The United States (USA) and the European Union (EU) have had cooperation on trade, military defense and shared values for many years. Their main cooperation area is trade, the USA has exported $501 billion and imported $592 billion creating a $92 billion deficit (in 2016).
According to the latest European Parliament report, the bilateral relations they have are facing important disruptions in the short term but not in the long term due to the shared values both parties have.
Here are four of the short term problems the two superpowers are facing:
- The TTIP Agreement: The TTIP is a proposed trade agreement between both, the US and the EU, with the aim of promoting trade and multilateral growth. Both seem not to come to a final agreement because of how far away the administrations are at the moment (Trump & the EU representatives).
- The influence of Brexit on US and EU relationships: The USA has tried to influence the UK and disrupt other EU members and that’s something that has not settled to well in the European Union. Creating a lot friction between the two.
- The take on climate change: The EU is trying to move into a more sustainable model. However, the US and the Trump administration have no intention of moving in that direction.
- US tariffs are affecting the EU: Regardless of the lack of agreement between the EU and the US. The newly imposed tariffs the US is carrying out due to the trade war they are having with China are highly affecting EU businesses and trade.
The future is uncertain. Now is the time to remember what brings us together and not what drives us apart.
https://ec.europa.eu/trade/ for more information on EU trade. https://usatrade.census.gov/ for more information on US trade.