One of the first actions of the Biden Administration (Biden) was to repair the damage that Trump had inflicted on U.S. relations with The North Atlantic Treaty Organization (NATO) and to reaffirm America’s commitment to NATO. This action was high priority because Biden understands the importance of the United States’ reciprocal military relationship with NATO since the end of WWII. And Biden also understands that NATO countries are good for the American economy.
Established in 1948 in the aftermath of WWII, NATO is a military and political alliance of 32 countries that share a commitment to collective defense and democratic values. It is a one-for-all and all-for-one defense organization—if any one country is attacked, all the NATO member-countries come to its defense. For example, after the 911 World Trade Center attack, NATO assisted the U.S. In fact, as a consequence of “911”, NATO has been undergoing changes to deal with the worldwide terrorist threats.
In peacetime, NATO is also a significant economic influence worldwide. NATO has contributed to the economic prosperity and growth of its members, especially the United States. NATO countries help the American economy, such as by promoting trade and investment, supporting innovation and research, and creating jobs and opportunities.
NATO facilitates trade and investment between the United States and its allies. According to the U.S. Chamber of Commerce, the European Union (EU) and Canada, which comprise most of the NATO members, are the largest trading partners of the United States, accounting for nearly half of its total trade in goods and services in 2019. The EU and Canada are also the largest sources of foreign direct investment (FDI) in the United States, representing more than 60% of the total stock of FDI in 2019. These trade and investment flows support millions of jobs, businesses, and industries in the United States, and generate tax revenues and consumer benefits. Moreover, the United States and its NATO allies share common standards and regulations that facilitate market access and reduce trade barriers and costs.
Another way that NATO countries help the American economy is by fostering innovation and research across the transatlantic area. The United States and its NATO allies are global leaders in science and technology, and collaborate on various initiatives and projects that advance their knowledge and capabilities. For example, the NATO Science and Technology Organization (STO) is a network of experts and institutions that conduct research and provide advice on topics such as cybersecurity, biotechnology, and energy. The STO also supports the exchange of information and best practices, and the development of common standards and interoperability. Additionally, the United States and its NATO allies participate in bilateral and multilateral programs and agreements that support scientific and technological cooperation, such as the Horizon Europe, the EU's framework program for research and innovation, and the U.S.-EU Science and Technology Agreement.
A third way that NATO countries help the American economy is by creating jobs and opportunities for the American workforce and businesses. The United States and its NATO allies have a strong defense and security partnership that involves the procurement and provision of military equipment and services, the training and education of personnel, and the participation in joint exercises and operations. These activities generate significant economic benefits for the United States, such as by increasing the demand for its defense products and services, enhancing its industrial base and technological edge, and expanding its access to new markets and customers. According to a 2019 report by the Atlantic Council, the U.S. defense exports to NATO countries supported more than 254,000 jobs and contributed more than $16 billion to the U.S. gross domestic product (GDP) in 2017. These efforts create new avenues for the American economy to innovate, compete, and grow in the 21st century.
Clearly Trump doesn’t have the in-depth and comprehensive knowledge of NATO’s beneficial relationship with the United States. President Biden does and thankfully, he was able to repair Trump’s damage to the NATO-U.S. relationship. After only three years, this relationship is stronger than ever!