Institute Comments on Transatlantic Economic Partnership Negotiations

Washington, DC, September 14, 2000 - The Office of the United States Representative (USTR) requested public comment in August on general US negotiating objectives for services trade negotiations in the Transatlantic Economic Partnership (TEP), a new trade initiative of the US and the European Union. USTR would like to address pension management issues in TEP, and is exploring whether the Employee Retirement Income Security Act of 1974 might serve as a basis for a mutual recognition agreement or other regulatory cooperation with respect to providers of services to pension plans. USTR specifically requested comment on the feasibility and desirability of developing mutual recognition agreements for private pension fund management.

The Institute filed a comment letter in which it supported efforts to address pension issues in TEP, and discussed the two areas of particular concern in managing pension assets. The Institute suggested, however, that the negotiating objectives for pension fund management would not be best achieved through a mutual recognition agreement but rather by removing regulatory barriers that operate to deny effective market access.