The Transatlantic Trade and Investment Partnership is a trade agreement being negotiated between the European Union (EU) and the United States. The negotiations began in July 2013 and will continue in 2014. If the agreement passes, it will remove trade barriers, create jobs and potentially affect millions of people on both sides of the Atlantic.
The German American Chamber of Commerce of the Southern United States helps to promote the economic and business interests of entities that work to develop and/or preserve ties between this region and the Federal Republic of Germany. We see passage of this landmark trade agreement essential to continued collaboration between U.S. and German companies.
Its impact on Georgia and metro Atlanta would be substantial. A total of 426 German companies operate in the area. There is also significant foreign direct investment from Germany in Georgia that represents industries like manufacturing, logistics, communications and transportation. Additionally, metro Atlanta is home to the world’s busiest airport; more than 95 million people pass through it each year. Georgia and the metro area have a vibrant international business community.
According to a study conducted by the Atlantic Council, Bertelsmann Foundation and British Embassy in Washington, Georgia’s economic relationship with the EU is already strong. A successful conclusion of the trade agreement would contribute significantly to future state growth. The EU purchased $6.3 billion worth of Georgia goods in 2012 and services worth $5.8 billion in 2011.
The study also looked at estimated impacts of full trade implementation on key Georgia segments — top sectors by export increase and estimated job growth in key sectors. Motor vehicles exports could increase by $1.9 billion; wood and paper products, by $561 million; chemicals, by $551 million, and transportation equipment, by $542 million.
As for estimated job growth, business services could create 4,362 jobs; non-electric machinery manufacturing, 494 jobs; other transportation equipment manufacturing, 380 jobs, and financial services, 417 jobs.
The study states that a successful implementation of the trade agreement is estimated to increase Georgia exports to the EU by 31.5 percent, and it could boost net employment by up to 24,660 jobs.
Needless to say, the outlook for Georgia with the passage of the trade agreement looks promising. It would open the door for more German companies to choose the U.S., particularly Southern states, to conduct business. This seems like a win-win situation for everybody. We strongly support passage of this agreement and are confident the EU and U.S. will be able to negotiate a successful transatlantic agreement.
Martina Stellmaszek is president and CEO of the German American Chamber of Commerce of the Southern United States.
