenges finding clear and effective information about existing regulatory requirements for each of the EU member states, and difficulties obtaining clear guidelines without hiring a consultant, represent disproportionately large problems for small businesses. BIG OPPORTUNITIES FOR SMALL BUSINESS 64• 7 Which of the following barriers to trade has your company faced when starting to export? EU SMEs that have not yet exported to the United States: Regulatory Process Differences 57% Lack of Information about the Export Process 43% Tariffs and Duties 43% Logistical Issues 14% Access to Financing 14% Costs of Exporting 14% Technical Standards and Testing 14% Customs Red Tape 14% Protection of Intellectual Property Rights 0% Difficulty of Returns 0% Concerns about Getting Paid 0% US SMEs that have not yet exported to the European Union: Costs of Exporting 43% Tariffs and Duties 33% Customs Red Tape 29% Concerns about Getting Paid 29% Regulatory Process Differences 24% Lack of Information about the Export Process 24% Logistical Issues 19% Protection of Intellectual Property Rights 14% Access to Financing 14% Technical Standards and Testing 10% Difficulty of Accepting Returns 5% 8 • BIG OPPORTUNITIES FOR SMALL BUSINESS Which of the following barriers to trade has your company faced when starting to export? EU SMEs that already export to the United States: Costs of Exporting 50% Tariffs and Duties 50% Protection of Intellectual Property Rights 33% Technical Standards and Testing 33% Regulatory Process Differences 17% Logistical Issues 17% Lack of Information about the Export Process 17% Customs Red Tape 17% Difficulty of Returns 17% Access to Financing 0% Concerns about Getting Paid 0% US SMEs that already export to the European Union: Tariffs and Duties 73% Costs of Exporting 64% Regulatory Process Differences 59% Customs Red Tape 45% Logistical Issues 41% Technical Standards and Testing 36% Protection of Intellectual Property Rights 23% Concerns about Getting Paid 23% Lack of Information about the Export Process 18% Difficulty of Returns 18% Access to Financing 5% 65 BIG OPPORTUNITIES FOR SMALL BUSINESS 66• 9 ’ƒ”–‡”• …ƒ ƒ……‘’Ž‹•Š ƒŽŽ ‘ˆ –Š‹• ™Š‹Ž‡ •‹—Ž–ƒ‡‘—•Ž› ‡•—”‹‰ ƒ Š‹‰Š Ž‡˜‡Ž ‘ˆ ’”‘†—…– •ƒˆ‡–›ǡ ‡˜‹”‘‡–ƒŽǡ ƒ† Žƒ„‘” ’”‘–‡…–‹‘• ƒ…”‘•• –Š‡‹” ‡…‘‘‹‡•Ǥ – ‹• ‹’‘”–ƒ– –‘ ‘–‡ –Šƒ– –Š‡ „‡‡ϐ‹–• ˆ”‘ ™‹ŽŽ ϐŽ‘™ ‡˜‡ –‘ „—•‹‡••‡• –Šƒ– †‘ ‘– †‹”‡…–Ž› ‡š’‘”– –‘ –Š‡ ‹–‡† –ƒ–‡• ‘” –Š‡ —”‘’‡ƒ ‹‘Ǥ • ƒ”‡ ’”‹‡† –‘ „‡‡ϐ‹– ˆ”‘ ƒ ‡…‘‘›Ǧ™‹†‡ „‘‘•– –‘ Š‘—•‡Š‘Ž† ‹…‘‡ ȋ‡•–‹ƒ–‡† ƒ– ̈́ͺ͹ͷ ƒ—ƒŽŽ› ’‡” ‡”‹…ƒ ˆƒ‹Ž› ƒ† ̀ͷͶͷ ’‡” —”‘’‡ƒ ˆƒ‹Ž›Ȍ ƒ†‡ ’‘••‹„Ž‡ –Š”‘—‰Š ƒ ƒ„‹–‹‘—• ƒ‰”‡‡‡– –Šƒ– Ž‘™‡”• –”ƒ•ƒ–Žƒ–‹… „ƒ””‹‡”•Ǥͳ͵ ‘”‡‘˜‡”ǡ ƒ› • ƒ”‡ ‹–‡‰”ƒŽ ’ƒ”–• ‘ˆ ‹–‡”ƒ–‹‘ƒŽ •—’’Ž› …Šƒ‹•ǡ …‘–”‹„—–‹‰ ˜‹–ƒŽ ‘™ǦŠ‘™ ƒ† …‘’‘‡–• –‘ ‘–Š‡” …‘’ƒ‹‡• –Šƒ– •‡ŽŽ ϐ‹‹•Š‡† ’”‘†—…–• ‰Ž‘„ƒŽŽ›Ǥ Š‡•‡ …‘’ƒ‹‡•ǡ –‘‘ǡ •–ƒ† –‘ ‰ƒ‹ –”‡‡†‘—•Ž› ˆ”‘ ƒ –”ƒ•ƒ–Žƒ–‹… ƒ‰”‡‡‡– –Šƒ– „‘‘•–• •ƒŽ‡• ƒ…”‘•• –Š‡ –Žƒ–‹…Ǥ ‹˜‡ –Š‡ ‘˜‡”ƒ”…Š‹‰ ‡…‘‘‹… ‹’ƒ…–• ‘ˆ ǡ ‡˜‡ ‘‡š’‘”–‹‰ • •–ƒ† –‘ ‰ƒ‹ ˆ”‘ ƒ ƒ‰”‡‡‡–Ǥ • –™‘ Š‹‰ŠŽ› ”‡‰—Žƒ–‡†ǡ Š‹‰ŠŽ› …‘’‡–‹–‹˜‡ǡ ƒ† Š‹‰ŠŽ› ‹–‡‰”ƒ–‡† ƒ”‡–•ǡ ‹– ƒ‡• •‡•‡ –Šƒ– –Š‡ —”‘’‡ƒ ‹‘ ƒ† –Š‡ ‹–‡† –ƒ–‡• ™‘—Ž† ‡†‡ƒ˜‘” –‘ ”‡‘˜‡ •‘‡ ‘ˆ –Š‡ —‡…‡••ƒ”› ‡…‘‘‹… „ƒ””‹‡”• –Šƒ– •–‹ŽŽ ‡š‹•– „‡–™‡‡ –Š‡Ǥ —…Š ƒ ‘˜‡ ™‘—Ž† ‘– ‘Ž› „‘Ž•–‡” –Š‡ ƒ† —”‘’‡ƒ ‡…‘‘‹‡•ǡ „—– ƒŽ•‘ •‡† ƒ •–”‘‰ ‡••ƒ‰‡ –‘ ‹–‡”ƒ–‹‘ƒŽ ’ƒ”–‡”• –Šƒ– ‘’‡ ƒ”‡–•ǡ ’ƒ‹”‡† ™‹–Š ‡ˆϐ‹…‹‡– ”‡‰—Žƒ–‘”› ”‡‰‹‡• „ƒ…‡† „› –Š‡ ”—Ž‡ ‘ˆ –Š‡ Žƒ™ǡ ”‡ƒ‹ –Š‡ ™‘”Ž†ǯ• ‘•– ‡ˆˆ‡…–‹˜‡ ‡…‘‘‹… ‘†‡ŽǤ ͳ͵ —”‘’‡ƒ ‘‹••‹‘ǡ ”ƒ†‡ǡ Dz  ‘…—•ǣ ”ƒ†‡ ƒ† ˜‡•–‡– ƒ”–‡”•Š‹’ ȋ Ȍǡ —‡•–‹‘• ƒ† •™‡”•ǡdz Š––’ǣȀȀ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ–”ƒ†‡Ȁ’‘Ž‹…›Ȁ‹Ǧˆ‘…—•Ȁ––‹’Ȁ “—‡•–‹‘•Ǧƒ†Ǧƒ•™‡”•ȀǢ –Žƒ–‹… ‘—…‹Žǡ ‡”–‡Ž•ƒ ‘—†ƒ–‹‘ǡ ƒ† ”‹–‹•Š „ƒ••› ‹ ƒ•Š‹‰–‘ǡ TTIP and the Fifty States: Jobs and Growth from Coast to Coast ȋ ƒ•Š‹‰–‘ǡ ǡ ‡’–‡„‡” ʹͲͳ͵Ȍǡ Case Study: Feuer Powertrain Headquarters: Nordhausen, Germany Industry: Automotive Part Manufacturing Number of Employees: Approximately 500; expanding to hire 300 more in the United States Feuer Powertrain produces more than one million crankshafts each year for the transportation and automotive sectors on both sides of the Atlantic and around the world. Founded in 2002, the manufacturer employs approximately 500 people at its German site, and has recently started building its first overseas plant in Tunica, Mississippi. When trading between the United States and the EU, Feuer ends up paying double duties—first on imports of materials from the United States, and then again on the reexport of finished products from Europe. For CEO Bernd Gulden, the process of reclaiming some of the tariff payments on the end products through duty draw-back “is such a bureaucratic nightmare and so costly” that the company “has given up trying and simply pays the duty.” The TTIP negotiations, he hopes, will not only eliminate transatlantic tariffs, but also address the duplication of certification requirements for production machinery—a costly and timeintensive burden Feuer faced when getting approval for its highly automated production line at its new US factory in Mississippi. Case Study: In2Media Headquarters: Copenhagen, Denmark Industry: Web Design and Internet Services Number of Employees: 90 In2Media is a digital agency from Copenhagen, Denmark. Founded in 1994, the company established a presence in New York City in 2012 after securing a one-off project for a US customer and quickly realizing that it needed a physical presence to make the most of the US market. Two years later, In2Media employs ten people at its New York office. Kristian Christensen, In2Media’s New York agency director, says the company has made an impact by taking advantage of its unique combination of skills and local market knowledge brought by their American staff combined with their expertise in world-renowned Scandinavian design honed in Denmark. But expanding into the United States was difficult given the various visa requirements that In2Media had to comply with. “Not only are the rules so complicated that an entire legal industry has developed around them,” which makes the process very expensive, “but the categories for special skills visas seem obsolete and make little sense for creative industries today,” Christensen points out. 10 • BIG OPPORTUNITIES FOR SMALL BUSINESS 67 POLICY RECOMMENDATIONS ‹˜‡ –Š‡ ƒ› ’ƒ”–‹…—Žƒ” …ŠƒŽŽ‡‰‡• –Šƒ– • ˆƒ…‡ ™Š‡ •–ƒ”–‹‰ –‘ ‡š’‘”–ǡ ‰‘˜‡”‡–• ’Žƒ› ‹’‘”–ƒ– ”‘Ž‡• ‹ •‹’Ž‹ˆ›‹‰ –Š‡ ’”‘…‡•• ƒ† ‡•—”‹‰ •ƒŽŽ …‘’ƒ‹‡• Šƒ˜‡ ƒ……‡•• –‘ –Š‡ ‡š’‡”–‹•‡ ƒ† ƒ••‹•–ƒ…‡ –Š‡› ‡‡†Ǥ ‹• ƒ ‡š…‡ŽŽ‡– ‘’’‘”–—‹–› ˆ‘” –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ –‘ …‘‘”†‹ƒ–‡ –Š‡‹” ƒ’’”‘ƒ…Š‡• ƒ† ˆƒ…‹Ž‹–ƒ–‡ …”‘••Ǧ„‘”†‡” –”ƒ†‡ ƒ† ‹˜‡•–‡– „› •Ǥ › ”‡‘˜‹‰ –ƒ”‹ˆˆ•ǡ ƒ‹‰ –Š‡ ”‡‰—Žƒ–‘”› ’”‘…‡•• ‡ƒ•‹‡” –‘ —†‡”•–ƒ†ǡ ƒ† ‡•—”‹‰ …‘’ƒ‹‡• Šƒ˜‡ ƒ……‡•• –‘ –Š‡ ‹ˆ‘”ƒ–‹‘ –Š‡› ‡‡† –‘ •–ƒ”– ‡š’‘”–‹‰ǡ …ƒ ƒ‡ ƒ ”‡ƒŽ †‹ˆˆ‡”‡…‡ ‹ Œ—’•–ƒ”–‹‰ –Š‡ –”ƒ•ƒ–Žƒ–‹… ‡…‘‘›Ǥ ‘”‡‘˜‡”ǡ ™Š‹Ž‡ •‘‡ …ŠƒŽŽ‡‰‡• …ƒ‘– •’‡…‹ϐ‹…ƒŽŽ› „‡ ƒ††”‡••‡† ‹ ƒ –”ƒ†‡ ƒ‰”‡‡‡–ǡ ’‘Ž‹…›ƒ‡”• •Š‘—Ž† ‡˜‡”–Š‡Ž‡•• —•‡ –Š‹• •–”ƒ–‡‰‹… ‘‡– –‘ –ƒ‡ …”‡ƒ–‹˜‡ ƒ† ’”‘ƒ…–‹˜‡ •–‡’• –‘ •–”‡‰–Š‡ •—’’‘”– ‡–™‘”• –Šƒ– Š‡Ž’ • †‘ „—•‹‡•• ƒ…”‘•• –Š‡ –Žƒ–‹…Ǥ Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ —”‘’‡ƒ ‹‘ Šƒ˜‡ ƒŽ”‡ƒ†› Žƒ—…Š‡† •‡˜‡”ƒŽ ‹‹–‹ƒ–‹˜‡• ˆ‘…—•‡† ‘ ™ƒ›• –‘ ‹…”‡ƒ•‡ ’ƒ”–‹…‹’ƒ–‹‘ ‹ –”ƒ•ƒ–Žƒ–‹… –”ƒ†‡ǡ ‹…Ž—†‹‰ ‡ˆˆ‘”–• —†‡” ƒ ‡‘”ƒ†— ‘ˆ †‡”•–ƒ†‹‰ †‡˜‡Ž‘’‡† „› –Š‡ ”ƒ•ƒ–Žƒ–‹… …‘‘‹… ‘—…‹ŽǤ Š‹• ‡‘”ƒ†— ‹…‘”’‘”ƒ–‡• •‡˜‡”ƒŽ ‰‘‘† ‹†‡ƒ•ǡ Ž‹‡ ‹ˆ‘”ƒ–‹‘ •Šƒ”‹‰ ƒ† ’”‘˜‹†‹‰ ‡–™‘”‹‰ ‘’’‘”–—‹–‹‡• ˆ‘” •ǤͳͶ ‡•– ’”ƒ…–‹…‡• ‹†‡–‹ϐ‹‡† —†‡” –Š‡ ‘‰‘‹‰ Ǧ †‹ƒŽ‘‰—‡ •Š‘—Ž† „‡ ”‡‡™‡† ‘” ‹…‘”’‘”ƒ–‡† ‹–‘ –Š‡ ƒ‰”‡‡‡– ‹–•‡ŽˆǤ ͳͶ ‡’ƒ”–‡– ‘ˆ ‘‡”…‡ ƒ† —”‘’‡ƒ ‘‹••‹‘ ‹”‡…–‘”ƒ–‡Ǧ ‡‡”ƒŽ ˆ‘” –‡”’”‹•‡ǡ Dz ‡‘”ƒ†— ‘ˆ †‡”•–ƒ†‹‰ ‘…‡”‹‰ ‘‘’‡”ƒ–‹‘ ‘ ƒŽŽ ƒ† ‡†‹—Ǧ ‹œ‡† –‡”’”‹•‡•ǡdz ͵ ‡…‡„‡” ʹͲͳʹǡ Š––’ǣȀȀ™™™Ǥ—•–”Ǥ‰‘˜Ȁ •‹–‡•Ȁ†‡ˆƒ—Ž–Ȁϐ‹Ž‡•ȀͳʹͲͶʹͲͳʹΨʹͲ Ǥ ǤǦ ΨʹͲ ΨʹͲ Ǥ’†ˆǤ E-Commerce Takes Off: Using the Internet, small companies specializing in all sorts of industries from gaming to fashion to art and design are able to quickly and easily connect with customers around the world. Raising duty-free limits between the United States and the EU would level the playing field, allowing SMEs on both sides to compete for new customers, ship their products at more reasonable rates, and continue innovating. ™‹ŽŽ Šƒ˜‡ ƒ •‡’ƒ”ƒ–‡ …Šƒ’–‡” ‘ • ™‹–Š •’‡…‹ϐ‹… ”‡…‘‡†ƒ–‹‘• ‘ ™ƒ›• –‘ Š‡Ž’ ™‹–Š ‡š’‘”–•Ǥ Š‹• …Šƒ’–‡” ™‹ŽŽ „‡ …”‹–‹…ƒŽ –‘ ‡•–ƒ„Ž‹•Š‹‰ …‘…”‡–‡ ƒ…–‹‘• –Šƒ– „‘–Š ’ƒ”–‹‡• ™‘—Ž† —†‡”–ƒ‡ ‘˜‹‰ ˆ‘”™ƒ”† –‘ ˆƒ…‹Ž‹–ƒ–‡ ‹–‡”ƒ–‹‘ƒŽ‹œƒ–‹‘Ǥ Š‡ ‹…Ž—•‹‘ ‘ˆ ƒ Ǧ•’‡…‹ϐ‹… …Šƒ’–‡” ‹• —‹“—‡ ƒ† Š‹•–‘”‹…Ȅ‡‹–Š‡” –Š‡ ‹–‡† –ƒ–‡• ‘” –Š‡ Šƒ• ‡˜‡” •‡– ‘—– •’‡…‹ϐ‹… ’”‘˜‹•‹‘• ‹ ƒ –”ƒ†‡ ƒ‰”‡‡‡– ƒ††”‡••‡† ’ƒ”–‹…—Žƒ”Ž› ƒ– • „‡ˆ‘”‡ ‘™ ȋ–Š‘—‰Š –Š‡ ‹–‡† –ƒ–‡• ‹• ƒŽ•‘ ‡‰‘–‹ƒ–‹‰ ƒ …Šƒ’–‡” ‹ ȌǤ Š‹• ‹• ƒ ‹’‘”–ƒ– ϐ‹”•– •–‡’ –‘™ƒ”† ƒ‹‰ •—”‡ •ƒŽŽ …‘’ƒ‹‡• –ƒ‡ ˆ—ŽŽ ƒ†˜ƒ–ƒ‰‡ ‘ˆ –Š‡ ‘’’‘”–—‹–‹‡• –Šƒ– ™‹ŽŽ ’”‘˜‹†‡Ǥ ƒ› ‘–Š‡” …Šƒ’–‡”• ‘ˆ –Š‡ ƒ‰”‡‡‡– ™‹ŽŽ …‘–ƒ‹ ’”‘˜‹•‹‘• –Šƒ– •—’’‘”– ‡š’‘”–•ǡ ‹…Ž—†‹‰ …—•–‘•ǡ ”‡‰—Žƒ–‘”› …‘Š‡”‡…‡ǡ ƒ† ‡Ǧ…‘‡”…‡Ǥ ‘ „‡ •—”‡ǡ • ™‹ŽŽ „‡‡ϐ‹– ˆ”‘ ‹…”‡ƒ•‡† ƒ”‡– ƒ……‡•• ƒ† –”ƒ•ƒ–Žƒ–‹… ”‡‰—Žƒ–‘”› …‘‘’‡”ƒ–‹‘ –Šƒ– ™‹ŽŽ ›‹‡Ž† •‹‰‹ϐ‹…ƒ– ‰ƒ‹• ˆ‘” …‘•—‡”• ƒ† „—•‹‡••‡• ‘ˆ ƒŽŽ •‹œ‡•Ǥ –‹ŽŽǡ ƒ††‹–‹‘ƒŽ ‡ƒ•—”‡• …ƒ ƒ† •Š‘—Ž† „‡ ‹’Ž‡‡–‡† –Š”‘—‰Š –Š‡ …Šƒ’–‡” –‘ •’‡…‹ϐ‹…ƒŽŽ› Š‡Ž’ •ƒŽŽ …‘’ƒ‹‡• –ƒ‡ ƒ†˜ƒ–ƒ‰‡ ‘ˆ ƒ ‘”‡ ‹–‡‰”ƒ–‡† –”ƒ•ƒ–Žƒ–‹… ƒ”‡–’Žƒ…‡Ǥ ‘ ‡•—”‡ –Šƒ– –”—Ž› ‡š’ƒ†• ‘’’‘”–—‹–‹‡• ˆ‘” •ƒŽŽ „—•‹‡••‡•ǡ ‡‰‘–‹ƒ–‘”• ‡‡† –‘ ™‘” –‘‰‡–Š‡” ‹ ‰‘‘† ˆƒ‹–Š –‘ …‘…Ž—†‡ ƒ ƒ‰”‡‡‡– –Šƒ– ƒ……‘’Ž‹•Š‡• –Š‡ ˆ‘ŽŽ‘™‹‰ ‰‘ƒŽ•ǣ 1. Eliminate transatlantic tariffs. •Š‘—Ž† ˆ—ŽŽ› ‡Ž‹‹ƒ–‡ –”ƒ•ƒ–Žƒ–‹… –ƒ”‹ˆˆ• ƒ…”‘•• ƒŽŽ ‹†—•–”‹‡• ƒ† ’”‘†—…– Ž‹‡• ƒ• “—‹…Ž› ƒ• ‡…‘‘‹…ƒŽŽ› ƒ† ’‘Ž‹–‹…ƒŽŽ› ’‘••‹„Ž‡Ǥ Ž–Š‘—‰Š ƒ˜‡”ƒ‰‡ –ƒ”‹ˆˆ• ‘ ‰‘‘†• ƒ”‡ ”‡Žƒ–‹˜‡Ž› Ž‘™ ȋƒ’’”‘š‹ƒ–‡Ž› Ͷ ’‡”…‡–Ȍǡ –Š‡› •’‹‡ •‹‰‹ϐ‹…ƒ–Ž› ‹ •‡˜‡”ƒŽ ‡› ‹†—•–”‹‡• Ž‹‡ …‘•‡–‹…•ǡ –‡š–‹Ž‡•ǡ ƒ† ƒ’’ƒ”‡ŽǤ ‘”‡‘˜‡”ǡ ‡˜‡ ™Š‡”‡ –ƒ”‹ˆˆ• ƒ”‡ Ž‘™ǡ •ƒŽŽ „—•‹‡••‡• ‘ˆ–‡ ‘’‡”ƒ–‡ ‘ ‡š–”‡‡Ž› –Š‹ ’”‘ϐ‹– ƒ”‰‹• ƒ† –ƒ”‹ˆˆ ”ƒ–‡• …ƒ ”‡‘˜‡ ƒ› ’”‹…‡ …‘’‡–‹–‹˜‡‡•• –Š‡› ‹‰Š– Šƒ˜‡ ‡Œ‘›‡† ‘–Š‡”™‹•‡Ǥ ’”‘˜‡† ƒ”‡– ƒ……‡•• –Š”‘—‰Š –Š‡ ‡Ž‹‹ƒ–‹‘ ‘ˆ –ƒ”‹ˆˆ• „‡–™‡‡ –Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ ‹• ƒ ‡…‡••ƒ”› ϐ‹”•– •–‡’ –‘ –Š‡ …‘…Ž—•‹‘ ‘ˆ ƒ ‡ˆˆ‡…–‹˜‡ ƒ† ƒ„‹–‹‘—• ƒ‰”‡‡‡–Ǥ BIG OPPORTUNITIES FOR SMALL BUSINESS68• 11 2. Raise duty-free limits. —–›Ǧˆ”‡‡ ‡š‡’–‹‘• ˆ‘” ’ƒ…ƒ‰‡• •Š‹’’‡† „› •ƒŽŽ „—•‹‡••‡• ‡–‡”‹‰ –Š‡ ‹–‡† –ƒ–‡• ‘” —”‘’‡ƒ ‹‘ •Š‘—Ž† „‡ ”ƒ‹•‡† –‘ ̈́ͺͲͲ –‘ ƒ–…Š –Š‡ ‡š‡’–‹‘ ‘ˆˆ‡”‡† –‘ –”ƒ˜‡Ž‡”• ƒ””‹˜‹‰ –‘ –Š‡ ‹–‡† –ƒ–‡• „› ƒ‹”Ǥ Š‡ —”‘’‡ƒ ‹‘ •Š‘—Ž† ’Šƒ•‡ ‹ ‹…”‡ƒ•‡• ‹ ‹–• †—–›Ǧˆ”‡‡ ƒŽŽ‘™ƒ…‡• ˆ‘” „‘–Š ƒ””‹˜‹‰ ƒ‹” –”ƒ˜‡Ž‡”• ƒ† ‹„‘—† ’ƒ…ƒ‰‡• ˆ”‘ • –‘ ƒ–…ŠǤ ‘” ƒ› •ǡ ‡•’‡…‹ƒŽŽ› –Š‘•‡ –Šƒ– •‡ŽŽ ‘” ƒ—ˆƒ…–—”‡ …‘•—‡” ‰‘‘†•ǡ •Š‹’’‹‰ †‹”‡…–Ž› –‘ …—•–‘‡”• ƒ…”‘•• –Š‡ –Žƒ–‹… ‹• ‘ˆ–‡ ƒ ϐ‹”•– …ƒ—–‹‘—• •–‡’ ‹–‘ ‡š’‘”–‹‰Ǥ Š‡•‡ ‹…”‡ƒ•‡† ‡š‡’–‹‘• ™‘—Ž† ƒ••‹•– • ƒ• –Š‡› „‡‰‹ †‘‹‰ „—•‹‡•• ƒ…”‘•• –Š‡ –Žƒ–‹… ƒ† •–ƒ”– –‘ ‰ƒ‹ ƒ ˆ‘‘–Š‘Ž† ‹ –Š‡ ƒ”‡–Ǥ ‘•—‡”• ™‘—Ž† —Ž–‹ƒ–‡Ž› ‡Œ‘› ƒ††‹–‹‘ƒŽ …Š‘‹…‡• ƒ† Ž‘™‡” …‘•–•Ǥ 3. Simplify product testing and safety certification processes. ‘ –Š‡ –‹‡ ƒ† ”‡•‘—”…‡• ‡‡†‡† –‘ –‡•– ‡™ ’”‘†—…–•ǡ ƒ† –Š‡ ‹–‡† –ƒ–‡• ƒ† –Š‡ …‘—Ž† ”‡Ž› ‘ ‡ƒ…Š ‘–Š‡”ǯ• ”‡•—Ž–•ǡ •ƒ˜‹‰ –‹‡ ƒ† ”‡•‘—”…‡• ˆ‘” ‰‘˜‡”‡–• ƒ† „—•‹‡••‡• ƒŽ‹‡Ǥ Š‹• ™‹ŽŽ ‘– „‡ ˆ‡ƒ•‹„Ž‡ ‹ ƒŽŽ ‹†—•–”‹‡•ǡ Š‘™‡˜‡”ǡ ƒ• –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ Šƒ˜‡ †‡˜‡Ž‘’‡† †‹ˆˆ‡”‡– ’‘Ž‹…› ’”‹‘”‹–‹‡• ‹ …‡”–ƒ‹ ƒ”‡ƒ• ‘˜‡” –Š‡ …‘—”•‡ ‘ˆ ƒ› †‡…ƒ†‡•Ǥ 5. Make the regulatory process easier to understand and more transparent. ƒ‹‰ –Š‡ Ž‡ƒ’ ‹–‘ ‡š’‘”–‹‰ ‹• ƒŽ”‡ƒ†› ƒ †ƒ—–‹‰ ’”‘…‡••ǡ „—– ‹– …ƒ „‡ ƒ†‡ —…Š ™‘”•‡ ™Š‡ ‹– ‹• ‡ƒ”Ž› ‹’‘••‹„Ž‡ –‘ ϐ‹† –Š‡ Žƒ–‡•– ‹ˆ‘”ƒ–‹‘ ƒ„‘—– ™Šƒ– ”‡‰—Žƒ–‘”› †‹ˆˆ‡”‡…‡• ‡š‹•– ƒ† ™Šƒ– ƒ††‹–‹‘ƒŽ …‡”–‹ϐ‹…ƒ–‹‘• ƒ”‡ ”‡“—‹”‡† ˆ‘” ‡–”› ‹–‘ ‡™ ƒ”‡–•Ǥ ‘ ƒ††”‡•• –Š‡•‡ ‹ˆ‘”ƒ–‹‘ ‰ƒ’•ǡ –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ •Š‘—Ž†ǣ x ‡ ‘ˆ –Š‡ ‡š‡…—–‹˜‡• ‹–‡”˜‹‡™‡† ˆ‘” –Š‹• ”‡’‘”– •—‰‰‡•–‡† –Šƒ– • …‘—Ž† „‡ ‰”ƒ–‡† ›‡ƒ”ǦŽ‘‰ ‰”ƒ…‡ ’‡”‹‘†• –‘ …‘’Ž› ™‹–Š ‡š’‘”– ƒ”‡– ”‡‰—Žƒ–‹‘•Ȅƒ••—‹‰ –Š‡› ƒŽ”‡ƒ†› ‡‡– –Š‡‹” Š‘‡ ƒ”‡– ”‡“—‹”‡‡–•Ȅ™Š‡ •–ƒ”–‹‰ –‘ •‡† –Š‡‹” ’”‘†—…–• ƒ…”‘•• –Š‡ –Žƒ–‹…Ǥ Š‹• ™‘—Ž† ‰‹˜‡ • –Š‡ ƒ††‹–‹‘ƒŽ –‹‡ –Š‡› ‡‡† –‘ ‰ƒ—‰‡ –Š‡ x ˜‹ƒ„‹Ž‹–› ‘ˆ –Š‡‹” ’”‘†—…–• ‹ ‡™ ƒ”‡–•ǡ ƒ† ƒ†ƒ’– –Š‡‹” ‰‘‘†•ǡ •‡”˜‹…‡•ǡ ƒ† ’”‘†—…–‹‘ ’”‘…‡†—”‡• –‘ …Šƒ‰‹‰ ”‡“—‹”‡‡–•Ǥ Š‡ —”‘’‡ƒ ‹‘ ‹‰Š ‡˜‡Ž ”‘—’ ‘ ‡†—…‹‰ †‹‹•–”ƒ–‹˜‡ —”†‡• ȋ –‘‹„‡” ‘‹••‹‘Ȍ x ”‡…‡–Ž› •—‰‰‡•–‡† –Šƒ– • „‡ ‡š‡’–‡† ˆ”‘ •‘‡ ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–• –‘ –Š‡ ‡š–‡– ’‘••‹„Ž‡Ǥͳͷ Š‹Ž‡ •—…Š •’‡…‹ƒŽ –”‡ƒ–‡– ˆ‘” • ‹‰Š– ‘– „‡ †‡•‹”ƒ„Ž‡ x ‘” ’‡”‹••‹„Ž‡ ‹ ƒŽŽ …‹”…—•–ƒ…‡• ‘” ˆ‘” ƒŽŽ ‹†—•–”‹‡•ǡ –Š‹• ‹†‡ƒ ’”‘˜‹†‡• ƒ ‡šƒ’Ž‡ ‘ˆ –Š‡ ‹†• ‘ˆ ‹‘˜ƒ–‹˜‡ –Š‹‹‰ –Šƒ– ™‹ŽŽ „‡ ”‡“—‹”‡† ‹ ‘”†‡” ˆ‘” –‘ ƒ‡ ƒ ”‡ƒŽ ‹’ƒ…–Ǥ ‹’Ž› Š‘Ž†‹‰ ‘ –‘ ‡š‹•–‹‰ …‘…‡’–• ƒ† ’”‘…‡••‡• ™‹ŽŽ ‘– †‡Ž‹˜‡” –Š‡ ‰”‘—†„”‡ƒ‹‰ –™‡–›Ǧϐ‹”•– …‡–—”› ƒ‰”‡‡‡– –Šƒ– „‘–Š •‹†‡• Šƒ˜‡ ƒ•’‹”‡† –‘ …”‡ƒ–‡Ǥ …”‡ƒ–‡ •‡…–‘”Ǧ•’‡…‹ϐ‹… ™‡„Ǧ„ƒ•‡† ’Žƒ–ˆ‘”• ˆ‘” –Š‡ ‘•– …‘‘Ž› –”ƒ†‡† ‰‘‘†• ƒ† •‡”˜‹…‡• –Šƒ– …Ž‡ƒ”Ž› †‡Ž‹‡ƒ–‡ †‹ˆˆ‡”‡– ”‡‰—Žƒ–‘”› ’‘Ž‹…‹‡• ƒ† ‘—–Ž‹‡ ”‡“—‹”‡‡–• ˆ‘” •Š‹’’‹‰ǡ Žƒ„‡Ž‹‰ǡ –‡•–‹‰ǡ …‡”–‹ϐ‹…ƒ–‹‘ǡ ƒ† …—•–‘• …Ž‡ƒ”ƒ…‡Ǣ ‰‹˜‡ • ƒ††‹–‹‘ƒŽ –‹‡ ƒ† –”ƒ‹‹‰ –‘ …‘’Ž› ™‹–Š ”‡‰—Žƒ–‘”› …Šƒ‰‡• ƒ• –Š‡ ”‡…‡”–‹ϐ‹…ƒ–‹‘ ’”‘…‡•• …ƒ „‡ †‹•’”‘’‘”–‹‘ƒ–‡Ž› ‡š’‡•‹˜‡ ƒ† ”‡•‘—”…‡Ǧ ‹–‡•‹˜‡ ˆ‘” •ƒŽŽ‡” ‘”‰ƒ‹œƒ–‹‘•Ǣ ‡†‡ƒ˜‘” –‘ …—– †‘™ ‘ ’ƒ’‡”™‘” ƒ† •‹’Ž‹ˆ› ”—Ž‡• ˆ‘” …‡”–‹ϐ‹…ƒ–‹‘ ‘ˆ ‘”‹‰‹Ǣ ƒ† ’”‘˜‹†‡ …‘’ƒ‹‡• ‘ˆ ƒŽŽ •‹œ‡•Ȅ”‡‰ƒ”†Ž‡•• ‘ˆ –Š‡‹” ƒ–‹‘ƒŽ‹–›Ȅƒ’Ž‡ ‘’’‘”–—‹–‹‡• –‘ …‘‡– ‘ –Š‡ ‹’ƒ…– –Š‡ ‡™ ”—Ž‡• ™‘—Ž† Šƒ˜‡ ‘ –Š‡‹” „—•‹‡••Ǥ ”‘’‘•‡† ”‡‰—Žƒ–‹‘• •Š‘—Ž† „‡ ’‘•–‡† ‘Ž‹‡ ‹ ƒ ‡ƒ•‹Ž›Ǧƒ……‡••‹„Ž‡ ˆ‘”ƒ– ƒŽ‘‰•‹†‡ …‘‡– ˆ‘”—• ‘’‡ –‘ ‡˜‡”›‘‡Ǥ ‡‰‘–‹ƒ–‹‘• ‘ˆˆ‡” ‡”‹…ƒ ƒ† —”‘’‡ƒ ”‡‰—Žƒ–‘”• –Š‡ ’‡”ˆ‡…– …Šƒ…‡ –‘ ‡•–ƒ„Ž‹•Š …Ž‘•‡” ™‘”‹‰ ”‡Žƒ–‹‘•Š‹’• ƒ† –Š‡ ‘’’‘”–—‹–› –‘ Œ‘‹–Ž› †‡˜‡Ž‘’ „‡•– ’”ƒ…–‹…‡• ƒ† ’”‹…‹’Ž‡• –‘ ‡šƒ‹‡ –Š‡ ‹’ƒ…– ‘ˆ ‡™ ”‡‰—Žƒ–‹‘•Ǥ 4. Recognize equivalent standards to prevent unnecessary duplication. Š‡ —”‘’‡ƒ ‹‘ ƒ† –Š‡ ‹–‡† –ƒ–‡• ƒ”‡ –™‘ ‘ˆ –Š‡ „‡•–Ǧ”‡‰—Žƒ–‡† ƒ† •ƒˆ‡•– …‘•—‡” ƒ”‡–• ‹ –Š‡ ™‘”Ž†Ǥ • ƒ ‰‡‡”ƒŽ ”—Ž‡ǡ ™Š‡”‡ •–ƒ†ƒ”†• ƒ† ’”‘†—…– •ƒˆ‡–› ‘—–…‘‡• …ƒ „‡ †‡‡‡† ‡“—‹˜ƒŽ‡–ǡ ”‡‰—Žƒ–‘”• ‘ ‡‹–Š‡” •‹†‡ ‘ˆ –Š‡ –Žƒ–‹… •Š‘—Ž† —–—ƒŽŽ› ”‡…‘‰‹œ‡ ‡ƒ…Š ‘–Š‡”ǯ• •–ƒ†ƒ”†• ƒ• •—ˆϐ‹…‹‡–Ǥ Š‹• ™‘—Ž† …—– †‘™ …‘•‹†‡”ƒ„Ž› ͳͷ ‹‰Š ‡˜‡Ž ”‘—’ ‘ †‹‹•–”ƒ–‹˜‡ —”†‡•ǡ Cutting Red Tape in Europe: Legacy and Outlook ȋ ”—••‡Ž•ǡ —Ž› ʹͶǡ ʹͲͳͶȌ Š––’ǣȀȀ‡…Ǥ‡—”‘’ƒǤ‡—Ȁ•ƒ”–Ǧ ”‡‰—Žƒ–‹‘Ȁ”‡ϐ‹–Ȁƒ†‹̴„—”†‡Ȁ†‘…•ȀͲͺǦͳͲ™‡„̴…‡Ǧ„”‘…—––‹‰”‡†–ƒ’‡̴‡Ǥ’†ˆǤ Bridging Information Gaps: SMEs need easy access to reliable information quickly. The United States and European Union should work together to create and routinely update websites with accurate information outlining the regulatory requirements for the most commonly traded products. Relevant agencies on both sides should also have dedicated staff resources on hand to help small companies navigate the process. 12 • BIG OPPORTUNITIES FOR SMALL BUSINESS ‡‰‘–‹ƒ–‘”• ƒ”‡ ƒŽ”‡ƒ†› †‹•…—••‹‰ –Š‡ …”‡ƒ–‹‘ ‘ˆ ƒ …‘‹––‡‡ –Šƒ– ™‘—Ž† ƒƒŽ›œ‡ –Š‡ ‹’ƒ…– ‘ˆ ‡™ ”—Ž‡• ‘ •ƒŽŽ …‘’ƒ‹‡• ‘ „‘–Š •‹†‡• ‘ˆ –Š‡ –Žƒ–‹…Ǥ Š‹• ‹• ƒ ‡š…‡ŽŽ‡– •–ƒ”–ǡ „—– –Š‡ ‹ˆ‘”ƒ–‹‘ ’”‘˜‹†‡† –‘ –Š‡ …‘‹––‡‡ ‡„‡”•ǡ ƒ• ™‡ŽŽ ƒ• –Š‡‹” ϐ‹†‹‰•ǡ —•– „‡ ƒ†‡ ‡ƒ•‹Ž› ƒ˜ƒ‹Žƒ„Ž‡ ‘Ž‹‡ •‘ –Šƒ– „—•‹‡••‡• ‘ˆ ƒŽŽ •‹œ‡• ˆ”‘ ƒ…”‘•• –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ …ƒ „‡‡ϐ‹– ƒ† ’”‘˜‹†‡ ‹’—–Ǥ ‡›‘† –Š‡ ™‘” ‘ˆ –Š‡ …‘‹––‡‡ǡ „‘–Š –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ƒ ‹‘ —•– †‘ ƒ „‡––‡” Œ‘„ ‘ˆ …‘—‹…ƒ–‹‰ ‡™Ž› ’”‘’‘•‡† ”‡‰—Žƒ–‹‘• ƒ† ƒ••‡••‹‰ –Š‡‹” ’”‘•’‡…–‹˜‡ ‹’ƒ…–• ‘ •Ǥ —•‹‡•• ƒ••‘…‹ƒ–‹‘• ‹ ’ƒ”–‹…—Žƒ” —•– „‡ ‹˜‘Ž˜‡† ‹ –Š‡ ’”‘…‡••ǡ •‹…‡ • •‹’Ž› †‘ ‘– Šƒ˜‡ –Š‡ –‹‡ ‘” ”‡•‘—”…‡• –‘ –ƒ‡ ’ƒ”– ‹ ’‘Ž‹…› †‹ƒŽ‘‰—‡• ‘……—””‹‰ ‹ ”—••‡Ž• ‘” ƒ•Š‹‰–‘ǡ ‡˜‡ –Š‘—‰Š –Š‡ ‹’ƒ…–• ‘ˆ ‡™ ”‡‰—Žƒ–‹‘• ƒ”‡ ‘•–Ž› ˆ‡Ž– ˆƒ” ˆ”‘ ƒ–‹‘ƒŽ …ƒ’‹–ƒŽ•Ǥ 6. Demystify the export process by providing easy-to-understand resources that help connect SMEs directly to their consumers. ‹–Š‘—– –Š‡ ”‹‰Š– ’ƒ”–‡”• ƒ…”‘•• –Š‡ –Žƒ–‹…ǡ ‹– ‹• ‡ƒ”Ž› ‹’‘••‹„Ž‡ ˆ‘” • –‘ „”‹‰ ’”‘†—…–• ‘” •‡”˜‹…‡• –‘ –Š‡‹” ‹–‡”ƒ–‹‘ƒŽ …‘•—‡”•Ǥ ‘˜‡”‡–•ǡ „—•‹‡•• ƒ••‘…‹ƒ–‹‘•ǡ ƒ† ‡š’‘”– ’”‘‘–‹‘ ƒ‰‡…‹‡• Šƒ˜‡ ƒ ˜‹–ƒŽ ”‘Ž‡ –‘ ’Žƒ› ‹ …‘‡…–‹‰ …Ž‹‡–• ƒ† •‡”˜‹…‡ ’”‘˜‹†‡”• 69 ‹ ‡™ ƒ”‡–•Ǥ Š‹• •‘”– ‘ˆ ƒ–…Šƒ‹‰ …‘—Ž† „‡ ˆƒ…‹Ž‹–ƒ–‡† –Š”‘—‰Š –Š‡ ‡•–ƒ„Ž‹•Š‡– ‘ˆ ƒ ‡ˆˆ‡…–‹˜‡ ƒ† ‹…Ž—•‹˜‡ †ƒ–ƒ„ƒ•‡ ‘ˆ …‘’ƒ‹‡• ƒ† †‹•–”‹„—–‘”• ‘”‰ƒ‹œ‡† „› …‘—–”› ƒ† ‹†—•–”› •‘ –Šƒ– ‡˜‡ –Š‡ •ƒŽŽ‡•– …‘’ƒ‹‡• …ƒ ‡•–ƒ„Ž‹•Š ‡ˆˆ‡…–‹˜‡ †‹•–”‹„—–‹‘ ‡–™‘”•Ǥ Š‹• •‡”˜‹…‡ …‘—Ž† „‡ ‡š’ƒ†‡† ƒ† ‡Šƒ…‡† ‹ˆ …‘—’Ž‡† ™‹–Š ƒ …‡–”ƒŽ‹œ‡† –”ƒ•ƒ–Žƒ–‹… ‰‘˜‡”‡– ’”‘…—”‡‡– …Ž‡ƒ”‹‰Š‘—•‡ –Šƒ– ƒ†˜‡”–‹•‡• ƒŽŽ ƒ˜ƒ‹Žƒ„Ž‡ ‰‘˜‡”‡– …‘–”ƒ…–• ‘˜‡” ƒ …‡”–ƒ‹ ‘‡–ƒ”› –Š”‡•Š‘Ž†Ǥ ‡”‹…ƒ ƒ† —”‘’‡ƒ • •Š‘—Ž† Šƒ˜‡ ‡“—ƒŽ ƒ……‡•• –‘ „‹† ˆ‘” –Š‡•‡ Ž—…”ƒ–‹˜‡ …‘–”ƒ…–• –Šƒ– ƒ”‡ …‘˜‡”‡† —†‡” ‘ ƒ––‡” –Š‡‹” ƒ–‹‘ƒŽ‹–›Ǥ Š‡ —”‘’‡ƒ ‹‘ǯ• ”‡…‡–Ž› …‘…Ž—†‡† †‡ƒŽ ™‹–Š ƒƒ†ƒ ’”‘˜‹†‡• ƒ ‹–‡”‡•–‹‰ ƒ† ‡Ž‹‰Š–‡‹‰ ‘†‡Ž Š‡”‡Ǥ †‡ƒŽŽ› –Š‹• ™‘—Ž† ‹˜‘Ž˜‡ ’”‘…—”‡‡– ƒ– ƒŽŽ Ž‡˜‡Ž• ‘ˆ ‰‘˜‡”‡–ǡ „—– •–ƒ”–‹‰ ™‹–Š …‘–”ƒ…–• ’ƒ‹† „› ˆ‡†‡”ƒŽ †‘ŽŽƒ”• ™‘—Ž† „‡ ƒ ’”‘†—…–‹˜‡ ƒ† ™‘”–Š™Š‹Ž‡ ϐ‹”•– •–‡’Ǥ 7. Expand export promotion programs that work—and make sure SMEs know about them. Šƒ– ƒ› •ƒŽŽ „—•‹‡••‡• †‘ ‘– —†‡”•–ƒ† ‹• –Šƒ– –Š‡”‡ ƒ”‡ ƒ› …‘•–Ǧ‡ˆˆ‡…–‹˜‡ ’”‘‰”ƒ• ƒ˜ƒ‹Žƒ„Ž‡ ™Š‡ „‡‰‹‹‰ –‘ ‡š’‘”–Ǥ Š‡ ’”‘„Ž‡ •‘ ˆƒ” Šƒ• „‡‡ ϐ‹†‹‰ –Š‡Ǥ ‹–Š –Šƒ– ‹ ‹†ǡ –Š‡ ‹–‡† –ƒ–‡•ǡ –Š‡ —”‘’‡ƒ ‹‘ǡ ƒ† —”‘’‡ƒ ‡„‡” •–ƒ–‡• ‡‡† –‘ ƒ‡ ƒ …‘…‡”–‡† ‡ˆˆ‘”– –‘ „‡––‡” ’—„Ž‹…‹œ‡ –Š‡‹” ‡š’‘”– ’”‘‘–‹‘ ƒ† ƒ–…Šƒ‹‰ •‡”˜‹…‡•Ǥ ‹‰Š– ‘™ǡ –Š‡ Case Study: NuStep Headquarters: Ann Arbor, MI Industry: Exercise Equipment and Consumer Goods Number of Employees: 100 NuStep produces cross-training exercise equipment from its headquarters in Ann Arbor, Michigan, and turned to exporting as the 2008-09 recession looked like it could hurt sales in its American home market. Five years later, the company sells its machines to hospitals, rehabilitation centers, gyms, and other customers across ten EU countries from Denmark and the United Kingdom to Germany, France, and Poland. When launching its exports to the EU, NuStep found the testing and certification processes required to comply with EU regulations to be its most significant cost barrier. “Making that investment and diverting your limited resources to such testing as a small business when you have not yet sold a single item to a new market is a difficult decision,” stresses Elena Stegemann, NuStep’s director of international business. She suggests TTIP should include mutual recognition or some other, more creative solution—such as a twelve-month grace period that allows exports in certain product categories for small businesses that already comply with requirements in their home market. That would afford companies the opportunity to see whether or not there is even a market for their products before investing major resources into regulatory compliance. Through TTIP, Stegemann also hopes the US and EU governments can help companies like NuStep through an improved matchmaking platform to help SMEs find appropriate partners across the Atlantic. “Much of our international business success is driven by finding the right distribution partners, especially because we sell noncommodity products,” Stegemann says. Currently, it is very difficult for SMEs to make connections with the right distributors, or even to know where to look when starting, so assistance in this area can improve their chances of finding success. BIG OPPORTUNITIES FOR SMALL BUSINESS70• 13 Case Study: Asselin Headquarters: Thouars, France Industry: Construction, Restoration, Woodworking Number of Employees: 140 Asselin is a French family business founded in 1957 that specializes in wood, iron, and cabinet work in the restoration of historic monuments and construction projects. Its portfolio includes the renovation of the Vauban barracks at Versailles and the reconstruction of the eighteenth-century French frigate L’Hermione, which brought the Marquis de Lafayette and his troops to America during the Revolutionary War. In late 1999, Asselin saw a market in the United States, not only for its restoration services but also for authentic windows and doors for French-style homes. A year later, the company’s president, François Asselin, decided to open an office in Atlanta to be closer to potential customers, but a lengthy investor visa process slowed down his expansion plans. Then, Asselin faced long and costly certification processes for ensuring that their windows and doors would comply with US building codes. This process required the company to retest products that had already been certified in France, which was not only costly but took almost five years to complete, significantly reducing Asselin’s ability to quickly compete on a level playing field in the American market. ‹ˆ‘”ƒ–‹‘ –Šƒ– • ‡‡† ‹• †‹ˆϐ‹…—Ž– –‘ ϐ‹† ‡˜‡ ‹ˆ ƒŽŽ –Š‡ ‹ˆ‘”ƒ–‹‘ ƒ† Š‡Ž’ –Š‡› ‡‡† –‘ –ƒ‡ ƒ†˜ƒ–ƒ‰‡ ›‘— ‘™ ™Šƒ– –‘ Ž‘‘ ˆ‘”Ǥ Š‹• ‡‡†• –‘ …Šƒ‰‡ ™‹–Š ‘ˆ –Š‡ ‡™Ž› ‘’‡‡† ƒ”‡– ‘’’‘”–—‹–‹‡•Ǥ –Š‡ ‡•–ƒ„Ž‹•Š‡– ‘ˆ ƒ …‡–”ƒŽ‹œ‡†ǡ ”‡‰—Žƒ”Ž› —’†ƒ–‡† ™‡„•‹–‡ –Šƒ– ƒ‰‰”‡‰ƒ–‡• ƒ† ‡š’Žƒ‹• ™Šƒ– ’”‘‰”ƒ• ”ƒˆ–‹‰ ƒ ƒ‰”‡‡‡– –Šƒ– ƒ……‘’Ž‹•Š‡• –Š‡•‡ •‡˜‡ ƒ”‡ ƒ˜ƒ‹Žƒ„Ž‡ ˆ‘” ™Š‹…Š …‘’ƒ‹‡• ƒ– ™Šƒ– …‘•–Ǥ ‡˜‡”ƒŽ ‰‘ƒŽ• ™‹ŽŽ ›‹‡Ž† •‹‰‹ϐ‹…ƒ– ‰ƒ‹• ˆ‘” • ƒ† …‘•—‡”• ‘ˆ –Š‡ …‘’ƒ‹‡• ‡šƒ‹‡† ‹ –Š‹• ”‡’‘”–Ȅ‹…Ž—†‹‰ ƒŽ‹‡ǡ ™Š‹Ž‡ ƒŽ•‘ ‡•–ƒ„Ž‹•Š‹‰ ‰Ž‘„ƒŽ ‰‘Ž† •–ƒ†ƒ”†• ‹ — –‡’ǡ ‘™ ‘‘†•ǡ ƒ† ‹‰Š–‹‰ Ž‹‹ƒ–‘”•ȄŠƒ˜‡ –”ƒ†‡ ˆƒ…‹Ž‹–ƒ–‹‘ ƒ† ”‡‰—Žƒ–‘”› …‘‘’‡”ƒ–‹‘ –Šƒ– …ƒ –ƒ‡ ƒ†˜ƒ–ƒ‰‡ ‘ˆ –Š‡ ‡’ƒ”–‡– ‘ˆ ‘‡”…‡ǯ• „‡ ‡—Žƒ–‡† ‹ ˆ—–—”‡ ƒ‰”‡‡‡–•Ǥ ‡‰‘–‹ƒ–‘”•ǯ ‘Ž† ‡› ’”‘‰”ƒǡ ™Š‹…Š …‘‡…–• „—•‹‡••‡• ™‹–Š ƒ„‹–‹‘• –‘ „‘‘•– –”ƒ•ƒ–Žƒ–‹… …‘’‡–‹–‹˜‡‡•• ƒ† ’”‘˜‹†‡ ’‘•‹–‹˜‡ ’”‡••—”‡ ‘ ‡‡”‰‹‰ ƒ”‡–• †‡’‡† ˆ‘”‡‹‰ †‹•–”‹„—–‘”• ƒ† Š‡Ž’• ˆƒ…‹Ž‹–ƒ–‡ ‡‡–‹‰• ‹ Žƒ”‰‡ ‡ƒ•—”‡ ‘ ™Š‡–Š‡” –Š‡ †‡ƒŽ ƒ† ’ƒ”–‹…‹’ƒ–‹‘ ‹ –”ƒ†‡ •Š‘™•Ǥ Š‡•‡ †‡Ž‹˜‡”• ”‡•—Ž–• ˆ‘” •ƒŽŽ …‘’ƒ‹‡• ’”‘‰”ƒ• •Š‘—Ž† „‡ ‡š’ƒ†‡†ǡ ™‹–Š –Šƒ– Šƒ˜‡ –Š‡ ‘•– †‹ˆϐ‹…—Ž–‹‡• ˆ—†‹‰ …‘‹‰ ˆ”‘ ‹…”‡ƒ•‡† ˆ‡‡• …‘’Ž›‹‰ ™‹–Š †‹˜‡”‰‡– ”—Ž‡• …Šƒ”‰‡† –‘ Žƒ”‰‡” …‘”’‘”ƒ–‹‘• ƒ† ”‡‰—Žƒ–‹‘• –‘†ƒ›Ǥ ‹˜‡ –Š‡ —•‹‰ –Š‡ •‡”˜‹…‡•Ǥ  —”‘’‡ǡ ‹’‘”–ƒ…‡ ‘ˆ • –‘ „‘–Š What about CETA? –Š‡ –‡”’”‹•‡ —”‘’‡ –Š‡ —”‘’‡ƒ ƒ† ‡”‹…ƒ ‡–™‘” •Š‘—Ž† „‡ ‡š’ƒ†‡† The recently concluded Comprehensive ‡…‘‘‹‡•ǡ –Š‡ •Ž—‰‰‹•Š ƒ† „‡––‡” ‹–‡‰”ƒ–‡† ™‹–Š Economic and Trade Agreement between ”‡…‘˜‡”› ‘ ‡‹–Š‡” •‹†‡ ‘ˆ ‹–• ‡”‹…ƒ …‘—–‡”’ƒ”–•Ǥ Canada and the European Union includes –Š‡ –Žƒ–‹…ǡ ƒ† ‹…”‡ƒ•‹‰ …‡ Šƒ• „‡‡ provisions ensuring that details and requests ‰Ž‘„ƒŽ …‘’‡–‹–‹‘ǡ –Š‹• …‘…Ž—†‡†ǡ ‹– ™‹ŽŽ „‡ …”—…‹ƒŽ for proposals for all government procurement ‹• ƒ ‘’’‘”–—‹–› ‡‹–Š‡” –‘ ‡•—”‡ –Šƒ– –Š‡ ‹–‡† tenders (at all levels of government) are –Š‡ ‹–‡† –ƒ–‡• ‘” –Š‡ –ƒ–‡• ƒ† –Š‡ —”‘’‡ƒ published online so that European and —”‘’‡ƒ ‹‘ …ƒ ƒˆˆ‘”† ‹‘ ™‘” –‘‰‡–Š‡” –‘ Canadian contractors can compete and –‘ ‹••Ǥ ‡•—”‡ • Šƒ˜‡ ƒ……‡•• –‘ win bids in each other’s markets. 71 PARTNERS US-based Companies EU-based Companies Health EnterprisesȄŠ––’ǣȀȀ™™™ǤŠ‡ƒŽ–Š‡–‡”’”‹•‡•Ǥ…‘Ȁ AsselinȄŠ––’ǣȀȀ™™™Ǥƒ••‡Ž‹—•ƒǤ…‘Ȁ NOW InternationalȄŠ––’ǣȀȀ™™™Ǥ‘™ˆ‘‘†•Ǥ…‘Ȁ Feuer PowertrainȄŠ––’ǣȀȀˆ‡—‡”Ǧ’–Ǥ†‡Ȁ‡Ȁ NuStepȄŠ––’ǣȀȀ™™™Ǥ—•–‡’Ǥ…‘ In2MediaȄŠ––’ǣȀȀ™™™Ǥ‹ʹ‡†‹ƒǤ…‘Ȁ Paulson ManufacturingȄŠ––’ǣȀȀ™™™Ǥ’ƒ—Ž•‘ˆ‰Ǥ…‘Ȁ ReventȄŠ––’ǣȀȀ™™™Ǥ”‡˜‡–Ǥ…‘Ȁ ”‘ –‘’ Ž‡ˆ–ǡ …Ž‘…™‹•‡ǣ ‡˜‡–ǡ ••‡Ž‹ǡ ‡—‡” ‘™‡”–”ƒ‹ǡ ʹ ‡†‹ƒǡ — –‡’ǡ –‡”ƒ–‹‘ƒŽ 72 Atlantic Council Board of Directors CHAIRMAN ȗ ‘ Ǥ —–•ƒǡ ”Ǥ CHAIRMAN, INTERNATIONAL ADVISORY BOARD ”‡– …‘™…”‘ˆ– PRESIDENT AND CEO ȗ ”‡†‡”‹… ‡’‡ VICE CHAIRS ȗ ‘„‡”– Ǥ „‡”‡–Š› ȗ ‹…Šƒ”† †‡Žƒ ȗ Ǥ ‘›†‡ ”ƒ› ȗ ‹…Šƒ”† Ǥ ƒ™•‘ ȗ ‹”‰‹‹ƒ Ǥ —Ž„‡”‰‡” ȗ Ǥ ‡ ‹‡” ‹‡”•‘ ȗ ‘Š –—†œ‹•‹ TREASURER ȗ ”‹ƒ Ǥ … Ǥ ‡†‡”•‘ SECRETARY ȗ ƒŽ–‡” Ǥ Ž‘…‘„‡ DIRECTORS –‡’Šƒ‡ „”‹ƒŽ †‡Š „—”†‡‡ ‡–‡” …‡”ƒ ‹‘–Š› Ǥ †ƒ• ‘Š ŽŽ‡ ‹…Šƒ‡Ž •ƒ”‹ ‹…Šƒ”† Ǥ ”‹–ƒ‰‡ ȗ †”‹‡‡ ”•Š– ƒ˜‹† Ǥ —ϐŠƒ—•‡” Ž‹œƒ„‡–Š Ǥ ƒ‰Ž‡› Š‡‹Žƒ ƒ‹” ȗ ƒϐ‹… ‹œ”‹ ȗ Š‘ƒ• Ǥ Žƒ‹” ”ƒ…‹• ‘—…Šƒ”† ›”‘ ”‹ŽŽ‹ƒ– ȗ Ǥ ‹…Š‘Žƒ• —”• ȗ ‹…Šƒ”† Ǥ —”– ‹…Šƒ‡Ž ƒŽ˜‡› •Š–‘ Ǥ ƒ”–‡” ƒ‡• Ǥ ƒ”–™”‹‰Š– ‘Š Ǥ Šƒ’‘–‘ Š‡† Šƒ”ƒ‹ ƒ†”ƒ Šƒ”Ž‡• ‡‘”‰‡ Š‘’‹˜•› ‡•Ž‡› Ǥ Žƒ” ƒ˜‹† Ǥ ”ƒ‹‰ ‘ ”ƒ”‡ ȗ ƒŽ’Š Ǥ ”‘•„›ǡ ”Ǥ ‡Ž•‘ —‹‰Šƒ ˜‘ Ǥ ƒƒŽ†‡” ”‡‰‘”› Ǥ ƒŠŽ„‡”‰ ȗ ƒ—Žƒ Ǥ ‘„”‹ƒ•› Š”‹•–‘’Š‡” Ǥ ‘†† ‘”ƒ†‘ ‘”‹‡” ƒ–”‹… Ǥ —”‹ Š‘ƒ• Ǥ †‡Žƒ Š‘ƒ• Ǥ ‰ƒǡ ”Ǥ ȗ –—ƒ”– Ǥ ‹œ‡•–ƒ– Š‘ƒ• Ǥ Ž†”‹†‰‡ —Ž‹‡ ‹Ž‡› ƒ™”‡…‡ Ǥ ‹•Š‡”ǡ Žƒ Ǥ Ž‡‹•…Šƒ ‹…Š°Ž‡ Ž‘—”‘› ȗ ‘ƒŽ† Ǥ ”‡‡ƒ ƒ—”‹‡ —Ž–‘ ȗ ‘„‡”– Ǥ ‡Ž„ƒ”† ȗ Š‡””‹ Ǥ ‘‘†ƒ ȗ –‡’Š‡ Ǥ ƒ†Ž‡› ‹ƒ‡Ž ƒ‰•–”ڏ ƒ ƒ‰—‡ ‘Š Ǥ ƒ””‹• ”ƒ ƒ— ‹…Šƒ‡Ž Ǥ ƒ›†‡ ‡––‡ ‡—•‡” ‘ƒ• Œ‡Ž ƒ”Ž ‘’‹• ‘„‡”– ‘”ƒ–• ȗ ƒ”› Ǥ ‘™‡ŽŽ ‘„‡”– Ǥ —–‡” ‘Žˆ‰ƒ‰ •…Š‹‰‡” ‡—„‡ ‡ˆˆ‡”›ǡ ‘„‡”– ‡ˆˆ”‡› ȗ ƒ‡• Ǥ ‘‡•ǡ ”Ǥ ‡‘”‰‡ Ǥ ‘—Ž™ƒ ƒ™”‡…‡ Ǥ ƒƒ”‡ –‡’Š‡ Ǥ ƒ’’‡• ƒ”‹ƒ ‹…ƒ ƒ”’ ”ƒ…‹• Ǥ ‡ŽŽ›ǡ ”Ǥ ƒŽƒ› Ǥ ŠƒŽ‹Žœƒ† ‘„‡”– Ǥ ‹‹–– ‡”› Ǥ ‹••‹‰‡” ‡–‡” ‘˜ƒ”…‹ ”ƒŽ‹ Ǥ ”ƒ‡” Š‹Ž‹’ ƒ†‡” ȗ ƒ Ǥ ‘†ƒŽ ȗ ‡‘”‰‡ —† ƒ‡ ‘ŽŽ —–‡ ‹ŽŽ‹ƒ Ǥ › ȗ ‘Š Ǥ ƒ…‘„‡” œœƒ– ƒŒ‡‡† ‡†› Ǥ ƒ‹• ‹ƒ Ǥ ƒ•Šƒ ‹ŽŽ‹ƒ Ǥ ƒ›‡” ŽŽƒ … ”–‘” ”‹… Ǥ Ǥ ‡Ž„› ”ƒŽ‹ Ǥ ‹ŽŽ‡” ƒ‡• Ǥ ‹ŽŽ‡” ȗ —†‹–Š Ǥ ‹ŽŽ‡” ȗ Ž‡šƒ†‡” Ǥ ‹”–…Š‡˜ „‹‡ Ǥ ‘‘”‡ ȗ ‡‘”‰‡ Ǥ ‘‘•‡ ‡‘”‰‡––‡ ‘•„ƒ…Š‡” Š‘ƒ• Ǥ ‹†‡• ”ƒ…‘ —•…Š‡•‡ ‘•‡’Š Ǥ ›‡ ‡ƒ ǯ ‡‡ˆ‡ ‹Ž†ƒ …Š‘ƒǦ ”‹ŽŽ‡„‘—”‰ Š‡– ”‡ ȗ ƒ ƒŽƒ…‹‘ Š‘ƒ• Ǥ ‹…‡”‹‰ ƒ‹‡Ž Ǥ ”‹…‡ ȗ †”‡™ ”‘œ‡• ”‘Ž† Ǥ —ƒ”‘ ȗ ‹” Ǥ ƒ†‡ ‡”‡•ƒ Ǥ ‡••‡Ž ‡ˆˆ”‡› Ǥ ‘•‡ Šƒ”Ž‡• Ǥ ‘••‘––‹ –ƒŽ‡› Ǥ ‘–Š ‘„‡”– ‘™Žƒ† ƒ””› ƒ…Š‹‹• ‹ŽŽ‹ƒ Ǥ …Š‹‡†‡” ‘Š Ǥ …Š‹–œ ”‡– …‘™…”‘ˆ– Žƒ Ǥ ’‡…‡ ƒ‡• –ƒ˜”‹†‹• ‹…Šƒ”† Ǥ Ǥ –‡‡Ž‡ ȗ ƒ—Žƒ –‡” ‘„‡”– Ǥ –‡˜‡• ‘Š Ǥ ƒ‡” ‡–‡” Ǥ ƒ‘—• ȗ ŽŽ‡ Ǥ ƒ—•…Š‡” ƒ”‡ ”ƒ‘–ƒ‘ Ž›†‡ Ǥ —‰‰Ž‡ ƒ—Ž ™‘‡› ‡Žƒ‡ ‡”˜‡‡” œ‘ ‹•…—•‹ Šƒ”Ž‡• Ǥ ƒŽ† ƒ› ƒŽ‡” ‹…Šƒ‡Ž Ǥ ƒŽ•Š ƒ” Ǥ ƒ”‡” ‘Š Ǥ Š‹–‡Š‡ƒ† ƒ˜‹† Ǥ ‹Ž•‘ ƒ…‹‡Œ ‹–—…‹ ƒ”› Ǥ ƒ–‡• ‘˜Ǥ Ǥ ƒŠ‡‹ HONORARY DIRECTORS ƒ˜‹† Ǥ …Š‡•‘ ƒ†‡Ž‡‹‡ Ǥ Ž„”‹‰Š– ƒ‡• Ǥ ƒ‡”ǡ ƒ”‘Ž† ”‘™ ”ƒ Ǥ ƒ”Ž—……‹ǡ ‘„‡”– Ǥ ƒ–‡• ‹…Šƒ‡Ž Ǥ —ŽŽ‡ ‡‘ Ǥ ƒ‡––ƒ ‹ŽŽ‹ƒ Ǥ ‡””› ‘Ž‹ Ǥ ‘™‡ŽŽ ‘†‘Ž‡‡œƒ ‹…‡ †™ƒ”† Ǥ ‘™› ‡‘”‰‡ Ǥ …Š—Ž–œ ‘Š Ǥ ƒ”‡” ‹ŽŽ‹ƒ Ǥ ‡„•–‡” ȗ š‡…—–‹˜‡ ‘‹––‡‡ ‡„‡”• ‹•– ƒ• ‘ˆ ‡’–‡„‡” ͳͳǡ ʹͲͳͶ ill [ll lull.- iululu ?all 11'. 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Why II sac-nu: human II ml! aha-I 1m comp!? far I'm pdaclm mu Ilun Mull-arable ?awulusuprul meuunq Tatum up numqu Tnirgoa? Flu-den! cl 1 I .v ?l'he "mus an mun-n lug-II uluF-I-d umarwk [cng In?ow-1Fva IHI maul nun-nu": n-I 'I'uwurnlrep-mrur- Ira-n bash ?luu' En Ionian-brand! In! In mum-ole mummy-Inn rm um prawn HIP gunman naming cunning-um, manna:ka bqhum-rurar?aqm a;qu loom? Inlh! '21 If Err-1w 5-D Ills-u ask me mwn' 'r?ESnl II Suntan I R'mrh'l'l'w Purl! - MW- AII-r?ncrr-Jml at" mural-:34 53.4: - II I . ?Ia-1am WW I: - rm-w - WINNIE m-?maHn-wv run Car-W "What mam: . . want-1m ?cameraman-Irma In mun! an :2 .11 (me-wrun- Nam Hindu-mu IGPH MM nu IMWM mu 20? :cwreoreawt.2ots _ttn-..mri5 Neill United States remains committed to a comprehensive TTIP that will benefit SMEs ?if stains! tn the PH Hi? iwrl'eilsv .5111: to truer: upwrturrdm-s tut tl'i' serwu's, gown-imiwa prmiiremmt inteti'ectual'pmrierty and electmomrmmerce :19: we tot?tit haven't the t?rtt rne'nn' ofaegottatama next month Hiram to reiterare thar the United States remains committed to a mmprehmwe transatlantic: trade and agreement Htt-?Ji MIT Skits, and m: are emmrtitted the Lrtitdth' the [Runner Adrriirrts'ttutmri. (US. to the EU Gardner] .I?trfr?nn'; {Baron-r t] hmhassadnr to the FIJrnpeain lJn-nn spnke nn hem-the Transatlantic. Trade and Investment Partnership could affect Small and Medicine-sized hitter-pH" {Stilts} u! the Oll lucsday January 26. ItJt?. He concluded his speeclt eiittlled l?t ll-' ?At.;liuttce lur s' With this stuterrterit regarding the future at the I-lIl-' ugieerriertl tu set tlte Ichir: tor the U'i'Ul'l'l and President Otnma's to the TIP agreement hr.- the end of hi. adnmistratinn Hard-1e: tul- the Farm-ear: tar: ltes event attended by some 20 hteiitbers at the European Pulttaiitent [MtHs'] art-d atoprotazttatettI SD representauves at the policy maleng and business communrnc highlighted the very real ppoununmes presented by T-TIP to small- and median-steed enterprises 11??.st on both sates ofthe .I'itlantic As. a recent Commission repo? plat.- a mat role in the His economy For example an in the EU accounted lot ul the Lt net tubs Lreuted in the rruIi-lirruttctul businesses sector arid 3MLs the LU that exp-mt ate HIUWll'lg tl?teri payrolls percent annually as compared to onlt.I I percent tor those that focus tat-:lusrtehl on their domestic market totem-on or. beaten. c-rI BUM-TUE: 3!th! Hulrlg Ado-u Han-,- ot the speakers Intilld?l?] Member of the Fiimpean Parliament era and FM Fnii' Urea nl?the Martens t'lenter con?rmed that if we want a sLircesstiil implemerttatron of TIP SMFs writ need tn he pan ottne discussion Mant- speakers and went attendees agreed that St.tl:s tie a: the tread ct! what I?l ll-r Is trying to acts-we llie bieaitla'st event stutter! With poignant curiciete by "utvu Vice-Litton oi the and First Vice P'resrdent of SLIF Fiaope who also acted as moderator '.'ara event-s. t'inna'nisstoner Heart of t'Zahinet also explained that HP negotiations and the ?nished anreer'nent a dedicated chapter nri l'mw tetra! stakeholders can curlriJutL' to trade policy During the Mitt. each speaker highlighted teal-lite stones of companies on both sides of the mlaritic that wish to or attesdtr engage in tran=.atl.antic trade, and hnpe to bene?t from a successful agreement Anmassartcir Gardner and others stated that we cannot tust distuss Ill uhs?lruct iiurItIJeis facts. and ttgures Bucces?siul rrleuris being able to talk about wectic cxattiptes urtd colraJur-nes Irurit both sides ol the Nlurttic curttpurtie's were Lrsed as ewiirples such as a satellite telecommnications systems company based tn Madrid Rotten: a Swedish tacit oven producer Fetter inertraun a German rankshatt company and Nii'Rtep an Antenr an cross-limiting exercise rir'r' H. him a II it (Source. Workman Garrett arts-1n: the Trade I'th ?rmed-titles Fol c?urnait'?c'sttess tact-emote: .ri-?Ijl these stones were noteworthy becuuse they ptudute Wldl.? 01 products but they Latsu more the dlscussioii at Hunt the steamer :u the very tangible Each emtriute noted obstacles to current transatlantic trade that these companies are tactng out also their expectations regard utg acuity-1c- help them compete in international trade As t?tmhassaidor Gardner stated 'them- put a human face In an acmn'ltm and convex- in ways let there curttpellirtg thuii pronouncements what we are trying to achieve I- I The dal,I after this event highlighting the pctemrat bene?ts or a agreement to: SMEs the World Trade Institute also Eaunc had its own report that concluded that wcutd a range of and social bene?ts to FU Trade .In5i..'u.'e T- and the Jar.- 3? t6: The 5 Mission to the EU anticipates that the negotiators continue to matte sqnificm'it progress ctrinnr; the next round at negotiations In ?nissets month the USEU Press Team From: Sham" Young Date: Tue, Jun 14, 2016 at 3:22 PM Subject: . Question about TTIP and Small Businesses To: "Lipton, Eric" Eric -- As we discussed on the phone, with your deadline thisweelt, please find below response that you're welcometo quote in the article. Trade is at the heart afaur global netwark. Our experience of moving goods around the world has taught us lowering barriers and bureaucratic red tape helps our customers. Bv moving goods taster and more reliably across borders, our customers can decrease costs, improve supply chains, and identity new opportunities for growth in the digital economy. FedEx occasionally funds individual studies on trade issues, working with subject matter experts at various policvsoriented th'lnktanks. Since mp is expected to address issues of small and medium businesses, the purpose afthe study was to explore specific concerns ofSMEs in both the u.s. and E.U. who participate in transatlantic trade. The results found in the Atlantic Council study were derived the survey research results, and the recommendations were provided by their subject matter experts, Sharon Sharon Young Communications Advisor Regulatory Public Affairs Communications FedEx/ Washington