Brussels, 29/03/2010 (Agence Europe) - At their very first bilateral meeting, in Brussels on Friday 26 March, European Trade Commissioner Karel De Gucht and US Trade Representative and US Trade Representative Ron Kirk took stock of the trade policy issues that were of common interest to the EU and the US, from the multilateral Doha Round talks to bilateral issues and the Transatlantic Economic Council. Both highlighted the “strategic importance” of strengthening bilateral and multilateral cooperation. The two men said that their meting had provided “a sound basis for future collaboration”. However, on the sidelines of the meeting, behind polite smiles, Kirk responded to De Gucht's accusations of American protectionism (see EUROPE 10101).
Transatlantic integration seen by both as essential
Speaking to press after their meeting, De Gucht and Kirk both highlighted the “crucial importance” of transatlantic trade, worth almost €2 billion daily, and €700 billion annually. The highly inter-dependent EU and US economies together make up more than half the world's GDP and 31% of world trade. Transatlantic foreign direct investment is worth €1,900 billion. According to a recent Commission report, the two partners' combined GDP would increase by €160 billion and EU and US exports would increase by 2.1% and 6.1% respectively if half the non-tariff barriers on either side of the Atlantic were removed. “At this economically difficult time, it is essential that we build up the transatlantic market to boost growth,” said De Gucht.
De Gucht calls for Doha Round relaunch
De Gucht argued for a “swift resumption” of Doha Round talks on liberalising world trade, which have stalled since July 2008. “If we want to make progress, we have to negotiate. It is up to the major players to show that what they want to change (Ed.: to the overall draft agreement rejected by the United States and India over differences on the special safeguard mechanism for agriculture in developing countries). All I can say is that the text was not acceptable to the United States,” he said, promising discussions with Kirk over the coming weeks.
Mutual accusations over Airbus and Boeing at WTO: De Gucht wants negotiated settlement
In an interview with AFP before the meeting, Kirk responded to De Gucht's charges of American protectionism, after the EADS/Airbus group and its US partner Northrop Grumman withdrew from the race for the contract to supply tanker planes to the US Air Force. Before making accusations, the EU should ask the reasons for Northrop Grumman's throwing in the towel, and levelling criticism at the procedure, Kirk suggested. No one, he said, was more disappointed at EADS withdrawal than the US Defense Secretary. “It is not in the long-term interest of the United States or the European Union that you've only got two companies capable of bidding on these major contracts,” he said, adding that this was evidenced by the US's $379 billion trade deficit - “a pretty compelling response to those who argue we are protectionist”. Trade relations between the US and the EU were “95% positive” he said. “We need to be very careful when we start throwing around, loosely because of one specific issue, words like protectionism,” he said.
Kirk also responded to De Gucht's criticism of the US administration in blocking the Doha Round. He said that the Commissioner could use his time more constructively. He felt that the Doha talks were “closer to a more successful outcome” than a year ago. The US had conducted intense bilateral discussions since autumn. “The EU has not engaged in the push of that process and we are where we re singularly because of the push and the efforts of the United States,” he insisted, calling on the EU to play a “constructive role”. (E.H./transl.rt)