Vol. 30, No. 2 (Summer
Evaluation of the United States-European Union Bilateral Trade
M. Faizul Islam
paper examines the U.S.-EU bilateral trade relations and finds
that the U.S. current account with the EU has deteriorated in
the last decade, primarily because of a disproportionate worsening
in its merchandize trade. Based on SITC-3 classification, the
U.S. had a trade deficit in nine out of ten commodities in 2003.
Bilateral investment had declined after 2000. The EU has 10
offensive and 4 defensive cases against the U.S. at the WTO.
Despite a weak dollar, the U.S. merchandize trade deficit has
continued to worsen with the eurozone.
Key Words: Current account deficit; World Trade
Organization; Anti-dumping; Countervailing duties; Twin deficits.