The United States stands as a global economic powerhouse, deeply intertwined with a multitude of nations through intricate trade relationships. Among these vital connections, the bond with the European Union shines as the most significant. Recognized as the Largest Trading Partners With Us, the EU and US engage in a dynamic exchange that encompasses goods, services, and substantial investments, forging an economic alliance unparalleled in scale and importance.
This transatlantic partnership is not merely about figures; it’s about the millions of jobs it sustains and the critical resources it secures. The European Union acts as a dependable provider of essential supplies to the United States, delivering everything from crucial medicinal ingredients to sophisticated machinery and aerospace technology. Conversely, the EU emerges as the largest global purchaser of US natural gas and oil, a pivotal factor in bolstering transatlantic energy security and enabling a united front against geopolitical challenges, such as Russia’s aggression in Ukraine.
The Expansive Trade Landscape
The trade relationship across the Atlantic is undeniably the world’s most critical commercial artery. In 2023, the total trade in goods and services between the EU and the US reached a staggering €1.6 trillion. This colossal figure translates to a daily flow of approximately €4.4 billion in goods and services traversing the Atlantic.
Interestingly, the trade balance between the EU and US is remarkably even. In 2023, the slight difference between EU exports to the US and US exports to the EU was a mere €48 billion, representing just 3% of the total transatlantic trade volume.
Goods Trade Dynamics
Focusing on goods alone, the bilateral trade reached €851 billion in 2023. The EU’s export of goods to the US market amounted to €503 billion, while imports from the US totaled €347 billion. This resulted in a goods trade surplus of €157 billion for the EU.
Services Sector Significance
The trade in services between the EU and the US is equally substantial, valued at €746 billion in 2023. Here, the dynamic is reversed, with the EU importing more services (€427 billion) from the US than it exported (€319 billion). This resulted in a services trade deficit of €109 billion for the EU.
Investment and Job Creation Impact
Beyond the exchange of goods and services, investment flows are a cornerstone of this partnership. EU and US companies hold a massive €5.3 trillion in investments within each other’s markets (data from 2022). This robust investment relationship profoundly impacts job creation. US exports to the EU support an estimated 2.3 million jobs in the United States, while EU companies’ investments in the US provide employment for 3.4 million individuals. Further details can be explored through the EU’s Business Footprint in the United States Project.
EU-US Trade and Technology Council: Forging Forward
The commitment to strengthening this vital economic relationship is further exemplified by initiatives like the EU-US Trade and Technology Council (TTC). Launched in 2021, the TTC serves as a crucial platform for the EU and US to align their strategies on key global trade, economic, and technological matters. It aims to deepen transatlantic cooperation based on shared democratic values, ensuring that this largest trading partnership continues to thrive and adapt to the evolving global landscape. While a dedicated free trade agreement is not currently in place, the ongoing dialogue and collaboration through platforms like the TTC underscore the enduring and dynamic nature of the economic ties between the United States and its largest trading partners, the European Union.
