The rise of anti-Americanism in Europe is a danger to both American and European pocketbooks, and our collective liberty. Here is why: Europe and America are each other’s biggest trading and investment partners, and anything that damages that relationship is harmful to everyone involved.

This past year more than one trillion dollars flowed between the U.S. and the EU. The EU now accounts for 21 percent of U.S. merchandise exports and 19 percent of U.S. merchandise imports, and about 34 percent of U.S. services exports and 37 percent of U.S. services imports.

The U.S. is not only the largest recipient of foreign direct investment, but far and away the world’s largest investor elsewhere. Of the more than two trillion dollars the U.S. has invested directly abroad, a little more than half ($1.1 trillion) is invested in Europe. Europeans account for 70 percent ($1.2 trillion) of the direct investment in the U.S.

The bottom line is that the U.S. and Europe are economically joined at the hip, and any actions which damage trade and investment between these two economic giants hurt everyone. The U.S. and EU have a combined population of about 650 million people, and their combined GDP equals 57 percent of the world’s total.

The U.S. has also provided a security umbrella over Europe for almost 65 years. Europe has adopted much of American culture - from movies and music to fast food and dress, and increasingly the English language (the American version). Even France has about a thousand McDonald’s restaurants. Given the growing economic and cultural ties, why the rise in anti-Americanism (despite the hopeful signs coming from Sarkozy’s election)?

Some Europeans will argue that it is only anti-Bush-ism - in that they dislike the Bush foreign policy and his personal style. And it is generally true that Europeans dislike Bush more than they dislike Americans. But there is more to it. Europe by and large was pro-American when Europe was growing faster than the U.S., and the U.S. was protecting them from the Soviet menace. But over the last two decades, the major European economies have grown more slowly than the U.S., and the Soviet threat has disappeared.

The increasingly globalized world where the U.S. appears to be more aggressive and economically competitive causes fear and resentment. The U.S. success and dominance highlights the weaknesses of the European welfare state. Only the U.S. morass in Iraq and the relatively low level of the dollar (which most likely will soon be reversed) has given the Europeans reasons to smile.

If the anti-Americanism were confined to verbal belly aching, it would not be much of a problem. However, it is now leading to destructive policies. The Europeans have been more reluctant to further liberalize global trade than the Americans and, in fact, destructive protectionist forces on both sides of the Atlantic are gathering strength.
http://www.tcsdaily.com/article.aspx?id=060807B