Brussels, 24/02/2012 (Agence Europe) - A bipartisan group of US senators has called for trade ties between the US and EU to be stepped up. Increased trade and investment between the two partners would stimulate further growth, in their eyes, and job creation on both sides of the Atlantic in this period of tightened government budgets.
In a letter sent to US President Barrack Obama on 23 February and co-signed by 18 of his colleagues (including Republican, Rob Portman, the former trade representative during the administration of George W. Bush), John Kerry, the Democrat and chairman of the US Senate's foreign relations committee, stated: “As we take steps to create the conditions for sustained future economic growth, we should make increased trade and investment with the European Union a priority.” Signatories highlighted the fact that the “the United States and the European Union… face continuing fiscal challenges to spur economic growth. To attract investment and create jobs at home, we need to continue to open new markets and innovate, as we face new sources of competition from emerging markets around the world.” The US senators cite a study, carried out by the European Centre for International Political Economy (ECIPE), which estimates that by eliminating remaining tariffs on transatlantic trade in goods, combined gross domestic product of the US and EU could be boosted by $180 billion over five years. This does not include the additional gains which would be possible from expanding trade in services and reducing regulatory barriers - the subject of the work undertaken by the Transatlantic Economic Council (TEC) since 2007.
As part of a high-level discussions launched by the TEC, following the second bilateral summit on 29 November, both Europeans and Americans agreed to examine the possibility of a free trade agreement, to stimulate a trade relationship that is now worth more than $4 trillion and help support growth and job creation in the world's two biggest economies (see EUROPE 10506). The US trade representative, Ron Kirk, and the European commissioner responsible for trade, Karel De Gucht, are heading a workgroup to identify ways of strengthening economic and trade ties by developing new sources of growth. The intermediate conclusions from this group are expected next June, before the submission of a final report at the next EU-US summit at the end of 2012. (EH/transl.fl)