Directorate-General for Trade

United States

The EU and the US economies account together for about half the entire world economy. 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. In 2008, total FDI stocks held in each others countries reach approximately €2.1 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 30 April 2007, 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 closer integrate the EU and US economies.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. Although they tend to grab headlines, disputes currently only impact of some 2% of EU-US trade.

Non-Tariff Measures in EU-US Trade and Investment

A study was carried out by the European Commission at the request of the European Parliament and released in December 2009. It identified the most important Non-Tariff Measures (NTMs) that affect trade between the EU and the US, and estimates their economic impact. Main findings of the study are:

• For the EU, removing all actionable NTMs would translate into an increase in GDP (€122 billion per year) and exports (+2.1%).
• Sector-wise EU benefits would come mainly from gains in motor vehicles, chemicals, pharmaceuticals, food and electrical machinery.  
• For the US, benefits from removing actionable NTMs are estimated at €41 billion per year for GDP and 6.1% for exports.
• US benefits would mainly accrue to the electrical machinery, chemicals, pharmaceuticals, financial services and insurance sectors.
• The US gains more in exports and the EU more in income.

Highlights of the Study

 

Supporting information

• Reports
• Texts
• Links