EU and US to Launch “Biggest Trade Deal in History”
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European and U.S. officials launched negotiations on Monday to create one of the world’s most ambitious free-trade zones aimed at creating jobs and boosting growth in the fragile global economic climate.
U.S. President Barack Obama said the first round of talks would take place in Washington next month and pledged to make discussions a “priority of mine and my administration.”
Obama hopes that greater access to the European market for U.S. companies will boost exports and provide a jolt to growth and employment without increasing budget deficits.
European and U.S. officials launched negotiations on Monday to create one of the world’s most ambitious free-trade zones aimed at creating jobs and boosting growth in the fragile global economic climate.
U.S. President Barack Obama said the first round of talks would take place in Washington next month and pledged to make discussions a “priority of mine and my administration.”
Obama hopes that greater access to the European market for U.S. companies will boost exports and provide a jolt to growth and employment without increasing budget deficits.
Related: US Deficit Shrinking Faster Than Expected: CBO
“There are going to be sensitivities on both sides … but if we can look beyond the narrow concerns to stay focused on the big picture … I’m hopeful we can achieve (a deal),” said Obama.
While EU leaders admit the negotiations will be “difficult”, they believe it can be wrapped up within two years – an ambitious target for such complex international treaties.
But if an agreement is secured, the FTA could become one of the world’s largest: bilateral trade in goods reached some 500 billion euros ($668 billion) last year, with another 280 billion euros in services and trillions in investment flows.
Related: EU and US Inch Closer to Transatlantic Trade Pact
The EU-US trade agreement has been touted as an inexpensive way to jump-start two continental economies struggling with slow growth and high unemployment, and the initiative could also help defuse criticism that the U.S. is neglecting traditional allies in Europe as it shifts its strategic focus to Asia.
The combined commercial clout of the EU and U.S. should also allow them to set standards for the global economy for years to come, checking the rise of emerging powers such as China and India.
The London-based Centre for Economic Policy Research estimates a pact – to be known as the Transatlantic Trade and Investment Partnership – could boost the EU economy by 119 billion euros a year, and the U.S. economy by 95 billion euros.
“We are talking about what could be the biggest bilateral deal in history. This is a once-in-a-generation prize and we are determined to seize it,” said British Prime Minister David Cameron before the start of the G8 summit.
But France on Monday kept up with its insistence that the audiovisual and cultural sectors be exempted from negotiations and eventually won a temporary exclusion for such industries.
EU officials have repeatedly warned that excluding any industry from the agreement could hand the United States an early bargaining chip in the negotiations. U.S. officials say no areas should be exempted from the talks though there have been suggestions that it may seek an exception for some financial services.
“It is important that we get it right and that means resisting the temptation to downsize our ambitions or avoid tough issues just for the sake of getting a deal,” said Obama.
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Related: France Wary Of ‘Rushed’ EU-US Free Trade Talks
