Will US-EU Trade Talks Spur Growth - or Show Globalization's Limits?

By Llana, Sara Miller | The Christian Science Monitor, July 8, 2013 | Go to article overview

Will US-EU Trade Talks Spur Growth - or Show Globalization's Limits?


Llana, Sara Miller, The Christian Science Monitor


When American and European negotiators sit down this week to launch talks on a free trade deal between the US and the European Union, they are moving into uncharted waters - whether the deal succeeds or fails.

The Transatlantic Trade and Investment Partnership (TTIP) would be the world's largest free trade deal, far surpassing the North American Free Trade Agreement (NAFTA) between the US, Mexico, and Canada.

It's also ambitious in content. With tariffs already low, this deal will focus more on business barriers such as safety standards or inspection procedures. The issues might seem pedestrian, but are some of the trickiest to negotiate, going to the very heart of the way people live their lives: the way chicken is cleaned, or the assumptions people make when they walk into a pharmacy or get into a car.

A trade deal would deeply integrate US-European relations at a time of drift, and during a rocky patch, amid friction over American spying allegations. If it succeeds, some say it would create a more level playing field with the rise of China and other emerging markets, as well as reinvigorate other global trade initiatives.

Yet even if it fails - and there are plenty who think that the obstacles such as agriculture and, most recently, data privacy are insurmountable - a failure would be pivotal, showing that tariffs can be dropped but non-tariff barriers, which are often more cultural in nature, remain stubborn. A failure, says Fredrik Erixon, the director of the European Center for International Political Economy (ECIPE) in Brussels, "could lead to a larger standstill in efforts to address 21st century trade barriers."

Long-standing obstacles

Tariffs between the US and EU are already relatively low, but because of the sheer size of trade between the two - representing half of global economic output - advocates say it would be a major booster of growth and jobs, especially in debt-stricken Europe that has seen record high unemployment at 12.2 percent.

The two already invest nearly $4 trillion in each other's economies, according to US statistics, which translates into 7 million jobs.

It's the non-tariff barriers, however, that most are watching in TTIP talks. Today, if a product is made in France, for example, it goes through the various regulatory hurdles to bring it to the marketplace; it then has to go through another set of strenuous - and often redundant - hurdles to reach the US market. Under the TTIP, both sides could agree to mutually recognize the others' systems.

When it comes to car safety, reducing red tape may be an easy compromise. But other issues on the table have long vexed negotiators. That includes French subsidies for its film industry, European resistance to genetically modified foods (GMOs), or data privacy laws - especially in the wake of the information released by former National Security Agency (NSA) contractor Edward Snowden revealing the US systematically spies on its own citizens, as well as European institutions.

"One of the sleeper issues in the deal is how to deal with privacy," says Bruce Stokes, the director of the Global Economic Attitudes program at the Pew Research Center. Europeans, particularly Germans, are far more sensitive than Americans when it comes to data privacy.

"There is a disconnect between Europeans and Americans about this new digital economy," Mr. Stokes says. And even if the Snowden case is about government, not industry, it bolsters European assumptions that Americans don't care about privacy, he says. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Will US-EU Trade Talks Spur Growth - or Show Globalization's Limits?
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.