A U.S.-EU Free Trade Agreement: Far-Reaching Opportunities
A U.S.-EU free trade agreement, with negotiations to begin later this year, will improve U.S. competitiveness in technology-intensive manufacturing industry, which accounts for 80 percent of U.S.-EU merchandise trade, as well as in related business services, which account for half of services trade. The talks for the agricultural and energy sectors will involve trade liberalization related to far-reaching technological change. Thus, the negotiations will focus on non-tariff barriers and regulatory policies that restrict trade and investment in such technology-oriented sectors.
In this report, Ernie Preeg explains how this agreement can serve as a template for a broader, plurilateral free trade agreement within the World Trade Organization. He further recommends that the agreement be linked to a policy commitment to act jointly to restore market-based exchange rates so as to avoid the adverse trade impact from currency manipulation by others. It will be a difficult agreement to achieve, and will require high-level, forward-looking leadership on both sides of the Atlantic.
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Manufacturing executives, policymakers, the media, and the association community rely on the MAPI Foundation’s unbiased research, forecasting, and rich analyses to gain unbiased insight into the challenges and opportunities facing the manufacturing sector. Our highly respected economists and business analysts use proprietary models to generate regular forecasts for global manufacturing activity. They also produce data-driven policy analyses that provide insights into major topics influencing manufacturing competitiveness, including energy, tax, the labor market, global trade, innovation, and regulations. Our team regularly delivers keynote presentations at major industry events and board meetings, and for major media outlets we serve as a trusted expert on the manufacturing economy.
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