By Peter Sparding, Special to CNN
Editor’s note: Peter Sparding is a Transatlantic Fellow for economic policy at the German Marshall Fund of the United States in Washington, DC. The views expressed are the writer’s own.
It was a brief passage in the State of the Union address, but it might well prove to be one of the more consequential. In one short sentence, President Barack Obama informed Congress about his intention to launch negotiations on a Transatlantic Trade and Investment Partnership with the European Union. For decades advocates on both sides of the Atlantic have been arguing for a more comprehensive agreement. Now it finally seems within reach.
The case for closer economic ties across the Atlantic is strong. The United States and Europe remain each other’s most important economic partners, and together are responsible for almost 50 percent of the world’s GDP and 30 percent of global trade. Europe accounts for half of U.S. investments abroad – some $2.1 trillion in 2011 – and remains the most important source of foreign direct investment in the United States. More than 13 million jobs on both sides of the Atlantic are supported by transatlantic trade and investment.
Trade barriers are already low between the United States and Europe, but the size and interdependency of the transatlantic economy means that even small improvements could yield significant gains. According to a study commissioned by the European Commission, eliminating or harmonizing half of all remaining non-tariff restrictions on transatlantic trade would add 0.7 percent to the EU’s and 0.3 percent to the American economy by 2018.
More from CNN: Glimmer of hope for Europe economy
Opening more opportunities for trade in services between the two sides, meanwhile, could create considerable gains, as services account for more than 70 percent of EU and U.S. GDP. To be sure, a transatlantic deal would not solve all economic problems on either side of the Atlantic. But as fiscal conditions tighten and unemployment numbers remain stubbornly high, policy makers can hardly afford to pass on such an economic stimulus.
And there’s more. A successful Transatlantic Trade and Investment Partnership could lead to much needed progress for global trade at a time when multilateral negotiations have come to a standstill. As a 2012 joint report by the German Marshall Fund and the European Center for International Political Economy noted, the U.S. and Europe “remain giants of the world economy and the global players still best equipped to provide global economic leadership.” The sheer size of the transatlantic economy means that any agreement between the United States and Europe will be too significant to ignore elsewhere.
It’s clear that the standards set in such a comprehensive deal would have global implications and could help to promote rules-based principles and international norms on everything from intellectual property rights to labor and environmental standards. In addition, a EU-U.S. trade agreement could breathe new life into the transatlantic relationship at a time when Washington is pivoting to Asia and Europe remains mired in a deep economic crisis.
For sure, none of this will be easy, and some of the trickiest hurdles remain – from agriculture and regulatory issues to government procurement. But a transatlantic trade deal already has robust support in Europe from both German Chancellor Merkel and British Prime Minister Cameron. Now, with the U.S. president joining his European counterparts in supporting a deal, the visionary leadership necessary for taking the transatlantic relationship might finally be there.
Time to breath new life into ties with Europe, you say. I say it's high time that we quit trying to control Europe and let those bumbling idiots over there make their own policies and decisions. Moreover, we need to pull our troops out of Germany like the Russians did back in 1989 and replace them with Czech, Hungarian and Polish troops if the Germans are so adamant on having foreign troops on their soil!
"A successful Trans-Atlantic Trade and Investment partnerships.....".
Yes, although Africa Contributes much of the World past and current natural resources, that brought US developments, Europe also produces and breeds, the key agents or Organic-genius creative Human-beings, that contributes to the Whole World, any types of High-Tech Technologies,...
Finally, we are getting good combination fruits from AFRO-North-American-Euro, for the coming generations, to enjoy.
UNITY = POWER
"WELL-COME TO AMERICA!", (President George Walker Bush, the great).
The idea makes sense. Yet the US and the EU have to put their act together. When it comes to agricultural produces, there will be dissent on both sides of the Atlantic, as the EU has a stringent regulatory framework. Of course the horse-meat scandal right now is an embarrassment, but in other fields the EU and the US have a lot to offer each other and will make a great team.
I once made a trip to Europe and sampled some of their finer quisine. Afterwards a pooped it all out in a lake up north called Loch Ness in the Scottish Highlands. There have been sightings of it from time to time...
The Global Public Square is where you can make sense of the world every day with insights and explanations from CNN's Fareed Zakaria, leading journalists at CNN, and other international thinkers. Join GPS editor Jason Miks and get informed about global issues, exposed to unique stories, and engaged with diverse and original perspectives.
Every week we bring you in-depth interviews with world leaders, newsmakers and analysts who break down the world's toughest problems.
CNN U.S.: Sundays 10 a.m. & 1 p.m ET | CNN International: Find local times
Buy the GPS mug | Books| Transcripts | Audio
Connect on Facebook | Twitter | GPS@cnn.com
Buy past episodes on iTunes! | Download the audio podcast
Check out all of Fareed's Washington Post columns here:
Obama as a foreign policy president?
Why Snowden should stand trial in U.S.
Hillary Clinton's truly hard choice
China's trapped transition
Obama should rethink Syria strategy
Enter your email address to follow this blog and receive notifications of new posts by email.
RSS - Posts
Get every new post delivered to your Inbox.
Join 4,855 other followers