The objective of this paper is to provide an assessment of the potential economic effects in the U.S. and EU28 of reducing the trade barriers between the two economies¹. A global computable general equilibrium (CGE) model is used to determine over the period 2015-2024 the immediate, medium-term and long-run effects on the bilateral trade between the U.S. and EU28, and the related effects on the rest of global trade. Aggregate trade creation and trade diversion effects are calculated, as well as the sectoral production, trade and consumption effects and impacts on factor prices and welfare in both economies.