The relationship between the EU and America has existed since the birth of the nation over two hundred and forty years ago. However, since his inauguration as the 45th President of the United States, Donald J. Trump has taken every measure possible in order to devalue and ultimately damage the lasting relationship. In his personal opinion, he has been quoted to see more of a foe than a friend in his European counterparts, focusing on a policy of isolationism and individualism in a feeble attempt to establish American superiority again, which has caused much more harm than good, especially in terms of the business agreements he has tarnished.
Despite this, now that he has all but been replaced by President-Elect Joe Biden, there is a need for him to re-stabilise the country and bring back prosperity. To do this, EU business is crucial to future prospects.
Especially when considering the current pandemic and its effects worldwide, America like all other nations is struggling to maintain the economic standards expected- a fact considered to be a result of the ignorance and failure of the outgoing president to react or protect it, despite it being his main focus and the issue with which he believed would secure him his re-election.
Such attitudes have overlooked one of the crucial ways in which the nation has still managed to survive, which is through Foreign Direct Investment, also known as FDI. This monetary contribution is the investment shared between countries and is key to the maintenance of current stability, as the US and EU are in fact each other’s primary destination for FDI with it making up 2.1% of American gross domestic product.
State based affiliates of companies from the 27 EU member states is responsible for hundreds of billions of the imported and exported goods produced, with this figure not including the further billions spend in research and development while overall employing over 3 million US national workers where the average wage is often higher than the American standard. The continuation of this influx and co-operation is of desperate need to keep the country afloat, with its corporations such as German auto giant BMW being a significant part of previous economic crisis with their $1bn investment in a new South Carolina based production plant at a time when compensation packages were necessary during President Obama’s administration to save the ailing Automotive industry.
The need for EU business is also very much from a political standpoint. Donald Trump’s policies meant that under his direction the United States ended its involvement in major worldwide co-operation projects such as the World Health Organisation and the Paris climate agreement, which are vital to ensure the country has the ability to influence the direction of world health and climate change. America has such an important role in major developments that countries have complained, and the staff list is largely made up of American born citizens such as the world’s leading coronavirus expert, who would be forced to resign due to the only way to have employment is for your own country to be part of the agreement.
In such moves to be more autonomous and create an almost dictatorial role for himself, Trump has taken the country away from the European continent to align himself more with the enemy states such as Russia, China and North Korea who also avoid co-operation. Biden
now needs the EU interests to encourage or even force support so that he can consolidate both the country’s and his own positions to ensure there is the ability to re-join or prevent the exit from the agreements so that he can keep them as a world power. This is more important still when considering that without access to the top Coronavirus knowledge, there is an increased threat to American health which also impacts the operations of the organisations and their employees within the country who will be less inclined to continue existing deals, especially if there was no joint international alliance to help end the pandemic.
These companies are also why such countries as France, who no longer see the US as a viable partner anymore due to the previous administration’s tactics, continue to engage and therefore contribute to the national economy.
A vital part of the need also comes down to protection and security, as the trade deals function to provide supply and demand for weapons, people and even nuclear deterrents as strategic base placement from the US on European soil is down to the economic and financial ties that allow America to have such an expansive presence throughout the world stage. This alongside the long-standing shared ideology and interests shows a clear need for a united front, more vital in the coming months as with the country weakened and Joe Biden moving away from the more volatile nations, there is a much bigger threat of a potential show of strength in defiance of the new regime change and what will surely cause economic and control losses with the exit of Trump.
America now exists in a state of need- weakened by poor leadership and by the pandemic, it needs to put the past behind and move to prosper again from its supply chains. The economy could not survive without the continued and developing existence of its automotive, manufacturing and oil industries, all of which are propped up by the business relationship from the EU and the investment they provide into the nation.
Biden is in a position where he needs to legitimise America again to its friends and neighbours, where it condemns rather than supports the world’s most dangerous regimes which threaten its allies and can ensure the support to remain in its position as the ‘leader of the free world’. European trade and investment has been the backbone of business and politics across the lifespan of the nation, and at a time when the next four years could be the most crucial in its existence, America needs to restore this as a key part of it ongoing international and domestic policy.