Transatlantic Trade’s Transformative Potential
Mohamed A. El-Erian
06 March 2013
NEWPORT BEACH – After instant and seemingly coordinated fanfare in Europe and the United States, the proposal for a European Union-US free-trade area has been generating little media attention. There are three reasons for this, and all three highlight broader constraints on good national economic policymaking and productive cross-border coordination.
Average tariff levels are only 3%. The EU already accounts for almost 20% of US imports, and the US for 11% of EU imports. And, given similar per capita income levels and cultural orientations, overlaps in production and consumption are considerable.
Mohamed A. El-Erian is CEO and co-Chief Investment Officer of the global investment company PIMCO, with approximately $2 trillion in assets under management. He previously worked at the International Monetary Fund and the Harvard Management Company, the entity that manages Harvard University's endowment. He was named one of Foreign Policy's Top 100 Global Thinkers in 2009, 2010, 2011, and 2012. His book When Markets Collide was the Financial Times/Goldman Sachs Book of the Year and was named a best book of 2008 by the Economist.