The Transatlantic Free Trade Area (TAFTA) is a proposed free trade area between the United States and the European Union (and their related areas, see EFTA and NAFTA) in reaction to the growing economic power of the People's Republic of China. It was considered in the 1990s and again in 2007 but no firm plan has been made. Economic barriers between the two are relatively low and some efforts to ease trade have been made, such as the single sky aviation agreement (EU-US Open Skies Agreement) and the establishment of the Transatlantic Economic Council.
However economic relations are tense and there are frequent trade disputes between the two economies, many of which end up before the World Trade Organization (see EU-US relations).
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