U.S. A

ND E.U

. FTA

POSSIB

ILITY

OR P

IPEDREAM?

OVERVIEW

-United States and the European Union

-Why FTA?

-Hurdles to a deal

-State of the Union

-Conclusion

-Thoughts? Questions?

THE US AND THE EUROPEAN UNION

- Interaction between the US and EU account for $4 trillion in trade, investment, and commercial sales.

-Trade between the 2 regions already accounts for between 40% and 50% of Global GDP (depending on the source).

-Currently secures 15 million jobs

- ex: US investments in France and Belgium alone in 2010 were as high as in India and China combined.

-A study by Sweden’s National Board of Trade said trade between the two sides could jump 20% - upwards of $200 billion annually- if an agressive trade deal were enacted.

WHY FTA?

-With a “dead” Doha Round, it gives the US and EU an opportunity to expand trade.-Eliminating existing tariffs would boost two-way trade by $120 billion within five years and and $180 billion the U.S. and E.U combined GDP.-Would add 1.5 percent to 2 percent combined to U.S. and European output.-More Jobs!

HURDLES TO A DEAL

-Agriculture-Food Safety

-Environment-Automobiles-Licensing Standards-Labor Standards-Etc. etc. etc…

STATE OF THE UNION

“Tonight, I’m announcing that we will launch talks on a comprehensive

Transatlantic Trade and Investment Partnership with the European Union,

because trade that is fair and free across the Atlantic supports millions

of good-paying American jobs.”

CONCLUSION

-While a deal may be possible, and desired by many involved parties, inability to compromise on few key issues may stall a deal

-Both parties WILL have to compromise on some pieces of a deal if we are to see a Trans-Atlantic trade agreement

-Obama has placed a high priority on this issue, but even with the weight of the executive behind the issue, a deal will be a slow, arduous process

THOUGHTS/COMMENTS/QUESTIONS??