Andrew DuBois

Staff Writer

    The United States and the European Union has formally engaged in talks over a potential free-trade agreement. An agreement that would effectively eliminate tariffs between the two countries. Allowing European companies to easily compete in the United States and vice-versa. The deal would bring down trading barriers between the two largest economies in the world.

    European Commision President Jose Manuel Barroso said, “A future deal between the world’s two most important economic powers will be a game-changer, giving a strong boost to our economies on both sides of the Atlantic.” Barroso went on to say that any deal would boost annual GDP growth on both sides of the Atlandtic by 0.5%. President Barrack Obama stated during the State of the Union earlier this month that he supports a discussion over the deal.

    EU Trade Commissioner Karel De Gucht strongly believes that the negotiations will not be easy but are necessary. He states that as the two strongest economies in the world, failure will not be an option.

    One of the major goals of the free-trade talks will be standardizing technical regulations and certifications between the two countries. These regulations are what typically prevent companies from competing in the two markets, as the tariffs between the countries are relatively low.