Trade agreements open new markets
U.S. broker-dealers often find it difficult to enter or work effectively in foreign markets because of discriminatory, punitive, and costly barriers. Even when they successfully gain entrance into some foreign markets, they often experience unfair treatment in the form of high startup costs, nontransparent laws and regulations, and impediments to introducing innovative products. In other cases, the barriers may either limit the ability of U.S. investors to acquire local shares or restrict U.S. firms from underwriting and distributing securities.
Multilateral and bilateral trade agreements are effective tools for gaining access to closed markets. Such agreements aim for binding commitments from participants to remove specific barriers in their financial services markets so that U.S. firms gain tangible commercial benefits. The United States, in turn, offers national treatment and full, immediate market access, guaranteeing foreign firms the ability to benefit from new opportunities arising from changes in U.S. law.