Transatlantic Trade and Investment

[dimpy.handa]

The United States and the European Union (EU) have the largest combined trade and investment relationship in the world. If intra-EU trade (trade among EU members) is included along with the EU's external trade, the United States and the European Union account for more than half of world trade in goods. They also account for more than half of world GDP.

As traders, however, the United States and the European Union account for only about one-fifth of each other's exports and imports. 1995 U.S. trade with the EU-15 was slightly below trade with Canada. In recent years the two sides have become less important to each other as trade with developing countries has mushroomed

 

[swatiraohnlu]

Many of the obstacles US and European traders and investors face are of a similar
nature. Exchange rate fluctuations are a risk factor on both sides of the Atlantic, albeit one that is relatively difficult to deal with at the policy level in the shortterm. At the same time, regulatory barriers continue to pose problems in various areas, both in Europe and in the US. Indeed, as tariffs have been gradually reduced, non-tariff barriers have become the focus point for further trade and investment facilitation. This includes regulatory issues linked to technical standards and certification, labelling and advertising rules, different standards, customs procedures etc.