BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SJR 16|
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THIRD READING
Bill No: SJR 16
Author: Emmerson (R), Berryhill (R), DeSaulnier (D), Steinberg
(D),
Walters (R), and Wright (D)
Amended: As introduced
Vote: 21
SUBJECT : Transatlantic Trade and Investment Partnership
SOURCE : Author
DIGEST : This resolution urges the President and United States
Senate to negotiate and ratify, respectively, the Transatlantic
Trade and Investment Partnership agreement with the European
Union.
ANALYSIS : This resolution makes the following legislative
findings:
1.The United States (U.S.) and the European Union (EU).are each
other's largest trading and investment partners. Combined,
their economies account for nearly half the entire world gross
domestic product (GDP) and for nearly a third of the world's
trade flows. The U.S. possesses 21.6% of the world's GDP and
the EU possesses 25.1% of the world's GDP.
2.Each day, goods and services worth $2.7 billion are traded
between the U.S. and EU, promoting economic growth and
supporting millions of jobs in both economies. More than $3.7
trillion have been directly invested on both sides of the
Atlantic by the U.S. and EU.
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3.Total U.S. investment in the EU is three times higher than in
all of Asia, while EU investment in the U.S. is approximately
eight times the amount of EU investment in India and China
together.
4.A successfully negotiated Transatlantic Trade and Investment
Partnership (TTIP) agreement would boost economic growth in
both the U.S. and EU and greatly add to the over 13 million
American and European jobs already supported by transatlantic
trade and investment.
5.Estimates predict that a landmark TTIP agreement between the
U.S. and EU could have enormous benefits, with up to 2% ($650
billion) of additional GDP on both sides. Early findings
indicate that the TTIP agreement would increase California
exports to the EU by up to 25% and create 65,000 new
California jobs.
6.Ratification of the TTIP agreement would benefit the U.S. and
EU trade relationship by (a) further opening markets to grow
the $459 billion in U.S. goods and services exports to the EU
- the largest export market for the U.S.; (b) strengthening
rules-based investment to grow the world's largest investment
relationship; (c) seeking to both eliminate all tariffs on
trade, and tackle costly nontariff barriers that impede the
flow of goods and services trade; (d) seeking to significantly
cut the cost of differences in regulation and standards by
promoting greater compatibility, transparency and cooperation;
and (e) promoting the global competitiveness of small- and
medium-sized enterprises.
This resolution urges the President and U.S. Senate to negotiate
and ratify, respectively, the TTIP agreement with the EU.
Background
This resolution is introduced by Senator Emmerson (Chairman of
the Senate Select Committee on California-European Trade) and
all of the other six Select Committee members.
According to the author's office, this resolution is an
outgrowth of a recent informational hearing by the Select
Committee (held on July 2, 2013) on ways to overcome trade
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barriers, and encourage more European businesses to locate in
California, thus creating more jobs and investment in the Golden
State.
It is estimated that a successfully-negotiated TTIP would boost
economic growth in both the U.S. and in the EU. It is also
estimated that a TTIP agreement would increase California
exports to the EU by up to 25%, and create as many as 65,000 new
California jobs.
The President of the U.S., together with the EU, just began the
negotiation process for TTIP on July 8, 2013, under the auspices
of the Office of the United States Trade Representative.
FISCAL EFFECT : Fiscal Com.: No
MW:ej 8/21/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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