The European Union and the United States have the largest bilateral trade and investment relationship and enjoy the most integrated economic relationship in the world. EU and US investments are the real driver of the transatlantic relationship, contributing to growth and jobs on both sides of the Atlantic.

Although overtaken by China in 2021 as the largest EU import source for goods, the US remains the EU’s largest trade and investment partner by far. It is estimated that a third of the trade across the Atlantic actually consists of intra-company transfers.

The transatlantic relationship also defines the shape of the global economy as a whole. Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy. Taken together, the economies of both territories amount to more than 40% of world GDP and more than 40% of global trade in goods and services.

In June 2021 both entities agreed to take decisive steps to end the longest running dispute in the history of the World trade organisation: dispute on Large Civil Aircraft (also known as Airbus-Boeing dispute).

See more on the topic of EU-US trade relations by visiting our package for the 8th parliamentary term.

EU - US Trade relations

The coronavirus crisis is a major shock for the European and global economies. Member States have already adopted budgetary, liquidity and policy measures to increase the capacity of their health systems and provide relief to those citizens and sectors that are particularly impacted.

Among the measures the EU is taking to support the economic recovery are the EU's recovery plan, Next Generation EU, SURE: temporary support for workers, amendments to the EU budget to address urgent issues, re-direction of EU funds to help member states most in need, support to most affected sectors.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic. Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion (source: Council).

Coronavirus outbreak: impact on economic situation

Trade plays a key role in Vietnam’s economic development strategy - and a range of multilateral and bilateral trade agreements under negotiation reflect this importance.

The EU and Vietnam officially launched negotiations for the Free Trade Agreement (FTA) in June 2012. The European Union and Vietnam finished negotiating the FTA in Brussels in December 2015 after 14 rounds of negotiations. In July 2018, the EU and Vietnam concluded the Investment Protection Agreement (IPA).

The EU-Vietnam FTA and the Investment Protection Agreement (IPA) are modern and comprehensive deals. They will remove nearly all tariffs on goods traded between the two economies. They show the shared conviction of the EU and Vietnam that trade is essential to growth, the creation of jobs and sustainable development.

EU - Vietnam Trade relations

The European Parliament gave its consent in December 2018 to the EU’s trade agreement with Japan, the largest bilateral trade deal ever negotiated by the EU.

The Economic Partnership Agreement between the EU and Japan will remove almost all custom duties adding up to €1 billion annually for EU companies. It represents a clear stance in support of rules-based, free and fair trade “at a time of serious protectionist challenges”.

#EUelections2019 - Japan-EU Trade Agreement

MEPs discuss with the Commission and the Council a unified EU response to US trade measures, and global trade opportunities for the EU.

The debate in Parliament follows the global reaction to the US government’s decision to increase existing tariffs and impose new ones – and its subsequent postponement of their imposition.

MEPs consider the countermeasures adopted by the EU – which were later suspended as well. Plenary will also review EU trade opportunities elsewhere in the world. The EU has concluded deals with a number of countries and regional groupings, and talks are ongoing on several more potential trade deals.

Unified response to US trade measures

MEPs assess the current state of EU-US trade relations, multilateralism and the EU’s potential responses if the US imposes tariffs on European products.

US President Donald Trump has stated that he would “absolutely” introduce tariffs targeting the EU, citing grievances over EU action against US tech firms and a trade deficit in goods. He also threatened to use tariffs to pressure Denmark into handing over Greenland. President Trump recently announced a 25 percent tariff on goods from Canada and Mexico, which he later delayed by a month, as well as a 10 percent tariff on imports from China.

Parliament is committed to multilateralism and has called for the urgent reform of the World Trade Organisation (WTO). Leading MEPs recently said it is “imperative for the US and the EU to work closely together to defend multilateralism and the rules-based international order”. Meanwhile, the EU has strengthened the tools at its disposal to protect EU trade, which now include the Anti-Coercion Instrument designed to enable the EU to respond, as a last resort, to economic blackmail from a foreign country.

According to the Commission, the EU has a €154 billion trade surplus in goods with the US, while the US maintains a €104 billion surplus in services with the EU, resulting in an overall EU trade surplus of three percent from a total €1.5 trillion trade flow. In 2023, the US was the largest partner for EU exports of goods and the second largest partner for EU imports of goods.

Debate on the  tariff threats from the Trump administration

EP Plenary session - A unified EU response to unjustified US trade measures and global trade opportunities for the EU

EP Plenary session - Preparedness for a new trade era: multilateral cooperation

EP Plenary session - Oral question - Association agreements for the participation of third countries in Union programmes

EP Plenary session - Commission statement - Multilateral negotiations in view of the 13th WTO Ministerial Conference in Abu Dhabi, 26-29 February 2024

EP Plenary session - Joint debate - Markets in financial instruments regulations

EP Plenary session - Oral question - EU-Taiwan trade and investment relations

EP Plenary session - Economic coercion by third countries

Arrival and offloading of imported steel in Europe - Port of Gent ( Belgium ) - Arcelor Mittal

MEPs discuss with the Commission and the Council a unified EU response to US trade measures, and global trade opportunities for the EU. The debate in Parliament follows the global reaction to the US government’s decision to increase existing tariffs and impose new ones – and its subsequent postponement of their imposition. MEPs consider the countermeasures adopted by the EU – which were later suspended as well. Plenary also review EU trade opportunities elsewhere in the world. The EU has concluded deals with a number of countries and regional groupings, and talks are ongoing on several more potential trade deals.

A unified EU response to unjustified US trade measures and global trade opportunities for the EU: closing statements by Maroš ŠEFČOVIČ, European Commissioner for Trade and Adam SZŁAPKA, Polish Minister for European Affairs

A unified EU response to unjustified US trade measures and global trade opportunities for the EU: MEPs debate (part 2)

A unified EU response to unjustified US trade measures and global trade opportunities for the EU: MEPs debate (part 3)

A unified EU response to unjustified US trade measures and global trade opportunities for the EU: MEPs debate (part 1)

MEPs discuss with Maroš ŠEFČOVIČ, European Commissioner for Trade, Economic Security, Interinstitutional Relations and Transparency, and the Council a unified EU response to US trade measures, and global trade opportunities for the EU. The debate in Parliament follows the global reaction to the US government’s decision to increase existing tariffs and impose new ones – and its subsequent postponement of their imposition. MEPs consider the countermeasures adopted by the EU – which were later suspended as well. Plenary also review EU trade opportunities elsewhere in the world. The EU has concluded deals with a number of countries and regional groupings, and talks are ongoing on several more potential trade deals. This transcription is a result of an automatic process. Please check against delivery.

A unified EU response to unjustified US trade measures and global trade opportunities for the EU: Opening statements by Adam SZŁAPKA, Polish Minister for European Affairs and Maroš ŠEFČOVIČ, Commissioner for Trade

MEPs discuss with the Commission and the Council a unified EU response to US trade measures, and global trade opportunities for the EU. The debate in Parliament follows the global reaction to the US government’s decision to increase existing tariffs and impose new ones – and its subsequent postponement of their imposition. MEPs will consider the countermeasures adopted by the EU – which were later suspended as well. Plenary will also review EU trade opportunities elsewhere in the world. The EU has concluded deals with a number of countries and regional groupings, and talks are ongoing on several more potential trade deals.

US trade measures and global trade opportunities for the EU: extracts from the debate

Bernd LANGE (S&D, DE), Chair of the European Parliament's Committee on International Trade (INTA) reacts to the US 25% tariff on all steel and aluminium entering the country, in place as of today, 12 March. The original US steel and aluminium tariffs date back from 2018 when the US adopted a tariff increase on imports of certain steel and aluminium products (at rates of 25% and 10%, respectively) and with an unlimited duration. In June 2018, the EU adopted rebalancing measures in reaction to the tariffs. In October 2021, the EU and US agreed to start discussions on a Global Arrangement on Sustainable Steel and Aluminium and suspend steel and aluminium trade disputes.

Statement by Bernd LANGE (S&D, DE), Chair of INTA Committee, on EU countermeasures to US tariffs

The infoclip features the Antwerp’s commercial harbour, showing container barges transporting cars and other goods into containers. It also highlights tugboat maneuvers ships through the busy port. Aerial drone shots provide general overviews of the harbour’s scale and activity. From street-level views captured from a car, we see the trucks transporting goods into the port. The footage also highlights modern wind turbines. Shipping remains one of the most important means of trade for the Member States of the EU. Nowadays, ships carry more than half the value of goods imports to the EU and over 40 percent of goods exports from the EU. In 2021, about 1.1 trillion euros worth of goods were imported to the EU, and about 956 billion euros worth of cargo exported from the EU by sea.

EU trade policy (T)

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