Brussels, 27/10/2009 (Agence Europe) - In a speech delivered on Monday to the US Chamber of Commerce, the day before the 4th Transatlantic Economic Council (TEC) meeting which was taking place, in Washington on Tuesday 27 October, as we went to press, European Trade Commissioner Catherine Ashton urged political decision makers on either sides of the Atlantic to join forces to remove regulatory trade barriers. She called on both Europeans and Americans to work together to shape globalisation rules.
Noting that the EU and the United Stares together represent over half of the world's GDP of some $60 trillion, and that transatlantic trade was worth $4.4 billion per year, with more than 14 million workers dependent on it on both sides of the Ocean, Ashton highlighted the need to tackle, not tariff barriers, but non-tariff barriers such as authorisation licences, risk assessment rules and differing standards. “We should however keep this in perspective, as our trade disputes affect less than 2% of the value of our total commercial trade relationship. Inevitably, some of these disputes grab the headlines. But the simple truth is the vast majority of our trade and investment flows freely, and this is sometimes forgotten,” she said, stating that the obstacles to a greater level transatlantic economic integration, which is already “high”, were not customs duties but regulatory barriers which were the “real problems” for EU and US exporters. “As such they are a kind of glass ceiling that prevent us from reaching the full potential of our relationship,” she said. In the Commissioner's view, the main objective for political decision makers on both sides of the Atlantic should be to set up an early warning system. “Better and more effective regulatory cooperation is the way forward and will bring a double dividend: smarter regulation and more trade. … Just as we have a transatlantic market for goods we should have a transatlantic 'market for regulation'. A solid and critical exchange about our respective approaches, and indeed some degree of competition for best practice in this area can actually help us spot the most efficient regulatory tools, which we can then share with each other,” she argued, stressing that regulatory convergence between the EU and the United states could provide an example for the rest of the world. “If we don't try and find common cause on this difficult subject then others might choose their own standards and regulatory solutions, and that would lead to fragmented markets and increased costs for our businesses,” she warned. Thus, it would seem to make sense, according to Ashton, to promote regulatory convergence “to the greatest extent possible”. This required, she said, high-level political commitment, as well as genuine engagement and cooperation by the respective regulatory agencies. In order to make progress, she suggested that it might be a good idea to start looking into areas where the two sides did not yet have diverging regulations, such as new technologies, in particular nanotechnology. The TEC was, Ashton said, “a strategic instrument” for the future of transatlantic relations.
Referring to the decade-old transatlantic disagreement over chlorine treated chickens which has found its way back into discussions (see EUROPE 9994), the Commissioner called on both sides to solve their “legacy” disputes, inherited from previous administrations. This is an issue on which she is working hard with her US counterpart, Trade representative Ron Kirk. “But no matter how enthusiastic we are, we cannot pull rabbits out of a hat. Practices developed over many years cannot be turned around overnight. We acknowledge these limitations and we will work around them. After all, we advocate regulatory evolution, not regulatory revolution,” she said.
Lastly, on a more multilateral level, Commissioner Ashton again argued the cause of free trade, keeping markets open and the conclusion of the Doha Round. “Naturally, trade openness can be sustainable only if it is supported by appropriate measures to help companies and workers to adapt, especially during downturns. Within the EU, social policy measures are also seen as another fundamental reason why there is broad support for open trade policy - something which has not been seriously questioned, even in this economic crisis,” she said. She went on to highlight the EU's and the US's “the collective weight and influence” and the “responsibility”, as the world's largest trading powers, to show leadership. “The stakes are high, but the time has come to show our cards,” she stated. Despite a difficult political environment for trade liberalisation, the weakness of global economic outlook backed up, she said, the arguments in favour of conclusion of the Doha Round, which, she pointed out, would bring a boost of around $220 billion per year or the global economy, and at no extra cost to taxpayers. (E.H./transl.rt)