Eliminating transatlantic tariffs would boost EU-US trade by more than $120 billion within five years.

Perhaps the most aggressive estimate of economic benefits from an EU-US free trade agreement (FTA) has come from the U.S. Chamber of Commerce, which estimates that a 50 percent NTB reduction scenario would increase both EU and U.S. GDP by 3 percent, generating annual gains of $450 billion for the United States and $495 billion for Europe. The Chamber also estimates that full tariff elimination alone would boost combined EU-US GDP by $180 billion within five years. Regardless of which estimate proves closest to correct, they all make the central point that the gains from an EU-US trade pact are real and significant. Moreover, it's important to remember that the benefits of a free trade agreement are much less about static equilibrium gains than they are about innovation gain.