EU-U.S. Economic Ties: Framework, Scope, and Magnitude
January 27, 2011 - RL30608
The United States and the European Union (EU) economic relationship is the largest in the world--and it is growing. The modern U.S.-European economic relationship has evolved since World War II, broadening as the six-member European Community expanded into the present 27- member European Union. The ties have also become more complex and interdependent, covering a growing number and type of trade and financial activities. In 2009, $1,252.0 billion flowed between the United States and the EU on the current account, the most comprehensive measure of U.S. trade flows. The EU as a unit is the largest merchandise trading partner of the United States. In 2009, the EU accounted for $220.6 billion of total U.S. exports (or 20.8%) and for $281.8 billion of total U.S. imports (or 18.1%) for a U.S. trade deficit of $73.2 billion. The EU is also the largest U.S. trade partner when trade in services is added to trade in merchandise, accounting for $173.5 billion (or 34.5% of the total in U.S. services exports) and $134.8 billion (or 36.4% of total U.S. services imports) in 2009. In addition, in 2009, a net $114.1 billion flowed from U.S. residents to EU countries into direct investments, while a net ...