EU companies fail to benefit from American market

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The EU and the USA have stepped up the discussion to create a Trans-Atlantic free economic zone. It is expected that the trading union would support the suffering economies of the EU and the USA. Some experts believe that this is an attempt to offset the growing economies of Russia, India and China. But according to analysts, the issue lies not just in that. The idea itself has little chance of being implemented as the EU and the USA compete against each other.

According to some experts, in principle, that is a reaction of the developed countries to the crisis in the talks within the WTO. It has become clear when each one of the leading economic groups or countries tried to build its own free trade alliance. The talks between the EU and the USA are an attempt to draw up their own rules of the game. And in this specific case they are not only talking about a free trade zone – the customs duties between them are already low… The parties want to extend the sphere of inter-regional trade relations with the help of the alliance.

South Korea was the first country on the global market thanks to which the accent was shifted not in the favor of the EU and USA. In search for profits Europe signed an agreement with South Korea. After that other partners have surfaced, many negotiations have been conducted, including those with Canada. And it all was driving towards the negotiations with the USA. That was why consultations on the trade agreement with the United States were initiated last year. But nobody can predict when these talk could come to a completion. The USA is the leading trading partner of the European Union. When they receive some requests from the Americans, the Europeans still count on the fact that their companies will be present at the US market to a greater degree. But, as experts are warning, EU lobbyists at the trading union negotiations could fail to defend the interests of EU producers, i.e. they may fail to develop a recipe for the EU companies to establish a productive presence IN the American market. In principle, it will be unclear from the very beginning, which side would be in the more beneficial position and on on whose territory.

Large European companies would only benefit from extending the trading opportunities. But the same cannot be said about the EU’s medium and small businesses. There is no doubt that pressure will be put on them and it can so happen that somebody would be squeezed to make room for somebody else, or even completely abandon their business in favor of large corporations. In this case we are naturally talking about the pressure of the American corporations on the European market.