European Union and Trade Barriers in Europe : Symptoms, Diagnosis and Treatment

The U.S. goods trade deficit with European Union was $116.6 billion in 2006, a decrease of $5.7 billion from $122.3 billion in 2005. U.S. goods exports in 2006 were $214.0 billion, up 14.8 percent from the previous year. Corresponding U.S. imports from European Union were $330.6 billion, up 7.1 percent. European Union countries, together, rank second behind Canada as an export market for the United States in 2006. U.S. exports of private commercial services (i.e., excluding military and government) to the European Union were $127.8 billion in 2005 (latest data available), and U.S. imports were $105.9 million. Sales of services in the European Union by majority U.S.-owned affiliates were $249.1 billion in 2004 (latest data available), while sales of services in the United States by majority European Union owned firms were $224.3 billion. The stock of U.S. foreign direct investment (FDI) in the European Union in 2005 was $949.0 billion (latest data available), down from $973.0 billion in 2004. U.S. FDI in the European Union is concentrated largely in the non-bank holding companies, manufacturing, finance, and wholesale trade sectors.