The impact of a US-Europe free trade agreement on supply chains

An article in the New York Times (February 13,2013) describes President Obama’s plan for a free trade agreement with Europe thus impacting the 3% duty on the $646 billion in trade. But more than duties, it is the harmonization of rules such as emissions standards, regulations for toys and cars etc. that is expected to benefit firms as they develop one model across both regions. Another benefit is improved competitiveness against China. Will the increased location flexibility across Europe and US result in plant consolidation and thus more transport of goods ? Will the standardization of products decrease or increase variety ? Will product regulations increase to match European standards ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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