Freer Trade Between the United States and the European Union?

Abstract

The United States and the European Union have been considering a free trade agreement at least since 2015, with the "Transatlantic Trade and Investment Partnership," but the Parties made little progress during the Obama Administration. The idea arose again during the Trump Administration in June 2018 when a G-7 FTA was proposed (apparently without the knowledge that the EU members could not negotiate on their own.) The possibility arose again in 2019, in significant part because of EU concerns over proposed 25% US tariffs on auto parts. Once again, little progress was made in part because the US did not wish to discuss autos and the EU ruled out agriculture. While it seems unlikely that serious negotiations could be resumed before the November 2020 election, the idea of an FTA between two of the world's largest economic powers with their tens of billions of goods and services trade, and investment, and a strong need for greater regulatory coherence, remains a tantalizing prospect despite the many barriers to success.

Keywords: United States, European Union, Free trade agreement, GATT Article XXIV, Steve Zamora