The EU-US Trade Agreement 2018: What You Need to Know
The EU-US trade relations have been tense over the past few years, with both sides imposing tariffs on each other`s products. However, in July 2018, the two sides agreed to launch negotiations towards a trade agreement. Here`s what you need to know about the EU-US Trade Agreement 2018.
What Is the EU-US Trade Agreement?
The EU-US trade agreement aims to reduce or eliminate tariffs on goods and create new opportunities for businesses by removing non-tariff barriers, such as regulatory obstacles. The agreement will also cover services, intellectual property, and public procurement.
What Are the Benefits of the Agreement?
The EU-US trade agreement would create the largest free trade area in the world, with a combined GDP of almost $30 trillion. It would boost economic growth and create jobs on both sides of the Atlantic. The EU and US already have a strong economic relationship, with over €1.3 trillion ($1.47 trillion) in bilateral trade and $3.7 trillion in investment.
What Are the Challenges?
Negotiating a trade agreement between two economic powerhouses is a complex process that may take years to complete. The EU and US have different priorities when it comes to trade, and there are several contentious issues that need to be resolved, such as agricultural subsidies, geographical indications, and public procurement.
The Trump administration`s “America first” policy has also raised concerns in Europe that the US may seek to impose protectionist measures that could harm the EU`s economy.
What Happens Next?
The EU and US have not yet started formal negotiations, but they have agreed on a framework for a trade agreement. The next step is to identify the areas where the two sides can make progress and establish a timeline for negotiations.
Conclusion
The EU-US trade agreement 2018 is a significant development in the EU-US trade relations. It has the potential to create new opportunities for businesses and boost economic growth on both sides of the Atlantic. However, negotiating a trade agreement between two economic giants is a complex process, and there are several challenges that need to be overcome. We will have to wait and see how the negotiations unfold.
