The EU Earns Title of New Globe Trade Leader

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Image courtesy huffingtonpost.com

After the new administration took effect in America, President Donald Trump has called into question the benefits of the North American Free Trade Agreement (NAFTA), removed the United States from the Trans-Pacific Partnership (TPP), and slowed the progress of the Transatlantic Trade and Investment Partnership (TTIP).

Due to these factors and the United States’ “America First” policies, the EU was able to take the premier position as globe trade leader. Also, due to the inability of the WTO to effectively regulate policies in recent times, free trade agreements are becoming very popular across the globe.

The free trade agreement that EU signed with Japan, the fourth largest economy in the world, will pave the way for many such agreements in the future as predicted by both parties. Japan’s car manufacturers now have access to the EU, a market that was once heavily restricted.

Besides this, the EU has pending agreements with Vietnam and Singapore and a free trade agreement with South Korea since 2015. Additionally, the EU has signed over 30 free trade agreements with countries in Africa, Asia, the Mediterranean, the Middle East, and South America since 2000.

Image courtesy: huffingtonpost.com