Brussels, 14/02/2013 (Agence Europe) - The prospect of a trans-Atlantic free trade area, the planet's largest, overwhelms European leaders with enthusiasm (see EUROPE 10785).
José Manuel Barroso speaks of a “game-changer”. On Wednesday 13 February, the president of the European Commission, José Manuel Barroso, jointly announced, with European Council President Herman Van Rompuy and US President Barack Obama, the EU and United States' decision to negotiate a trade and investment partnership. He welcomed the fact that the initiative was “now possible” after several unfruitful past attempts that had failed due to “obstacles and resistance”. “A future deal between the world's two most important economic powers will be a game-changer. Together, we will form the largest free trade zone in the world. So this negotiation will set the standard - not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules”, Barroso told the press on Wednesday. In the shorter term, this would be an ideal instrument for boosting growth recovery in two economies that have become short of breath and fatigued by one of the most far-reaching economic crises since 1945. “A future deal will give a strong boost to our economies. (…) The European economy will get a stimulus of half a per cent of our GDP - which translates into tens of billions of euro every year and tens of thousands of new jobs”, Barroso went on to say, adding: “This offers us a great perspective at a time when we are gradually making our way to recovery. And most important of all: it is a boost to our economies that doesn't cost a cent of taxpayers' money”. He continued: “So today's announcement (…) sends a positive signal to people on both sides of the Atlantic. It provides an assurance that 'we mean business' - whether that is for individual consumers or households, business or traders”. Acknowledging that “these negotiations will not be easy”, he recognised that “we should move fast”.
Karel De Gucht speaks of “ground-breaking” alliance. Trade Commissioner Karel De Gucht welcomed the “green light” given at the highest level to free trade talks with the United States, that he trusts will be concluded within two years, which also takes him to the end of his term of office. Aware that “this undertaking won't be easy”, De Gucht nonetheless says “more paramount than speed is achieving an ambitious deal”. “Such a transatlantic economic alliance will be ground-breaking. An opportunity for us to shape our economic relationship for decades to come, and to work towards global rules”, he explained, underlining the flagship element for a future agreement, i.e. the lifting of non-tariff barriers, i.e. “barriers which are behind the customs border - such as differences in technical regulations, standards and certifications”. Those barriers, he said, “often cost time and money. This is where we can make real savings for our businesses and bring better value for consumers. In fact, such barriers are estimated to be equivalent to slapping a traditional tariff on a product of between 10 and 20% - so the current cost to business and consumers is high”. Dacian Ciolos, Agriculture Commissioner, took the view that a future agreement will “provide additional export opportunities for EU agricultural products, especially for European quality products with high added value”. In a press release, he states: “In this sense a comprehensive outcome on geographical indications (GIs) will be essential. Our relations with the US are much better than they have been for many years, with the resolution of the long-running beef hormone dispute, and unprecedented regulatory cooperation through our organic equivalency agreement”. Nonetheless, he promises: “We will be keen to protect certain sensitive products”, for which the EU also has “defensive interests”.
Martin Schulz sees agreement as beneficial for global governance. The president of the European Parliament, Martin Schulz, welcomes the prospect of an agreement which “through regulatory integration, (will) contribute to the development of global standards and to the strengthening of global governance”. “Legislators have a crucial role to play. The European Parliament looks forward to building on its longstanding ties with the US Congress and to intensifying the cooperation within the framework of the Transatlantic Legislators Dialogue. In the era of globalisation, we need to cooperate more than ever to defend our democratic and societal model. This new trade and investment deal will help us to achieve that for our respective peoples”, Schulz concluded.
Dublin hopes to ensure it gets off to a good start. Speaking on behalf of the Irish Presidency of the EU Council, the minister for business, Richard Bruton, underlined that an agreement would “bring annual benefits to the EU and US economies of over €100 billion each. Such gains are crucial at a time like this”. “We will of course make the most of Ireland's close relationship with the US to get talks off to a good start” under Irish Presidency, said Ireland's Foreign Minister Eamon Gilmore. In April, Dublin will host a meeting of European trade ministers devoted to the issue. (EH/transl.jl)