free trade

By Toby Luckhurst

  • Iran is facing a water crisis so severe that President Hassan Rouhani has identified the problem as a national security issue and contingency plans exist for water rationing in the greater Tehran area.
  • Parental pressure on Chinese women has led to the growth of a boyfriend rental industry to fool families into believing that their daughters are on the path to marriage.
  • Obama’s ambitious free trade agenda threatens to split the Democratic Party.
  • The Sochi Winter Olympics are under threat from “black widows” – wives of rebels killed by the Russian state in the volatile Caucasus region.
  • Radical protesters in Ukraine are in the minority, but play an increasingly prominent role, write Neil Buckley and Roman Olearchyk.

 

Esther Bintliff

Half of all world exports are from the US and Europe. Added together, the two constitute the largest, wealthiest market in the world, accounting for over 54% of world GDP in terms of value and 40% in terms of purchasing power. There are many reasons why a trade deal between the two makes sense in the minds of both policymakers and business-owners (a successful pact would boost growth and jobs in both regions, and offer the US and EU a better chance of standing up to an increasingly powerful China, for example).

So why are negotiators working on the deal probably in for the long haul? One reason is that there are some culturally sensitive areas for both regions – in particular, agriculture and food. Here are some potential sticking points:

For US exporters trying to get their products into the EU –

For EU exporters trying to get their products into the US –
  • Buy America. The US fiscal stimulus of 2009 restricted bidding on iron and steel contracts so that only US producers could take part, or producers from countries with a ‘reciprocal government procurement agreement’