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Today, President Obama, along with European Council President Herman Van Rompuy and European Commission President José Manuel Barroso, announced that the United States and the European Union (EU) will initiate the internal procedures to launch negotiations for a Transatlantic Trade and Investment Partnership. Ambassador Kirk welcomed President Obama’s decision to pursue the partnership with the EU, foreseeing economic benefits including new jobs, economic growth and international competitiveness on both sides of the Atlantic. Elected officials, Members of Congress, and private and public sector stakeholders have also expressed their support for the new negotiations. Below is a sampling of what others are saying so far – check back for periodic updates.

“A comprehensive U.S.-EU FTA, negotiated and implemented with the highest standards, would have a multiplier effect and would be certain to generate much needed economic growth on both sides of the Atlantic. There is no doubt that a U.S.-EU FTA is an enticing opportunity. While there is much promise in the U.S.-European Union relationship, there are remaining barriers to free and fair trade that are long-standing and difficult to overcome.”

- Sen. Max Baucus, Chairman of the Senate Committee on Finance, and Sen. Orrin Hatch, Ranking Member of the Senate Committee on Finance

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“A strong, comprehensive trade and investment agreement with the EU has the potential to create significant good-paying jobs for American workers. Negotiations will not be easy, but they have enormous potential to open new opportunities for us to sell our goods and services in the EU. I welcome the President’s movement forward on this effort and look forward to consulting closely with the Administration.”

- Rep. Dave Camp, Chairman of the House Committee on Ways and Means

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“I very much welcome the President’s intention to work on a transatlantic trade agreement with the European Union…These negotiations provide a rare opportunity to expand U.S. exports of goods and services by eliminating tariff and, especially, non-tariff barriers in Europe, our second largest export market after Canada.”

- Rep. Sander Levin, Ranking Member of the House Committee on Ways and Means

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“I applaud the President’s announcement of his intent to negotiate an ambitious transatlantic trade agreement with the European Union. Bonding Europe and the United States through a high-level trade agreement would help both economies and give rise to a dominant economic alliance that would strongly influence other nations toward free trade.”

- Rep. Devin Nunes, Chairman of the Trade Subcommittee of the House Committee on Ways and Means

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“The American people share many principles and values with the people of Europe. A transatlantic trade agreement can help bring us even closer together. Our ambitions should be high, particularly with respect to resolving regulatory differences. Too often in the past, EU and U.S. regulators have developed different regulations to achieve common objectives. Our negotiators should work to make those regulations more compatible, while still achieving the same high level of protections for our people.”

- Rep. Charles Rangel, Ranking Member of the Trade Subcommittee of the House Committee on Ways and Means

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“For the sake of jobs and growth, it’s time to forge a bold, new trade pact with Europe. The Chamber applauds the U.S. and European officials who worked tirelessly to clear a path forward for an ambitious and comprehensive agreement. The stars are finally aligned, and we urge the U.S. and EU governments to move forward swiftly to negotiate a high-standard agreement that will foster economic growth and job creation for all our citizens.”

- Thomas J. Donohue, President and CEO U.S. Chamber of Commerce

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“We applaud President Obama for supporting discussions between the United States and the European Union on a comprehensive transatlantic trade and investment partnership. We strongly support such a partnership, which we believe should include financial services. The US and EU financial markets are the most developed and intertwined in the world. A comprehensive trade and investment agreement presents a unique opportunity to enhance the efficiency of the transatlantic financial markets, facilitate trade, and deliver lower costs products to investors.”

- Kenneth E. Bentsen, Jr., Executive Vice President for Public Policy and Advocacy, Securities Industry and Financial Markets Association

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“Manufacturers welcomed the President’s remarks on immigration reform and STEM education, which show a true commitment to developing the skilled workforce desperately needed. It is encouraging to see a promise of infrastructure investment that will serve as a foundation of future manufacturing. The announcement of negotiations toward a free trade agreement with the European Union represents a significant step forward in leveling the playing field in foreign markets. However, equally important is creating an atmosphere where employers can hire workers and invest in their businesses.”

- Jay Timmons, President and CEO of National Association of Manufacturers

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“We commend the U.S. and EU leaders and the High Level Working Group for promoting much needed economic growth and job creation. Ambitious U.S.-EU negotiations will strengthen transatlantic economic relations and reinforce the open market and rules-based principles of the global trading system.”

- Doug Oberhelman, Chairman & CEO, Caterpillar Inc., Chairman of Business Roundtable’s International Engagement Committee

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“Trade agreements provide U.S. chemical manufacturers greater access to the world’s consumers and positively contribute to the growth of the U.S. economy. Such agreements support domestic manufacturing jobs by offering access for our competitive, innovative products.”

- Lawrence D. Sloan, President and CEO, Society of Chemical Manufacturers and Affiliates (SOCMA)

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“The Business Roundtable was an early advocate for U.S.-EU negotiations because we believe a reenergized transatlantic partnership will deliver real economic value. Negotiations should launch as soon as possible this year to eliminate trade and investment barriers and to build regulatory cooperation across the Atlantic.”

- John Engler, President of the Business Roundtable

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“UPS sees strengthening and deepening the U.S.-EU trade relationship as a cornerstone of our own success. A stronger partnership in trade between the U.S. and the EU will bring tremendous benefits for U.S. and European exporters alike. UPS is excited about the possibilities of what a U.S.-EU free trade agreement means to our customers and how it will improve the position of our economies.”

- Scott Davis, Chairman and CEO, United Parcel Service (UPS)

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“Growing U.S. exports is a guaranteed way to drive our economy back to sustained growth. That is why ACC strongly supports the President’s call for a comprehensive U.S.-EU free trade agreement, which could generate $2 billion in export growth in the chemical industry alone. We encourage Congress to grant the President Trade Promotion Authority so he can swiftly negotiate a new agreement with the EU and other pending agreements such as the Trans Pacific Partnership.”

- Cal Dooley, President and CEO of the American Chemistry Council (ACC)

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“The members of the TBC are very pleased that President Obama has recognized that the time is now to initiate comprehensive trade negotiations between the EU and the US leading to a transatlantic economic zone as barrier free as possible for the flow of all goods, services, and capital and enhanced by strong protections for intellectual property. We look forward to working closely with officials from both the EU and US to help them achieve these goals.”

- Tim Bennett, Director-General of TransAtlantic Business Council

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“It is with great satisfaction that I have taken note of President Obama's endorsement in his state-of-the-union address of strengthening economic relations across the Atlantic. The American and European business communities have over the last years stressed the importance not only for the economies of the US and the EU of a transatlantic trade and investment agreement. As EU leaders the week before rightly pointed out when also endorsing a start of negotiations in the near future, an ambitious and comprehensive deal between the two biggest trading partners in the world will also benefit the global economy.”

- Hans Stråberg, European Co-Chair of the TransAtlantic Business Dialogue

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“The negotiation of a wide-ranging trade agreement between the EU and the US will open the perspective of a further integration of the two economies with more exchanges and more job creation on both sides. It can also show how more trade can be promoted with other parts of the world in order to strengthen the multilateral trading system."

- Hugo Paemen, European Co-chair of the TransAtlantic Business Council Board of Directors

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“The world’s two largest trading partners are ready to launch negotiations for an unprecedented trade deal that will benefit us all. An EU-US agreement presents an unmatchable opportunity to boost competitiveness, jobs and growth that are needed in our economies. This report is a first big step by the EU and US authorities to bring our economies closer together and I would like to thank Karel De Gucht and Ron Kirk for the great work done so far. Now a new challenge is at hand and we are ready to assist our governments to get this deal done quickly.”

- Jürgen R. Thumann, President of BUSINESSEUROPE

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Today, Ambassador Kirk met with 22 members of the Congressional Hispanic Caucus Institute (CHCI) Fellowship program. Ambassador Kirk shared his perspective on the international trade agenda, and offered career development advice to the recent college graduates.

The Fellows asked Ambassador Kirk about his experience serving as the first African-American Mayor of Dallas (from 1995-2002), and about the lessons he learned early in his career while working for U.S. Senator Lloyd Bentsen. Ambassador Kirk encouraged the Fellows to consider a career in public service, and to stay globally engaged on whatever professional path they choose to pursue.

The CHCI, founded in 1978 by Hispanic Members of Congress, is the only national Latino organization that offers a wide range of programs and activities to support the educational and professional aspirations of Hispanic youth from high school through graduate school and into their chosen careers. Today, there are more than 5,400 alumni across the country in the public, private, and nonprofit sectors. CHCI Fellows work in congressional offices on Capitol Hill, corporate federal affairs offices, congressional committees and federal agencies, the White House, and national nonprofit advocacy organizations.

This week, Ambassador Demetrios Marantis and senior USTR officials are in Santiago, Chile, and Lima, Peru for meetings with senior government officials and U.S. private sector representatives in both countries to discuss ongoing Trans-Pacific Partnership (TPP) negotiations and other trade issues. This Weekly Trade Spotlight focuses on U.S. trade with Chile and Peru and the TPP.

From auto manufacturers to services providers, U.S. businesses and workers benefit from our trade and investment relationships with South American partners Chile and Peru. The United States has comprehensive bilateral trade agreements with both countries, and along with the United States and eight other members, Chile and Peru are participating in negotiations toward the Trans-Pacific Partnership, a 21st century trade agreement that will increase trade among fast-growing economies throughout the Asia-Pacific region.

The U.S.-Peru trade agreement facilitates two-way trade in goods and services, and provides a secure and predictable legal framework for investors as well as strong intellectual property protections in both countries. The U.S.-Peru trade agreement was also the first agreement to include historic commitments to protect labor rights and the environment. U.S. exports to Peru are up 35 percent since the agreement entered into force in 2009. In 2011, U.S. goods exports to Peru totaled $8.3 billion, which contributed to a U.S. goods trade surplus with Peru of $1.7 billion. Top U.S. export categories included: Machinery ($2.0 billion), Mineral Fuel (oil) ($1.6 billion), Electrical Machinery ($739 million), Plastic ($556 million), and Vehicles ($430 million).

The U.S.-Chile trade agreement has dramatically expanded two-way trade between our countries; since it took effect on January 1, 2004, U.S. exports to Chile are up 489 percent. In addition to eliminating tariffs on goods and reducing barriers to trade in services, the agreement provides for more IP protection, regulatory transparency, and nondiscrimination in digital products trade. It also commits the United States and Chile to maintain laws that prohibit anticompetitive business conduct, and requires effective enforcement of labor and environmental provisions. In 2011, U.S. exports to Chile totaled $16 billion, which contributed to a $7 billion bilateral goods trade surplus for the United States. Top U.S. export categories included: Mineral Fuel (oil) ($5.0 billion), Machinery ($3.0 billion), Vehicles ($1.6 billion), Electrical Machinery ($1.1 billion).

As countries that are participating in the Trans-Pacific Partnership negotiations, Chile, Peru, and the United States all share the TPP vision to achieve a high-standard, 21st century regional trade agreement. Collectively, TPP countries would comprise the largest goods and services export market of the United States. And there is room to grow: the TPP is the most promising platform for constructing a Free Trade Area of the Asia-Pacific, including countries across the Asia-Pacific region. U.S. goods exports to the Asia-Pacific region totaled $895 billion in 2011, representing 60 percent of total U.S. goods exports to the world. Our strong bilateral trade relationships with Peru and Chile and the conclusion of a next-generation TPP agreement will continue to support growing regional trade and additional jobs here at home.

Members of Congress and stakeholders are voicing their support for President Obama’s decision to enter negotiations for an international services trade agreement (ISA). In a letter to Congressional leaders last week, Ambassador Kirk described the Administration’s intent to enter negotiations aimed at promoting international trade in services and supporting increased U.S. service exports and jobs. Below is a sampling of what others are saying so far – check back for periodic updates.

“The U.S. leads the world in exporting services – and to stay competitive, we need to keep it that way. As the global economy evolves, services exports like tourism and transportation must be an important part of our trade agenda to create jobs and strengthen our economy here at home.”

- Sen. Max Baucus, Chairman of the Senate Committee on Finance

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“American service companies are the most competitive in the world, and they face a range of barriers in foreign countries that must be addressed. I am encouraged that countries committed to services trade liberalization have come together to negotiate a new services agreement. I look forward to working with the Administration to ensure that this agreement ends critical services market access barriers so we can continue to expand opportunities for U.S. exports and, most importantly, create new, good-paying jobs here at home.”

- Sen. Orrin Hatch, Ranking Member of the Senate Committee on Finance

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“The ISA is a critical trade priority for me because it holds great promise for job creation in all sectors of the U.S. economy, including manufacturing and agriculture, as well as services, and can help rebuild momentum for a global agenda of trade liberalization. I am impressed with the group of 21 WTO members thus far that plan to join the negotiations, representing dynamic developing and developed markets for U.S. exports. We must now get about the work of reducing the substantial barriers that U.S. services exporters face around the globe.”

- Rep. Dave Camp, Chairman of the House Committee on Ways and Means

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“I am encouraged that the United States will be negotiating an International Services Agreement with other interested WTO Members,” said Ways and Means Ranking Member Sander Levin. “The U.S. services market is already one of the most open markets in the world, and our service suppliers are among the most competitive in the world. The purpose of the negotiation must be to make progress that eluded the Doha Round discussions in ensuring reciprocal market access abroad for U.S. service suppliers. It can help to establish new rules to address critical emerging issues, such as the trade-distorting actions of state-owned enterprises. This Administration has played a leadership role in steering the WTO away from a dead-end and the ISA is one example of that leadership.”

- Rep. Sander Levin, Ranking Member of the House Committee on Ways and Means

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“I strongly support an ambitious ISA. The ISA is an unparalleled opportunity to reduce global barriers to U.S. services exports, and I want to see strong commitments across the full spectrum of services. Around 80 percent of U.S. jobs are in our services sector, and these jobs pay well, so every time we increase the global market for this large sector’s exports, we create many new, well-paying U.S. jobs. In addition, an efficient global market for services is critical to allowing U.S. agricultural and manufacturing exporters to design, develop, market, finance, insure, transport, install, repair, and provide administrative and computing support for U.S. exports.”

- Rep. Devin Nunes, Chairman of the House Ways and Means Subcommittee on Trade

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“Services are vital to the future of the U.S. economy and prosperity of American workers. We are pleased that the United States is ready to fight for new trade rules to enable the services sector to achieve its potential as the engine of our economy.”

- Peter Allgeier, Coalition of Service Industries President

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“We applaud today’s announcement by USTR and support efforts to negotiate an ambitious agreement that opens up growing international markets for the range of services provided by U.S. companies. Given the importance of services to the U.S. economy as well as to U.S. manufacturing, the successful implementation of an International Services Agreement would help to maximize U.S. economic growth and job creation.”

- Doug Oberhelman, Chairman & CEO, Caterpillar Inc., and Chair of the Business Roundtable’s International Engagement Committee

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“The International Services Agreement will be an economic boost for the U.S. and the world economy. It will create new markets for U.S. exporters and generate a host of business and job opportunities from coast to coast. U.S. services companies have seen trade and regulatory barriers multiply in ways that could not be foreseen two decades ago when the General Agreement on Trade in Services was negotiated. This is a chance to tackle emerging trade barriers in areas such as the digital economy while strengthening the global rules-based trading system.”

- Myron Brilliant, U.S. Chamber of Commerce, Senior Vice President for International Affairs

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“We welcome today’s announcement and applaud the Administration’s pursuit of an agreement that will help to maximize the competitiveness of U.S. services companies and support U.S. job creation. With the services sector accounting for four out of five American jobs and nearly 70 percent of U.S. GDP, expanding services trade through an ISA is central to U.S. economic growth. We commend the Administration for making this important agreement a priority early in the New Year.”

- Bill Reinsch, President of the National Foreign Trade Council

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"The American services sector generates more than 75 percent of national economic output and provides 80 percent of the jobs in the country, making it imperative that the U.S. government support commercially meaningful trade agreements that allow U.S. companies to compete on a level playing field in the world marketplace. At this critical point in the global economic recovery, it is essential that the U.S. continue to be a leader in trade negotiations."

- Dan Brutto, UPS International President

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“International services markets remain heavily restricted and U.S. service suppliers face a wide range of barriers to doing business in overseas markets. A new agreement to liberalize services trade would be a much-needed boost to our economic recovery, particularly at a time when growth opportunities are scarce."

- Michael Ducker, Chief Operating Officer and President of FedEx Express International

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"IBM enthusiastically welcomes the U.S. decision to join global services trade talks in Geneva. Global markets present tremendous growth opportunities for IBM, and services are the largest component of IBM’s business. The United States stands to gain significantly from a new trade agreement that eliminates services trade barriers around the world. IBM looks forward to working with Congress and the Administration on this opportunity to continue driving innovation and economic competitiveness."

- Christopher Padilla, Vice President, Governmental Programs, IBM

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