U.S. & EU to Mutually Recognize C-TPAT and AEO by July 2012
On November 29, 2011, officials from the European Union and the U.S. met at the Transatlantic Economic Council (TEC) where they agreed to mutually recognize each others' secure traders programs -- the Authorized Economic Operator (AEO) in the EU and the Customs-Trade Partnership Against Terrorism (C-TPAT) in the U.S. -- by July 2012. They also agreed to facilitate their customs procedures, strengthen cooperation on electric vehicle and smart grid research, raw materials, etc.
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Once Operational, Traders to Benefit from Quicker, Simpler Customs Procedures
The EU Commissioner for Taxation and Customs Union Algirdas Semeta has stated that mutual recognition will take effect no later than July 2012 after information technology systems are set up. He stated that when it becomes operational, mutual recognition will allow security certified operators in the EU and the U.S. to benefit from quicker and simpler customs procedures, reduced costs and time delays, less red tape, greater ease and predictability in the movement of their goods, and new trade opportunities.
Can Secure Supply Chain End-to-End if C-TPAT Members & AEOs Work Together
EU Commissioner Semeta stated that the EU has 4,600 AEOs who stand to become more competitive as they and their U.S. trading partners will spend less time and resources on validation of their security standards. He noted that the 10,000 C-TPAT members will also have a much wider choice in certified counterparts, securing the supply chain from end to end.
Mutual Recognition to also Allow Customs to Target Real Risks
Mutual recognition will also contribute to the enhanced security of both the EU and U.S.' trade lanes and citizens, by allowing customs to concentrate their resources on targeting real risks, thereby ensuring greater supply chain security. EU Commissioner Semeta stated that mutually recognizing each other's programs is a concrete move toward moving making the global supply chain more resilient and better protected against attack.
(See ITT's Online Archives 11062208 for summary of an EU official's June 2011 statement that the EU and U.S. expected to conclude AEO-C-TPAT mutual recognition in the coming months.)
EU and U.S. also Agreed to Initiatives on Jobs, Electric Vehicles, Etc.
Participants of the Transatlantic Economic Council (TEC) also reviewed progress in creating new opportunities for jobs and growth through cooperation on regulation and innovation in key sectors. The following are highlights of their decisions to develop joint approaches in certain economic areas:
- Jobs and Growth. The TEC launched a joint High-Level Working Group on Jobs and Growth that will identify and assess options for strengthening the U.S.-EU trade and investment relationship, especially in those areas with the highest potential to support jobs and growth. The Working Group will report its findings, conclusions and recommendations by the end of 2012, with an interim report in June 2012 on the status of this work.
- Electric vehicles & smart grid research. The EU and U.S. signed a letter of intent announcing the establishment of two electric vehicle/smart grid interoperability centers with a view to develop global standards.
- Raw materials. The TEC agreed to develop trade policy strategies to eliminate barriers and to improve the investment and innovation climate by working together on trade policy issues, research, and recycling.
- New technologies. The TEC decided to intensify cooperation in a number of key emerging technologies and innovative sectors, such as nanotechnology and cloud computing. This work aims at developing joint approaches to emerging regulatory issues and avoiding the creation of new and unintended barriers to trade and investment.
- Energy efficiency. The EU and the U.S. initialed the Energy Star Agreement, a scheme initially established by the U.S. that promotes the manufacturing of energy-efficient office equipment. The Energy Star label enables consumers to identify low energy consumption appliances which play a part in ensuring security of energy supply and environmental protection.
- Small and medium-sized enterprises. The EU and the U.S. agreed on an Action Plan for 2012 in which they will look at measures to increase business and technology cooperation benefiting SMEs, reduce transatlantic trade burdens including standards and intellectual property rights, and to apply best practices in entrepreneurship and access to finance.
(TEC participants also discussed the regulatory cooperation, information and communication technology (ICT), investment, etc. See EU press release for more information. See ITT's Online Archives 11112920 for summary of the conclusion of the EU and U.S.' meeting at the November 28 TEC meeting.)
EU Commissioner for Taxation and Customs Union speech is available here.
EU press release is available here.