Boosting Security in the Global Supply Chain
EU-US agreement to secure the global supply chain
Move One is pleased to report a recent and pivotal industry update. After several years of negotiations, and acknowledging growing threats to the security of the global supply chain, the EU and USA have agreed to mutually recognize each other’s “trusted traders”. This is a long awaited and important step forward in terms of EU-US trade relations – and in securing the global supply chain.
What the agreement means is that reliable companies that are security certified under the EU AEO system, and the US C-TPAT system, will now enjoy easier, cheaper and more predictable procedures at customs. By mutually recognizing each other’s reliable companies, the EU and USA will be able to re-focus resources on where security risks really lie. Customs will become even more effective in the protection it provides for us all on a daily basis.
For companies, the mutual recognition will facilitate business and promote trade at a time when such measures are much needed for economic growth. For customers, the recent accord offers benefits to each and every citizen, through greater supply chain security.
The is particularly welcomed news for the thousands of companies that were previously only European AEO certified, as now that they are also certified under the US C-TPAT system, it opens up new trade opportunities on both sides of the Atlantic.
It is estimated that close to 5,000 companies are AEO certified in the EU. The value of EU and USA’s imports and exports in 2011 alone was almost 500 billion Euro. It is expected that the mutual recognition will boost trade opportunities and enable uninterrupted flow of goods, without compromising security standards on both sides.
As EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud, Algirdas Šemeta, said in his statement on 4 May: “From what we have achieved together to date, I am confident that we will be able to confirm a common commitment and high level of ambition in going forward. Transatlantic cooperation on supply chain security improves the business environment, accelerates trade and contributes to the safety of our citizens. Today’s mutual recognition decision, therefore, is one to truly be welcomed.”
Article source: EUROPA
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