FROM THE OFFICE OF PUBLIC AFFAIRS

June 9, 2005
JS-2489

Commerce Secretary Gutierrez and Treasury Secretary Snow Laud
Oecd Study on the Benefits of Transatlantic Free Trade and Investment

U.S. Secretary of Commerce Carlos Gutierrez and Secretary of Treasury John W. Snow applaud the Organization for Economic Cooperation and Development (OECD)'s release of a report indicating the importance of reducing regulatory barriers between the United States and the European Union.  The report finds that further work could result in benefits of up to $300 billion for the United States and a similar - or even greater- benefit for the European Union.

"The American consumer is currently picking up the tab for duplicative regulations at the grocery store, the electronics store, car dealerships and department stores," Secretary Gutierrez said. "As this study displays, creating greater efficiency in transatlantic trade and investment, while maintaining high standards of safety, will put more money back in the pocket of American consumers:  The publication of this report is particularly timely as the U.S. and EU are developing a roadmap for revitalizing the transatlantic marketplace."

The OECD report, entitled, "The Benefits Of Liberalizing Markets and Reducing Barriers to International Trade and Investment: The Case of the United States and the European Union," sheds new light on the mutual benefits to greater liberalization and deregulation in the transatlantic economic relationship. The study concludes that reducing State control on the business environment, cutting tariff barriers and easing restrictions on foreign direct investment could generate great benefits for the United States, the European Union and all OECD Member Countries.

"The most striking part of the study is that it highlights the importance of domestic regulatory reforms for increasing trade, productivity and growth," Secretary Snow said.  "This is especially true in Europe where deregulation would account for three-fourths of the total benefits.  Deregulation would allow businesses to provide services on an EU-wide scale, and to make competitive business decisions – such as, for example, on retail shop hours."
For more information on the OECD report, entitled, "The Benefits Of Liberalizing Markets and Reducing Barriers to International Trade and Investment: The Case of the United States and the European Union, please visit http://www.oecd.org/.