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Regionalism and Multilateral Trade Negotiations: The Role of United States and European Union

Current trade policies of European Union and United States stresses establishing free trade arrangements (FTAs) with partners all over the world with special emphasis to developing countries. Besides geo-political aspects, the most important motivation include improvement in foreign market access, stimulation of investment flows and stricter standards on intellectual property rights, labour and the environment. This new wave of FTA threatens current multilateral negotiations ("Doha Development Agenda"), already conditioned by the conflicting strategies of participating countries. As the world's major trading powers, EU and US can exercise considerable influence on global trade and investment but it is vital that they act together and in close cooperation with all trading partners.