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In his State of the Union address on February 12, 2013, President Obama announced that the Administration planned to notify Congress of its intent to launch negotiations on the Transatlantic Trade and Investment Partnership with the European Union (EU). The President’s decision recognizes that the U.S.-EU economic relationship is already the world’s largest, accounting for one third of total goods and services trade and nearly half of global economic output. The Transatlantic Trade and Investment Partnership is envisioned as an ambitious, high-standard trade and investment agreement that would provide significant benefit in terms of promoting U.S. international competitiveness, jobs, and growth.
The U.S. economic relationship with the EU is the largest and most complex in the world, generating goods and services trade flows of about $2.7 billion a day [2012 estimate] and transatlantic investment is directly responsible for roughly 6.8 million jobs [2010 estimate]. This enormous volume of transatlantic trade and investment promotes economic prosperity on both sides of the Atlantic and in the dozens of other countries that trade with the transatlantic partners. The United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.
Key Trade and Investment Data and Trends
U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2014 (latest data available for Goods and Services trade). Exports totaled $495 billion; Imports totaled $587 billion. The U.S. goods and services trade deficit with the EU was $91 billion in 2014.
The United States had $699 billion in total (two ways) goods trade with the European Union during 2015, its largest Goods trade partner. Goods exports totaled $273 billion; Goods imports totaled $426 billion. The U.S. goods trade deficit with the EU was $153 billion in 2015.
Trade in services with the EU (exports and imports) totaled an estimated $388 billion in 2014 (latest data available). Services exports were $219 billion; Services imports were $169 billion. The U.S. services trade surplus with the EU was $51 billion in 2014.
According to the Department of Commerce, U.S. exports of Goods and Services to the EU supported an estimated 2.6 million in jobs in 2014 (latest data available) (1.2 million supported by goods exports and 1.4 million supported by services).
- The EU countries, together, would rank 2nd as an export market for the United States in 2015.
- U.S. goods exports to the EU in 2015 were $272.7 billion down 1.3% ($3.5 billion) from 2014 but up 46% from 2005. U.S. exports to the EU accounted for 18.1% of overall U.S. goods exports in 2015.
- The five largest country markets were: United Kingdom ($56.4 billion), Germany ($49.9 billion), Netherlands ($40.7 billion), Belgium ($34.1 billion), and France ($30.1 billion).
- The top export categories (2-digit HS) in 2015 were: Aircraft ($34.8 billion), Machinery ($30.7 billion), Pharmaceutical Products ($26.4 billion), Optic and Medical Instruments ($26.2 billion), and Electrical Machinery ($20.9 billion).
- U.S. domestic exports of agricultural products to the EU totaled $12.1 billion in 2015. The EU countries together would rank 4th as an Ag Export Market for the United States. Leading categories include: tree nuts ($3.0 billion), soybeans ($1.9 billion), wine and beer ($685 million), and prepared food ($499 million),
- U.S. exports of services to the EU were $219.3 billion in 2014 (latest data available), up 6.5% ($13.4 billion) from 2013, and 80% since 2004. Intellectual Property (industrial processes, computer software), financial services, travel, professional and management consulting services, and transportation services (including education) categories accounted for most of U.S. services exports to the EU.
- The EU countries together, would rank as the 2nd largest supplier of imports to the United States in 2015.
- U.S. goods imports from the EU totaled $426.0 billion in 2015, up 1.9% ($7.8 billion) from 2014, and up 37% from 2005. U.S. imports from the EU accounted for 19.0% of overall U.S. imports in 2015.
- The five largest country suppliers of imports are: Germany ($124.1 billion), United Kingdom ($57.8 billion), France ($47.6 billion), Italy ($44.0 billion), and Ireland ($39.4 billion).
- The five largest categories in 2015 were: Machinery ($70.2 billion), Vehicles ($58.8 billion), Pharmaceuticals Products ($53.2 billion), Optic and Medical Equipment ($26.9 billion), and Organic Chemicals ($25.9 billion).
- U.S. imports for consumption of agricultural products from EU countries totaled $20.0 billion in 2015. The EU countries together rank 3rd (to Canada and Mexico) as a supplier of Ag imports to the United States. Leading categories include: wine and beer ($5.5 billion), essential oils ($2.6 billion), snack foods (including chocolate) ($1.4 billion), vegetable oils ($1.1 billion), and processed fruits and vegetables ($1.1 billion).
- U.S. imports of services from the EU were $168.7 billion in 2014 (latest data available), up 3.8% ($6.2 billion) from 2013, and up 58% since 2004. Travel (including education), transportation services, and intellectual property (industrial processes, computer software), professional and management consulting services and research and development services categories accounted for most of U.S. services imports from the EU.
- The U.S. goods trade deficit with the EU was $153.3 billion in 2015, a 7.9% increase ($11.3 billion) over 2014 The U.S. goods trade deficit with the EU accounted for 20.8% of the overall U.S. goods trade deficit in 2015.
- The United States has a services trade surplus of $50.6 billion with the EU in 2014 (latest data available), up 16.6% from 2013.