The United States and the European Union (EU) share a large, dynamic, and mutually beneficial economic relationship. Not only are trade and investment ties between the two partners huge in absolute terms, but the relative importance of bilateral trade and investment flows for each partner has remained high and relatively constant over time, despite the rise of China and other Asian economies. The EU as a bloc is the United States' largest merchandise or goods trade partner of the United States. As shown in Table 1 , the EU accounted for 17.5% of U.S. merchandise trade in goods in 2010. Canada, the second-largest trading partner, accounted for 16.5% of total U.S. merchandise trade. The EU is also the largest purchaser of U.S. exports of services, accounting for $170.2 billion (or 31.0% of the total in U.S. services exports to the world) in 2010. The importance of the EU is even greater on the foreign direct investment side, where European companies accounted for $1.5 trillion, or 63%, of total foreign direct investment in the United States and U.S. companies accounted for $1.7 trillion, or about 50%, of total foreign investment in Europe in 2009. These investments account for 4 million workers on both sides of the Atlantic being directly employed by the respective affiliates of U.S. or European-based companies. The German company Siemens, for example, employs some 60,000 people in the United States, and General Electric employs some 70,000 workers in Europe. The U.S.-EU trade and investment relationship, what many call the transatlantic economy, is not only the largest in the world but also arguably the most important because of its sheer size. As shown in Table 2 , the flows of merchandise or goods trade, services trade, and income across the Atlantic manifest a very active, strong, and large economic relationship. In 2010 alone a total of $1,537.4 billion flowed between the United States and the EU, or an average of $4.2 billion per day. With a combined population slightly over 818 million or about 12% of the world's population, the two partners produce around 50% of the world's GDP. Combined with bilateral trade flows in goods and services that account for 40% of the world total, the magnitude of transatlantic economic transactions means that the two sides have significant influence and leadership responsibilities in the world economy. Agreement and cooperation between the two partners in the past has been critical to making the global trading system more open and efficient. The high degree of transatlantic economic interdependence, however, carries some downside risks, as demonstrated by the 2008 financial crisis, which started in the United States and was then transmitted to Europe. As the U.S. economy is now recovering from the deep recession, EU members Greece, Ireland, Portugal, and Spain are struggling to address sovereign debt crises which are slowing Europe's economic growth and recovery. With a significant stake in European economic growth, there is a concern that U.S. exports may be adversely affected at a time when the Obama Administration hopes to double U.S. exports by 2015. Given the magnitude of commercial interaction, trade disputes are not unexpected. Policymakers tend to maintain that the United States and the EU always have more in common than in dispute, and like to point out that trade disputes usually affect a small fraction (often estimated at 1%-2%) of trade in goods and services. Both sides have been working to resolve some of the biggest disputes for years. These include a dispute between the aerospace manufacturers Airbus and Boeing, and conflicts over bio-engineered food products and protection of geographical indicators. The Airbus-Boeing dispute involves allegations of unfair subsidization for both companies and is being adjudicated by the World Trade Organization dispute resolution process. The agricultural-based disputes are rooted in different approaches to regulation, as well as different social preferences. U.S.-EU trade and economic relations are also characterized by other forms of competition and rivalry. Each side aspires to lead in setting rules for global trade and investment, often in an effort intended to facilitate commercial success for its respective companies. Similarly, both economic powers often compete to secure bilateral and regional trade agreements to support jobs, markets, and foreign policy interests. Nowhere may this be more apparent than in the EU's rush to negotiate a free trade agreement with South Korea following the negotiation of the U.S.-South Korean FTA in 2007. While the U.S. and EU economies are very open to trade and investment flows from both sides, some barriers to trade and investment remain. Various studies, in fact, estimate that substantial economic gains in terms of jobs and faster growth could be attained if progress were made in reducing a range of remaining tariff barriers at the border and regulatory "behind the border" non-tariff barriers. Private stakeholders on both sides have urged policymakers to cooperate more closely to reduce remaining barriers to trade and to provide greater leadership for the world economy. Such actions, stakeholders argue, are a way to boost transatlantic economic growth and jobs. Cooperation is said to be particularly important given that global economic wealth and political power is shifting towards emerging economies such as China, India, and Brazil. While these developing countries are providing new sources of economic growth, they have different views on the future direction of the world economy. This could create a need for greater U.S.-EU cooperation in addressing global challenges that are important for job creation and growth for both sides. At the November 28, 2011, EU-United States Summit meeting, President Obama, European Commission President Barroso, and European Council President Von Rompuy directed the Transatlantic Economic Council (TEC) to establish a High Level Working Group on Jobs and Growth. Led by U.S. Trade Representative Ron Kirk and EU Trade Commissioner Karel De Gucht, the working group was asked to identify policies and measures to increase U.S.-EU trade and investment to support mutually beneficial job creation, economic growth, and international competitiveness. The working group will provide an interim report to leaders on the status of its work in June 2012. It will submit a report with findings, conclusions, and recommendations to the leaders by the end of 2012. The working group could recommend a number of possible initiatives, including enhanced regulatory cooperation, negotiation of a comprehensive free trade agreement, negotiation of a zero-tariff agreement, or negotiation of bilateral agreements liberalizing trade in services and investments. The 112 th Congress, in both its legislative and oversight roles, faces numerous issues that affect the U.S.-EU trade and economic relationship. A select group of these issues are identified and briefly described in this report. The issues are grouped into two categories: efforts to deepen U.S.-EU economic ties, particularly some that may be considered by the newly established U.S.-EU High Level Working Group on Jobs and Growth; and joint U.S.-EU efforts to strengthen the global economy. As these issues cut across trade, economic, regulatory, and foreign policy subject matters, a number of congressional committees may have legislative or oversight responsibilities in whole or in part. On the House side, these include the Committees on Agriculture, Energy and Commerce, Financial Services, Foreign Affairs, Judiciary, Transportation and Infrastructure, and Ways and Means. On the Senate side, these include the Committees on Agriculture, Banking, Commerce, Science, and Transportation, Energy and Natural Resources, Environment and Public Works, Finance, Foreign Relations, and Judiciary. Proposals for deepening transatlantic economic ties include the reduction of regulatory barriers, the negotiation of a zero tariff agreement, and movement towards a barrier-free investment environment. Each proposal holds the prospect of producing economic gains in terms of jobs and growth for both sides, but each also faces obstacles as freer trade creates winners and losers when it comes to jobs. A more comprehensive free trade agreement has also been proposed from time to time along with efforts to liberalize trade in selective services. Since the mid-1990s, both U.S. and European multinational companies have consistently identified divergent regulatory frameworks for both goods and services as the most serious barriers to transatlantic commerce. Redundant standards, testing, and certification procedures are seen by these companies as far more costly and harmful than any trade barriers imposed at the border, such as tariffs or quotas. While the purpose of many regulations is to protect consumers and the environment, divergent domestic regulations and standards add to the cost of doing business on both sides of the Atlantic and serve as non-tariff barriers to trade in many different economic activities and sectors. By reducing gaps in regulatory policies and standards, the United States and EU hope to benefit thousands of companies engaged in transatlantic trade by reducing costs, streamlining time-to-market, and improving competitiveness vis-à-vis third countries. A 2009 study commissioned by the European Commission estimated that aligning and rationalizing these kinds of non-tariff barriers would bring its economy potential gains of $158 billion in annual GDP and increase exports to the United States by 2%. EU sectors that stand to benefit include motor vehicles, chemicals, pharmaceuticals, food, and electrical goods. The United States, it was estimated, stands to gain some $53 billion in annual GDP and a 6% increase in annual exports to the EU, with the primary beneficiaries being sectors such as electrical goods, chemicals, pharmaceuticals, financial services, and insurance. Many efforts have been made over the past 15 years to tackle and reduce these behind-the-border regulatory barriers, but with only limited success. Predicated on the notion that past initiatives failed to make significant progress in enhancing regulatory progress, the Transatlantic Economic Council (TEC) was established in April 2007 at the U.S.-EU Summit.