The U.S.–EU Trade Agreement typically refers to the ongoing economic and trade relationships between the United States and the European Union, the two largest economies in the world. While they do not have a full-scale free trade agreement (FTA) like NAFTA (now USMCA) or the EU's internal single market, they are deeply interconnected through various agreements and negotiations.
Key Aspects of U.S.–EU Trade Relations:
1. No Comprehensive FTA Yet
The Transatlantic Trade and Investment Partnership (TTIP) was a major proposed trade deal between the U.S. and EU.
Negotiations began in 2013 but were put on hold indefinitely in 2016 due to political opposition and public concerns, particularly in Europe, over regulatory standards and investor protections.
2. Existing Agreements and Cooperation
Mutual Recognition Agreements (MRAs): These help reduce duplicate testing and certification for products like medical devices and pharmaceuticals.
U.S.–EU Trade and Technology Council (TTC): Established in 2021 to coordinate policy on tech, trade, and global standards.
World Trade Organization (WTO) Framework: Both the U.S. and EU are WTO members and conduct much of their trade under WTO rules.
3. Disputes and Tariffs
Disputes over Boeing vs. Airbus subsidies, steel and aluminum tariffs, and digital services taxes have strained relations at times.
The Biden administration and the EU have worked to ease these tensions since 2021, including suspending tariffs in some disputes.
4. Trade Volume
The U.S. and EU are each other's largest trading partners in goods and services.
Goods: Machinery, vehicles, pharmaceuticals, chemicals.
Services: Finance, tech, travel, and intellectual property.
As of recent data, two-way trade in goods and services exceeds $1.1 trillion annually.
5. Data and Digital Trade
Differences in data privacy laws (e.g., GDPR in the EU vs. more fragmented U.S. laws) have led to complications in digital trade.
The EU–U.S. Data Privacy Framework (replacing the invalidated Privacy Shield) is the latest attempt to ensure data flows comply with EU legal standards.