The United States and the European Union stand as the titans of global commerce, forging the most substantial bilateral trade and investment partnership worldwide. Their economic bond is deeply interwoven, making them each other’s foremost trading partners when considering goods, services, and investments. This robust transatlantic relationship fuels millions of jobs in the US and positions the EU as a critical supplier to the United States, providing essential medicinal ingredients, advanced machinery, and aerospace components. Conversely, the EU’s significant appetite for US natural gas and oil is pivotal for transatlantic energy security and a unified front against geopolitical challenges like Russia’s aggression in Ukraine.
The Transatlantic Trade Landscape
- The trade relationship spanning the Atlantic is undeniably the cornerstone of global commerce.
- In 2023, the exchange of goods and services between the EU and the US reached a staggering €1.6 trillion, translating to approximately €4.4 billion crossing the Atlantic daily.
- The EU-US trade in goods and services demonstrates remarkable balance, with a marginal difference of €48 billion in 2023 between EU exports to the US and US exports to the EU – a mere 3% of their total trade volume.
- Goods trade alone amounted to €851 billion in 2023, with the EU exporting €503 billion to the US and importing €347 billion, resulting in a €157 billion trade surplus for the EU.
- Services trade between the EU and US reached €746 billion in 2023. The EU’s services exports to the US were €319 billion, while imports from the US totaled €427 billion, leading to a services trade deficit of €109 billion for the EU.
- Beyond trade, the EU and US are major investment allies. In 2022, EU and US companies held €5.3 trillion in investments within each other’s markets.
- US exports to the EU bolster 2.3 million jobs in the United States, while EU firms operating in the US provide employment for 3.4 million Americans. More details can be found on the EU’s Business Footprint in the United States Project.
EU-US Relations: A Deeper Dive
Recent US Policy Statements and EU Responses
The EU-US Trade and Technology Council (TTC)
Established at the Brussels summit on June 15, 2021, the EU-US Trade and Technology Council (TTC) serves as a crucial platform for collaboration. The most recent ministerial meeting convened in Leuven on April 4-5, 2024. The TTC facilitates the alignment of EU and US strategies on significant global trade, economic, and technological matters. It aims to strengthen transatlantic trade and economic ties grounded in shared democratic principles.
Further information regarding Trade and Technology Council events is available on the Commission’s Futurium website.
Trade Negotiations and Future Prospects
Despite the US being the EU’s largest trade and investment partner, a dedicated free trade agreement remains absent. Negotiations for the Transatlantic Trade and Investment Partnership (TTIP) commenced in 2013 but were halted in 2016 without reaching a conclusion. The TTIP negotiations were formally closed in 2019.
