U.S.-EU Trade Agreement 2020: What You Need to Know
The U.S.-EU trade relationship is one of the largest and most complex in the world. In 2019, the two sides had a trade exchange of nearly $1.3 trillion. However, this relationship has been strained in recent years due to a range of issues, including disputes over trade tariffs, data privacy, and intellectual property rights. In an effort to address these challenges, the U.S. and the EU have been negotiating a comprehensive trade agreement since 2013.
The U.S.-EU Trade Agreement, also known as the Transatlantic Trade and Investment Partnership (TTIP), aims to create a more integrated transatlantic market by eliminating barriers to trade and investment between the two sides. The agreement would cover a wide range of issues, including tariffs, regulatory barriers, investment, intellectual property, and sustainability.
One of the key objectives of the trade agreement is to eliminate tariffs on goods and services traded between the U.S. and the EU. At present, the two sides impose a range of tariffs on each other`s products, making it harder for businesses to compete across the Atlantic. The agreement would also aim to reduce non-tariff barriers, such as different regulatory standards for products and services.
Another important issue in the negotiations is investment protection. Currently, U.S. and EU companies face different rules and regulations when investing in each other`s markets. The trade agreement would seek to establish a framework for protecting investors and resolving any disputes that may arise.
Intellectual property rights are also a key focus of the negotiations. The U.S. and the EU have different approaches to protecting intellectual property, which has led to conflict in the past. The trade agreement would aim to harmonize the two sides` intellectual property regimes, providing greater protections for businesses on both sides of the Atlantic.
Sustainability is another significant issue in the negotiations. The trade agreement would aim to ensure that trade and investment between the U.S. and the EU are consistent with sustainable development goals, such as reducing greenhouse gas emissions and promoting environmental protection.
Despite the potential benefits of the U.S.-EU Trade Agreement, negotiations have been slow and difficult. In 2016, negotiations were put on hold after the election of Donald Trump as president of the U.S. Trump was critical of the EU and its trade policies, and he withdrew the U.S. from the Paris climate agreement and the Trans-Pacific Partnership (TPP) trade deal.
However, with the election of Joe Biden as president in 2020, there is renewed hope for the U.S.-EU trade agreement. Biden has indicated that he wants to strengthen ties between the U.S. and Europe, and has already taken steps to rejoin the Paris climate agreement and pursue a multilateral approach to trade.
In conclusion, the U.S.-EU Trade Agreement is a complex and ambitious undertaking that has the potential to benefit businesses on both sides of the Atlantic. If negotiations are successful, the agreement could create a more integrated transatlantic market that is better equipped to tackle the challenges of the 21st century. However, the negotiations will require patience, cooperation, and compromise from both sides.