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"Free trade must be a tool to generate prosperity, stability and development. When supported by the right rules and institutions, free trade delivers win-win outcomes. When part of a wider set of measures, it is a potent lever promoting European values abroad, like sustainable development and human rights. In addition, the openness of our own market fosters innovation and creativity at home and is the best way to ensure, thanks to our weight in global trade, similar openness abroad."
– Karel De Gucht In 2006 the combined economies of the EU and the US accounted for nearly 60% of global GDP, 33% of world trade in goods and 42% of world trade in services. The EU and the US are each other's main trading partners. Trade flows across the Atlantic amount to around €1.7 billion every day. The two economies are interdependent to a high degree. Close to a quarter of all EU-US trade consists of transactions within firms based on their investments on either side of the Atlantic. The transatlantic relationship also defines the shape of the global economy as a whole, as either the EU or the US is also the largest trade and investment partner for almost all other countries in the global economy. Total FDI (Foreign Direct Investment) stocks held in each other's countries reach approximately €1.89 trillion. The overall "transatlantic workforce" is estimated at 12 to 14 million people, of which roughly half are Americans who owe their jobs directly or indirectly to EU companies. EU-US economic cooperation At the EU-US Summit on April 30, 2007, European Commission President Barroso, German Chancellor Merkel and US President Bush signed the "Framework for Advancing Transatlantic Economic Integration between the USA and the EU." This framework included the establishment of the Transatlantic Economic Council (TEC), which oversees, guides and accelerates the implementation of work designed to integrate the EU and US economies more closely. The TEC brings together those Members of the European Commission and US Cabinet Members who carry the political responsibility for closer economic ties. The EU and the US also have a range of further dialogues - the Transatlantic Legislators' Dialogue, the Transatlantic Consumer Dialogue and the TransAtlantic Business Dialogue - designed to further this agenda. The reports of TEC meetings are available to the public. Trade Disputes Inevitably for two economies of such size with such a high volume of trade, the EU and the US encounter periodic trade disputes. These are often handled through the dispute settlement mechanism of the WTO (World Trade Organization). Although they tend to grab headlines, disputes currently only impact of some 2% of EU-US trade. European Union Delegation, Washington, DC, Staff USEFUL Links: European Commission Websites
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| Last Updated ( Monday, 12 April 2010 ) |