US-EU Free Trade Pact: Trading Foes Considering Largest Free Trade Deal In The World [View all]

[pampango]

After years of battling each other on trade issues, U.S. and European officials are contemplating a dramatic change in direction: joining together in what could be the world's largest free trade pact in an attempt to boost their struggling economies.

Discussions are in the most preliminary of stages and there would be significant obstacles to overcome, including sharp differences on agriculture, food safety and climate change legislation. Still, top EU and U.S. officials have said they want to see it happen. And America's main labor group, often the biggest opponent of U.S. trade pacts, says it wouldn't stand in the way.

Labor unions have opposed previous U.S. free trade deals with developing countries, arguing that American workers would be at a competitive disadvantage because inferior environmental and labor standards in those countries allow for lower wages. But the giant U.S. labor umbrella organization, the AFL-CIO, says it wouldn't have those concerns in a deal with the EU, arguing that European social welfare and environmental standards exceed those in the U.S.

Negotiators would face a host of tricky issues that have previously led to trans-Atlantic trade spats. The two sides currently are fighting over the EU's carbon trading scheme that could penalize airlines not meeting EU standards. There are also substantial disagreements over intellectual property enforcement and food safety issues. More broadly, agricultural issues, including EU restrictions on the use of genetically modified foods and pesticides, are likely to challenge negotiators.

http://www.huffingtonpost.com/2012/12/11/us-eu-free-trade-pact_n_2276387.html

The negotiations between the US and EU should be interesting. Frankly I hope the EU prevails on most subjects, particularly carbon trading and environmental issues, food safety, gmo foods and pesticides, labor rights and financial market taxes and regulations.