Managing Global Transitions (Sep 2014)
Transatlantic Conflict and Cooperation Concerning Trade Issues
Abstract
The United States and the European Union are major players in the global economy. Economic relations between them are both extensive and deep. They account for about 45 percent of world Gross Domestic Product, 30 percent of world foreign direct investment flows, and 70 percent of world FDI stocks. Given their importance in the world economy, and their importance to each other’s economies, it is critical that they cooperate with each other and keep conflict to a minimum. Fortunately, their trade disputes have been relatively few and have for the most part been settled amicably. Attempts to attain deeper economic integration have met with mixed success. The current negotiations for a Transatlantic Trade and Investment Partnership have potential for deepening their economic relationship, but care should be taken not to push beyond what is politically feasible.
