Trade Relations the EU and the USA

Despite a blistering cold war between east and west Europe in the 1950’s, including the violent suppression of anti-communist protests in 1956 Hungary, the six founders of the ECSC reconvened in 1957 and signed the Treaty of Rome, which created the European Economic Community, or the “Common Market”.

The European Union was initially set up as a means to terminate the conflict that occurred within Europe throughout the 20th century, culminating with the end of The Second World War (WWII) and The Cold War that followed. The EU ultimately aimed to bring the member countries together in order to form an ‘ever closer union’ between the countries of Europe, thus preventing a future battle. The Union started as the European Economic Community (EEC), which was established in 1957, and over the years endured numerous adjustments to form the politico-economic union that we know of today.

The European Union is transnational meaning multinational or international. Some of the major historical events, which occurred during the twentieth century, which led to the creation of the European Union, include World War Two, communism protests in Hungary, the launching of Sputnik, and the creation of a common market in Rome. Some of the nations that make up the European Union include France, Italy, Germany, and the Netherlands. Today the European Union assists in creating alliances and safety partnerships, especially after the terrorist attacks in the United States. Two examples of foreign policy objectives for the

The Trans-Pacific Partnership (TPP) is an extensive, proposed trade agreement that “would strengthen ties between Asia and the Americas, create a new template for the conduct of international trade and investment, and potentially lead to a comprehensive free trade area in the Asia-Pacific” (Petri). The US and potentially 11 partners from both sides of the Pacific region are currently in

The Transatlantic Trade and Investment Partnership (TTIP) is a bilateral free trade agreement between the United States and Europe, covering trade in services, government procurement, rules of origin, technical barriers to trade, agriculture, customs and trade facilitation. If it completed, it will cover the world one-second of GDP. Transatlantic trade and investment partnership agreement is Europe and the United States launched trade preferential agreements, to create Europe and the United States FTA, the official is expected to make the EU GDP increased by 0.52%, but this data is a major controversy, so three rounds of negotiations failed to reach consensus.

In June 2013 the European Commission and the U.S. government have commenced negotiations for the Transatlantic Trade and Investment Partnership (TTIP), a proposed free trade agreement between two of world’s largest economic and political partners.

It is my pleasure to speak to you today on the unfortunately precarious state of affairs between the United States and Europe. As you all know, hegemonic power has shifted between European nations for centuries, while the United States did not emerge as such an influential entity until after World War II. Since these post-war reconstructive years, the United States has continued to grow in social, economic, political, and diplomatic strength, thus cementing its role as a major international power. Although Europe came out of the war battered and bruised, it rose up out of the ashes, and surpassed its former glory to start yet another chapter in its historical saga.

The EU is widely regarded as a trade power in the current international arena. The trade policy has been a core component of the EU’s growth strategies to enhance international competitiveness by internal development, resulted from the widened and deepened regional integration (Young, 2011: 719). Assimilating neo-liberalist idea to the trade policy has promoted liberalising goods and service trades and contributed to enhancement of competitiveness in the global markets; the EU achieved the largest market in the world in 2005 (Dee and Mortensen, 2014: 3; Young, 2011: 721). Moreover, in international trade, GATT/WTO has promoted multilateral negotiations. Until Uruguay Round, the main discussion was tariff reduction in industrial goods; however, once Uruguay Round approached wider range of issues, legislation of multilateral trade rules has been more important for the WTO members and other actors (Young, 2011: 716). Under this condition, the EU has promoted its competitiveness in the global market with internal development resulted from its territorial enlargement and the institutional system reforms; the EU has adjusted the trade policy against external actors in response to a changing world (ibid: 719). This paper examines how the EU’s external trade policy has changed.

The European Economic Community grew bigger. The treaty had plans on building a common market in 1957 and this came into reality in with the creation of a customs union and eventually with the Single European Act (SEA) of 1986 setting up a much wider free market in all EU countries. Even in 1957, the founders “declared in its preamble that signatory states were determined to lay the foundations of an ever closer union among the peoples of Europe’. Which included closer trade.

The intent of TTP, according to Feldman (2015), is to pursue the strategy of competitive liberalisation, it was first pursued by the US President Bush in 2003, in which bilateral, regional and global trade negotiations would complement and reinstate each another (Sbragia, 2010). The US strategy aimed to create a competition for liberalisation among its trading partners so that trade reforms in one market led to similar reforms and tariff reduction in other markets (Chan, 2005). The period witnessed many trading partners re-negotiate their trade pacts with the US, thereby fulfilling the US objective to increase its sphere of influence and hegemony (Sbargia, 2010). Through TTP, the US now seeks to increase its sphere of influence in the Pacific Rim along with gaining economic benefits. Since the participating nations account for 40% of the world’s GDP, any rules set by these will have global repercussions (Cao, 2015). The estimates of economic gains from the treaty, however, currently account for only 0.5% of US GDP (Rines, 2015). This strengthens the argument that the TTP is less about economic benefits and more about putting down a legal

A separation has existed between the EU and NATO since there founding’s, however, with the growing realization that the concerns facing the international community can no longer be managed by these organizations individually the issue of how the relationship between these organizations will progress is being pushed into the forethought of political debate. Given the extent of the transatlantic relationship, congressional foreign policy activities, and interests frequently involve Europe, the relationship between the United States and the European Union (EU) has become increasingly significant in recent years. This relationship is likely to grow even more important. In this context, Members of Congress

Negotiations began in January 2008 among United States, Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore and Vietnam. Subsequently, they have expanded to include Canada, Japan and Mexico. This lead to 20 formal negotiation rounds spread out throughout the past 7 years. As of today the TPP are arguably the most important trade negotiations since 1995, when the World Trade Organization went into effect. “The countries involved produce 40% of the world 's total GDP (Gross Domestic Product) of $107.5 trillion, 26% of its trade, and 793 million of its consumers” (Amadeo, 2015). The Obama Administration, in close partnership with Congress and a various stakeholders, is working to conclude a strong agreement that addresses the issues that U.S. businesses and workers face in today’s world. TPP’s ambitious goals are to promote trade, investment, job creation, economic growth, development and innovation through the collaboration of the signing countries.

“The Trans-Pacific Partnership is an Asia-Pacific regional free trade agreement currently under negotiation between the Unties States and about a dozen countries surrounding the Pacific Ocean” (Weddle, 2013). It’s a giant free trade deal that has been in the process of negotiation for about a decade. The ultimate goal of the deal is to join countries together through a unified agreement and make free trade among these counties smooth and painless. The trade agreement covers everything from tariffs to standards for food safety.

The purpose of the paper is to make an outline and have an insight of the intra trade among the EU’s members. In this paper, first we will study how the EU’s trade structure became what it is today. Second, we will make a brief comparison between EU’s industry and the American’s industry, to show EU’s success on the intra trade among its members.

Since 1997 the Partnership and Cooperation Agreement has been the framework of the EU-Russia relations, regulating the political and economic relations between the EU and Russia. One of the main objectives of this agreement is the promotion of trade and investment as well as the development of harmonious economic relations between the EU and Russia.