TTIP Negotiations an Opportunity for Economic Efficiencies and Leadership
MEMPHIS, Tenn., July 8, 2013 – As a connector of economies around the globe, FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, applauds the start of U.S. – EU Transatlantic Trade and Investment Partnership (TTIP) negotiations this week in Washington, D.C., emphasizing the opportunity for leadership and economic growth.
“Connecting the U.S. and the EU is a large and important component of FedEx business, and we look forward to the TTIP facilitating trade and advancing our continued expansion and innovation in the services we offer our customers on both sides of the Atlantic,” said Michael L. Ducker, chief operating officer and president, International, of FedEx Express. “An ambitious, high-standard TTIP covering such a large proportion of global economic output will break down trade barriers and create alignment between the U.S. and EU on 21st century trade issues. The U.S. and EU must seize this moment to capitalize to the fullest on this global leadership opportunity, as the rewards will be enormous.”
The value of trade in goods and services between the U.S. and EU already accounts for close to $1 trillion each year, and together the economies account for approximately half of global economic output. Connecting 95% of world’s economies within 72 hours, FedEx is experienced in the movement of goods across borders and recognizes the economic efficiencies that can result from this agreement.
This is a primary consideration as products are increasingly manufactured with components from several countries before export to other countries, with the cost of goods moving across borders often affecting the cost of the final product multiple times during product development.
Today, 60% of world trade is made up of components that are part of the global supply chain.
“We encourage the TTIP negotiators to adopt and implement best practices to better facilitate trade and harmonize regulations affecting international commerce,” Ducker said. “Ensuring unfettered market access and open and fair competition among delivery service providers will lead to greater economic efficiencies in the U.S. and EU for businesses and customers alike.”
The express delivery service provided by FedEx enables customers to realize the efficiencies of “just-in-time” delivery strategies, reduces amounts of capital tied up in nonproductive inventory stockpiles, and maximizes the potential of global value chains.