17 Jun
2013
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Free Trade Between EU and US

At the recent G8 summit President Obama and PM Cameron discussed starting talks about establishing a free trade agreement between the European Union and the United States. The first negotiations would start on July 8th of this year and they hope by 2014 to have an agreement. “America and Europe have done extraordinary things before and I believe we can forge an economic alliance as strong as our diplomatic and security alliances, which of course are the most powerful in history,” said Obama.

France, which blocked the idea in the 1990s, is threatening to block the agreement again. They are afraid of the cultural competition from Hollywood and online entertainment. Nice to know the French haven’t changed.

The agreement is excepted to create 2 million jobs for the two sides of the Atlantic. Trade between EU and the US already makes up one third of global trade and is worth just shy of $3 billion a day. The German non-profit Bertelsmann Foundation study shows the trade agreement would help the US more than the EU. For the US the free trade would create a 13% increase in GDP per capita compared to the 5% for the EU. The study also suggested that the UK would benefit.

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