Monday, June 10, 2013

In Letter to Congress, Business Roundtable Urges Congress to Include Financial Regulatory Arbitrage Issues in Trade Talks with E.U.

In a letter to the Chairs House Financial Services and Ways and Means Committees and the Senate Banking and Finance Committees, the Business Roundtable asked that issues around the negotiation of a comprehensive Transatlantic Trade and Investment Partnership (TTIP) agreement with the European Union (EU) should include regulatory arbitrage and regulatory dissonance issues. The TTIP has the potential to substantially boost economic growth and create U.S. jobs.

 Given the critical role that financial services plays in both the U.S. and E.U. economies, and the continuing prevalence of transatlantic barriers and insufficient regulatory coherence in the sector, said the Roundtable, the United States should include financial services market access and regulatory cooperation issues in the negotiations. The Roundtable warned that failing to do so would represent a significant missed opportunity for the United States. More generally, the TTIP is too big of an opportunity to exclude any sector from the negotiations.

For example, the negotiations will provide an opportunity to address market access barriers that keep U.S. businesses from enjoying full opportunities in Europe. They will also provide a forum to discuss new rules and mechanisms to enhance regulatory coherence and cooperation,

The business group urged Congress to support the negotiation of a comprehensive TTIP that covers all sectors of the economy, and to oppose any U.S. legislative or regulatory proposals that would take the nation in the opposite direction, thereby undermining the global competitiveness of large U.S. banks and U.S. companies that rely on their financing to do business around the world.

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