United States–European Union relations
Relations between the United States of America and the European Union are the bilateral relations between that federation and the supranational organization. The USA and EU have been interacting for more than sixty years. USA-EU relations officially started in 1953 when USA ambassadors visited the European Coal and Steel Community. The two parties share a good relationship which is strengthened by cooperation on trade, military defense and shared values.
History
They dominate global trade, they play the leading roles in international political relations, and what one says matters a great deal to much of the rest of the world. Both the US and almost all of the member states of the EU are members of the North Atlantic Treaty Organization. And yet they have regularly disagreed with each other on a wide range of specific issues, as well as having often quite different political, economic, and social agendas. Since the EU does not have a fully integrated foreign policy, relations can be more complicated when the member states do not have a common agreed position, as EU foreign policy was divided during the Iraq War. Understanding the relationship today means reviewing developments that predate the creation of the European Economic Community.Comparison
Trade
Euro-American relations are primarily concerned with trade policy. The EU is a near-fully unified trade bloc and this, together with competition policy, are the primary matters of substance currently between the EU and the US. The two together represent 60% of global GDP, 33% of world trade in goods and 42% of world trade in services. The growth of the EU's economic power has led to a number of trade conflicts between the two powers; although both are dependent upon the other's economic market and disputes affect only 2% of trade. See below for details of trade flows.| Direction of trade | Goods | Services | Investment | Total |
| EU to US | €260 billion | €139.0 billion | €112.6 billion | €511.6 billion |
| US to EU | €127.9 billion | €180 billion | €144.5 billion | €452.4 billion |
In 2007, a Transatlantic Economic Council was established to direct economic cooperation between the two. It is headed by the US. Deputy National Security Advisor for International Economic Affairs and the EU's Commissioner for Trade. However, it is yet to produce solid results. A Transatlantic Free Trade Area had been proposed in the 1990s and later in 2006 by German Chancellor Angela Merkel in reaction to the collapse of the Doha round of trade talks. However, protectionism on both sides may be a barrier to any future agreement. Recent developments have seen the proposal of a new agreement called the Transatlantic Trade and Investment Partnership between the US and the EU. This agreement has the aim of fostering economic growth through bilateral trade and investments. In August 2019, Trump announced an accord to increase beef exports to the European Union. The US Trade Representative Robert Lighthizer signed agreement with Jani Raappana, representing EU Presidency, and Ambassador Stavros Lambrinidis of the EU delegation.
EU is one of the main trade partners of the US:
In 2016, European-Union is 18.7% of US merchandise exports, and 18.9% of US merchandise imports.
In 2016, European-Union is 30.9% of US commercial services exports, and 35.3% of US commercial services imports
The USA is one of the main trade partner of the EU:
In 2016, the USA is 20.1% of European-Union merchandise exports, and 14.2% of European-Union merchandise imports.
In 2016, the USA is 27.2% of European-Union commercial services exports, and 30.5% of European-Union commercial services imports
| Sources: EU sources build from third sources: IMF, EUR/USD exchange rate from Eurostat |
Cooperation
Energy and sustainability
The US and EU cooperate on the topic of energy and sustainability. The general aim of both parties is to liberalize and enhance sustainability in the global energy markets. This cooperation officially started in 2009 when the EU-US Energy Council was founded. This institution regularly meets and addresses topics such as: energy security challenges, climate change, renewable energy, nuclear safety and research.Arms embargo on the People's Republic of China
Both the United States and the European Union have an arms embargo against China, put in place in 1989 after the events of Tiananmen Square. The US and some EU members continue to support the ban but others, spearheaded by France, have been attempting to persuade the EU to lift the ban, arguing that more effective measures can be imposed, but also to improve trade relations between China and certain EU states. The United States strongly opposes this, and after the PRC passed an anti-secession law against Taiwan the likelihood of the ban being lifted diminished somewhat.Defense contracts
In March 2010 EADS and its US partner pulled out of a contract to build air refueling planes worth $35 billion. They had previously won the bid but it was rerun and EADS claimed the new process was biased towards Boeing. The European Commission said it would be "highly regrettable" if the tendering process did prove to be biased. There was substantial opposition to EADS in Washington due to the ongoing Boeing-Airbus dispute.Spying
Secret documents obtained by German news magazine Der Spiegel in 2013 state that European Union offices in the United States and United Nations headquarters have been targeted for spying by the National Security Agency, an intelligence office operated by the United States government. The reports revealed that the United States bugged offices, accessed internal computer networks, obtained documents and emails, and listened to phone calls. Subsequent reports from the media further state that domestic European Union offices in Brussels have also been targeted; along with EU offices, embassies of India, Japan, Mexico, South Korea and Turkey are also listed as targets in the documents. On June 30, 2013, the President of the European Parliament, Martin Schulz demanded for a full clarification from Washington and stated that if the allegations were true, EU and US relations would be severely impacted.Iran's nuclear program
The United States has not ruled out the use of force against Iran regarding the Iranian nuclear program. France, Germany and the United Kingdom have taken the lead to solve the issue diplomatically, while representing the interests of the United States in negotiations with Iran since the United States has had no official diplomatic relations with the country since 1979.Issues
EU–US summits
Annual summits are held between United States and European Union policy makers. When these take place in Europe, they have historically taken place in the country that holds the rotating Presidency of the European Union.List of EU–US summits:
Boeing and Airbus subsidies
The two companies are the major competing aircraft manufacturers, and both Boeing and Airbus are accused of receiving forms of subsidy from the United States and from some of the European Union member states respectively, which both sides have criticized each other for doing so. The pressure for this issue to be resolved has increased as Airbus and Boeing are now nearly equal in commercial aircraft market share.Genetically modified food
Genetically modified food is another significant area of disagreement between the two. The EU has been under domestic pressure to restrict the growth and import of genetically modified foods until their safety is proven to the satisfaction of the populace. On the other hand, the United States is under pressure from its agricultural businesses to force the EU to accept imports, seeing the EU's restrictions as alarmist and protectionist.Rendition
The Washington Post claimed on November 2, 2005, that the United States was maintaining several secret jails in Eastern Europe. Poland and Romania, however, have denied these allegations. Also, Central Intelligence Agency planes carrying terror suspects would have made secret stopovers in several West European countries since 2001. Belgium, Iceland, Spain, and Sweden have launched investigations. The Guardian calculated on November 30 that CIA planes landed about 300 times on European air ports. Most planes would have landed in Germany and the United Kingdom as a transit point to East Europe, North Africa, or the Middle East. In the meanwhile, the European Commission, on behalf of the European Union, asked the United States for a clarification. The US has refused to confirm or deny the reports.Extraordinary rendition flights through Europe were investigated over a number of years by the European Parliament and it held a temporary committee on the matter. The EU has also opposed the use of Guantanamo Bay detention camp and offered to host some former inmates when its closure was announced by the administration of US President Barack Obama.
Capital punishment
In the United States, capital punishment is a legal form of punishment, whereas all European member states have fully abolished it and consider its use to be a violation of fundamental human rights. This occasionally causes problems with EU-US relations, because it is illegal in the European Union to allow the extradition of a citizen to a country where the death penalty is a legal punishment, unless a guarantee is given that such punishment will not be used.International Criminal Court
Positions in the United States concerning the ICC vary widely. The Clinton Administration signed the Rome Statute in 2000, but did not submit it for Senate ratification. The Bush Administration, the US administration at the time of the ICC's founding, stated that it would not join the ICC. The Obama Administration has subsequently re-established a working relationship with the court.Iraq War
The Iraq War divided opinions within European nations and within the United States, with some states supporting of military action, and some against. The European public opinion was staunchly opposed to the war. This caused a major transatlantic rift, especially between the states led by France and Germany on the one hand, who were against military action, and the United States with United Kingdom, Italy, Spain and Poland, among others.Kyoto Protocol
The European Union is one of the main backers of the Kyoto Protocol, which aims to combat global warming. The United States which initially signed the protocol at its creation during the Clinton Administration, never had the measure ratified by the United States Senate, an essential requirement to give the protocol the force of law in the United States. Later, in March 2001, under President George W. Bush, the United States removed its signature from the protocol, leading to much acrimony between the United States and European nations. In 2008, President Barack Obama said that he planned on setting annual targets to reduce emissions, although this doesn't include the Kyoto Protocol—likely because developing nations are exempt.Visa waiver reciprocity
The EU is requesting from the US reciprocity regarding the visa waiver program for all its members. The European Union has threatened with the possibility of imposing visas for American citizens that would extend to the entire EU. In 2008, many of the EU's new Central European members were granted visa-free access to the US, and currently, four out of 28 EU members lack such access.Privacy
In the autumn of 2015, in the wake of the Snowden revelations in Europe, the dissimilar interpretations of privacy prevailing in the United States and Europe came to the surface in an upset of the International Safe Harbor Privacy Principles by a court ruling of the European Court of Justice.Nord Stream
In mid-June 2017, Germany and Austria issued a joint statement that said the proposed anti-Russian CAATSA bill heralded a "new and very negative quality in European-American relations" and that certain provisions affecting gas pipeline projects with Russia were an illegal threat to EU energy security.On July 26, 2017, France’s foreign ministry described the new U.S. sanctions as illegal under international law due to their extraterritorial reach.
At the end of July 2017, the proposed law's Russia sanctions caused harsh criticism and threats of retaliatory measures on the part of the European Union President Jean-Claude Juncker. Germany's minister for Economics and Energy Brigitte Zypries described the sanctions as illegal under international law and urged the European Union to take appropriate counter-measures.
Resolved
Banana wars
The EU and the US have had a long-running dispute over the EU's banana imports. As part of their international aid, the EU offered tenders, on a first-come-first-served basis, for bananas from countries in Africa, the Caribbean and the Pacific. The United States argued that it favored local producers in former colonies of EU member-states over US-owned corporations in Latin America. The Clinton administration responded by imposing heavy tariffs on luxury goods created in the EU. Such goods included cashmere from Scotland and French Cognac brandy, made in the original constituency of then Prime Minister of France Jean-Pierre Raffarin. The Clinton administration then took the banana wars to the World Trade Organization in 1999, after Chiquita made a $500,000 donation to the Democratic Party. The two sides reached an agreement in 2001.US steel tariffs
In 2002, the US imposed steel tariffs to protect its steel industry. The EU and other countries took up the issue with the WTO, which ruled that such tariffs breach its regulations. By December 2003, the tariffs had been lifted by the US administration.Delegations
Diplomatic relations are maintained between the US and the EU, as an independent body, as well as all EU member states.The EU is represented in the US by the Delegation of the European Union to the United States in Washington, D.C. Opened in 1954, it was the first overseas delegation of the EU's forerunner, the European Coal and Steel Community . The current EU ambassador to the United States, since 2014, is David O'Sullivan. Additionally, all 27 EU member states have an embassy in Washington, D.C.
The United States' diplomatic mission to the EU is the United States Mission to the European Union in Brussels. The current US ambassador to the EU, since 2014, is Anthony Gardner. The United States established a diplomatic mission to the ECSC in 1956 in the city of Luxembourg and, in 1961, the United States Mission to the European Communities in Brussels. The US has embassies in all 27 EU member states.
The Transatlantic Economic Council is a bilateral forum for economic cooperation between the EU and US established during the 2007 US-EU Summit. It meets at least once per year and is jointly headed by the US Deputy National Security Advisor for International Economic Affairs and the EU's Commissioner for Trade.
Trump administration
In a 60-minute interview in mid-January 2017, with Michael Gove of the Times of London and Kai Diekmann of Bild, U.S. president Donald Trump criticized the European Union as "basically a vehicle for Germany" claiming that it was a "very catastrophic mistake" on Angela Merkel's part to admit a million refugees - whom he refers to as "illegals". In a letter to 27 European leaders, Donald Tusk, the President of the European Council, called these "worrying declarations" and claimed that the Trump administration seemed to "question the last 70 years of American foreign policy," placing the European Union in a "difficult situation". The relation soured even more when Jean-Claude Juncker jokingly said it will support the independence of the US State of Ohio and the city of Austin, Texas after Donald Trump backed the Brexit and encouraging other European Countries to follow its example.In May 2017, Angela Merkel met with Trump. Trump's nationalist sentiments had already strained relations with several EU countries and other American allies, to the point where after a NATO summit, Merkel said that Europeans cannot rely on United States' help anymore. This came after Trump had said the Germans were "bad, very bad" and threatened to stop all car trade with Germany.
In July 2018, Trump stated in an interview with CBS that the European Union is one of the United States' greatest foes globally, citing “what they do to us on trade". He followed this up with a tweet protesting the EU's fining of Google $5.1 billion for a violation of antitrust laws, commenting that the EU continues to take advantage of the US.
In December 2019, the United States urged the European countries to blacklist Hezbollah. Its ambassador to Germany Richard Grenell asked these countries to list Hezbollah as a terrorist organization, after a US civil contractor was killed in a rocket attack in Iraq's Kirkuk Province, which the US official said involved Kata'ib Hezbollah.