The EU and The US are to negotiate a free trade agreement in June setting the stage for the most ambitious international trade deal since the World Trade Organization founding in 1995. From one part the EU is fighting with euro crisis and from the other part, the US needs to export in the EU for creating new jobs and also keeping the middle class financially alive in the country:
The United States and European Union aim to start negotiating a vast Transatlantic free trade pact by June, though the plan confirmed on Wednesday faces many hurdles before it might help revive the world’s top two economies. A deal would be the most ambitious since the founding of the World Trade Organization (WTO) in 1995, embracing half of world output and a third of all trade. In Brussels, EU Commission President Jose Manuel Barroso said: “These negotiations will set a standard, not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules.” Once the U.S. Congress is notified and all 27 EU states assent to the talks going ahead, the sides hope for a deal by the end of 2014 – a tight deadline in international trade talks. A decade of argument among all world governments in the Doha round of trade negotiations has so far resulted in deadlock.
The EU, US free trade negotiations put political and trade pressure on Canada for concluding its own free trade agreement with the European Union with a given emphasis on pharmaceutical patents and government contracts. Every major commercial player in the world wants the advantages of free trade:
The spectre of the United States and Europe joining forces in a sweeping free-trade union ratchets up pressure on Canada to conclude its own transatlantic deal in the next couple of months. After nearly three years of negotiations, Canada and the European Union are close to reaching a final agreement. But a handful of politically tricky issues remain unresolved, including access for Canadian beef and cars in Europe, how much duty-free European cheese gets into Canada, plus pharmaceutical patents and government contracts. Both sides have good reasons to want a deal soon. Europe wants to lay the groundwork for its looming negotiations with the United States, expected to start in June. Europe is also poised to open free trade talks with Japan in April. “It puts the squeeze on us to get going and finish our deal with the EU,” agreed John Weekes, a former top Canadian trade negotiator and now an adviser with law firm Bennett Jones in Ottawa.
More importantly, the EU-US negotiations include domestic and foreign policy issues and posed to be a “game-changer” for international trade and global economy according to José Manuel Barroso:
As President Obama begins his second term, this is the right moment for the United States and the European Union to work together even more closely on a number of issues relevant to both their domestic and foreign policy agendas. The most immediate way to boost our transatlantic relationship is to follow through on an EU-US free trade agreement. We came an important step closer with President Obama announcing in his State of the Union address last night the launch of direct talks between us to reach that goal. It was followed up by European Commission President José Manuel Barroso today giving a strong endorsement to these talks, saying “a future deal between the world’s two most important economic powers will be a game-changer, giving a strong boost to our economies on both sides of the Atlantic.”
Finally, the development of commercial activities regionally and internationally via free trade agreements can change current global realities…