EU-US Lisbon
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Transcript of EU-US Lisbon
JODI DOBINSKY
EU-US Lisbon Summit
Background
EU-US relations have been on a somewhat bumpy ride in recent years with disagreements over issues ranging from the Iraq war to the Kyoto climate treaty and the International Criminal Court.
With the election of Barack Obama as US president, the EU thought EU-US relations would take a different turn. But a recent series of events have shaken EU-US relations even further.
Brussels was disappointed when the US administration announced reform of its banking system, unilaterally undercutting discussions within the G20 Financial Stability Board on coordinating regulation on financial services.
To make matters worse, Obama decided not to attend the annual EU-US summit in Madrid in May as he had more urgent matters to deal with at home.
Convergence seems weak on issues related to combating terrorism. In February, the European Parliament rejected the SWIFT agreement on banking data transfers to the US.
http://euractiv.com/en/foreign-affairs/eu-us-iron-out-differences-november-summit-news-496924
Background, cont.
November 20, 2010 with European Commission President José Manuel Durão Barroso and European Council President Herman Van Rompuy.
In October 2008, at the peak of the financial crisis, world financial leaders agreed to take “exceptional action” to stabilize the global financial system. The United States and major EU countries went on to cut interest rates, provide
financial assistance to major banks, and stimulate their economies with public funds. These actions not only averted a more severe downturn, but also demonstrated the capacity for trans-Atlantic cooperation under duress, economists say.
“The point of a convoy is to get all the ships in the flotilla to their destinations safely, and our economies are not yet fully out of the dangerous open waters,” - Adam Posen of the Peterson Institute and Jean Pisani-Ferry of the Brussels-based Bruegel research group The U.S.-EU “convoy” should at a minimum coordinate a few key objectives,
including not intervening to depreciate their currencies and planning “exit strategies” from fiscal stimulus plans in the medium term.
EU27 trade in goods with USA(in millions of euro)
“Put simply, we are each other’s closest partners. Neither Europe nor the United States can confront the challenges of our time without the other. These summits are thus an opportunity to deepen our cooperation even further and to ensure that NATO — the most successful alliance in human history — remains as relevant in this century as it was in the last. That is why we have a comprehensive agenda at Lisbon.”- Obama
“We are united in our effort to protect our people and promote global security by combating terrorism and preventing the proliferation of weapons of mass destruction,” read the White House release. “Together we advance the ideals of democracy and human rights that are essential in free societies.”
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EU-US Relation
http://europa.eu/rapid/pressReleasesAction.do?reference=STAT/10/174&format=HTML&aged=0&language=EN&guiLanguage=en
Some of the Issues Discussed
Internet privacyGenetically modified food productsFinancial regulationBoeing and AirbusThe most critical area for EU-U.S. economic
coordination is the longstanding issue of China’s undervaluation of its currency, according to Bergsten.
Barriers to Trade
Tariffs Food products Textiles Footwear Leather goods Ceramics Glass Railway cars Wood, paper, and pulp
Non-Tariff Barriers Regulatory Divergences Registration, Documentation, Customs Procedures Import Prohibitions Levies, Charges and Import Duties Sanitary and Phytosanitary Measures Public Procurement Trade Defense Instruments Subsidies Intellectual Property Rights
Joint Statement
Today we focused our discussions on three key areas of cooperation that are of vital interest to our citizens: first, how to ensure strong, balanced and sustainable economic growth and how to create jobs, including in new, emerging fields; second, how to meet global challenges such as climate change and international development; and third, how to strengthen the security of our citizens.
Economy Contribution the European Union and the United States can make to securing a sustainable and balanced recovery
Fiscal consolidation Creating jobs through structural and financial market reform.
Reject protectionism We reiterated our strong commitment to direct our negotiators to engage in across-the-board negotiations to promptly bring the Doha
Development Agenda to a successful, ambitious, comprehensive and balanced conclusion. We also agreed to coordinate efforts to encourage emerging economies to assume responsibilities and adopt policies commensurate
with their growing economic strength and role in areas such as trade, protection of intellectual property, regulation, and investment policy.
Global Security Terrorism, Israel and Palestine, Sudan
Energy Security Climate Change
Copenhagen reduce greenhouse gas emissions.
Cancun conference mitigation, transparency, finance, adaptation, Technology Forests
Emissions reduction by all major economies Development and Aid
Obama’s Statement
First, we agreed to take a series of steps to increase trade and investment, which already amounts to a $4.4 trillion relationship and supports millions of jobs on both sides of the Atlantic. We directed our Transatlantic Economic Council to focus on streamlining
regulations, encouraging innovation, eliminating barriers that hamper trade and investment. And building on the progress of the G20 summit in Seoul, we reaffirmed the need for currencies that are market driven and for countries with large surpluses to boost domestic demand.
Second, we reviewed our close security cooperation. We saw, with the recent security alerts in Europe as well as the plot that was
disrupted to detonate explosives in cargo flights, that we have to work every day to keep our citizens safe, and we will continue to do so.
Finally, we’re coordinating on a series of global issues. With regard to climate change, we directed our U.S.-EU Energy Council to
find ways to bring clean energy technologies to market faster, and we’re standing by our Copenhagen commitments to reduce emissions as we work towards Cancun.
Proposals
Proposal One Non-Tariff Measures in EU-US Trade and Investment
For the EU, removing all actionable NTMs would translate into an increase in GDP (€122billion per year) and exports (+2.1%). EU Benefits
• Motor vehicles• Chemicals• Pharmaceuticals• Food• Electrical machinery
For the US, benefits from removing actionable NTMs are estimated at €41 billion per year for GDP and 6.1% for exports. US Benefits
• Electrical machinery• Chemicals• Pharmaceuticals• Financial services• Insurance sectors
The US gains more in exports and the EU more in income. Cons:
The study weakens the argument for a Transatlantic Free Trade Addressing regulatory issues instead of cutting tariffs in EU-US trade relations.
Proposal Two Lower Tariffs on goods traded between the US and EU
Pros Ease trade between EU and US
Cons Loss of income
http://trade.ec.europa.eu/doclib/docs/2009/december/tradoc_145612.pdf
References
Baker, L. (n.d.). EU-U.S. to hold summit in Portugal in November | Reuters . Business & Financial News, Breaking US & International News | Reuters.com. Retrieved November 21, 2010, from http://www.reuters.com/article/idUSTRE67G30P20100817
Comenetz, J. (2010, October 18). Economists: U.S.-EU Economic Cooperation Must Continue. America - Engaging the World - America.gov. Retrieved November 29, 2010, from http://www.america.gov/st/business-english/2010/October/20101018162622bocaj0.7578394.html
Comments by President Van Rompuy and President Barroso on the eve of the EU-US Summit. (n.d.). Europa. Retrieved November 21, 2010, from www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/117887.pdf
EU Calendar - EU-US Summit. (n.d.). EUROPA – The official website of the European Union. Retrieved November 21, 2010, from http://europa.eu/eucalendar/event/id/2656-euus-summit/mode/standalone
EU-US Summit Lisbon 20 November 2010 Joint Statement. (2010, November 20). Europa. Retrieved November 21, 2010, from www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/117897.pdf
EU-US to iron out differences at November summit | EurActiv. (n.d.). EurActiv | European Union Information Website (EU and Europe). Retrieved November 29, 2010, from http://euractiv.com/en/foreign-affairs/eu-us-iron-out-differences-november-summit-news-496924
EUROPEAN UNION ~BACKGROUND. (n.d.). Consilium Europa. Retrieved November 21, 2010, from www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/er/117785.pdf
European Commission : Trade : United States (Bilateral relations). (n.d.). EUROPA - European Commission - Homepage. Retrieved November 21, 2010, from http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/united-states/index_en.htm
Commission. (n.d.). USA Barrier to Trade and investment report 2008. Europa Trade. Retrieved November 29, 2010, from trade.ec.europa.eu/doclib/docs/2009/july/tradoc_144160.pdf
NTMs in EU-US Trade and Investment- An Economic Analysis- Highlights of the Study. (2010, December 18). Europa Trade. Retrieved November 29, 2010, from trade.ec.europa.eu/doclib/docs/2009/december/tradoc_145612.pdf
Newsvine - EU wants tighter online privacy. (n.d.). Newsvine - Get Smarter Here. Retrieved November 21, 2010, from http://www.newsvine.com/_news/2010/11/04/5408575-eu-wants-tighter-online-privacy
President Obama on “Europe and America, Aligned for the Futureâ€Â. (n.d.). � America - Engaging the World - America.gov. Retrieved November 29, 2010, from http://www.america.gov/st/texttrans-english/2010/November/20101119093346su0.1445996.html
Statement by President Obama After EU-U.S. Summit in Lisbon. (n.d.). America - Engaging the World - America.gov. Retrieved November 29, 2010, from http://www.america.gov/st/texttrans-english/2010/November/20101120175047su0.6640981.html
ROMPUY, H. V. (2010, November 20). Remarks by Herman VAN ROMPUY, President of the European Council, following the EU-US Summit. Europa. Retrieved November 21, 2010, from www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/117896.pdf