In a March 29 breakfast discussion, U.S. Ambassador to the European Union Gordon Sondland spoke with Pacific Council members about the importance of U.S.-E.U. trade and the ups and downs of this long-standing transatlantic relationship. Sondland discussed his efforts to increase U.S. competitiveness abroad while advancing U.S.-E.U. relations after what he called a period of “self-inflicted wounds” and “too much bureaucracy.”

The United States and Europe have a historical, unique relationship and have remained close allies since World War I and II. With the implementation of the Marshall Plan after WWII, the United States helped rebuild Europe and establish the liberal world order that E.U. member states and the United States operate in today: an order based on the concepts of democracy, free trade, and open markets.

This long-standing relationship between the United States and Europe not only has great economic implications, but deep social, political, and military ones as well. Sondland referenced these ties and how the United States and the E.U. share many areas of common interest, including counterterrorism, preventing global drug trafficking, and standing unified in sanctions against Russia and other rogue regimes.

“The United States and Europe work best when we are together. We make each other more secure. Through our businesses and investments, our scientific and educational exchanges, we make each other more prosperous.”

Gordon Sondland

“The United States and Europe work best when we are together,” he said. “We make each other more secure. Through our businesses and investments, our scientific and educational exchanges, we make each other more prosperous.”

Sondland stated how being the U.S. Ambassador to the E.U. is a job he wanted because the transatlantic relationship has been a powerful driver of change that benefits all citizens. However, when he accepted the role of ambassador and arrived in Brussels in 2018, he pledged he would not “sweep aside differences [between the United States and the E.U.] because that is not useful, that is not realistic, nor is it productive. Not all is happiness and bright, but one of the key strengths of the E.U.-U.S. relationship is our ability to talk candidly and often about our differences.”

These differences are largely in regard to trade negotiations and business transactions. Sondland, a politically-appointed ambassador, reflects President Donald Trump’s views that the E.U. is taking advantage of the United States in terms of trade and that U.S. businesses are treated unfairly. The United States and the E.U. are each other’s largest trading partners: bilateral trade between the two totaled over $1.15 trillion in 2017. Of that, U.S. exports to the 28-member trade block amounted to $528 billion. European imports on the other hand reached $629 billion—marking a deficit of $101 billion.

While there is significant tension between the U.S. government and E.U. Commission in the area of trade, in the realm of security Sondland expressed strong U.S. desire to work with the E.U. in halting Russian aggression.

Not only is there a trade imbalance, but Sondland also claimed that the E.U. creates unnecessary hurdles for U.S. companies doing business there. These hurdles are manifested in a “constant proliferation of new regulations that come out at a fast rate and put in the guise of protection for the European consumer, [when in reality] it is naked protectionism for European industries.”

The ambassador further argued this is not only disadvantageous to U.S. companies, but to European ones as well. Sondland disclosed how he recently met with prominent European business leaders who told him “they want to compete in an open and fair market [with the United States], but the European Commission is out of touch.”

While there is significant tension between the U.S. government and E.U. Commission in the area of trade, in the realm of security Sondland expressed strong U.S. desire to work with the E.U. in halting Russian aggression.

“Together we must defend Europe and the United States against Russia’s nefarious activities and the Kremlin’s attempts to divide us. The United States and Europe have a long history of standing together against aggression around the world and we must continue that tradition.”

Gordon Sondland

“Together we must defend Europe and the United States against Russia’s nefarious activities and the Kremlin’s attempts to divide us,” he said. “We must end Russia’s war in Ukraine and address its increasingly brazen cyber and chemical weapons attacks. [The United States and Europe] have a long history of standing together against aggression around the world and we must continue that tradition.”

Sondland highlighted how the United States and the E.U. may be in a moment of great disagreement about trade tactics, but they will always share the same goal of improving mutual security and prosperity.

“Our relationship is much more than a trade arrangement,” he said. “Our partnership is based on shared values such as a commitment to democracy, rule of law, open markets, human rights, and promoting peace and security around the world. Our differences make for exciting headlines, but what is often overlooked is our cooperation.”

“E.U. leadership should do some self-reflection on why a member state [i.e. the United Kingdom] wants to leave, and why the United States is upset with trade policies.”

Gordon Sondland

At the end of the day, the ambassador stated that “no one should seriously question the United States’ commitment to this transatlantic relationship. Neither party has any intent of getting divorced, but we are having some very serious conversations about what will make each other happy.”

Nevertheless, Sondland pointed out that it is no longer 1945, and today, the United States and Europe are equal partners in a transatlantic market that accounts for about one third of the global GDP. He asserted that Europe must be more willing to negotiate and work with its American partner in trade.

Ultimately, the ambassador said he has “encouraged leadership of the E.U. to step back and reflect on what’s truly important, what makes the transatlantic relationship such a potent force for good, and how the E.U. can contribute to the future of the relationship. E.U. leadership should do some self-reflection on why a member state [i.e. the United Kingdom] wants to leave, and why the United States is upset with trade policies.”

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Gemma Stewart is a Communications Project Fellow at the Pacific Council on International Policy.

The views and opinions expressed here are those of the speakers and do not necessarily reflect the official policy or position of the Pacific Council.