TRANSATLANTIC FREE TRADE AGREEMENT IN GOODS

The idea of creating a free trade area between the European Union and the United States to liberalize trade is not new. Trade and investment between the EU and US are significant and presented the largest bilateral economic relationship in the world. From a strict merchandise trade volume perspective, China is now competing with the two at the top. But in bilateral economic relations, trade is only one of the factors behind the extent of cross-border integration. Creating a free trade area in goods between big economies has bigger effects than between smaller economies. Most of the free trade agreements signed in the past are between two smaller economies, or between a big economy and a small economy. The aim of this paper is to define possible impacts of creating the transatlantic free trade agreement in goods between the EU and US.