In 2015, the total value of US goods and services trade with the EU (27) reached $869.5 billion. The United States had $589.7 billion in total bilateral goods trade with the EU (27), its second largest goods trade partner. US trade in services (exports and imports) with the EU (27) was $279.8 billion.
The United States and Europe are each other’s primary source and destination for FDI, with the US providing the largest source of third-country FDI in the European Union (EU) on the basis of stock and flow. In 2015, the FDI net inflow accounted for 2.1 percent of US gross domestic product (GDP) and 3.4 percent for the European Union.
The European Union’s (EU) Stability and Growth Pact requires Eurozone countries to annually lay out their fiscal plans for the following three years. The European Commission (EC) then compares the member states’ reports with its own projections and those produced by independent bodies, such as the International Monetary Fund (IMF), to evaluate whether the member states are on track to reach their Medium-Term Budgetary Objectives (MTOs). It is important to note that Eurozone countries’ macroeconomic forecasts usually diverge, sometimes significantly, from the reports produced by the EC and the IMF.
The United Kingdom’s (UK) vote last week to leave the European Union (EU) has raised questions about the future of the Transatlantic Trade and Investment Partnership (TTIP). TTIP is a trade agreement currently being negotiated by the United States (US) and the EU that will eliminate tariffs, reduce red tape, and set a new standard for international trade agreements. Following the Brexit vote, US Trade Representative Michael Froman and European Commissioner for Trade Cecilia Malmström released statements reaffirming their commitment to TTIP. They met in Washington, DC earlier this week and Malmström spoke at the Atlantic Council yesterday. (Link to event video, transcript of remarks)