#US-EUTradeAgreement
The U.S.-EU Trade Agreement refers broadly to the trade and economic relationship between the United States and the European Union, two of the world's largest economies. While there is no single, comprehensive free trade agreement between them (like the USMCA or EU-Japan EPA), there are multiple frameworks and ongoing negotiations shaping this relationship.
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🔹 Current Status of US-EU Trade Relations (as of 2025)
1. Transatlantic Trade and Investment Partnership (TTIP)
Launched in 2013, TTIP was a proposed trade deal to reduce tariffs and regulatory barriers.
Stalled in 2016 due to political opposition and concerns over standards, transparency, and sovereignty.
Not revived formally under recent U.S. or EU administrations.
2. Trade and Technology Council (TTC)
Established in 2021 to strengthen cooperation on:
Technology standards
Supply chains
Export controls
AI and digital trade
Still active in 2025, but progress is slow due to differing priorities (e.g., data privacy, digital taxation).
3. Sectoral Agreements
Some specific areas of cooperation include:
Aircraft tariffs: A long-running Boeing-Airbus dispute was paused in 2021; duties were suspended for 5 years.
Steel and aluminum: In 2021, the U.S. and EU reached a deal to replace tariffs with a tariff-rate quota system.
Data privacy: The EU and U.S. reached the EU-U.S. Data Privacy Framework in 2023 to allow safer transatlantic data transfers.
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🔸 Key Trade Facts
EU is the U.S.'s second-largest trading partner (after China).
Total trade (goods and services) exceeded $1.2 trillion in 2024.
Major U.S. exports to the EU: Aircraft, machinery, pharmaceuticals, energy.
Major EU exports to the U.S.: Cars, machinery, chemicals, food & drink.
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🔶 Challenges
Digital services taxes imposed by some EU countries affect U.S. tech firms.
Environmental standards and climate regulations differ.
Subsidies like those under the U.S. Inflation Reduction Act are controversial in the EU.