The future of U.S. and European Union trade relationships revolves around collaboration and harmonious relationships, according to U.S. Department of State representative Janet Shannon.
Shannon, who works in the Office of Bilateral Trade, shared her insight yesterday in a presentation sponsored by the Lauder Institute of Management and International Studies.
Sharon emphasized the importance of free trade for promoting globalization and continued GDP growth for the U.S. economy.
She also addressed public skepticism about opening up U.S. borders for global trade, illustrated by free trade agreements with Panama, Colombia and South Korea that have yet to pass through Congress.
Shannon acknowledged potential pitfalls due to the threat of domestic job shrinkage.
She also described how special interest groups lobby the federal government and influence much of U.S. trade policy.
One example is domestic sugar growers who have been longtime proponents of protectionism, since many equatorial countries could potentially undercut the price of sugarcane by flooding the market in the absence of trade barriers.
However, Shannon also cited statistics that highlighted the importance of sustained global trade relations, especially between the U.S. and the EU.
The high level of U.S. exports is one reason the U.S. is not technically in a recession, despite the recent downturn. Trade between the U.S. and the EU accounts for roughly 40 percent of global trade, which contributes to 60 percent of global GDP.
College and Wharton sophomore Aneesh Jain agreed with many of Shannon's points.
"I plan to study International Business and with the emergence of BRIC [Brazil, Russia, India and China], it is imperative that the United States promote free trade," he said. "We need to maintain our economic dominance in this age of globalization."
As the lecture continued, Shannon began to talk about major trade disputes that have occurred in the past decade.
Most of the disagreements center on food processing. For example, the U.S. allows food producers to bleach chicken carcasses in order to kill bacteria, while the EU prohibits the practice.
Shannon closed the lecture by discussing the implications of free trade down the road for Penn students. She believes the future of U.S.-EU trade relations will revolve around collaboration on emerging biotechnology and alternative fuel sources.
Shannon urged the "future business leaders" in attendance to join trade associations, weigh in on trade policy and join consumer groups, all while keeping an eye on carbon footprints and sustainability.
MBA student Ignasi Julia said he enjoyed hearing the perspective of the State Department. "It raises the international profile of the University," he said.
