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In his State of the Union address on February 12, 2013, President Obama announced that the Administration plans to notify Congress of its intent to launch negotiations on a 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 private services trade with the EU totaled an estimated $1.06 trillion in 2013. Exports totaled $471 billion; Imports totaled $535 billion. The U.S. goods and private services trade deficit with the EU was $65 billion in 2013.
The United States had $650 billion in total (two ways) goods trade with the European Union during 2013. Goods exports totaled $262 billion; Goods imports totaled $387 billion. The U.S. goods trade deficit with the EU was $125 billion in 2013.
Trade in private services with the EU (exports and imports) totaled an estimated $357 billion in 2013. Services exports were $209 billion; Services imports were $148 billion. The U.S. services trade surplus with the EU was $60 billion in 2013.
The EU countries, together, would rank 2nd as an export market for the United States in 2013.
U.S. goods exports to the EU in 2013 were $262.3 billion down 1.3% ($3.4 billion) from 2012, but up 68% from 2003. U.S. exports to the EU accounted for 16.6% of overall U.S. exports in 2013.
The five largest country markets were: Germany ($47.4 billion), United Kingdom ($47.4 billion), Netherlands ($42.7 billion), France ($32.0 billion), and Belgium ($31.7 billion).
The top export categories (2-digit HS) in 2013 were: Aircraft ($31.1 billion), Machinery ($29.9 billion), Mineral Fuel (oil) ($25.7 billion), Optic and Medical Instruments ($25.4 billion), and Pharmaceutical Products ($20.1 billion).
U.S. exports of agricultural products to EU countries totaled $11.9 billion in 2013. The EU countries together would rank 5th as an Ag Export Market for the United States. Leading categories include: tree nuts ($2.3 billion), soybeans ($1.5 billion), soybean meal ($860 million), wine and beer ($649 million), and prepared food ($492 million).
U.S. exports of private commercial services* (i.e., excluding military and government) to the EU were an estimated $208.8 billion in 2013, up 4.9% ($9.7 billion) from 2012, and up 107% since 2003. Other private services (business, professional and technical services and financial services), royalties and license fees, and travel 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 2013.
U.S. goods imports from the EU totaled $387.3 billion in 2013, up 1.5% ($5.7 billion) from 2012, and up 52% from 2003. U.S. imports from the EU accounted for 17.1% of overall U.S. imports in 2013.
The five largest country suppliers of imports are: Germany ($114.6 billion), United Kingdom ($52.6 billion), France ($45.3 billion), Italy ($38.7 billion), and Ireland ($31.6 billion).
The five largest categories in 2013 were: Machinery ($64.6 billion), Vehicles ($48.8 billion), Pharmaceuticals Products ($36.9 billion), Optic and Medical Equipment ($26.0 billion), and Organic Chemicals ($24.1 billion).
U.S. imports of agricultural products from EU countries totaled $17.6 billion in 2013. 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 ($5.2 billion), essential oils ($2.2 billion), snack foods (including chocolate) ($1.3 billion), vegetable oils ($955 million), and processed fruits and vegetables ($939 million).
U.S. imports of private commercial services* (i.e., excluding military and government) were an estimated $148.4 billion in 2013, up 3.6% ($5.2 billion) from 2012, and up 77% since 2003. The other private services (business, professional and technical services) category accounted for most of U.S. services imports from the EU.
The U.S. goods trade deficit with the EU was $125.1 billion in 2013, a 7.9% increase ($9.1 billion) over 2012 The U.S. goods trade deficit with the EU accounted for 18.2+% of the overall U.S. goods trade deficit in 2013.
The United States has a private services trade surplus of $60.5 billion with the EU in 2013, up 8.1% from 2012.
U.S. foreign direct investment (FDI) in the EU (stock) was $2.2 trillion in 2012 (latest data available), a 10.0% increase from 2011.
U.S. FDI in the EU countries is primarily concentrated in the nonbank holding companies, finance/insurance, and manufacturing sectors.
EU FDI in the United States (stock) was $1.6 trillion in 2012 (latest data available), a 7.0% increase from 2010.
EU countries FDI in the U.S. is mostly in the manufacturing, finance/insurance, banking, wholesale trade, and information sectors.
Sales of services in EU by majority U.S-owned affiliates were $554.7 billion in 2011 (latest data available), while sales of services in the United States by majority EU-owned firms were $409.9 billion.
*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services. Agricultural and services trade refers to EU 27 (excluding Croatia).