European Union and United States trade relations

Transatlantic trade relations between the European Union and the United States have evolved rapidly at the close of the 21st century. Alongside the benefits of free trade the relationship has been marred by trade disputes. The WTO arbitration and government and business initiated transatlantic dialogue have been unsuccessful at resolving these disputes. A trade war would have far-reaching consequences for EU-US relations. The US has shown signs of protectionism and there is a potential for tension within the EU regarding trade policy. To avert further escalation the WTO must show leadership. The importance of transatlantic trade disputes is largely exaggerated and with the recovery of the global economy the tension on EUUS trade will decrease.