Transatlantic Free Trade Area Research Articles

НІМЕЦЬКЕ ГОЛОВУВАННЯ В ЄВРОПЕЙСЬКОМУ СОЮЗІ ЯК ФАКТОР РОЗВИТКУ ПРОЦЕСУ ЄВРОПЕЙСЬКОЇ ІНТЕГРАЦІЇ (друга половина 2020 року)

The article is devoted to Germany’s presidency in the European Union in the second half of 2020. This was a critical period in the modern history of the process of European integration. Conflicting tendencies emerged during the negotiations on the terms of the Brexit. The budget policy of the European Union required approval. The key tasks of the German presidency were the internal problems of the European Union. But it was not possible to focus exclusively on immanent issues. The pandemic has exacerbated international problems. German diplomacy joined in the settlement of the Greek-Turkish controversy. Germany and France have reached a common position on an agreement on the terms of Britain’s withdrawal from the Brexit. Germany has reached a compromise on the adoption of the European Union budget for the period up to 2027. A large fund was created to support the European economy during the pandemic. Germany has set trends for the development of the European Union’s relations with key partners: the United States, Russia, and China. Germany welcomed Joseph Biden’s victory in the US presidential election. The European Union is considering resuming negotiations on a transatlantic free trade area with the United States. The EU and the US are ready to renew the Euro-Atlantic partnership. The interaction between the EU and the US is designed to protect liberal democracy in the modern world. With the assistance of Germany, the European Union has signed an investment agreement with China. Beijing has pledged to introduce social security guarantees and limit human rights abuses. Russia’s authoritarian threats remain a challenge to the European integration process. During Germany’s presidency of the European Union, the results of the presidential election in Belarus and the poisoning of Russian opposition politician Alexei Navalny became conflicting issues. The German presidency was successful. In the internal policy of the European Union it was possible to form a strategy of ecological renewal of the European economy. The success of the environmental modernization of the EU economy systematically depends on the internal capacity of elites and European societies to implement this course and on the favorable balance of power in a globalized world.

ANALYSIS OF RELATIONSHIP BETWEEN THE EUROPEAN UNION AND THE UNITED STATES IN THE PERIOD THE PRESIDENCY OF DONALD TRUMP (2017-2020)

The European Union has met Donald Trump's presidency in a crisis, caused by Britain's exit, quarrels over migration policy and prospects for European integration. Trump has abandoned a project to create a transatlantic free trade area. He demanded a one-sided trade advantage for the United States. The rejection of the liberal project of multilateral foreign policy contributed to the deepening of contradictions between the EU and the US in the field of trade, environment, the regime of international disarmament treaties, the algorithm for resolving regional conflicts. The Trump era in US foreign policy was a time of abandoning liberal globalism. But it is impossible to realize this task in one cadence. The question is whether it is possible for Democrats to fully restore liberal globalism in equal cooperation with the European Union.Trump has abandoned the project of a transatlantic free trade area between the United States and the European Union. This shocked the European elites. Differences in approaches to world trade contributed to the coolness. The European Union is promoting a liberal approach. Trump insisted on the priority of the patronage of American interests. As a result, the tradition of relationships has suffered. Until 2017, the United States bought European goods and paid the most to the NATO budget. Trump demanded trade parity and more European funding for NATO. European elites perceived Trump's approach to migration issues as unacceptable. Trump's policy on international conflicts has become another reason for mutual misunderstanding. Trump recognized Jerusalem as the capital of Israel and helped establish diplomatic relations between Israel and the United Arab Emirates. This has become a challenge for the European Union's Middle East policy.

ТЕНДЕНЦІЇ РОЗВИТКУ ВІДНОСИН МІЖ США І ФРН ЗА ПРЕЗИДЕНТСТВА ДОНАЛЬДА ТРАМПА

The influence of internal political processes in the USA and Germany on the evolution of US-German relations is analyzed in the article. The crisis of the mono-polar system of international relations was synchronized with changes in the global order. It affected relations between the US and Germany. The scientific literature has been dominated by the view that President Trump’s conservative-moderate foreign policy strategy is contrary to the traditions of liberal-democratic multilateral diplomacy. D. Trump’s views on the international positioning of the United States can be considered as a variant of foreign policy realism, in contrast to classical republican neo-conservatism or democratic liberal interventionism. The German foreign policy course in the time of the Bundes Chancellor A. Merkel is a manifestation of liberal-democratic globalism. Under President Obama and Chancellor A. Merkel, German-American relations remained at a high allied level. President Trump abolishes talks on Transatlantic Free Trade Area. German elites see the populist and nationalist policies of D. Trump as a challenge to European integration. They consider US European policy an attempt to split the European Union. In the domestic political dimension, German liberals consider the Alternative to Germany party as Trump’s ideological counterparts. The American liberal political elite accused A. Merkel of failing to prevent the spread of anti-American sentiment in Germany. Political sentiment in the US and Germany after the pandemic is unpredictable. A noticeable trend was the aggravation of the crisis of liberal globalization. This outlines the tendency for further political polarization of American and German societies.

Znaczenie wymiany bilateralnej w handlu zagranicznym produktami rolno-spożywczymi UE i USA

Celem artykułu było określenie znaczenia wymiany bilateralnej w handlu zagranicznym produktami rolno-spożywczymi UE i USA w latach 2001-2016 oraz wskazanie potencjalnych możliwości jej rozwoju w warunkach implementacji TTIP. W badaniach wykorzystano dane pochodzące z baz ComExt w zasobach Urzędu Statystycznego Unii Europejskiej (Eurostat) oraz Global Agricultural Trade System, pod nadzorem służb zagranicznych Departamentu Rolnictwa Stanów Zjednoczonych (FAS/USDA). Na podstawie przeprowadzonych analiz można stwierdzić, że w latach 2001-2016 UE i USA były dla siebie ważnymi partnerami handlowymi, jednak wartość bilateralnych obrotów produktami rolno-żywnościowymi pozostawała stosunkowo niewielka. W dużej mierze wynikało to z relatywnie niskiego stopnia komplementarności struktur produkcji rolniczej w tych krajach, a w rezultacie nieznacznego popytu na artykuły rolne strefy klimatu umiarkowanego w USA, które z powodzeniem, a zwykle także taniej są tam wytwarzane i które stanowią nadwyżki eksportowe tego kraju. Sposobem na zintensyfikowanie wzajemnych powiązań handlowych UE i USA może być utworzenie transatlantyckiej strefy wolnego handlu, skutkujące silnym efektem kreacji obrotów bilateralnych stron TTIP, przy jednoczesnym ograniczonym wpływie porozumienia na relacje z pozostałymi partnerami handlowymi.

NEGOTIATIONS ON THE TRANSATLANTIC FREE TRADE AREA. EFFECTS OF THE PROPOSED AGREEMENT ON THE ECONOMIES OF THE EUROPEAN UNION AND THE UNITED STATES OF AMERICA

The paper is devoted to the Transatlantic Trade and Investment Partnership (TTIP), which is also called the Transatlantic Free Trade Area (TAFTA). The problem is whether TTIP should be created, and if yes, what shape it should take, and how it will affect the economies of the European Union (EU) and the United States (US). The aim of the paper is to answer the questions: what is the essence of the TTIP agreement, what reasons for this project are and what consequences will it have? At first, the authors present a declining role of the EU and the US in the global economy. Next, they analyse trade and investment flows between the EU and the US. Then, they analyse main motives for TTIP and present the course of TTIP negotiations. In the next section, the authors discuss the main barriers to the economic relations between the EU and the US. Then, they deal with controversies around the protection of investment and with concerns and risks arising from TTIP. In the final section, the authors analyse political consequences of launching TTIP. The authors conclude that the establishment of a free trade area covering the EU and the US could contribute to economic recovery on both sides of the Atlantic. The combination of lower production costs in the US with the highest European technological potential is a prerequisite for the production of excellent products at competitive prices and their sales in international markets, which in turn can stop the trend of decline in the role of the EU and the US in the world trade. The TTIP would also strengthen transatlantic political ties and make the voice of the EU and the US more powerful in the process of searching solutions of many problems of the modern world. The authors use descriptive and analytical method of analysis based on journal articles, information obtained from the Internet and publications of international organizations.DOI: http://dx.doi.org/10.5755/j01.eis.0.9.12801

Економічна складова сучасного трансатлантичного співробітництва

У статті досліджено специфіку сучасних трансатлантичних економічних відносин. Автор розглядає історичні основи їх формування, аналізує інституційну складову, вивчає якісні і кількісні показники, оцінює перспективи партнерства, зокрема створення трансатлантичної зони вільної торгівлі. Економічний чинник відіграє вагому роль у становленні міжнародних відносин. Він являє собою детермінанту в процесі обрання напрямів та шляхів співпраці та є індикатором міцності трансатлантичного співробітництва. Поглиблення інтеграційних процесів на теренах Європи, починаючи з другої половини ХХ століття, та оформлення США як глобального лідера заклали фундамент сучасної трансатлантичної співпраці. Дослідження економічної складової американсько­європейських відносин надає можливість пошуку найбільш прогресивних підходів до об’єднання європейських держав з метою захисту спільних інтере­сів, зважаючи на той факт, що Сполучені Штати є не лише сильним союзником, але й гідним конкурентом на міжнародній арені. Основні поставлені та досягнуті завдання наукової розвідки: комплексний аналіз трансатлантичного економічного партнерства; визначення взаємозв’язку економік США та ЄС; огляд показників взаємного товарообміну обох потуг; оцінка перспективи створення трансатлантичної зони вільної торгівлі.

Rethinking transatlantic relations in a multipolar era

In an era of emerging powers and growing interconnectedness, transatlantic relations have lost their bearings. Elaborating a paradigm replacing the Cold War-era notion of a community based on shared interests and identity is, however, an exercise fraught with problems. The empirical evidence is contrasting: signs of estrangement, such as the US ‘pivot to Asia’, coexist with instances of cooperation that hint at an enduring partnership, such as the plan for a transatlantic free trade area. Theoretically, the evolution of the relationship appears in a different light depending on the assumed perspective. In this article we build three alternative scenarios based on a neorealist, constructivist and liberal understanding of social politics. We argue that, by using the scenarios as analytical tools rather than predictions of the future, we may draw a more accurate picture. We then identify the conditioning factors that may set transatlantic relations on a specific path of development.

Teorie pásma volného obchodu jako možné formy budoucí spolupráce Evropské unie s USA

The European Union and the United States of America present the world´s largest exporter and importer of goods, services and capital. The idea of increasing foreign trade between them based on the implementation of the lowest degree of economic integration, a free trade area, is not new. A proposal was made in the 1990s to create a Transatlantic Free Trade Area between the EU and member countries of the North American Free Trade Agreement, which has not been successfully implemented. Nowadays, it is getting back to the forefront of interest among not only politicians but also economists. Whether political or economic pressures are behind this step, it is important to understand the general principle of the functioning of the free trade area. The aim of this paper is to illustrate the basic characteristics of the free trade area on the example of the EU and the US.

External Dimension of the Europe 2020 Strategy

A Europe 2020 is the umbrella strategy of the European Union (EU) aiming at enhancing of the economic growth of EU over year 2010-2020. Apart of the headline indicators and flagship initiatives, the successful implementation of the Europe 2020 strategy depends from number of the framework polices of the EU, such as single market, budget, but also the external economic relations. The external economic relations depend directly to the theories of economic growth, in sense of the classical growth theory, inspired by two great economists Adam Smith and David Ricardo, which has considered internationalization and opening of the economies as one of the core growth factors. According to the survey of economic experts, implementation of Europe 2020 strategy will depend in equal parts, both from internal, but also from the external polices of EU. In this regard, external economic relations provide for very good framework continuous, as EU external trade grew over the years 2011–2012 significantly, the export increased by 71% and import – by 74%. Related to the EU external trade policies in general, they are manifold, starting from the negotiations of the international trade conditions within frames of World Trade Organization, stretching to the framework EU initiatives of Generalizes system of preferences (Everything but arms/EBA, GSP+) and bilateral trade agreements, which, as from year 2006 became the preferred international trade policy of EU. Recently, the free trade agreement between EU and USA are about to be negotiated, which will establish unique Trans-Atlantic free trade area, boosting the economic growth by at least 0,5% annually, thus, it will add significantly to implementation of Europe 2020 strategy.

Why a Marketplace Must Not Discriminate

This paper discusses the pros and cons of a Transatlantic Free Trade Area (TAFTA) in comparison with an informal trade-facilitating marketplace between Europe and the US. It finds considerably more cons, especially since TAFTA would be expected to produce larger, more detrimental discriminatory effects on dynamic non-member economies, mainly in Asia but also in food-exporting regions as well. Efficiency-enhancing effects are argued to be achievable under a marketplace concept which does not separate insiders from outsiders. It is also shown that in foreign direct investment (FDI) and FDI-related service trade, TAFTA seems redundant as in recent years bilateral capital and trade flows have proven to be buoyant without preferential treatment.

Junior Partner Canada

We know that the friendly ties between Europe and the United States and Canada are unique and without alternative. There is no lack of shared challenge. I believe they are more likely to increase than decrease. But we know together as partners we are strong.1During the course of Germany's EU council presidency in 2007, Canada was mentioned often in official speeches, government documents, and petitions. Nonetheless, EU-Canadian economic integration was not a serious priority for Germany-or for that matter the European Union. The EU-Canada economic partnership project remained vague in design and scope; there was no mention of free trade or a transatlantic marketplace. Instead, Chancellor Angela Merkel concentrated on an EU-US-centred transatlantic marketplace. This article outlines and explains the dominance of the United States in Merkel' s transatlantic market place initiative. The first part analyses official documents and speeches from Germany's EU council presidency to show how and when Canada appears on Merkel' s transatlantic agenda. The second part of the article explains Canada's role in transatlantic economic relations by evaluating commercial ties, interests, and strategies. The article concludes that the fate of the EU-Canada economic partnership project depends very much on high-level support on both sides of the Atlantic, as well as the development of a clear vision. Otherwise the initiative is destined to fail, as have many of its predecessors.GERMANY'S EU PRESIDENCY: APUSH FOR DEEPER TRANSATLANTIC INTEGRATION? EU-US ECONOMIC INTEGRATION AND THE TRANSATLANTIC MARKETPLACEOn 1 January 2007, Germany took over the six-month rotating presidency of the European Union. During its tenure, Germany proved to be a strong strategic leader with regard to transatlantic economic integration. The initiative for a transatlantic marketplace came directly from the chancellery and was driven at the highest political level from fall 2006. In contrast to other trade issues on the presidency's agenda, the chancellery was in charge of Merkels transatlantic initiative, with the groundwork being carried out by the federal ministry of economics and technology (BMWi) and the federal foreign ministry, via their respective country desks.The chancellor announced her idea to create a transatlantic free trade area in September 2006, reacting to the lack of progress in the WTO Doha round of negotiations and rising global competition due to the economic emergence of China and India. At first Merkel's initiative, which was at the time still vague, caused reactions in Berlin and Brussels that ranged from the reserved to the outright critical. It was not clear what she had in mind, a free trade area along the lines of previous proposals or deeper internal market integration. The idea of using a European-US free trade area as a bulwark against the leading emerging economies was particularly strongly criticized. Bernd Pfaffenbach, state secretary in the BMWi, described the initiative as the deathblow of the Doha round. EU Commissioner Peter Mandelson warned that the rest of the world would react with dismay if the two largest economic powers agreed to exclusive trade preferences.2.Above all, the idea of a transatlantic FTA met with resistance because it is no longer deemed appropriate, given that free trade agreements have hardly any effect on non-tariff barriers (FTAs, by definition, focus on the elimination of tariffs). Average customs duties in transatlantic trade, with the exception of some areas with high import tariffs, such as trade in agriculture and textiles, are now extremely low-less than four percent. The problem lies with non-tariff barriers, which continue to represent a serious impediment to market access. These barriers are to be found in standards set for industrial goods-in testing, licensing, and accounting-as well as in customs systems and in the area of government procurement. According to the OECD, liberalizing transatlantic trade could therefore result in considerable growth of up to three percent of GDP for both trade partners. …

Editorial Comments: A new attempt at a Transatlantic Free Trade Area, or is other work more important?

Editorial Comments: A new attempt at a Transatlantic Free Trade Area, or is other work more important?

Vers I'ALETA? Le libre-échange transatlantique et la politique étrangère canadienne

This paper begins by reviewing some of the theoretical issues to be canvassed in any consideration of trade and foreign policy. The empirical core of the paper is a description of the many recent proposals to enhance transatlantic relations, it then turns to consideration of a puzzle : why has this resurgence of Atlanticist fever in trade policy happened now ? Finally, in the conclusion, it discusses whether the Transatlantic Free Trade Area (TAFIA) is meant to be an objective of policy in its own right, or an instrument used in pursuit of some other objective. The paper concludes that TAFTA is not significant for trade policy, but it is for foreign policy.

Assessing Proposals for a Transatlantic Free Trade Area

Initiatives to reduce transatlantic trade barriers or to harmonize trade-related domestic policies in the EU and the US appear regularly on the agenda of policy makers. The last decade saw also considerable steps in transatlantic economic cooperation focusing on special aspects. In February 2002, a new call for a study on the benefits of a transatlantic free trade area (TAFTA) was made by the President of the EU Council to facilitate further liberalization schemes. This article examines recent developments in transatlantic economic policies, discusses changes in approaches in transatlantic regionalism and presents estimates of the economic consequences of transatlantic liberalization. Given the expected small benefits of a TAFTA and the induced costs for multilateral liberalization negotiations, the article discusses alternatives to TAFTA and argues for a multilateral approach, eventually being accompanied by some sort of open regionalism.

TAFTA: Fuelling Trade Discrimination or Global Liberalisation?

This paper analyses the prospects and problems of a Transatlantic Free Trade Area (TAFTA) between the European Union and the United States. Possible economic reasons for the proposal of TAFTA such as the intensity of bilateral trade and a strong interdependence in investment flows and the similarity of the EU and the US in their factor endowment and tariff structure are examined. There are cases shining favourably on the idea, but the implementation of TAFTA will imply substantial costs due to the internal and external consequences. The main problem of a free trade area between the two most important economic blocs is the impact on the multilateral approach of trade liberalisation. The authors suggest a Transatlantic Liberalisation Initiative (TALI) as an alternative to TAFTA. Under TALI, the EU and the US should accelerate their implementation of their Uruguay Round commitments and liberalise in areas that are not yet covered by WTO agreements. This should be done under the Most-Favoured Nation clause and would be a strong motivating force for multilateral liberalisation. In addition, TALI could be a forerunner in reducing market segmentation and in establishing a semi-internal market between Europe and America.

Regional Market Integration and the Development of Global Norms for Enterprise Conduct

Moving toward a possible transatlantic free trade area (TAFTA), the European Union (EU) and the United States reached an accord in December 1995 to collaborate on 150 policy issues. Regional market integration arrangements involve the acceptance of international policy regimes defining conditions for cooperation and harmonization. Because multinational enterprises (MNEs) will likely increase in size and global scope, regional and global regime development efforts for defining corporate social responsibility and performance norms will be needed. In light of these trends, this article focuses on a case study of an emerging, global anticorruption norm among countries of diverse cultures, interests, and values. Although, historically, a norm against the bribery of domestic public officials has been virtually universal, there was little prohibition against bribery by business of foreign public officials. Regionally adopted anticorruption norms require national implementation and enforcement, and they must operate globally to be effective. Implications for other norms are considered.

The European Union and Mercosur: A case of inter-regionalism

The article reviews the relation between two regional integration arrangements, the European Union and Mercosur, under three aspects: trade and investment, international negotiations and the institutional dimension. Tracing the agenda and issues dealt with between the two, leading to a project of a transatlantic free trade area, reveals that trade issues, one of two 'pillars' of reference, are important. However, the most influential results have stemmed so far from the other 'pillar', the political one. These results may be seen in the EU's role as a 'road map' for Mercosur's institutional trajectory, and second, as a signal for the private sector in furthering industrial networks within the ongoing world economic restructuring. The objective, thus, is to highlight how the relationship may interact with two encompassing processes: the shaping of regionalism/s, in particular the Mercosur case, and the so-called globalisation process.

New Institutions for Transatlantic Trade?

In late 1994 and 1995, senior figures on both sides of the Atlantic advocated a transatlantic free trade area: in December 1995 the EU and the United States signed the New transatlantic agenda and the Joint EU—US action plan in Madrid; in March 1998, the European Commission proposed ‘a new transatlantic marketplace’, which was vetoed by France in the following month; and in September 1998 the Commission offered its latest plan—the Draft action plan for transatlantic economic partnership. This article examines the political and economic case for new institutions, drawing on the arguments the Commission used to support its proposal for a new transatlantic marketplace. These arguments are found to be unpersuasive. For an EU stance in trade policy matters to be improved by a French veto may be unprecedented. That is what has happened, however. The French veto actually led to the Draft action plan which provides transatlantic trade relations with a better framework than the proposal for a new transatlantic marketplace could possibly have done.