Can Europeans, who have balked for years at many US food imports, accept a free trade agreement with the US that opens the door for imports of genetically modified crops and chickens cleaned with chlorine?
That is one of the big questions facing policymakers as the transatlantic trading partners, both hoping to boost exports to help their struggling economies, consider launching talks in 2013 on a free trade pact.
The US and the 27 member states of the EU already have the largest economic relationship in the world – and one of the most complicated.
Two-way goods trade totals more than $600 billion (R5.2bn) annually. Services trade, including sales by majority-owned US or EU companies in each other’s market, adds about $1.2 trillion.
Meanwhile, US and EU business groups are gearing up for what they hope will be a quick negotiation that reaches a deal before European Commission President José Manuel Barroso finishes his second term in 2014.
European companies have their own concerns, including US security rules that require them to give two days’ notice before flying to the US and complex visa and customs declarations that they see as non-tariff barriers that slow down and complicate transatlantic business. In other sectors, such as pharmaceuticals, reducing regulatory barriers across the Atlantic could cut costs.
“We could save a lot of money by harmonising packaging for both the US and the EU,” a senior German pharmaceuticals executive said.
Note EU-Digest: hopefully EU negotiators will not be "bamboozled" by US multi-national corporate games in these negotiatios.
Read more: US trade deal may be a lot for Europeans to swallow - Business News | IOL Business | IOL.co.za
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