Posted by Editors in
International Economics on Wednesday, November 22. 2006
According to the European Commission:
The EU and US are responsible together for about two fifths of world trade. Trade flows across the Atlantic are running at around €1.7 billion a day. In the year 2003, the total amount of two-way investment was over €1.5 trillion, composed of €731 billion of EU Foreign Direct Investment (FDI) in the US and around €772 billion of US FDI in Europe. The overall "transatlantic workforce" is estimated at 12 to 14 million, of which roughly half are Americans who owe their jobs directly or indirectly to EU companies. In the year 2005, exports of EU goods to the US amounted to €250 billion, while imports from the US amounted to €234 billion. Concerning trade in services, EU exports to the US amounted to €108.6 billion in 2004 while EU imports from the US amounted to €93.0 billion.
The two economies are interdependent to a high degree. Close to a quarter of all EU-US trade consists of transactions within firms based on their investments on either side of the Atlantic. The transatlantic relationship defines the shape of the global economy as a whole as either the EU or the US is also the largest trade and investment partner for almost all other countries.
Being the largest players in global trade, the EU and the US are committed to cooperate both politically and economically, be it on bilateral issues or in the multilateral framework of the World Trade Organisation (WTO). Several trade-related disputes which regularly hit the headlines in reality only impact some 2% of EU-US trade.
One of those trade disputes is that the EU and the US accuse each other of granting illegal subsidies to Boeing and Airbus. See "U.S. details complaint on Airbus subsidies" in International Herald Tribune and the latest statements on this dispute from the European Union. I have not found the latest statement from the US Trade representative, but only a US press release concerning that never ending dispute from May 2005, which indicates that this is a long dispute...
Related: Our reader ROA recommends "Jumbo Trouble: The Airbus A380 was supposed to be the future of aviation. Will it ever get off the ground?" in Popular Mechanics.
Increasingly in global markets, goods (i.e., products and tangible things you can see and touch) are just part of the bundles of solutions our clients and we sell globally. As WAC? has ranted about previously, services are becoming the main... Comments ()
Tracked: Nov 27, 09:08