Europe and US pledge to create world’s biggest trading bloc

A very good point is made in the sense that this could be a means to contain China’s growing economic hegemony while simultaneously bolstering both EU and US growth.

The European Union and America are to open negotiations with the aim of creating the world’s biggest free trade area worth €86bn (£75bn) within two years.

The talks have been heralded as a “game-changer” that could help kick-start stagnant or contracting European economies back into growth by adding 0.5pc to GDP every year.

David Cameron pledged that Britain, which currently chairs the G8 group of countries, would do everything it could to help broker the difficult talks.

“Breaking down the remaining trade barriers and securing a comprehensive deal will require hard work and bold decisions on both sides,” the Prime Minister said.

EU and US economies account for nearly half of the world’s economic output and a third of global trade, meaning that a transatlantic free-trade bloc would hold great sway over emerging economic superpowers China, Brazil and India.

Full article: Europe and US pledge to create world’s biggest trading bloc (The Telegraph)

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