When it comes to international trade, European Union (EU) and the United States have always had a strong economic relationship. As two of the world`s largest economies, they have been each other`s largest trading partners for decades. This is why trade agreements between these two economic giants are crucial to both their own economies and the global economy as a whole.
The EU and the US have a long-standing history of trade agreements that have allowed for the exchange of goods and services between the two regions. However, the last few years have seen rising tensions, mostly due to the Trump administration`s protectionist policies that have not been well received in the EU.
One of the most significant efforts towards a trade agreement between the EU and the US was the Transatlantic Trade and Investment Partnership (TTIP). The purpose of this agreement was to open up trade between the two regions by reducing tariffs and regulatory barriers. However, negotiations came to an abrupt halt when President Trump took office in 2017 and withdrew the United States from the agreement.
Following the withdrawal, the EU began looking for other avenues to strengthen trade relations with the US. In 2018, they reached a trade ceasefire with the US, agreeing to work towards a trade agreement, while simultaneously revisiting existing issues such as steel and aluminum tariffs and the US ban on European agricultural products.
In 2019, the European Commission released a draft negotiating mandate for a new agreement with the US. Similar to the TTIP, this agreement would focus on removing tariffs, increasing regulatory coherence, and boosting investment. However, negotiations have yet to take place due to the COVID-19 pandemic, as well as the Biden administration`s focus on domestic policy.
Despite recent setbacks, the EU and the US remain committed to strengthening their economic relationship. A trade agreement between the two regions would create an enormous economic impact, increasing trade and creating jobs on both sides of the Atlantic. Furthermore, this agreement would help protect small and medium-sized enterprises, which are the backbone of both regions` economies.
In conclusion, a trade agreement between the EU and the US has the potential to create a more robust transatlantic economy, opening up a world of opportunities for businesses and people on both sides of the Atlantic. Although negotiations have been postponed, it is crucial for both regions to continue working towards an agreement that benefits everyone involved.