The negotiations to establish the biggest free trade zone between the US and EU had been moving into a difficult territory, said a Reuters report. This was even before the cancellation of the latest round of EU-US discussions.
The first round of talks between EU and US had started last July. However, it was overshadowed with reports regarding the United States' surveillance program, which included surveillance on European Union offices. This was made public by former NSA contractor Edward Snowden.
Just before negotiators were due to continue with the free trade discussions for a free trade zone deal by the end of next year, the US government went to a partial shutdown over unsettled budget issues.
Financial ties between the United States and Europe had been already huge, said a Reuters report. In fact, the financial ties between the two giant regions had accounted for 60% of world banking. EU investors owned USD2.7 trillion worth of US stocks and bonds, while US investors hold almost as much in the European region, reported Reuters. Officials of both two governments had said the Transatlantic Trade and Investment Partnership deal could increase economic output by around USD100 billion annualy on each side of the Atlantic. The officials added that the free trade zone could also created a potential job market of 800 million people.
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