Repeat After Me: TTIP is Happening – And That’s Good.
Don’t believe the hype. TTIP WILL happen, and it means potentially great things for trans-Atlantic real estate owners and occupiers. TTIP (Trans-Atlantic Trade and Investment Partnership between the US and European Union) is controversial, but ultimately necessary AND mutually beneficial. The EU especially needs it to provide a boost to sluggish Eurozone growth.
Since tariffs between the two zones are already relatively low (around 4% on average), TTIP has focused instead on harmonizing regulations and strengthening investment protections (particularly investor‐state dispute mechanisms). The EU estimates that 80% of TTIP’s economic value will result from reducing bureaucracy and regulations, while liberalizing trade in services and public procurement. Reduction of these so called Non‐tariff Trade Barriers (NTBs) will have a significant positive impact on how US firms (especially manufacturers) do business across the Atlantic.
Make no mistake about it, it will be a game changer, especially for real estate. Owners and occupiers will have an opportunity to either create value or get left behind by more nimble competitors. We at Real Estate Interests, LLC (REI) have been monitoring TTIP’s progress for nearly three years. We will have our clients poised to compete and win in the largest free trade zone the world has ever known.