As negotiations between the EU and the US regain momentum, eBay promotes a vision of the very first trade agreement for people.

This week, the fourth round of trade negotiations were launched in Brussels. In the run up, eBay has contributed to important stakeholder discussions.

First, consumer benefits of an EU-US trade deal was the topic of a roundtable hosted by the UK consumer organisation Which? and MP Kenneth Clarke. Hanne Melin of eBay Inc.’s Public Policy Lab reminded how consumers stand to benefit directly, in their own capacity of “trade actors”. A recent Nielsen/PayPal report estimated that 30 billion individuals in the UK and Germany made cross-border online purchases in 2013 of about €18 billion. The most popular destination was the US. A modern trade agreement could speak to European citizens by addressing the issues that matters to them when they engage in transatlantic trade.

Second, the European Commission organised an event on 12 March giving stakeholders the opportunity to express their views on the key issues under negotiations. Melin contributed to the topic of Small and Medium-sized Enterprises (SMEs) pointing out that the trade landscape is changing: Small businesses with international aspirations no longer have to link into the supply chains of larger corporations or make significant investments in local establishments. Using global online networks and services, they can serve customers all over the world directly. In fact, as our Commerce 3.0 research shows, the very majority of businesses using the eBay marketplace sell internationally and reach on average more than 30 different markets.

The paradigm shift we are witnessing in international trade presents the EU and US negotiators with a unique opportunity to forge a trade agreement for people by addressing the issues that matter to entrepreneurs, small business owners and individuals as they participate in cross-border trade. For consumers, those issues include delivery cost, time, and reliability; customs and tax policies; and consumer protection including returns. For SMEs, the barriers are very similar: transportation and delivery as well as customs administration. An additional concern is knowledge of and compliance with differing consumer legislation.

The EU and the US could address some of those issues through the Transatlantic Trade & Investment Partnership (TTIP):

1. TTIP could break new ground on customs relief thresholds by introducing a standard threshold of €800 minimum, index-linked, and regardless of the country of origin.
2. TTIP could support cross-border delivery services through harmonised standards and formats; tracking and data interoperability; and partnerships between commercial couriers and national postal operators.
3. TTIP could be a platform for developing trusted trader schemes adapted to micro and small firms, treating the different exporting profile of and tools used by technology-enabled businesses as strengths and not weaknesses.
4. TTIP could provide for transatlantic consumer rights by applying the idea behind the proposed Common European Sales Law (i.e. simplifying cross-border life of firms and consumers through an optional and non-national law) to transatlantic trade.
5. TTIP could support omnichannel trade by addressing mobile roaming across the Atlantic: travelling consumers should be able to use their smartphones effectively so that retailers can engage with visiting consumers effectively.
6. The negotiators could facilitate transatlantic trade without harmonising EU and US legislation by looking to:

• Alternative instruments, such of the Common European Sales Lab
• Optional formats, such as the proposed Common EU Standard Value Added Tax (VAT) Return
• Mechanisms, such as the eID voluntary notification scheme
• One-stop-shop solutions covering online dispute resolution and VAT between the EU and the US