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Oct 062014

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.


Jun 302014

Transworld Paper No. 35

by Davide Tentori and Myriam Zandonini

The evolution of the transatlantic economic relationship has to be considered within the framework of a changing global environment. The bilateral partnership between the United States and the European Union is still dominant both in terms of trade and investment, although it is becoming less relevant in terms of distribution of global GDP. The Transatlantic Trade and Investment Partnership (TTIP), which should be finally signed by early 2015, is the main element of potential convergence between the EU and the US in the near future. However, we envisage two main stumbling blocks. The increasing importance of the Pacific region for the US and the domestic problems the EU is facing in terms of sluggish growth and challenges to deeper economic integration might reduce the EU’s attractiveness as a strategic partner. The role of China, as the third main economic player on the global stage, cannot be neglected. However, it is too early to predict whether China will play along the new regulatory standards that the TTIP will set. For these reasons, the transatlantic economic relationship is still likely to maintain the status of an “enduring partnership”, although uncertainty related to the final outcome of the TTIP and the economic recovery in the EU suggest that it might be heading to a more “functional relationship” scenario.