Business / The Economic And Political Policies Of The United States In Relation To Wto, Nafta, Eu And Balance Of Trade

The Economic And Political Policies Of The United States In Relation To Wto, Nafta, Eu And Balance Of Trade

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Autor:  anton  13 May 2011
Tags:  Economic,  Political,  Policies,  United,  States,  Relation
Words: 776   |   Pages: 4
Views: 487

EU and US Relationship

The wealth and diversity of American civilization is mainly due to massive amounts of immigration from just about every European nation during the past 500 years. This is also the very reason why Europeans and Americans share common values and maintain close cultural, economic, social and political issues. These values and issues can be seen in the close transatlantic relationship that the EU and the USA share. The USA has always been a strong supporter of integration between the nations of Europe. Today, that relationship is personified in the European Union. The USA has maintained a political relationship with the European Union since 1953. In 1961, the US mission to the European Communities, now the European Union, was established in Brussels, Belgium, which now serves as the headquarters for the European Commission. (http://ec.europa.eu/comm/external_relations/us/intro/index.htm)

The European Commission is represented in the USA by a delegation in Washington, which was established in 1954. The delegation represents the Commission in its dealings with the US government. It reports on US developments to headquarters in Brussels, and acts as a liaison with other international institutions in Washington DC. A delegation in New York, accredited as observer to the United Nations, was established in 1964. (http://ec.europa.eu/comm/external_relations/us/intro/index.htm)

Transatlantic Relationship

In order to maintain a successful transatlantic collaboration, the European Union and the USA hold regular presidential summits. These summits started as a result of the transatlantic declaration which was created in November 1990. This declaration formalized the USA’s contacts with what was then the European Community. However, due to a growing number of external challenges including; terrorism and violence in the Middle East, it was necessary to go beyond the regular policies introduced by the transatlantic declaration. As a result, the leaders of the USA and the EU signed the New Transatlantic Agenda (NTA), which provided for joint action in four major fields:

• promoting peace and stability, democracy and development around the world

• responding to global challenges

• contributing to the expansion of world trade and closer economic relations

• Building bridges across the Atlantic

With the new NTA plan, other initiatives were created including the transatlantic economic partnership (TEP) and the “EU–US initiative to enhance transatlantic economic integration and growth.” These new plans promoted the further economic integration across the Atlantic and maximize the potential for economic growth. (http://ec.europa.eu/comm/external_relations/us/intro/index.htm)

The Impact on the Global Community

The benefits of these close economic relationships reach well beyond the EU and the USA. As leaders of the global market, the USA and the EU have a responsibility to work together positively in order to display constructive leadership to the rest of the world. Both the EU and the USA agree on moving forward while staying committed to issues of global importance. (http://ec.europa.eu/comm/external_relations/us/intro/index.htm)

Balance of Trade

The trade deficit has been at the heart of one of the oldest debates in economics. The materialistic approaches to trade back in the 17th and 18th centuries required nations to own as much gold as possible. The excess possession of gold and other goods were due to trade surpluses. (http://www.freetrade.org/pubs/pas/tpa-002.html)

Balance of Trade is the value of all the goods and services we sell to other countries, which are called exports, minus the value of all the goods and services we buy from foreigners, which are called imports. If the value of the trade balance is positive, we have a trade surplus and we export more than we import. A trade deficit is just the opposite because it occurs when the trade balance is negative and the value of what we import is more than the value of what we export. The United States has had a trade deficit for over the last ten years, though the size of the deficit has varied during that period. (http://www.answers.com/topic/balance-of-trade)

The United States has many natural resources and the ability to use them in manufacturing. However, the US cannot provide its people with all they want and need. Because the US cannot provide everything, they participate in international trade. These trades involve the exchange of goods and services with other nations. (http://www.answers.com/topic/balance-of-trade)

The trade deficit is not caused by unfair trade practices. However, these deficits are a reflection of the flow of goods and services across international borders. Many Americans are convinced that a bilateral trade deficit proves that the foreign countries have closed their markets to US exports. (http://www.freetrade.org/pubs/pas/tpa-002.html)

References

External Relations. (2006) The EU’s relations with the United States of America. Retrieved December 4, 2006 from http://ec.europa.eu/comm/external_relations/us/intro/index.htm

Free trade. (2006) America’s Maligned and Misunderstood Trade Deficit. Retrieved December 4, 2006 from http://www.freetrade.org/pubs/pas/tpa-002.html

Balance of Trade. (2006) Balance of Trade-BOT. Retrieved December 4, 2006 from http://www.answers.com/topic/balance-of-trade



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