Malta backs EU-US trade agreement

The government welcomed the outcome of the Foreign Affairs Committee (Trade Formation) which met on 14 June, 2013 in Luxembourg, in which the EU27 agreed to kick-off talks with the US over a trade agreement.

The government expressed its support for the opening of negotiations for the Transatlantic Trade and Investment Partnership (TTIP), noting that this would "release the untapped economic potential of both the EU and the US, resulting in increased trade in goods and services, as well as improved investment flows between the two partners and beyond." 

It said that the negotiations will certainly have a positive impact on the creation of jobs and economic growth, thus resulting in a "win-win" situation for both parties. 

Malta is also set to benefit from a successful TTIP, with the US accounting for about 12% of total Maltese international exports and 8% of international imports; a solid base that could increase significantly with less trade barriers in place.

After more than 12 hours of negotiations, EU member states retained their unity and agreed on a mandate to launch trade negotiations with the United States of America. 

The government said the European Commission will now begin negotiating a comprehensive trade and investment agreement, known as the "transatlantic trade and investment partnership" (TTIP), based on the agreed EU negotiating mandate.

The TTIP negotiations will cover key components such as market access, regulatory issues and non-tariff barriers.

Trade between the EU and the US accounts for one-third of the world's total trade, with the EU being the US's largest trading partner (17.6% of GDP) and the US being the EU's second-largest trading partner (13.9% of GDP). It is estimated that the TTIP could increase the EU's GDP by up to 0.48% and gross national income by €86 billion.

Another trade agreement which was discussed by the Council was the EU-Canada comprehensive economic and trade agreement. The Commission updated delegates on the latest developments. EU Ministers also discussed EU-China trade relations, in particular the mandate concerning the investment agreement and recent events involving trade defence instruments.

During the meeting Malta was represented by the Permanent Representative of Malta to the EU, Ambassador Marlene Bonnici.