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Updated December  3, 2019


U.S.-European Relations in the 116th Congress


A  Relationship in Flux
Since the end of the Second World War, successive U.S.
Administrations and many Members  of Congress have
supported a close U.S. partnership with Europe. Often
termed the transatlantic relationship, the U.S.-European
partnership encompasses NATO,  the European Union (EU),
and extensive bilateral political and economic ties. Over the
past 70 years, political tensions, trade disputes, and changes
in the security landscape have tested U.S.-European
relations. Despite periodic difficulties, U.S. and European
policymakers have valued the transatlantic partnership as
serving their respective geostrategic and economic interests.

President Trump and some in his Administration have
questioned the fundamental tenets of the post-World War II
transatlantic security and economic architecture to an
unprecedented extent. President Trump's criticisms of
NATO,   the EU, and some key European countries have
prompted concerns about the trajectory of transatlantic
relations. The Administration contends that it is committed
to NATO  and supports close U.S.-European ties, but some
Europeans question whether the United States will remain a
reliable, credible partner. Policy divergences on a wide
range of regional and global issues also pose challenges to
U.S.-European relations. The 116th Congress may wish to
consider the implications of Trump Administration policies
for U.S. interests in Europe and U.S.-European cooperation.

T              Rlations  and  U'S.
U.S. policymakers have long regarded both NATO and the
EU  as crucial to maintaining peace and stability in Europe
and stymieing big-power competition that cost over
500,000 American  lives in two world wars. The United
States spearheaded NATO's  creation in 1949 and
encouraged the European integration project from its
inception in the 1950s. During the Cold War, NATO and
the European project were considered essential to deterring
the Soviet threat. With strong U.S. support, NATO and the
EU  have enlarged since the 1990s, extending security and
prosperity across the European continent.

The U.S. and European economies are deeply intertwined.
The EU  accounts for about one-fifth of total U.S. trade in
goods and services, and the United States and the EU are
each other's largest source and destination for foreign direct
investment. According to the U.S. Bureau of Economic
Analysis, the U.S.-European economy generates $5 trillion
a year in foreign affiliate sales and directly employs over 9
million workers on both sides of the Atlantic. (See also
CRS  In Focus IF10930, U.S.-EU Trade and Investment
Ties: Magnitude and Scope, by Shayerah Ilias Akhtar.)

U.S. leadership of NATO and cooperation with the EU has
helped to foster democratic and prosperous European allies


that, in turn, have bolstered U.S. foreign and security
policies, the multilateral trading system, and the credibility
of U.S. global leadership. The United States and Europe
work together on many common  challenges-from
promoting stability in the Balkans and Afghanistan to
addressing Russian aggression in Ukraine to countering
terrorism and other transnational threats. U.S.-EU
cooperation has been a driving force in liberalizing world
trade. Experts point out that the well-honed habits of U.S.-
European political, military, and intelligence cooperation
are unique and cannot be easily replicated with other
international actors. U.S. engagement in Europe also helps
limit Russian, Chinese, or other possible malign influences.

At times, U.S. officials and analysts have expressed
frustration with certain aspects of the transatlantic
relationship. Previous U.S. Administrations and many
Members  of Congress have criticized what they view as
insufficient European burden sharing in NATO, and some
have questioned the costs of the U.S. military presence in
Europe. U.S. policymakers have long complained about EU
regulatory barriers to trade and that the EU lacks a single
voice on many foreign policy issues. Some U.S. analysts
have argued that a close partnership with Europe at times
requires compromise and may slow certain U.S. decisions.

Th,1e Trumnp Admnistrati 'mon   anQurrent Tension
The Trump  Administration's 2017 National Security
Strategy states that the United States is safer when Europe
is prosperous and stable, and can help defend our shared
interests and ideals. The Administration contends that its
policies toward Europe seek to shore up and preserve a
strong transatlantic partnership to better address common
challenges in an increasingly competitive world.

The Administration asserts that the United States firmly
supports NATO  and its Article 5 mutual defense
commitment.  Although the Administration contends that
NATO   will be stronger when all members pay their fair
share, concerns about President Trump's perceived
transactional view of NATO have arisen on both sides of
the Atlantic. President Trump's almost singular focus on
European defense spending as the measure of NATO's
worth is seen by many as damaging alliance cohesion.
Some  believe that President Trump could seek to withdraw
the United States from NATO.

Given long-standing U.S. support for the EU, the
Administration's seeming hostility has surprised the bloc.
President Trump has voiced support for the United
Kingdom's  (UK) decision to leave the EU (Brexit). He
also contends that the EU engages in unfair trade practices
and has been especially critical of the U.S. goods deficit
with the EU ($170 billion in 2018). The EU is concerned by


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