EC: ECONOMIC RELATIONS WITH THE UNITED STATES ON THE SKIDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00148R000300790017-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: December 28, 2007
• Sequence Number: 17
• Publication Date: July 30, 1982
• Content Type: REPORT

Approved For Release 2007/12/28: CIA-RDP84B00148R000300790017-0
CENTRAL INTELLIGENCE AC,FNC:Y
Office of External Affairs
Washington D. C. 5
Telephon3 August 82
TO- Ms. Diana Smith
Committee on Foreign Relations
United States Senate
Washington, D.C. 20510
Enclosed is the document per your
request. Hope this is helpful.
Sincerely,
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~ 3 AUG 1982
Approved For Release 2007/12/28: CIA-RDP84B00148R000300790017-0
STAT
 Approved For Release 2007/12/28: CIA-RDP84BOO148R000300790017-0
Secret
EC: Economic Relations With the
United States on the Ski
tionships with the United States
Economic tensions between the United States and
the European Community are approaching a post-
war high. Although a number of the trade disputes
such as steel and agriculture have been simmering
for years, depressed economic conditions in West-
ern Europe have now magnified their importance.
In particular, the 18 June decision by the United
States to extend sanctions against the Soviet Union
to include licensees of US firms has made West
European governments question the motives behind
US international economic policies and the US
commitment to international economic agreements.
Nevertheless, we believe that the West Europeans
do not want the present disagreements to erupt into
an overall trade war-they realize the importance
of their longstanding economic and security rela-
The Economic Relationship
the political and security areas
The rhetoric surrounding US-EC problems could
be muted quickly if an agreement on steel were
reached and a common approach to East-West
trade found. The current prickly atmosphere sug-
gests that the economic relationship will remain
contentious for some time. Continuing economic
tensions with the EC almost certainly will spill over
on other important US policies, including those in
Over the past three decades economic relationships
between the member countries of the European
Community and the United States have expanded
rapidly, with trade between the two areas expand-
ing almost fourfold just since 1970. Integration of
business activity has become greater than trade
statistics would indicate because of (a) the enor-
mous growth in foreign investment and (b) the
establishment of a strong international banking
United States: Trade With the
European Community
L
1970
80
network, which services not just US-EC transac-
tions but those of the entire world. The overall
economic relationship now affects millions of jobs
on both sides of the Atlantic.
Trade Flows. In 1981 the total value of trade
between the two areas was almost $100 billion.
Between 1971 and 1980 the importance of this
trade for the United States had been growing fairly
steadily. In 1980 US exports to the EC as a share
of US GNP peaked at 2.1 percent. For the EC, the
US market during this same period declined in
importance and by 1980 equaled only 1.3 percent
13
Secret
30 July 1982
Approved For Release 2007/12/28: CIA-RDP84B00148R000300790017-0