EU and US trade deal nears completion
A bilateral trade deal between the European Union and the United States has taken a step further towards closing after a week of trade talks in Brussels.
Numerous obstacles remain in the way, but according to EU officials if the deal is agreed it will be the biggest trade relationship in the world. At a value of more than 2bn euros (£1.7bn) a day, it could also shape the future of global trade.
Both the U.S and the EU understand the economic gains that will arise as a result of facilitating trade across the Atlantic Ocean. The European Commission has estimated that the total financial gains could be more than €300bn annually.
The obstacles that are preventing the deal being signed are mainly focused on regulation – the aspect that will be the most profitable. Ensuring that every piece of legislation is in line with the new trade deal is key in making it a success.
Currently businesses working internationally between the U.S and the EU have to comply with two lots of bureaucracy. These regulations exist predominantly for safety reasons but it does make the process of conducting business between the two markets more difficult and time consuming. By lining up the safety levels so that they correspond between America and Europe, the standards will be the same and business will be expedited.
This “mutual recognition” already exists in the European Union, promoting trade between member countries to strengthen the internal economy. However, in some areas the conflicting politics make “mutual recognition” impossible. The bilateral enterprises that have previously been established with the EU and U.S make the agreement much more manageable, but the finalities of the trade deal between the two biggest economies in the world have yet to be decided.