EU Trade Relations with the United States: Facts and Figures

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The European Union (EU) and the United States share the most extensive bilateral trade and investment relationship worldwide, forming the most integrated economic partnership. Although China surpassed the US in 2020 as the EU's largest trading partner in goods, the US remains the EU’s primary partner in services and investments.

KEY POINTS:

Together, the EU and US constitute about one-third of global trade in goods and services and nearly one-third of global GDP in purchasing power terms.
They serve as the principal trade and investment partners for numerous countries globally.

TRADE PICTURE

Bilateral trade and investment between the EU and the US support millions of jobs across both regions:

Approximately 9.4 million people are directly employed, with up to 16 million jobs indirectly supported.
The EU-US trade relationship has remained resilient despite the economic challenges posed by the COVID-19 pandemic.
Transatlantic trade reached an unprecedented €1.2 trillion in 2021, exceeding pre-pandemic levels by over 10%.

KEY FIGURES:

2022 Overview:

U.S. goods and services trade with the EU totaled an estimated $1.3 trillion.
U.S. exports were $592.0 billion, while imports were $723.3 billion, resulting in a trade deficit of $131.3 billion.

Goods Trade:

U.S. goods exports to the EU reached $350.8 billion in 2022, marking a 28.8% increase from 2021 and a 66% rise from 2012.
U.S. goods imports from the EU totaled $553.3 billion, up 12.8% from 2021 and 69% from 2012, with a goods trade deficit of $202.5 billion.

Services Trade:

U.S. exports of services to the EU were estimated at $241.2 billion in 2022, a 19% increase from 2021 and 18% higher than in 2012.
U.S. imports of services from the EU were about $170.0 billion, up 29.4% from 2021 and 5% more than in 2012, leading to a services trade surplus of approximately $71.2 billion.

INVESTMENT RELATIONS

Foreign Direct Investment (FDI):

U.S. FDI in the EU stood at $2.7 trillion in 2022, a 5.5% increase from 2021, predominantly in nonbank holding companies, manufacturing, and finance and insurance sectors.
EU FDI in the U.S. amounted to $2.4 trillion in 2022, up 4% from 2021, primarily in manufacturing, finance and insurance, and wholesale trade sectors.

THE EU AND THE UNITED STATES

Following the 2021 EU-US summit, both regions committed to a renewed transatlantic partnership focusing on global health, green growth, enhancing trade ties, and fostering democratic values for a more secure world.

THE EU-US TRADE AND TECHNOLOGY COUNCIL (TTC)

The EU-US Trade and Technology Council was established on June 15, 2021, to deepen trade and economic relations:

Key Objectives:

Strengthening semiconductor supply chains.
Addressing non-market trade practices.
Developing unified technology regulations while respecting regulatory autonomy.

Collaborative Actions:

Sharing information on investment trends and risks.
Advancing secure digital connectivity.
Supporting SMEs in accessing digital tools.

Since its inception, the TTC has facilitated regular discussions, including a ministerial meeting in May 2022 in Paris-Saclay. These discussions span 10 working groups, focusing on various issues like technology standards, supply chain security, export controls, and investment screening.

NEGOTIATIONS AND DISPUTES

Despite being major trade partners, the EU and the US do not have a dedicated free trade agreement. The Transatlantic Trade and Investment Partnership (TTIP) negotiations started in 2013 but concluded without an agreement in 2016. However, the trade relationship continues under World Trade Organization (WTO) rules with low average tariffs (below 3%).

RESOLVING DISPUTES:

Only about 2% of EU-US trade is affected by current disputes.
The 2021 EU-US summit saw progress in resolving long-standing trade disputes, including the Airbus-Boeing conflict, with a cooperative framework and a suspension of related tariffs for five years.
The EU and US have also initiated discussions on a Global Sustainable Arrangement on Steel and Aluminium, pausing related disputes and working towards the decarbonization of these industries to combat climate change.