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An examination of diplomatic negotiations in resolving trade imbalances: Evidence from US–EU trade talks

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  • NGN 5000

Background of the Study
Diplomatic negotiations play a critical role in resolving trade imbalances between major economic blocs. US–EU trade talks have long been central to addressing disputes related to tariffs, market access, and regulatory standards. These negotiations involve complex discussions that aim to harmonize economic policies and reduce barriers to trade (Harrison, 2023). Diplomatic efforts in trade negotiations not only seek to correct imbalances but also to foster a stable and predictable trading environment. The iterative process of dialogue, compromise, and policy reform is crucial for managing economic frictions and promoting mutual growth. Evidence from recent US–EU trade talks indicates that strategic negotiations have led to the implementation of policies that mitigate trade deficits while supporting domestic industries. However, persistent challenges such as differing regulatory approaches, political pressures, and protectionist sentiments continue to complicate these discussions (Martin, 2024). This study examines how diplomatic negotiations are employed to resolve trade imbalances between the US and EU, analyzing both the successes and limitations of these efforts. The research highlights the interplay between economic interests and diplomatic strategies, aiming to provide a comprehensive assessment of negotiation tactics and outcomes (Walker, 2025).

Statement of the problem
Trade imbalances between the US and EU remain a contentious issue, exacerbated by divergent regulatory standards and political interests. Despite ongoing negotiations, unresolved trade deficits continue to strain bilateral relations and economic cooperation. The negotiation process is often marred by delays and compromises that fail to address underlying structural issues. This study seeks to understand the factors that hinder successful resolution of trade imbalances and to identify strategies that can lead to more equitable outcomes (Harrison, 2023; Walker, 2025).

Objectives of the Study

 

To examine the role of diplomatic negotiations in addressing US–EU trade imbalances.

 

 

To identify key challenges in resolving trade disputes.

 

 

To propose strategies for improving negotiation outcomes.

 

Research questions

 

How effective are diplomatic negotiations in resolving trade imbalances between the US and EU?

 

 

What are the main challenges in current trade talks?

 

 

What measures can enhance the negotiation process?

 

Significance of the Study
This study is significant as it provides critical insights into the role of diplomacy in resolving economic disputes, offering policy recommendations to improve trade relations between major economic partners (Martin, 2024).

Scope and Limitations of the Study
The study is limited to the analysis of diplomatic negotiations in US–EU trade talks. It does not examine other trade negotiations or regions outside this context.

Definitions of terms

 

Diplomatic negotiations: Structured dialogue between states aimed at resolving disputes.

 

 

Trade imbalances: Disparities between a country’s exports and imports.

 

 

Trade talks: Formal discussions intended to resolve economic and trade-related issues.





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