European Union

European Union FlagThe U.S. economic relationship with the EU is the largest and most complex in the world, generating trade flows of about $3.6 billion a day [2010] and transatlantic investment is directly responsible for roughly 7.1 million jobs [2008 estimate].  This enormous volume of transatlantic trade and investment promotes economic prosperity on both sides of the Atlantic and in the dozens of other countries that trade with the transatlantic partners.  The United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.

Although disagreements affect only a small fraction of total U.S.-EU trade and investment, several EU trade restrictions have received significant attention from the U.S. Government in recent years.  Barriers to access for key U.S. agricultural exports continue to be a source of particular frustration.  Even where its agricultural tariff barriers are relatively low, the EU has restricted or excluded altogether U.S. exports of commodities such as beef, poultry, soybeans, pork, and rice through nontariff barriers or regulatory approaches that do not reflect science-based decision-making or a sound assessment of actual risks to consumers or the environment.  The United States continues to be concerned about EU and member state measures that subsidize the development, production, and marketing of large civil aircraft.  The 2009 USTR Annual Report and the 2009 National Trade Estimate Report also outline concerns of U.S. exporters with respect to certain EU policies that could disrupt trade in critical sectors, such as the new EU chemicals regulation, REACH.

Key Trade and Investment Data and Trends

U.S. exports to the EU accounted for 21 percent of overall U.S. exports in 2008.  U.S. imports from the EU accounted for 18 percent of overall U.S. imports in 2007.  The U.S. purchased 19 percent of all EU exports and supplied 12 percent of all EU imports in 2008.

Trade in goods.  The U.S. goods trade deficit with the EU was $93.4 billion in 2008, a decrease of $13.8 billion from $107.2 billion in 2007.  U.S. goods exports in 2008 were $274.5 billion, up 11.0 percent from the previous year, and up 149 percent from 1994 (the year prior to the conclusion of the Uruguay Round). Corresponding U.S. imports from the EU were $367.9 billion, up 3.8 percent from 2007, and up 202 percent over the last 14 years.

Exports EU

Imports EU

Trade in services.  The United States had a commercial services trade surplus of $46.1 billion with the EU in 2007 (latest data available).

U.S. exports of commercial services (i.e., excluding military and government) to the EU were $179.2 billion in 2007 (latest data available), up 19.7 percent ($29.5 billion) from 2006, and up 221 percent ($123.4 billion) since 1994. Other private services (business, professional, technical, and financial), royalties and license fees, and travel categories accounted for most U.S. services exports to the EU in 2007.

Sales of services in the EU by majority U.S-owned affiliates were $402.5 billion in 2006 (latest data available), while sales of services in the United States by majority EU-owned firms were $336.0 billion. Intrafirm trading - trade that takes place within the same company - accounts for approximately one-third of total U.S. trade with the EU.

Agricultural trade.  U.S. exports of agricultural products to EU countries totaled $8.8 billion in 2008.  The EU countries together rank 5th as an agricultural export market for the United States.  Leading categories include: soybeans ($1.6 billion), tree nuts ($1.5 billion), coarse grains ($571 million), and processed fruit and vegetables ($530 million).

U.S. imports of agricultural products from EU countries totaled $15.5 billion in 2008.  The EU countries together rank 2nd (after Canada) as a supplier of agricultural imports to the United States.  Leading categories include: wine and beer ($5.0 billion), essential oils ($2.2 billion), other vegetable oils (besides tropical oils) ($987 million), snack foods (including chocolate) ($923 million), and cheese ($862 million),

Investment.  U.S. and EU investors together owned roughly $2.7 trillion in direct investment in each other's economy in 2007.  U.S. foreign direct investment (FDI) in the EU totaled $1.4 trillion in 2007  (latest data available), a 15.9 percent increase over 2006, and EU FDI in the United States was worth $1.3 trillion that year, an 11.9 percent increase over 2006.  U.S. FDI in EU countries is primarily concentrated in nonbank holding companies, finance, and the manufacturing sector.  EU countries' FDI in the United States is mostly in the manufacturing, finance, wholesale trade, and banking sectors.

The EU countries with the largest FDI in the United States are the United Kingdom, Germany, the Netherlands, and France.

 


U.S.-EU Shared Principles for International Investment

The United States and the European Union (EU) together, under the auspices of the Transatlantic Economic Council, developed Shared Principles for International Investment. These principles reaffirms our joint commitment to open, transparent, and non-discriminatory international investment policies. International investment, both by American companies abroad and by foreign companies in the United States, benefits U.S. companies and American workers by creating high-paying jobs, boosting exports, and spurring innovation in the United States.

Shared Principles for International Investment

United States-European Union Trade Principles For Information and Communication Technology Services

A U.S. government negotiating team led by the Office of the United States Trade Representative reached agreement with the European Commission on April 4, 2011 on a set of non-binding trade-related principles for information and communication technology (ICT) services. The United States and the European Union (EU) will jointly promote the adoption of these principles by other countries.

The principles agreed to will, if widely adopted, support the global development of ICT services, including Internet and other network-based applications that are critical to innovative e-commerce, Internet search and advertising, data storage, and other services. The principles address transparency in legislation and regulation; open access to networks and applications; the free flow of information across borders; foreign investment in ICT sectors; facilitating the cross-border supply of services; the efficiency of spectrum allocation; the independence of regulatory authorities; the granting of operating licenses; interconnection between suppliers of basic public telecommunication services; and international cooperation. Each of the principles expresses an approach to policy and regulation in the ICT sector that is broadly shared by the United States and the EU.

The text of the principles can be found here.