EU inward FDI from the US per sector (Direct investment stocks – € million)

Trade in services is particularly important for the US: TTIP would represent its largest market for services. Services are also the main sector of EU inward foreign direct investment (FDI) from the US. For this reason, the US would like greater openness from the EU in services. Up to now, the EU has fostered greater openness through earlier individual FTAs than through the GATS system. The US is therefore negotiating for greater market access through TTIP and the Trade in Services Agreement (TiSA). Services liberalisation has been fostered in US trade agreements through a negative approach, considered as the more comprehensive liberalisation technique. Until recently, the EU favoured a positive approach to liberalisation, and it is likely that the approach to liberalisation of services in TTIP will mimic the hybrid approach likely to be adopted in TiSA. During recent press conferences, chief negotiators suggested the use of a hybrid approach, mixing positive and negative approaches to market access and national treatment.