Fourteen international trade associations and business groups on Tuesday announced the formation of a new coalition that is aiming to improve regulatory cooperation between the United States and the European Union.
The Transatlantic Financial Regulatory Coherence (TFRC) coalition, which represents a large portion of the transatlantic financial services community, wants to ensure that a strong financial regulatory framework is included in the Transatlantic Trade and Investment Partnership (TTIP)
The new coalition has identified three principles to focus on that will provide the best chance for regulatory coherence and should be included in the TTIP: discussing the policymaking process at an early stage, concentrating on future policymaking and regulatory development and ensuring transparency and accountability.
The coalition said that while it welcomes ongoing efforts to strengthen the EU-U.S. Financial Markets Regulatory Dialogue (FMRD), "it believes those efforts alone cannot deliver the benefits arising from a joint commitment to an agreed framework within TTIP."
The group "believes TTIP is the best route to delivering regulatory coherence because it provides a unique opportunity to create a strong structure for a regulatory dialogue to ensure that regulators focus on cross-border issues as they are developing, heading off conflicts or unnecessary differences that could be avoided."
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"Moreover, TTIP is intended by both the EU and U.S. to strengthen cross-border regulation while posing no threat to existing domestic rules and standards," they said.
The United States and the EU had hoped to complete the TTIP talks before President Obama left office but the negotiations have hit several snags in recent months, creating some doubt about when trade officials will wrap up work on the agreement, which would create a massive trading zone.
The groups include BritishAmerican Business, AmCham EU, Financial Services Forum, SIFMA, Financial Services Roundtable and the U.S. Chamber of Commerce.