The G8 Summit is being held this week, where leaders from some of the world’s largest industrialized nations meet to discuss economic policies that are currently in place that govern the trading of goods and services. One of the issues being discussed affects the finance industry specifically.
Called the Transatlantic Trade and Investment Partnership, this is a formal trade agreement that’s being considered among several nations within the European Union and the United States. Depending on what the negotiations are, if implemented, it would remove certain barriers to trading so that there can be a more seamless flow of commerce among countries.
There are several organizations that are very much in favor of the TTIP, including Finance for Europe, the European Banking Federation, Financial Services Forum, Institute of International Finance as well as the Securities Industry and Financial Markets Association.
“The EU-US Summit being held this week offers the opportunity for policymakers to further strengthen the longstanding ties of friendship and trust between the two jurisdictions and to deepen their coordination on economic issues to significant mutual advantage,” said the financial services trade associations, in a joint statement. “As part of this, there is the opportunity to enhance their financial regulatory coordination process. This is fundamental to our intertwined economies and financial markets.”
TTIP benefits consumers and business owners
The statement added that having a consistent and high quality regulatory framework in place would provide a “significant benefit” to clients as well as financial institutions from a data management perspective.
Failure to reach an accord for a uniform regulatory standard could set the industry back, increasing the need for risk management because of limited investment.
“Divergent and conflicting regulation … may hinder the important advances in the effectiveness and strengthening of the new regulatory environment,” U.S. and European Financial Services Trade Associations said.
The European Commission maintains a website that focuses on the TTIP and how it will impact people in various industries, including the finance sector. The EC is in favor of the TTIP, so there are a number of studies cited that suggest it will be a big boost to national economies, multinational firms, as well as companies that are medium and small in size.
Though the TTIP will be discussed at the summit, a final decision on what the agreement will entail likely won’t be reached for several years, according to the EC.