Europe Mulls U.S. Trade Partnership With Skepticism

Monday marks an important day in the development of a large-scale trade partnership between the U.S. and the EU as the proposal for the partnership is set to be reviewed in Europe.

The deal, called the Transatlantic Trade and Investment Partnership (TTIP) will be scrutinized by the European Parliament on April 13, though the formal vote will not take place until May.

The European Commission is responsible for negotiating the terms of the deal, but the Parliament's assessment will play a major factor in future negotiations. While the European Parliament doesn't negotiate directly with the U.S. government, it does have the power to reject the final agreement.

The TTIP

The TTIP would eliminate much of the red tape making trade between Europe and the U.S. challenging.

It has been touted as a necessary step for both the EU and the U.S. to move their economies forward; economic output from both regions is expected to receive a $100 billion boost per year if the deal is approved.

The TTIP is also expected to have a sizable impact on job creation, something Europe has been struggling with since the financial crisis.

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What's Not To Love?

Many EU leaders are skeptical about the projections for how the TTIP would benefit the eurozone. German Economy Minister Sigmar Gabriel has said he is unsure as to whether or not the projections are reliable, a sentiment echoed by UK Members of Parliament.

While most of Europe's policy makers are in agreement that a deal with the U.S. would be beneficial to their economies, many are worried that not enough detail about the agreement has been released and that the economic benefits have been overestimated.