Eu Countries And The United States Trade Dispute Settlement Mechanism

After World War II , Europe ,who was attacked heavily, had to depend on the United States (US) . From 70' s of 20th century, the European economy began to recover and its inter national status rose, and then there came the combat at control and until control between the United States and the Europe, especially in the field of economy and trade . In this paper, we make an analysis on the hottest issue: the trade disputes in order to precisely grasp the bilateral relationship between the two parties, What's more, the analysis of this issue is also good for us to refer to.The trade disputes between the European Union (EU) and US mainly contents four aspects. First the dispute on agricultural products is the fiercest part of the trade disputes between the two parties. Impacted by the General Agriculture Policy, large amount of surplus products flew into the world market with the support of the huge sum of subsidy, which stroke the US, the biggest agricultural products export country to protect its export on agricultural products. Second, at the aspect of industrial products, the dispute is mainly in the steel and high - techno - logy, fields America took protective policy for its own backward steel industry and drew complaint from the EU. The EU had made provisions in the fields of hi - tech to protect its own industry and had performed a series of law to defend its national interest, which limited, in the financial fields .The rise of EU's economic strength and the establishment of the uniformity of market attracted large sun of funds, which had great impact on the US who lived on the flow of the foreign capital, which stroke the international currency system who centered on US dollars. The competition between the two kinds of currency became one of the focuses of their trade competition. Fourth, the product on spirit and culture. The quaotity of American products to Europe was very large, which stroke the European native cultural products a lot And the US could gain thousands of millions of dollars.Now from the analysis on the trade situation between the EU and the US we can learn that the friction between them has some characteristics as follows: First, the scale of trade keeps on expanding .The range extends; the amount of money expand and the frequency increases. Second, the settlement of disputes becomes harder and harder. The two parties hold cautious attitude towards the punishment tax. Third, the dispute will exist for a long time , but it won't break the relationship of the two.Based on the above - mentioned contents and characteristics, we can draw conclusion thatthe main reasons for the dispute between the EU and US are many. They are as follows. First, the economic situation is the main cause of the dispute between the two parties. American economy had been in a boom after World War E .However, in the recent decades, the EU's economic strength has risen gradually, which the US is in a fall. So the trade relationship formed in the long run has changed. The leadership of the US has been shaken, and the EU tried to strive for a really equal partnership with the US which would bread friction between them. Second, the influence of Euro. The monetary system censored on us dollars will be replaced by a new monetary system dominated by both US dollars and Euro. Not only cancel Euros coming into market help to bring about the uniformity of the European financial market, but the uniformity of currency can accelerate the commodity trade and capital calculation. Third, protectionist and unilateral policy. The two out standing parts of the American protectionist policy are the encouragement of exportation and the restriction on importation. Besides protectionism, another feature of American protectionist policy is Unilateralism. The Unilateralism in trade extends form the hegemony in politics. And it is also the hegemony in trade. Forth, the eastenward extension of the EU and deepen of the Uniform decades of unity inside the Union and extension, out the union the EU has become the most powerful political and...