US President Barrack Obama has pledged to obtain a free trade agreement with the European Union that he hopes will expand the world’s biggest economic partnership and boost US exports to the region.
At his State of the Union speech the President signalled his strongest commitment yet to boosting trade with the EU. If such a deal went through then both the United States and the European Union has the potential to bolster their relative economies. In recent months several EU nations have struggled to remain competitive with their exports, a free trade deal with the world’s only superpower has the potential to improve that.
“Trade that is free and fair across the Atlantic supports millions of good-paying American jobs.” Obama said during his speech.
Negotiations with the European Union could help Obama achieve his goal of doubling US exports by the end of 2014. Other negotiations in other parts of the world have stalled and the rise of China has threatened to ruin his plans. Obama’s administration also plans to complete negotiations on the Trans-Pacific Partnership with 10 nations and increase America’s role as a manufacturing centre.
Trade and investment between the U.S. and the EU was valued at $4.5 trillion in 2011, the partners have been at odds over issues including farm subsidies, health protections and regulatory standards.
“Negotiations will not be easy, but they have enormous potential to open new opportunities for us to sell our goods and services in the EU,” House Ways and Means Committee Chairman Dave Chapman a Michigan Republican, said in a statement.
A number of issues stand in the way of the deal however. These include better market access for US agricultural goods, intellectual property protections and a means to settle disputes.
With the EU still struggling to resolve the Euro debt crisis, a free trade deal could give the region a much needed economic boost.
Current Euro exchange rates
As of 10:30 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8616
The Euro to US Dollar exchange rate is currently trading in the region of 1.3484
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.3037
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.6016
The Euro to Canadian Dollar exchange rate is currently trading in the region of 1.3524
The Euro to Emirati Dirham exchange rate is currently trading in the region of 4.9523
The Euro to Swiss Franc is currently trading in the region of 1.2368
The Euro to Japanese Yen exchange rate is currently trading in the region of 125.777