Following remarks on trade and globalization delivered at the World Economic Forum, Cato’s trade team offered commentary on transatlantic trade relations and long-run U.S. economic performance.
On the European Union’s decision to freeze the EU–US trade deal, Cato scholar Kyle Handley said:
“The EU’s decision to freeze the so-called EU–US trade deal should not be read as a dramatic breakdown. There was never a real deal to begin with. What’s unraveling now was a fragile, politically convenient set of press releases that papered over fundamental disagreements and was always vulnerable to executive-level tariff threats.
This framework was talked up and celebrated despite lacking the core elements of a durable trade agreement: binding commitments, congressional buy-in, and insulation from unilateral tariff action. In that sense, the EU’s move is less retaliation than recognition that you cannot build credible transatlantic trade cooperation on a foundation where tariffs are treated as an all-purpose bargaining weapon.”
On claims that globalization has failed the United States, Cato scholar Scott Lincicome pointed to U.S. economic performance since 1990:
Cato Scholar Jeremy Horpedahl added that claims the United States has been “left behind” are contradicted by the data, noting that the U.S. continues to enjoy one of the highest and rising standards of living in the world during the age of globalization.
To speak with Handley, Lincicome, or Horpedahl, please contact Emily Salamon at esalamon@cato.org.
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