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US-European Free Trade Talks To Begin Soon
President Barack Obama raised the prospects1 of a Transatlantic free trade zone at his annual State of the Union address.
"Because trade that is free and fair across the Atlantic supports millions of good paying Americans jobs," Obama said.
European Commission President Jose Manuel Barroso was quick to endorse2 the proposal, saying a comprehensive trade deal with the U.S. would boost Europe's flagging economy.
"It is estimated that when this agreement is up and running, the European economy will get a stimulus3 of a half percent of our GDP, which translates into tens of billions of euros every year and tens of thousands of new jobs," Manual Barroso said.
In short -- a win-win for developed western nations.
But Sharan Burrow4 at the International Trade Union Confederation warns an agreement based purely5 on economic gain will hurt workers in the U.S. and Europe.
"Now -- if it's collaborative, if it's built on a value set that says we want to share the wealth so tools like collective bargaining are absolutely at the core, so we get the distributional effects // it could be very interesting," Burrow said.
The concern is that eliminating barriers to trade and investments will undermine collective bargaining agreements and shift production to areas where labor6 is cheapest.
But trade expert Daniel Ikenson at the Cato Institute says that should not be an issue for the U.S.
"In fact, Europe's labor standards are widely considered to be higher than ours so the U.S. labor movement would be less likely to oppose the agreement," Ikenson said.
Instead, he says negotiations7 could focus on harmonizing technical and regulatory standards.
"If you produce something in the United States for example -- a washing machine -- the electrical cord needs to be three feet and in the European Union, it needs to be one meter, which is three feet and three inches," Ikenson said.
Given that trade tariffs8 are already low between the U.S. and Europe, major hurdles9 are likely to revolve10 around subsidies11 -- the financial aid governments give such groups as farm producers and aircraft manufacturers to stay competitive.
But even if both sides are able to work out their differences, labor leader Sharan Burrow says more trade is not the cure for a weak global economy.
"This economy is never going to get back on track in the global context unless we can do something about stopping the attack on worker's rights -- giving the world a pay raise so people can build a capacity to live on what they earn and stabilize12 demand," Burrow said.
Trade between the U.S. and Europe accounts for nearly half of the world's economic output. Analysts13 say greater trade would further cement the partnership14 and help counterbalance China's growing clout15.
1 prospects | |
n.希望,前途(恒为复数) | |
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2 endorse | |
vt.(支票、汇票等)背书,背署;批注;同意 | |
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3 stimulus | |
n.刺激,刺激物,促进因素,引起兴奋的事物 | |
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4 burrow | |
vt.挖掘(洞穴);钻进;vi.挖洞;翻寻;n.地洞 | |
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5 purely | |
adv.纯粹地,完全地 | |
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6 labor | |
n.劳动,努力,工作,劳工;分娩;vi.劳动,努力,苦干;vt.详细分析;麻烦 | |
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7 negotiations | |
协商( negotiation的名词复数 ); 谈判; 完成(难事); 通过 | |
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8 tariffs | |
关税制度; 关税( tariff的名词复数 ); 关税表; (旅馆或饭店等的)收费表; 量刑标准 | |
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9 hurdles | |
n.障碍( hurdle的名词复数 );跳栏;(供人或马跳跃的)栏架;跨栏赛 | |
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10 revolve | |
vi.(使)旋转;循环出现 | |
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11 subsidies | |
n.补贴,津贴,补助金( subsidy的名词复数 ) | |
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12 stabilize | |
vt.(使)稳定,使稳固,使稳定平衡;vi.稳定 | |
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13 analysts | |
分析家,化验员( analyst的名词复数 ) | |
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14 partnership | |
n.合作关系,伙伴关系 | |
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15 clout | |
n.用手猛击;权力,影响力 | |
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