The United States and the European Union (EU) share by far the largest bilateral trade and investment relationship in the world. Together they represent close to 30% of global trade in goods and services. When they collaborate, their economic interactions pack a tremendous wallop in world markets. Daily, the trade relationship between the U.S. and the EU is worth nearly 4.6 billion euros. This large and dynamic market underscores the central role it plays in our economy and the world.
In 2022, trade between the EU and the U.S. reached a record-breaking 1.68 trillion euros. That’s approximately the same as around $1.96 trillion today! This truly incredible amount illustrates the power of the transatlantic partnership. It stretches across all sectors of the economy – from tech to ag to advanced manufacturing. That vigorous trade flow is an essential driver of both local and regional economic growth. It further helps create a climate of innovation and collaboration between businesses on either side of the Atlantic.
Nonetheless, as strong as this relationship is, daunting challenges remain that could threaten trade flows going forward. Policy changes, regulatory divergence, and geopolitical friction could stand in the way of continued expansion. With tariff and trade agreement negotiations still underway, the environment can be precarious for industries that depend on transatlantic trade lanes.
The U.S.-EU partnership remains incomparable and indispensable in these and other ways. It demonstrates the deep commitment that we all have to common values and win-win outcomes. The deepening economic integration spurs stronger job creation and investment opportunities on either side of the border. American firms have provided tens of thousands of well-paying jobs to Europeans while substantially contributing to European economies. Conversely, European companies have established a booming operation in the U.S.
The other changing reality is global trade, which is just booming. Given the size and economic interdependence of the U.S. and EU, together they will continue to be major shapers of international trade policy. That’s because the duo currently has unrivaled power over global markets. Their decisions in a single region send shockwaves throughout their entire supply chain and the economies of countries linked by it.