For example, from early 2002 to early 2004, the dollar's exchange rate against the euro and sterling, on average, declined about 30 percent, yet dollar prices of imported manufactured goods from the European Union rose by only 9 percent, slightly more than dollar prices of U.S. manufactured goods during the same two years.
This is why achieving a level-playing field in the implementation of new financial regulations is so important. This is also why the European banking union project, with its single supervisory and its single resolution mechanisms, matters so much.