Transatlantic Ties beyond Goods Trade: Significance and Policy Implications of EU-U.S. Services Trade

Negotiations between the EU and the US on tariffs are intensifying. The trade imbalance disadvantaging Europe regarding services trade is repeatedly mentioned in the debate. This accounts for about three-quarters of the US deficit in goods trade. However, whether the EU will quickly agree on implementing a digital tax / digital tariff is questionable, as unanimity is required. Since most digital services are routed through Ireland, Ireland’s approval would be surprising. It is worthwhile to read the current study by Frank Bickenbach, Holger Görg, and Wan-Hsin Liu for the Kiel Institute for the World Economy.