What Is One Result Of The Agreement Being Made In This Excerpt

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Chapters 7, 8, 10, 17 and 18 of this book on the issues of the negotiating strategy are all authors who support the multi-sector approach to bilateral, regional and multilateral trade negotiations. The authors differ in their enthusiasm for specific bilateral or regional agreements, but all agree that the United States should continue to focus on strengthening the World Trade Organization as the basis of the global multilateral trading system. As part of their strategies to become NICs, middle-income countries must strive to gain a comparative advantage discovered in sophisticated and well-connected products. The literature provides many reasons why MICs find it difficult to obtain HIC status. Among others, Eichengreen, Park and Shin (2013); Felipe, Abdon and Kumar (2012); Gill and Kharas (2007); Kharas and Kohli (2011); Lee and Kim (2009); and Peerenboom and Ginsburg (2013) indicate that, ultimately, the important thing is to remain competitive, as wages rise, although factor productivity is lagging behind and may remain lower than that of higher-income competitors. Thus, the unifying theme of this book is how to increase productivity to avoid the trap of average income. The U.S. government will need the support of the American people to implement trade liberalization measures. Many Americans are being asked to change their jobs and even their professions in the wake of recent historic changes in the global economy. Americans, like people for that matter, do not like the interruption of their lives, the insecurity it creates for their families and the loss of income for those who can least afford it.

Despite the slowdown in the growth of transatlantic trade, U.S. economic relations with Europe remain crucial for both economic and political reasons. While in Europe U.S. companies (with the exception of agriculture and some highly regulated service sectors) face a small number of significant barriers to trade and investment, they face a growing number of regulatory and regulatory challenges. Recognising this fact, the United States and Europe will pursue bilateral agreements in these areas, both through bilateral economic dialogue and negotiations within the framework of the „transatlantic partnership“. As Claude Barfield points out in Chapter 13, the United States and Europe face similar regulatory challenges and their ability to negotiate agreements that guarantee greater competition in regulated sectors and mutual recognition of professional standards and licences could form the basis for broader international cooperation in these areas. U.S. and European officials informally explored the possibility of negotiating a transatlantic free trade area, but decided to put that idea aside. One of the reasons for the reluctance (TAFTA) to pursue this idea is the obvious difficulty of removing trade barriers in the agricultural sector.

Another reason was the fear that the negotiation of a preferential free trade agreement between the two main WTO members would have a negative impact on the multilateral system.