US Deepens Economic Ties with Europe

Recognizing Europe an an indispensable partner in promoting peace and prosperity, the United States is deepining and broadening its economic relationship with Europe,

On his remarks before the House Foreign Affairs Committee Subcommittee on Europe, Under Secretary Robert D. Hormats said is one of the central drivers of the world economy and accounts for almost 50 percent of global GDP.

The value of United States goods and services exports to the European Union is several times the value of US exports to China, Mr. Hormats reported

Trade flows between the United States and the EU exceed $2.7 billion per day, he added.

EUUS summit at Brdo Castle near Kranj in 2008.

Foreign Direct Investment has created millions of jobs on both sides of the Atlantic.

In 2010, U.S. Foreign Direct Investment into the EU – $1.95 trillion – was more than twice U.S. Foreign Direct Investment into any other region in the world.

Given the importance of transatlantic trade and investment in supporting high-quality jobs in the United States, Mr. Hormats emphasizes the importance of making further efforts to remove barriers to commerce between the United States and the EU.

“While we work through these issues, the effort to expand our economic ties has not taken a back seat.” -Mr. Hormats

Mr. Hormats underlines that the Obama Administration is committed to deepen and broaden our economic relationship with Europe.

The State Department works closely in this effort with partners throughout the U.S. Government, including the Office of the U.S. Trade Representative, the Department of Commerce, the Department of Agriculture and the Department of the Treasury, Mr. Hormats cited.

The US government is working with other partners in regulatory and technical agencies, including the Environmental Protection Agency, the Department of Health and Human Services, the National Aeronautics and Space Administration, the National Science Foundation and the U.S. Patent & Trademark Office – as well as research institutions, many of which have developed very inventive ideas for advancing collaboration and increased trade.

“U.S.- EU scientific, research and development cooperation is increasingly key to many of the issues facing us today, including fostering economic growth and creating jobs in our countries in emerging sectors.” -Mr. Hormats

He stresses that pursuing regulatory and standards-setting cooperation will benefit our economies.

The United States has established an Economic Statecraft Task Force to elevate economic and commercial diplomacy goals and to ensure that it has the right people, support tools, and engagement platforms.

The Task Force covers four principal areas of work: human capital; internal tools; external engagement; and policy opportunities, Mr. Hormats cited

Beyond advocacy for specific business deals, the United States is also working to level the playing field for U.S. workers and businesses in Europe and around the world. One example is the agriculture sector.

According to Mr. Hormats, the volume of U.S. agricultural exports to the EU is strong and growing. Our 2011 agricultural exports to the EU were valued at $9.5 billion, up 8.2 % from the prior year.

Every $1 billion in U.S. agricultural exports supports about 7,800 American jobs across a variety of sectors, according to USDA.

“Business is telling us there is more we can do to help them grow in an increasingly challenging world and we at State want not only to respond boldly, but also to exceed their expectations.” -Mr. Hormats

Before the the House Foreign Affairs Committee Subcommittee on Europe, Mr. Hormats highlighted that the US government is looking to Europe to attract more foreign investment into the United States that can produce high-quality jobs and bring us new technologies.

The United States looks up to Europe for new opportunities for US exporters of industrial and consumer goods, services and agriculture products – and as a place where large numbers of American companies have been operating successfully for many decades and seek new market opportunities.

“We work closely with our European partners to ensure an open trade and investment climate in third markets.” -Mr. Hormats

Together, both US and Europe can spur multilateral liberalization in globalized world, in such fora as the G8, G20, WTO and OECD – promoting an open, transparent, and non-discriminatory trade and investment climate in third countries, Mr. Hormats stressed.

The U.S.-European economic relationship is one of the central drivers of the world economy. To put it in perspective, the value of U.S. goods and services exports to the EU is over five times the value of our exports to China. From 2000 to 2009, over half of total U.S. foreign direct investment (FDI) was in Europe. The stock of U.S. FDI in Brazil, Russia, India, and China (the BRICs) combined in 2008 accounted for only 7% of the total U.S. investment stock in the EU.

Europe is the most important “foreign source” of jobs in America. European-owned firms in 2007 employed roughly two-thirds of the 5.5 million U.S. workers on the payrolls of all foreign firms operating in the U.S. combined. In fact, the majority of foreigners working for European-owned companies outside of the EU are Americans.

“The United States and the European Union can both benefit if we work together to promote the adoption of market principles worldwide.” -Mr. Hormats

Mina Fabulous
Mina Fabulous follows the news, especially what is going on in the US State Department. Mina turns State Department waffle into plain English. Mina Fabulous is the pen name of Carmen Avalino, the NewsBlaze production editor. When she isn't preparing stories for NewsBlaze writers, she writes stories, but to separate her editing and writing identities, she uses the name given by her family and friends.