Fostering Transatlantic Regulatory Cooperation and Gradual Multilateralization

The ongoing negotiations on a Transatlantic Trade and Investment Partnership (TTIP) between the EU and the USA revolve to a significant extent around an effort to reduce the trade cost-raising effect of differences in regulation. The extent to which a TTIP will generate economic benefits will be determined in large part by the extent to which it will reduce such costs. This will also be a major factor determining the impacts of a TTIP on third countries. This article reflects on some of the challenges confronting regulatory cooperation, proposes several mechanisms to support greater cooperation on regulatory matters, and discusses how TTIP-based regulatory initiatives might be multilateralized over time.