Top Five European and North American Trans Atlantic Business Benefits
The European Union’s (EU) trade deals with the US comprise the transatlantic partnership, the trans-Mediterranean, the transatlantic economic partnership as well as the trans-Pacific Partnership. These agreements have proven to be quite beneficial for businesses in Europe but the agreement on the free movement of goods and services between the EU and the US is often considered to be one of the most important. This accord has also become a pillar of the EU’s foreign policy making. The trans-Atlantic partnership is the largest and covers almost the whole of the eastern part of the globe except the South Pacific.
The main focus of the trans-Atlantic partnership is on reducing trade barriers. The principle goal of the EU is to become the most open and free market for goods and services while at the same time reducing trade barriers between the EU and the US. As a result, both parties reap benefits from this free trade association. In Europe, consumers benefit from cheaper products because the cost of transport from the US to the EU is lower than the cost of transport to the EU. The European Union also reduces its import duties on goods coming from the US by over half.
The transatlantic organization benefits directly from the low price and free trade environment that has been created by the EU. The main effect has been to reduce the cost of doing business in Europe considerably because it eliminates the excessive protectionist tendencies seen in certain European countries. Some of the major business benefits that have resulted are cheaper goods, easier financial transactions, improved services and jobs, liberalization of intellectual property rights, better access to international markets, liberalization of measures concerning state control of the economy and protection from nuclear proliferation.
The transatlantic free trade area is closely linked to the Eurozone. The common currency used in Europe, the Euro, acts as a common market for the transport, finance and information sectors of Europe. Many companies are able to flourish in the Eurozone because they do not have to maintain or create separate rules for businesses operating from euro area.
The third-largest economic partner of the EU is the North Atlantic region – the United States. The US is the largest single foreign investment in the EU after the UK and Germany. Many transatlantic businesses either derive most of their profits from the US or depend very much on the US for their growth and success. Many of the largest transatlantic business benefits are reaped when Europe and the US successfully promote their respective economic interests through the World Trade Organization. The transatlantic free trade area has therefore played a major role in the worldwide success of the EU and the US.
The fourth largest economic partner of the EU and the US is Canada. The two-way trade deficit with Canada is close to three billion dollars a year. Like the US, Canadian exports are mainly based on the energy, chemical and agricultural sectors. In addition, the main source of Canadian imports is the US and this bilateral trade has been a key factor in the North American economy over the last 30 years. Some of the major Canadian transatlantic business benefits of the past few years include access to the US markets for softwood lumber and other commodities, an open market for Canadian automobiles, dairy products and other important agricultural products, preferential treatment in the labour and immigration market and preferential treatment in the internal market for Canadian entrepreneurs.
The fifth largest partner of the EU and the US is Germany. Germany is a crucial partner both economically and politically for the EU. The German economy depends on exports of goods and services to the European countries, whereas the German industry is highly integrated. The main sources of transatlantic trade exports of goods and services to the European countries, principally to the UK, France, Italy and Spain. The other main sources of import and exports are pharmaceuticals, petroleum and other chemicals, agricultural produce, fish and seafood, machinery and mechanical equipment and vehicles.
The sixth largest member of the European Union, Canada, like Germany, is a major member of the transatlantic trade but has yet to reach the top 10 in terms of exports and imports. Despite having a smaller economy than Germany, Canada has a transatlantic trade that is nearly as large as Germany’s. Canada’s main source of import and export revenues is the US, but some of its most important trading partners are Mexico and New Zealand. Like the other countries in the area, Canada enjoys a solid economic growth, low unemployment and a stable financial and political status.