Brussels, 18/05/2005 (Agence Europe) - As we previously announced (EUROPE 8947), the Commission adopted a communication on Wednesday in which it launches a series of appeals for strengthening the EU/US partnership and “creating a more open market for the 21st century”. The document prepared by Benita Ferrero-Waldner (external relations) and Peter Mandelson (trade) prioritises trade development measures and trans-Atlantic economic relations but it also contains a brief political chapter with suggestions for “broadening the political architecture” of the trans-Atlantic partnership. Benita Ferrero-Waldner informed the press that “we have no more essential partnership than that with the US. Our current cooperation is good, but I am determined to re-energise the relationship, to ensure it achieves its true potential”.
Trade and economic relations. The EU/USA summit of June 2004 in Dromoland (Ireland) set the objective of relaunching economic relations through a broad consultation of “stakeholders” (business leaders, consumers, trade bodies etc) on the practical means of facilitating and developing trans-Atlantic trade. Following three months of consultations, the Commission made suggestions for three fields:
a) regulation. The Commission is proposing to set up a Regulatory Cooperation Forum where the highest regulatory bodies will be based from both the EU and US and which will meet up for an annual EU/US summit to make suggestions for better regulatory cooperation and reducing the numerous non-tariff barriers in trans-Atlantic trade to a minimum. The communication explains that there had been significant successes in EU/US regulatory cooperation but that problems persisted. The Commission avers that the challenge is to find a way of cooperating that enables European and American regulatory bodies to understand that they do not just have a domestic role but are “joint stewards and regulators of a trans-Atlantic market”. With a starting point based on the experience hitherto gained in this area, Washington and Brussels are now expected to take ambitious measures for strengthening cooperation, notably through recognition of equivalence everywhere European and American standards and regulations apply, while being different, and offer the same levels of protection and quality; the development of common norms and standards wherever appropriate; work exchange programmes between the Commission and US regulatory authorities; the setting up of a “hot-line” for regulators; bilateral consultations in international standard-setting bodies; exchanges of best practices. Still in the field of regulation, the Commission mentions specific sectors, which in its opinion, deserve particular attention, such s: investments (restriction that the USA is imposing on foreign investors who invest in US companies, which “go beyond the minimum necessary for security reasons”. In aviation, for example, the suppression of restriction on foreign ownership restrictions on both sides of the Atlantic would have advantages for all airlines as well as for consumers; competition policy. The interdependence of US and EU economies has led to an increase in the number of cases where competition authorities on both sides of the Atlantic are called on to produce administrative rulings. The confidential information exchange system between the two sides has to be improved; public procurement. The opening of the public procurement markets in the EU and USA will increase competitiveness in Europe and create new opportunities for European companies, including SMEs. Independent of the fact that the WTO agreement in this domain (”WTO Government Procurement Agreement”, GPA) has already multiplied the participation opportunities for public appeals for tender in other countries “the US has always been resistant to improving the situation”, notably through their “Buy American Act” and “Small Business Act” and their practical preferences at a federal state level, deplored the Commission. The EU hopes that Washington and Brussels will agree on a reciprocal “GPA-plus” regime - a reciprocal and voluntary opening up which goes further than that included in the WTO agreement; airline services. The EU hopes that negotiations on a bilateral agreement in this area can be pursued actively and with determination, on the basis of the draft agreement it put on the table in June 2004; maritime transport.
The United States and the EU have sizeable marine industries, but restrictive policies threaten to strangle expansion. “We need to discuss a regulatory framework which would apply to the marine sector, in particular the field of security measures, where cooperation should be developed”, the press release reads; the financial markets. The European and American markets are both already strongly integrated, but the Commission feels that this should be more so. Genuine integration of the financial markets would help to reduce trading costs on either side of the Atlantic by 60%, which would in turn boost trading volume by around 50%, the Commission believes; free movement of persons. Given that the citizens of various Member States of the EU (Greece and the new Member States, with the exception of Slovenia) are still not eligible for the American “visa waiver programme”, the Commission will do all in its power to bring them into the “short term visa waiver arrangements”. For the business world, the free movement of persons is essential, and this is why the Commission has proposed that the Americans look into the possibility of granting selected people from these circles a special status of “trusted persons”, with facilitated arrangements for travel to the US on business; -the recognition of vocational qualifications. The lack of this is a serious obstacle to the free movement of professionals. Negotiations on mutual recognition agreements (MRAs) have so far run aground; in future, they will focus more on sectors with the greatest need.
b) Innovation. The Commission is making a series of proposals to improve the integration of the American and European economies, which are both based on knowledge and technological innovation. These proposals will affect sectors such as information and communication technology (ICT), space (both sides will set up “structured dialogue” on cooperation in the fields of earth observation, satellite navigation- Galileo, GPS- electronic communications, and the creation of a transatlantic space industry market), intellectual property and the fight against piracy and counterfeiting, research and development, energy, education and vocational training.
c) Creating “smart” and safe boundaries for trade. After the events of 11 September 2001, a happy medium must be sought between the need to impose reinforced security measures and the importance of granting the necessary flexibility and freedom. The communication stressed the need for improved cooperation in the field of customs, safety measures for transport and the implementation within the EU of the concept of “authorised economic operators” (AEO).
The Commission's objective is to get an “Economic Declaration” adopted at the EU/US Summit in Washington on 20 June, which will be the starting point for the implementation of a raft of initiatives- European and American- to facilitate and encourage transatlantic trade and investment.
Extending the political architecture of transatlantic relations. Fifteen years after the “Transatlantic Declaration” of 1990 and ten years after the adoption of the New Transatlantic Agenda (NTA) in 1995, the Commission feels that the time is ripe to raise the political profile of relations with the USA and make them “more strategic and more efficient”. They are not suggesting the creation of a new institutional framework, as Peter Mandelson told the press, but the Commission has put several options forward, such as: -giving a “strong new political injection” to the Transatlantic Declaration, stressing common values and future priority actions; -creating a forum to discuss macro-economic issues of mutual interest; -boost dialogue between legislators on both sides (EP and both chambers of the American Congress) as a first stage towards the future creation of a “Transatlantic Assembly” proper.