| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : UK Economy Last Updated: Jun 19, 2013 - 9:04 AM


G-8: US has most to gain from trade deal with EU; Rest of world most to lose
By Finfacts Team
Jun 18, 2013 - 8:11 AM

Email this article
 Printer friendly page
Some of the G-8 leaders meeting at Lough Erne, Monday, June 17, 2013. The Group of Eight comprises: the US, Japan, Germany, UK, France, Italy, Canada and Russia.

G-8: Barack Obama, the US president and European leaders on Monday launched talks on “the biggest bilateral trade deal in history,” at the G-8 summit in Lough Erne, Northern Ireland. The president announced that talks on a transatlantic trade and investment deal would begin in Washington next month. While EU leaders admit the negotiations will be “difficult,” they believe they can be finalised within two years. Meanwhile, a study shows that the  US has the most to gain from a comprehensive agreement and the rest of the world would lose the most.

President Obama urged politicians to “look beyond narrow concerns and focus on the big picture” of a trade deal covering countries representing half of the world’s economy. David Cameron, British prime minister, said an agreement would be worth £100bn for the EU, £80bn for the US and £85bn for the rest of the world.

However, the US would gain more than the EU from a trade deal, according to a study [pdf] released Monday by Bertelsmann, a German think-tank

Its report concludes that a transatlantic agreement would reduce trade flows within Europe and damage many developing countries.

German trade with the peripheral countries, including Ireland, would drop. However, trade with teh US increases but at a lower rate for Ireland because of the existing high level of trade.

Irish trade with the UK would fall.

The report says that from a purely economic standpoint, the US and the entire EU will profit from a dismantling of tariffs and non-tariff trade barriers between both regions. The real gross domestic product per capita would increase in the US and in all 27 EU member countries. "Also when one looks at labour markets, the positive effects on employment predominate: Two million additional jobs could be created in the Organization for Economic Co-operation and Development (OECD) zone over the long run. The public welfare gains of these economies admittedly do stand in contrast with real losses in income and employment in the rest of the world. On balance, however, the beneficial effects on public welfare prevail."

The study adds:

"The US shows the greatest growth in real per capita income. There, the long-term gross domestic product per capita grows by 13.4%. The EU as a whole also shows gains in social welfare. In the case of a comprehensive transatlantic free trade agreement, the real per capita income in all 27 member countries is on average almost five% higher than without this agreement. Great Britain shows the largest growth in income. There, the real per capita income grows by almost ten% over the long term. The main reason for this growth: Great Britain already has a high trade volume with the US and therefore profits particularly well from a dismantling of trade barriers with the US."

Check out our  subscription service, Finfacts Premium , at a low annual charge of €25.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

UK Economy
Latest Headlines
UK in 28th rank of 30 advanced OECD nations for health resourcing: Economist Intelligence Unit
Business on a Shoestring: Keeping startup costs low in UK and Ireland
UK "underlying growth has stopped"
41,000 London properties held by foreign companies - 90% in tax havens
UK GDP rose 2.6% in 2014 up from 1.7% in 2013
Northern Ireland private economy contracted in December 2014
Northern Ireland may have a 12.5% corporation tax rate from 2017
UK moves ahead on 'Google tax' despite criticism
PwC charged with "selling tax avoidance on an industrial scale"; indulging in "scams"
Income inequality damages economies; Rich-poor gap highest in 30 years
Cameron warns of risk of another global recession
Only 80,000 of 1.1m UK jobs added since 2008 were full-time employee positions
UK added 112,000 jobs in third quarter; Pay inches above inflation - first time in 5 years
Germany and UK agree to restrict 'patent box' tax incentives to local R&D
German retailer Aldi to create 35,000 new jobs in UK by 2022
UK GDP growth slowed in the three months to September
UK retail sales fell in September; Tesco, Debenhams, Foxtons report market stress
UK faces more austerity and less chance of tax cuts
Globalization, the underclass and the need for a new model - Part 2
Northern Ireland PMI shows sharp increase in activity
UK economic growth revised up - above pre-recession level
London world’s most expensive city for companies to locate employees
UK retail sales in August best performance since January
UK economy added more net jobs in past 4 years than rest of the EU combined
UK to announce stiffer penalties for offshore tax evaders
UK economy since launch of the euro in 1999
IMF says British pound overvalued
UK profit warnings reach highest first half total since 2011
UK GDP up 3.1% in 12 months to end Q2 2014; Economy overtakes pre-crisis 2008 peak
Wealthy foreign students overtake finance professionals as renters in prime Central London areas
UK attracts most inward investment projects since records began in 1980s
Trends in UK and US part-time and self employment since 2008
UK labour participation at 73% - highest in decade; US at 63% - lowest since 1978
More than 20,000 client names of Jersey tax haven bank leaked
UK house prices overtook their 2007 peak in Q2 2014
UK recovery continues at robust pace
UK employment rose again at a record pace in the three months to April
UK tax revenues rose to record in 2013/2014 with help from tax dodgers
Overseas visits to London in 2013, up 43.5% in 10 years
UK economy grew 0.8% in Q1 2014; Almost back to 2008 peak