The United States and the European Union resume talks Monday in Brussels, Belgium over a free-trade deal that is set to further strengthen the largest business relationship in the world. The trade pact could produce many jobs and foster economic growth in the US and EU.
Diplomatic differences put aside
As the US and EU begin a second round of trade negotiations, they put aside their diplomatic differences to give way to the trade agreement meeting. The friendly relations between the two camps got strained lately over an allegation that the US was monitoring the mobile calls of German leader Angela Merkel. A week before the scheduled negotiations, US Secretary of State John Kerry asked EU leaders not to let the differences mar the talks that was supposed to take place last month. The delay was caused by the US government shutdown that lasted three weeks.
On the other side, unease also developed when a court in Belgium charged Karel De Gucht, top trade leader of the EU, for tax fraud. But Pia Ahrenkilde Hansen, European Commission spokesperson, said this legal setback would not have any bearing on the trade agreement summit.
Matters to be discussed
The top matters to be discussed in the week-long session will include investment, energy, raw materials, services and regulatory concerns. The bargain is also expected to come up with proposals on tariff decrease. On the whole, the free-trade deal would create numerous opportunities to individuals and institutions as well as benefit both negotiating groups. Once the agreement takes effect, the biggest advantage for both business and consumer sectors would be the lessening of bureaucratic systems that usually results to difficult trade activity to and from the Atlantic.
According to a study conducted in Europe, the red tape system in trade dealings causes as much as 10 to 20% rough increase on the prices of imported products such as vehicles. With the upcoming trade alliance between the US and EU, business people and consumers would no longer bear the brunt of high taxes.
Jobs and economic growth
US President Barack Obama and the EU trade representatives say the free-trade agreement would pave the way to many jobs. With this boost in employment, economic growth is sure to follow. US and EU economies comprise almost 50% of the world financial output. Although the two negotiating blocs are still hurting from recession, they continue to significantly sustain world economy. Between the US and the EU, trade extent last year summed up to a total of €800 billion, or roughly US$1.08 trillion.
Great benefits
US officials and EU leaders believe that the Transatlantic Trade and Investment Partnership (TTIP) has a lot of great benefits for both parties. Negotiators are handling the summit in Brussels in an accomplished manner, not allowing rifts and issues to imperil the talks. TTIP could generate 750,000 jobs in the US while the European Commission approximates it would usher in €120 billion or US$161 billion annually into the 28 trade bloc nations. Meanwhile, Frances Burwell, the Atlantic Council’s director of Transatlantic Relations and Education Programs said TTIP could be a model for other blocs in the world such as China and other nations with rising economy.
Photo Credits:
Flag of the European Union
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