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The Potential Impact of a Transatlantic Free Trade Agreement on the EU and its Member States - A study of trade indicators

Uneken, Leonie LU (2013) NEKH01 20132
Department of Economics
Abstract (Swedish)
In February 2013, the United States and the European Union announced to start negotiations on a comprehensive Transatlantic Trade and Investment Partnership. If these negotiations lead to a free trade agreement between the United States and the European Union, the two markets together will form the largest trading bloc in the world. The US and EU are already each other’s main trading partners and the formation of an FTA including the removal of all tariffs, but also cooperation on other levels such as non-tariff barriers, Foreign Direct Investment, the labor market and the environment aims to strengthen this relationship even more.
The aim of this study is to provide an overview and analysis of what the trade statistics of today can tell... (More)
In February 2013, the United States and the European Union announced to start negotiations on a comprehensive Transatlantic Trade and Investment Partnership. If these negotiations lead to a free trade agreement between the United States and the European Union, the two markets together will form the largest trading bloc in the world. The US and EU are already each other’s main trading partners and the formation of an FTA including the removal of all tariffs, but also cooperation on other levels such as non-tariff barriers, Foreign Direct Investment, the labor market and the environment aims to strengthen this relationship even more.
The aim of this study is to provide an overview and analysis of what the trade statistics of today can tell us about the potentials of such an agreement for the EU as a whole and for the 27 member states of the EU27. The method used for this purpose is the analysis of trade indicators; indices or ratios that can be used to describe and analyze trade flows and trade patterns both statically and over time. This study analyzes if the current trade relationship of the EU27 and the US is relatively intense and if the two economies can be seen as natural trading partners or rather as natural competitors.
The results from the study are, just like the results from other previous studies that have used different methods, mainly positive. For both the EU as a whole and for most EU countries, the indices show us proof of a natural trading relationship with the US and scope for intensification of this relationship. The results from the trade indicators used indicate that an FTA between the EU and US is likely to intensify natural trading relationships rather than to divert trade flows away from other economies. However, the results also show that there are significant differences between the EU27 countries regarding their trade relationship with the US and their potential for gains from an FTA.
This study is a partial analysis of the potentials of a Transatlantic Trade and Investment Partnership. The study focusses mainly on the effects from tariff removal while many other factors, that are included in the agreement that is currently being negotiated, are not analyzed. The study also does not quantify the potential gains in welfare, but rather aims to identify where in the EU the potential gains can be expected to be higher or lower. (Less)
Please use this url to cite or link to this publication:
author
Uneken, Leonie LU
supervisor
organization
course
NEKH01 20132
year
type
M2 - Bachelor Degree
subject
keywords
European Union, United States, transatlantic trade, trade agreements, trade indicators
language
English
id
4121519
date added to LUP
2013-10-30 13:42:30
date last changed
2013-10-30 13:42:30
@misc{4121519,
  abstract     = {In February 2013, the United States and the European Union announced to start negotiations on a comprehensive Transatlantic Trade and Investment Partnership. If these negotiations lead to a free trade agreement between the United States and the European Union, the two markets together will form the largest trading bloc in the world. The US and EU are already each other’s main trading partners and the formation of an FTA including the removal of all tariffs, but also cooperation on other levels such as non-tariff barriers, Foreign Direct Investment, the labor market and the environment aims to strengthen this relationship even more.
The aim of this study is to provide an overview and analysis of what the trade statistics of today can tell us about the potentials of such an agreement for the EU as a whole and for the 27 member states of the EU27. The method used for this purpose is the analysis of trade indicators; indices or ratios that can be used to describe and analyze trade flows and trade patterns both statically and over time. This study analyzes if the current trade relationship of the EU27 and the US is relatively intense and if the two economies can be seen as natural trading partners or rather as natural competitors. 
The results from the study are, just like the results from other previous studies that have used different methods, mainly positive. For both the EU as a whole and for most EU countries, the indices show us proof of a natural trading relationship with the US and scope for intensification of this relationship. The results from the trade indicators used indicate that an FTA between the EU and US is likely to intensify natural trading relationships rather than to divert trade flows away from other economies. However, the results also show that there are significant differences between the EU27 countries regarding their trade relationship with the US and their potential for gains from an FTA. 
This study is a partial analysis of the potentials of a Transatlantic Trade and Investment Partnership. The study focusses mainly on the effects from tariff removal while many other factors, that are included in the agreement that is currently being negotiated, are not analyzed. The study also does not quantify the potential gains in welfare, but rather aims to identify where in the EU the potential gains can be expected to be higher or lower.},
  author       = {Uneken, Leonie},
  keyword      = {European Union,United States,transatlantic trade,trade agreements,trade indicators},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Potential Impact of a Transatlantic Free Trade Agreement on the EU and its Member States - A study of trade indicators},
  year         = {2013},
}