[h=3]By SUDEEP REDDY[/h]WASHINGTON -- President Barack Obama announced plans to seek a new trade deal with the European Union, committing to a thorny negotiation long sought by Europe to deepen economic ties across the Atlantic.
In his State of the Union address Tuesday night, Mr. Obama said his administration would pursue a comprehensive agreement that he called the Transatlantic Trade and Investment Partnership. It would mark the second multi-national trade deal under negotiation after the proposed Trans-Pacific Partnership, which would link nations on either side of the Pacific Ocean.
"Trade that is free and fair across the Atlantic supports millions of good-paying American jobs," Mr. Obama said.
[h=3]What They Said[/h]The modern tradition of delivering an oral State of the Union message to Congress began in 1934. Compare how often presidents used selected words in their addresses.
[h=3]What They Said[/h]
Any deal would face considerable obstacles, including the complex challenge of reconciling tougher European labor and business regulations with U.S. rules and opening Europe's agricultural markets to U.S. goods.
Officials on both sides of the Atlantic say closer trade ties could offer more than economic benefits by strengthening a strategic alliance to support cooperation in defense and other areas.
European officials have been pushing for a comprehensive trade deal with the U.S. for decades as they aim to strengthen the E.U. as an international power. The 27-nation E.U., which collectively forms a larger economy than the United States, sees an opportunity to boost its economies battered by the euro-zone crisis and provide more opportunities for the continent's exporters. U.S. businesses have also sought an agreement for years to win better access to Europe's 500 million consumers.
The U.S. and E.U. already have the world's largest trade relationship. Average tariffs between the U.S. and Europe are already low, but U.S. businesses say they could be lowered further in a trade deal. A 2010 study by the U.S. Chamber of Commerce said eliminating trans-Atlantic tariffs would boost trade between the U.S. and E.U. by more than $120 billion and boost economic growth by $180 billion within five years. Some European estimates have suggested even more benefits.
[h=3]Interactive: Full Text and Analysis of the Speech[/h]Read WSJ reporters' comments on President Barack Obama's State of the Union address.
A negotiation with Europe would lack some of the obstacles that made past trade deals hard to strike. Unlike agreements with many developing economies, a pact with Europe wouldn't trigger the public and congressional pushback caused by fears that U.S. factory workers would be put at a competitive disadvantage by weaker labor standards or less-stringent environmental regulations.
"It's hard to argue our workers and environment are going to suffer because we're negotiating with Europe," said Edward Gerwin, senior fellow for trade and global economic policy at Third Way, a left-leaning Washington think tank. "If we and the Europeans can get on the same page on important issues of trade, that gives us a huge amount of leverage in dealing with the rest of the world."
The toughest part of the negotiation would come from reconciling regulatory differences and product standards that often stymie businesses.
Many U.S. lawmakers maintain that some European policies are not founded in science, creating barriers for American agricultural exports. The E.U., for example, has imposed restrictions on genetically modified crops, hormones in cattle and meat products made from some feed additives.
In a letter to U.S. Trade Representative Ron Kirk on Tuesday, two top senators overseeing trade called on the administration to consider those and other concerns in a possible trade pact.
"There is no doubt that a U.S.-EU [free-trade agreement] is an enticing opportunity," wrote Senate Finance Committee Chairman Max Baucus (D., Mont.) and Ranking Member Orrin Hatch (R., Utah). "While there is much promise in the U.S.-European Union relationship, there are remaining barriers to free and fair trade that are long-standing and difficult to overcome."
The U.S. and E.U. launched a working group in November 2011 to consider ways to build on the trans-Atlantic trade relationship to create more jobs. They released a preliminary report in mid-2012 that pointed out some outstanding areas that needed work. A final report was due at the end of last year, but is expected to be released soon after Mr. Obama's speech.
Write to Sudeep Reddy at [email protected]
In his State of the Union address Tuesday night, Mr. Obama said his administration would pursue a comprehensive agreement that he called the Transatlantic Trade and Investment Partnership. It would mark the second multi-national trade deal under negotiation after the proposed Trans-Pacific Partnership, which would link nations on either side of the Pacific Ocean.
"Trade that is free and fair across the Atlantic supports millions of good-paying American jobs," Mr. Obama said.
[h=3]What They Said[/h]The modern tradition of delivering an oral State of the Union message to Congress began in 1934. Compare how often presidents used selected words in their addresses.
[h=3]What They Said[/h]
Any deal would face considerable obstacles, including the complex challenge of reconciling tougher European labor and business regulations with U.S. rules and opening Europe's agricultural markets to U.S. goods.
Officials on both sides of the Atlantic say closer trade ties could offer more than economic benefits by strengthening a strategic alliance to support cooperation in defense and other areas.
European officials have been pushing for a comprehensive trade deal with the U.S. for decades as they aim to strengthen the E.U. as an international power. The 27-nation E.U., which collectively forms a larger economy than the United States, sees an opportunity to boost its economies battered by the euro-zone crisis and provide more opportunities for the continent's exporters. U.S. businesses have also sought an agreement for years to win better access to Europe's 500 million consumers.
The U.S. and E.U. already have the world's largest trade relationship. Average tariffs between the U.S. and Europe are already low, but U.S. businesses say they could be lowered further in a trade deal. A 2010 study by the U.S. Chamber of Commerce said eliminating trans-Atlantic tariffs would boost trade between the U.S. and E.U. by more than $120 billion and boost economic growth by $180 billion within five years. Some European estimates have suggested even more benefits.
[h=3]Interactive: Full Text and Analysis of the Speech[/h]Read WSJ reporters' comments on President Barack Obama's State of the Union address.
A negotiation with Europe would lack some of the obstacles that made past trade deals hard to strike. Unlike agreements with many developing economies, a pact with Europe wouldn't trigger the public and congressional pushback caused by fears that U.S. factory workers would be put at a competitive disadvantage by weaker labor standards or less-stringent environmental regulations.
"It's hard to argue our workers and environment are going to suffer because we're negotiating with Europe," said Edward Gerwin, senior fellow for trade and global economic policy at Third Way, a left-leaning Washington think tank. "If we and the Europeans can get on the same page on important issues of trade, that gives us a huge amount of leverage in dealing with the rest of the world."
The toughest part of the negotiation would come from reconciling regulatory differences and product standards that often stymie businesses.
Many U.S. lawmakers maintain that some European policies are not founded in science, creating barriers for American agricultural exports. The E.U., for example, has imposed restrictions on genetically modified crops, hormones in cattle and meat products made from some feed additives.
In a letter to U.S. Trade Representative Ron Kirk on Tuesday, two top senators overseeing trade called on the administration to consider those and other concerns in a possible trade pact.
"There is no doubt that a U.S.-EU [free-trade agreement] is an enticing opportunity," wrote Senate Finance Committee Chairman Max Baucus (D., Mont.) and Ranking Member Orrin Hatch (R., Utah). "While there is much promise in the U.S.-European Union relationship, there are remaining barriers to free and fair trade that are long-standing and difficult to overcome."
The U.S. and E.U. launched a working group in November 2011 to consider ways to build on the trans-Atlantic trade relationship to create more jobs. They released a preliminary report in mid-2012 that pointed out some outstanding areas that needed work. A final report was due at the end of last year, but is expected to be released soon after Mr. Obama's speech.
Write to Sudeep Reddy at [email protected]