Member Article

Obama pledges transatlantic trade talks

Barack Obama has committed to beginning talks on a free trade agreement with 27 nations of the European Union.

In his annual State of the Union address, the US President pledged to launch talks on a “comprehensive Transatlantic Trade and Investment Partnership with the European Union.”

As reported in Bdaily last month, research from the OECD and World Trade Organisation would suggest that trade with the US is strong in value-added terms.

The annual value of goods trade between the US and EU is estimated by the US government to be around $646bn.

An EU-US ‘High Level Working Group’ looks to provide solutions to trade tariff barriers; enhance the compatibility of regulations; and reduce “behind-the-border” non-tariff barriers.

According to the New York Times, the pledge was a late addition to Mr Obama’s address, prompted by recent recommendations from the working group.

John Cridland, CBI Director-General, said: “With President Obama confirming he shares the desire of EU leaders to make progress on an EU-US trade deal, it’s crucial that both sides now roll up their sleeves and begin formal negotiations.

“One of the best opportunities to create jobs and stimulate long-term growth is through major trade deals, which make it easier for UK firms and their overseas counterparts to do business. The EU provides a vital platform for the UK to increase its trade with other parts of the world.”

Lord Green, Minister for Trade and Investment, said it was a “once in a lifetime opportunity” to liberalise trade between two of the world’s largest trading blocs.

He said: “An agreement could boost the European economy by more than £50bn - the biggest prize from any trade deal currently underway. We need to make sure that negotiations aim for the most ambitious deal possible to bring benefits for businesses on both sides of the Atlantic.

“The Government is committed to achieving this and that is why the Prime Minister is making trade a cornerstone of our G8 Presidency this year.”

This was posted in Bdaily's Members' News section by Tom Keighley .