The Theory of the Free Trade Area As a Possible Form of Future Cooperation of the European Union with The US

The European Union and the United States of America present the world´s largest exporter and importer of goods, services and capital. The idea of increasing foreign trade between them based on the implementation of the lowest degree of economic integration, a free trade area, is not new. A proposal was made in the 1990s to create a Transatlantic Free Trade Area between the EU and member countries of the North American Free Trade Agreement, which has not been successfully implemented. Nowadays, it is getting back to the forefront of interest among not only politicians but also economists. Whether political or economic pressures are behind this step, it is important to understand the general principle of the functioning of the free trade area. The aim of this paper is to illustrate the basic characteristics of the free trade area on the example of the EU and the US.