David Francis writes:
The U.S. and European Union together already account for nearly half of global GDP and a third of global trade flows, with some $2.7 billion worth of goods and services exchanged daily. [A trade agreement] …..would increase trade between the partners by $120 billion within five years, according to a study by the U.S. Chamber of Commerce. At the same time, it would add some $180 billion to U.S.-EU gross domestic product. Estimates put forth by the European Commission suggest a new trade pact could increase annual GDP by 0.5 percent in the EU and 0.4 percent in the U.S. by 2027.
Read more at U.S.-EU Trade Deal: Obama Makes Risky Bet on Europe’s Future | Fiscal Times.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
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with the cultural and historical connections between the U.S. and Europe, increased trade with Europe will occur with or without a new trade pact. The unions in the U.S. don’t mind European trade because of the heavy union influence on both ends. What the U.S. needs is more trade with high growth economies and with regions that have not historically provided opportunity for trade (i.e. China, southeast Asia, India and Latin America). But the unions oppose pacts with these regions for fear of job losses.
As usual, Obama’s proposals sound good on the 6 O’clock news but make so little impact on joblessness in the U.S.
I would add that the US needs a weaker dollar to protect manufacturing jobs. That would make trade deals with high growth economies more acceptable.