The United States strongly supported the formation of
the European Economic Community in the 1950s and has supported its subsequent expansions and
evolution into what is now the European Union (EU). Likewise, the United States, under both the
Clinton and Bush Administrations, welcomed the latest, and largest expansion of the EU -- the
addition of 10 new members effective May 1, 2004, viewing it as helping to promote stability and
prosperity throughout the continent. The enlargement of the EU will change U.S. economic ties with
the EU with the 10 new members. This report examines the changes and their potential economic
impact on the United States. Many Members of Congress have been monitoring the potential effects
of enlargement on the U.S. economy, particularly agriculture, and they will likely continue to do so
during the second session of the 109th Congress. This report will be updated as events warrant.