Cage Analysis Administrative Essay Example

to the EU not having a fully integrated foreign policy, relations can become more complicated where the EU does not have a common agreed position. The relationship between the EU and the US is one of the most important bilateral relationships in the world. They are the biggest economic and military powers in the world. Together they dominate global trade and play the leading roles in international political relations.

The growth of the EU's economic power has led to a number of trade conflicts between the two powers. However both are dependent upon the other's economic market and disputes affect only 2% of trade. In 2007, a Transatlantic Economic Counsel was established in order to direct economic cooperation between the European Union and the United States. The counsel was lead by the US Deputy National Security Advisor for International Economic Affairs and the EU's Commissioner for Trade. The US and the EU do not see eye to eye on everything, one of the key issues is genetically modified food.

The EU has felt domestic pressure to restrict the import of genetically modified food until their safety is proven satisfactory. The US on the other hand is under pressure from its agricultural industry to force the EU to accept imports. They behold the EU's restrictions as protectionary behavior. Economic barriers between the EU/EFTA and the US/NAFTA are considering all relatively low and some efforts have been made to relax trade relationships such as the single sky aviation agreement and the establishment of the Transatlantic Economic Counsel as mentioned before.

However the EU and US have many trade disputes, which the majority of them

end up before the World Trade Organization, which they are both member off. All industrial imports into Germany are subjected to an "Import Turnover Tax" of 19%, which is charged on the duty-paid value of the import article plus the customs duty, which varies by item. This tax is being charged in order to create the same tax burden for imported goods as domestically produced goods.

For the US: Benefits from aligning Non-tariff measured (TMs) are estimated at €41 billion per year in increased GDP and a 6 percent increase in exports to the EU. Cost savings would be generated mainly in electrical goods, chemicals, pharmaceuticals, financial services, and insurance. For the EU: Aligning NTMs and regulatory divergences could translate into a potential annual gain of €122 billion in GDP and a 2 percent increase in exports to the U. S. Cost savings would accrue primarily from gains in motor vehicles, chemicals, pharmaceuticals, food, and electric goods.