BRUSSELS — Embarking on what could be the biggest trade agreement ever in its economic sweep, officials from the United States and the European Union indicated Wednesday that they had already resolved some of the stickiest issues behind closed doors.
But the sheer ambition of the trade negotiations, which aim not only to eliminate import duties but also synchronize regulations governing products like cars, drugs and medical devices, leaves plenty of room for the talks to bog down in the type of parochial concerns that have derailed past efforts at a trans-Atlantic trade pact.
Ron Kirk, the U.S. Trade Representative, said by telephone Wednesday that this time things would be different. Already, he said, preliminary discussions between him and top E.U. officials have made “very good progress” on issues that have stymied trade relations for years, like health and safety standards applied to food. A final agreement is possible before the end of 2014, he said.
But, Mr. Kirk acknowledged, “we’ve still got a lot of work ahead of us.”
President Barack Obama endorsed a trade pact during his State of the Union address Tuesday, answering pleas from European leaders desperate for a way to speed up economic growth. Though Mr. Obama devoted only a single sentence to the topic, it was the green light that proponents of a trade deal had been hoping for.
“And tonight, I’m announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union,” Mr. Obama said, giving the potential pact a name. He added, “Because trade that is fair and free across the Atlantic supports millions of good-paying American jobs.”
European officials on Wednesday agreed with Mr. Kirk that the timing is favorable for an agreement. And officials in both Brussels and Washington noted that the rising economic might of China gave them further incentive. A broad trade agreement could help ensure that Americans and Europeans, and not the Chinese government, would set standards on product safety or protection of intellectual property in years to come.
“You will now be setting what the rules of the road are for trade that are going to shape the global trading system,” said Karan Bhatia, a former deputy U.S. trade representative who is now vice president for global government affairs at General Electric in Washington.
Unless the United States and Europe are in agreement, in too many future trade cases, “we would be forced to accept Chinese standards,” Karel De Gucht, the trade commissioner who is expected to lead the talks on behalf of Europe, said during an interview. “That’s what it is about.”
José Manuel Barroso, the president of the European Commission — the Union’s administrative arm — said at a news conference here that a trade pact would bolster the economies of the United States and Europe.
“Both of us need growth, and both us also have budgetary difficulties,” Mr. Barroso said. “Trade is the most economic way of promoting growth.”
But Mr. De Gucht, interviewed later, added a note of caution. “The low-hanging fruit doesn’t exist here any more,” he said. “All the easy topics are off the table.”
European leaders, including Prime Minister David Cameron of Britain and Chancellor Angela Merkel of Germany, have been pushing for a trade deal as a low-cost way of stimulating their struggling economies. Mr. Obama’s statement Tuesday will help put to rest complaints by some Europeans that the U.S. president has not paid enough attention to his country’s largest trading partner.
“A deal will create jobs on both sides of the Atlantic and make our countries more prosperous,” Mr. Cameron said in statement. “Breaking down the remaining trade barriers and securing a comprehensive deal will require hard work and bold decisions on both sides.”
Between them, the United States and Europe account for about half of global economic output and one-third of world trade. Trade in goods between the Union and America totaled $646 billion last year, according to U.S. government figures.
According to Mr. Kirk, the trade representative, the Union is the best customer for U.S. exports, buying $459 billion in goods and services and supporting 2.4 million American jobs.
“I don’t know if I would call it the biggest trade agreement in the history of the planet,” Mr. Kirk said, “but it is really a very big deal.”
A Running Start for a U.S.-Europe Trade Pact
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A Running Start for a U.S.-Europe Trade Pact
