Transatlantic partnership a priority for European Union

When the Irish Prime Minister Enda Kenny and I visited the United
States last month for the annual St. Patrick’s Day engagements with
President Obama at the White House, with Speaker John Boehner  (R-Ohio)
and members of Congress, and with Secretary of State John Kerry, there
was an added dimension to the traditional celebrations.

Ireland currently holds the presidency of the European Union, and the occasion marked not only the deep ties that bind Ireland and the United States, but also the ever-closer partnership between America and Europe.

{mosads}The visit reinforced my determination that Ireland, as EU president, must help lay the ground for what will be an enormous advance in that relationship: a Transatlantic Trade and Investment Partnership agreement.

Win-win potential

The EU and the United States enjoy the most integrated economic relationship in the world. Our economies account for about half of the world’s GDP and for nearly a third of world trade flows. EU investment in the United States is around eight times the amount of EU investment in India and China put together. Total U.S. investment in the EU is three times higher than in all of Asia.

The transatlantic relationship defines the shape of the global economy as a whole. Almost all other countries in the global economy have either the EU or the United States as their largest trade and investment partner. It is therefore not surprising that releasing the untapped potential of the EU-U.S. trade relationship is what would provide most benefit in terms of growth and jobs, on both sides of the Atlantic.

The true potential of our trade relationship has yet to be fully exploited. A 2009 study estimates that aligning only half of relevant nontariff barriers and regulatory differences between the EU and United States would boost U.S. GDP by 0.3 percent a year in 2018, an annual potential gain of more than $53 billion.

Currently 15 million jobs depend on EU-U.S. trade. That is 15 million people either employed by European companies in the United States or by American companies in the EU. Just imagine what this number could be if we capitalized on the true potential of transatlantic trade.

Setting regulatory standards

An ambitious Transatlantic Trade and Investment Partnership agreement that addresses outstanding regulatory issues would effectively set the global standards.

We would thereby strengthen the multilateral trading system by setting the bar for emerging economies, as well as ensuring the long-term sustainability of our own economies.

Moving forward now

Never before has a comprehensive trade partnership between the United States and the EU been so close within reach and never has it promised to deliver more for all our benefit. With Obama’s call for action in his February State of the Union address and the subsequent joint statement by Obama, European Council President Herman Van Rompuy and European Commission President José Manuel Barroso there is a real momentum to advance transatlantic trade during the Irish EU Presidency

Irish EU presidency 
priorities

Stability, jobs and growth are the central themes of the Irish EU presidency. Boosting the EU’s external trade agenda is one area where I see great potential for growth and jobs.

Enhancing trade is a key means by which we can bolster much-needed economic growth without drawing on severely constrained public finances.
Advancing the external trade agenda features prominently in the Irish presidency program, and it is no secret that within the broader EU trade agenda, Ireland has prioritized the EU-U.S. trade relationship.

In this context, I welcome Secretary Kerry’s further indication of U.S. government support for a substantial and early agreement between us, and I hope that support from Congress can also be forthcoming.

Later this month, trade ministers from the 27 EU member states will gather in Dublin for an informal meeting. EU-U.S. trade relations and a Transatlantic Trade and Investment Partnership agreement will be high on their agenda.

Although no formal decisions will be taken, the meeting is a crucial opportunity for the Irish EU presidency to facilitate consensus and draw opinions together within the EU, as well as engaging with members of the transatlantic business community.

In doing so, the Irish EU presidency is preparing the ground so that we in the EU, for our part, are ready for a successful launch of negotiations with the United States by the end of June.

Gilmore is deputy prime minister and minister of foreign affairs and trade of Ireland.