It’s not surprising that Europe wants to replace U.S. businesses and workers in government contracts. The U.S. federal government is the biggest consumer in the world… and when you add in the state and local governments, it’s really big. From the U.S. side there is simply no way we’d come away with a net benefit with theoretical market access by our so-called “U.S.” multinationals (who don’t really consider themselves U.S. anymore) to other smaller government procurement markets. It simply doesn’t ever work that way.
I’m not sure where the Obama Administration is coming from on this. The biggest source of jobs and growth will come from reducing the trade deficit. We had a record $735B goods trade deficit last year, including a $300B goods deficit with China. Trade deals simply don’t help the trade deficit, usually make things worse, and tie our hands for fixing the problem.