Transworld Paper No. 40
by Chad Damro
This paper investigates how the transatlantic relationship affects global and regional economic governance. The analysis is guided by the concept of “competitive interdependence,” which helps to identify the fundamental dynamics shaping the bilateral relationship between the European Union and United States of America as well as the implications of their relationship for others. Largely in response to the multilateral stalemate in the World Trade Organisation’s Doha Round negotiations, the European Union and United States now prioritise and compete in the pursuit of bilateral agreements with largely economic objectives. But the relationship also has a firm basis for cooperation, especially when considering the bilateral characteristics of market size and institutional features. Against this background, the paper also assesses the ways in which competition and interdependence drive the negotiations for a Transatlantic Trade and Investment Partnership and investigates the likely implications of such an agreement for transatlantic relations and global and regional economic governance more generally.