The transatlantic relationship between the European Union (EU) and the United States (US) is shaped by the collision of geo-economics and geopolitics [29535aaf]. Despite geopolitical uncertainty, geo-economics continues to drive the partnership forward [29535aaf]. The EU-US Summit in 2021 marked a significant turning point in the geopolitical landscape, with events such as the Russian invasion of Ukraine and the war in Israel and Palestine [29535aaf]. The summit aimed to address these challenges and discourage trade in high-carbon steel and aluminium [29535aaf]. It also sought to create a coalition of like-minded countries to impose tariffs on over-manufacturing nations [29535aaf]. The joint statement issued at the summit focused on strengthening economic cooperation between the EU and the US, countering economic coercion, and addressing non-market policies [29535aaf].
The recently published report, 'The Transatlantic Economy 2024', provides new insights into the economic relationship between Europe and the United States [f76b8f10]. The research, conducted independently by Daniel Hamilton and Joseph Quinlan at the Foreign Policy Institute, School of Advanced International Studies, Johns Hopkins University, and the Transatlantic Leadership Network, highlights major shifts and emerging trends in the transatlantic economy [f76b8f10]. The report covers a wide range of topics, including international support for Ukraine and sanctions against Russia, changes in the transatlantic energy economy, the reconfiguration of global supply chains, relations with China, and the green and digital transitions [f76b8f10]. It also includes dedicated profiles for over 30 European countries and all 50 U.S. states [f76b8f10].
China-centric geo-economic cooperation continues to play a crucial role in shaping the transatlantic relationship [29535aaf]. The EU and the US have taken concrete actions in response to China's economic activities, as highlighted in the report [29535aaf][f76b8f10]. The EU announced anti-subsidy investigations into Chinese steelmakers and the wind turbine sector, while the US deployed economic security tools through export controls [29535aaf][f76b8f10]. These measures aim to de-risk and shape global economic governance [29535aaf][f76b8f10].
The transatlantic relationship, particularly in the context of economic security, remains of utmost importance given the upcoming US presidential election and the uncertain future [29535aaf]. The joint economic security measures seek to leverage the American and European markets to tackle global trade, technology, and security issues [29535aaf]. Additionally, the negotiations on the Global Steel Agreement (GSA) reflect the joint effort to reshape the global carbon economy and address the climate crisis [29535aaf]. The report provides valuable insights into these ongoing efforts [f76b8f10].
The transatlantic economy, valued at $8.7 trillion, is facing challenges but remains intact [f85acc9a]. A report titled 'Shaken, Not Stirred' by the US Chamber of Commerce, AmCham EU, Johns Hopkins SAIS, and the Transatlantic Leadership Network highlights the resilience of the trade relationship between the US and Europe [f85acc9a]. Despite global turmoil, the trade ties have remained strong for over two years since Russia's war [f85acc9a]. The report emphasizes the importance of the transatlantic trade relationship, which is valued at $8.7 trillion [f85acc9a]. It underscores the significance of the trade ties and their ability to withstand geopolitical challenges [f85acc9a].
Germany's trade balance has experienced a significant shift, with the United States replacing China as its top trading partner [e82cf66d]. In the first three months of 2024, the total value of trade between Germany and the US rose to 63 billion euros, surpassing China's 60 billion euros [e82cf66d]. This shift is attributed to the effects of US pressure on Europe, including the war in Ukraine and sanctions on Russia [e82cf66d]. The US has increased its sale of liquefied gas to Europe and exerted pressure to ban Chinese technologies [e82cf66d]. Germany is moving towards a transatlantic partnership with the US, while Italy is also seeing a shift in its trade balance towards America [e82cf66d]. Italy could benefit from this shift by replacing China for certain supplies destined for the US or Germany [e82cf66d].
The EU's trade surplus with the US reached a record high of €43.6 billion ($47.3 billion) in the first quarter of 2024 [f70cd898]. This surge is attributed to the rising costs of trading with China due to the US-China trade war, making European imports more attractive [f70cd898]. On the other hand, lower EU demand for American goods is likely due to economic challenges in Europe, such as declining manufacturing and sanctions cutting off access to cheap Russian oil and gas [f70cd898]. Despite these challenges, the trend of closer trade ties between the US and Europe is expected to continue, benefiting the EU [f70cd898]. The EU is expected to follow the US in placing tariffs on Chinese EVs, but at a lower level [f70cd898]. Overall, the EU's trade surplus with the US is expected to grow even larger [f70cd898].
An exclusive poll conducted by GZERO and Data Science reveals that 53% of respondents would support an EU-like arrangement between the US and Canada, with 50% in Canada and 55% in the US in favor [163a8f37]. Only 14% are against the idea [163a8f37]. The poll results challenge the assumption that border politics is solely about isolationism and security fears [163a8f37]. The US-Canada relationship is one of the biggest bilateral trading relationships in the world, with $908 billion in trade in 2022 [163a8f37]. The article highlights the need for an open border between the two countries to facilitate easier movement, freer trade, and increased efficiency [163a8f37]. However, the article suggests that politicians are unlikely to prioritize this idea and instead focus on noisy fights rather than the quiet ideas that people want [163a8f37].
In conclusion, the collision of geo-economics and geopolitics continues to define the transatlantic relationship [29535aaf]. The EU and the US are working together to navigate geopolitical uncertainties and strengthen economic cooperation [29535aaf]. The joint efforts aim to shape global economic governance, address security concerns, and tackle pressing issues such as the climate crisis [29535aaf]. The recently published report, 'The Transatlantic Economy 2024', offers a comprehensive analysis of the evolving transatlantic economic landscape, highlighting shifting dynamics and emerging trends [f76b8f10]. The report also emphasizes the resilience of the transatlantic trade relationship, which remains strong amidst global turmoil [f85acc9a].