The United States and the European Union together account for 60% of global GDP, 33% of world trade in goods and 42% of world trade in services. There are a number of trade disputes between the two powers, but both depend on the economic market of the other, and disputes concern only 2% of total trade. A free trade area between the two countries would potentially be the largest regional free trade agreement in history and would cover 46% of global GDP.   U.S. economist Dean Baker of the Center for Economic and Policy Research said the agreement would focus on unconventional barriers, such as strengthening copyright legislation in the case of already weak conventional barriers between the United States and the EU. He adds that while the forecasts are less ambitious, the economic benefits per household are not impressed: “If we apply the 0.21% increase in projected average personal income to 2027, it is just over $50 per year. That`s just under 15 cents a day. Don`t spend everything in one place.  The Transatlantic Trade and Investment Partnership (TTIP) is a draft trade agreement between the European Union and the United States to promote trade and multilateral economic growth. According to Karel de Gucht, EU Trade Commissioner between 2010 and 2014, TTIP is the largest bilateral trade initiative ever negotiated, not only because it involves the world`s two largest economies, but also “because of its potential global reach, to set an example for future partners and agreements.”  A 2018 ku Leuven document estimated that a “deep” free trade agreement such as TTIP between the US and the European Union would increase EU GDP by 1.3% and US GDP by 0.7%.  These benefits would be mainly attributable to the removal of non-tariff barriers.  The European Union and the United States have the largest bilateral trade and investment relations and maintain the most integrated economic relations in the world.
But those frictions have taken such a toll that efforts to repair that relationship under a possible Joe Biden presidency – such as negotiating a new trade deal that the Trump administration has almost abandoned – would likely back down as it tries to reconcile a multilateral approach with support for U.S. unions, analysts and economists at S-P Global Market Intelligence said. With regard to TTIP, a broader “transatlantic free trade area” has been adopted. [By whom?] [Citation required] On the U.S. side, other members of the North American Free Trade Area (Canada and Mexico) could be part of it; and, on the European side, members of the European Free Trade Association (Iceland, Norway, Switzerland and Liechtenstein). Mexico has already concluded a free trade agreement with EFTA and the EU, while Canada has a free trade agreement with EFTA and negotiated a free trade agreement with the EU. These agreements may need to be harmonised with the EU-US agreement and could constitute a wider free trade area.