http://www.ft.com/intl/cms/s/0/23f35c94-75da-11e2-b702-00144feabdc0.html#axzz2KihaIslX
This article in the Financial Times highlight trade talks between the US and the EU. If these negotiations are successful (leading to lower tariffs, less "red tape," etc...), how do you think the US GDP would be affected? Would the exports outweigh the imports, or would we see a decrease in net exports?
This new trade deal would not only help the U.S. GDP, it could have the potential to change the way trade happens all over the world. I do not expect a decrease in net exports will occur as a result of this deal.
ReplyDeleteI don't know if the trade exports or imports would be the biggest highlight of the deal. What these economies need right now is a major boost in consumer confidence. An economic alliance between these two would do just that and both parties would see their GDP's rise.
ReplyDeleteI agree with Travis in that the consumer confidence in the main target. Confidence is hard to come by in both of our economies these days, and to be able to give it to each other would do wonders for the entire world market not just ours because when ever our economy changes it effects others as well.
ReplyDeleteThis deal is a great new and a great push for U.S economy. However, "the talks will focus on non-tariff barriers and regulatory standards" so I wonder whether this deal will help increase the imports and reduce the exports. With the huge trade deficit that U.S is facing and "substantial differences are still remaining" between U.S and EU, potential benefit is not enough. I feel both sides EU and U.S should work together because right now, "the motivation on the European side is bigger than on the American side".
ReplyDeleteWe NEED a free trade agreement with the EU. I wrote a policy brief on this topic last semester and am 100% confident that it will be beneficial for the parties. The European Union is the United States’ largest trading partner with trading values estimated to be 3.6 billion USD per day (Council on Foreign Relations, 2012). Though high volume trades are being made daily, the United States and European Union have never proposed a free trade agreement. In my policy brief, here are some of the advantages I pointed out to a FTA with the EU.
ReplyDeleteAdvantages:
-Eliminate tariffs on all goods from the European Union, providing U.S. consumers with more options as well as lower priced goods.
-Provide U.S. business with a chance to compete with European brands when exporting through the elimination of tariff costs.
-Improve the economies of both the United States and Eurozone through an increase in consumption because of greater market access.
-Force both European and U.S. firms to innovate in order to compete with imported goods, providing consumers in both areas the best products possible.
-Increase the United States’ connection with the European Union.
-Support the underdeveloped countries in the European Union.
In regards to the article as José Manuel Barroso put this will definitely be a “game-changer”! As Michael Froman, said it “This could both dramatically increase jobs and growth in the US as well as in Europe, further integrate our economies and help set global rules that could help strengthen the multilateral trading system”. I am ready for this type of stimulus to happen in both the U.S. and throughout Europe. Globalization is happening, and I am happy to see the U.S. make efforts to get on board!
I think this trade agreement could create large benefits for the United States. First, it could potentially reduce the prices of many imported products into the U.S which can lead to a higher amount of consumption. Secondly, the agreement is a step towards controlling the large trade deficits that we incur each year. If we can get this deal done it will lead the United States toward a more controlled budget. I hope that this deal can be made by its target two-year date.
ReplyDeleteThere probably will not be a decrease in net exports. However I think that this deal could have huge positive effects for the US GDP.
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