United States and European Union Brokering Trade Deal

The European Union and the United States are in the process of brokering a trade deal which would create the largest free trade zone in the world.  According to the attached article from the British Broadcasting Company representatives from both parties have been meeting on and off for the last year and recently held negotiations in Chevy Chase, Maryland.  The core of the deal which the European Union and the United States are trying to reach is the elimination of tariffs and “non-tariff obstacles” in order to “create opportunities for job-creating trade and investment.”  Some worry though that an agreement between the two entities would lower the quality of goods and the safety of products, while also causing their home countries to lose jobs.  

We have seen in class that by opening up more opportunities for trade, the United States and the European Union would both certainly benefit as they would be able to consume on higher indifference curves, bringing about overall higher utility for both entities.  Those who oppose the agreement which is being brokered are right though, some sectors may lose jobs even if overall utility goes up.  There will naturally be a shift in production for both the United States and the European Union, and while some of this will be an increase in production in various sectors, certainly just as much will be a shrink in production for specific sectors within either entity, causing some workers to lose their jobs.  More than likely the success of this deal will depend on the lobbying power of the sectors which will be affected and not on the economic sense of the deal.