Roundtable on Transatlantic Trade Issues: Meeting Notes

Summary

Trade associations, international consultants, and academics presented ideas regarding security and efficiency, the U.S.-EU regulatory environment, and international property rights (IPR) to U.S. government officials in Washington on October 28. Commerce Deputy Assistant Secretary Eric Stewart, State Deputy Assistant Secretary Glyn Davies, and Deputy Assistant United States Trade Representative James Sanford chaired the session, which focused on some of the key issues surrounding innovation. More than 60 individuals discussed issues that affect trade associations, industry, and business in the transatlantic economy.

Transport Security

State Deputy Assistant Secretary Glyn Davies led the discussion on meshing security and efficiency in the transatlantic partnership. Business participants raised concerns over long visa lines, interviews, paperwork, and Department of Homeland Security requirements. To avoid continuing problems with customs, stakeholders suggested electronic customs procedures for investors and business travelers. Participants were concerned about the technology used to screen passengers against alert lists, citing delays. Stakeholders expressed interest in Department of Homeland Security participation at future listening sessions. Davies acknowledged the need to document travelers efficiently and noted it is a priority for both the U.S. and EU. A transatlantic consulting firm noted the EU is not a World Customs Organization (WCO) member and urged common protocols and standards at all levels to expedite trade.

Regulatory Cooperation

Deputy Assistant United States Trade Representative Jim Sanford introduced the topic of U.S.-EU regulatory cooperation, noting that while our respective regulatory structures differ, there is much the governments could do to make our regulatory systems mesh better. Sanford explained that while the governments continue to explore different models for more effective regulatory cooperation, he stressed that this stakeholder process provides a genuine opportunity for concrete ideas that can facilitate trade and capture regulatory efficiencies. A participant suggested that moving toward the electronic transmission and storage of customs documentation would be more efficient for traders and provide better access to customs authorities. Other participants discussed how different standards ranging from those for fuel to those for machinery make compliance and market entry costly. A trade association representative noted the significant differences among industries on how far advanced they are in developing standards and philosophical differences between the U.S. and Europe on whether the government or private sector should set standards. Nevertheless, the fact that most international regulatory work is quadrilateral in nature (i.e. U.S., EU, Japan, Canada) means that better U.S.-EU cooperation might make it easier for regulators to achieve their multilateral objectives. It was also said that there is a need for U.S.-EU regulatory cooperation to remain competitive against China.

A consumer group urged a focus on activities that raise standards and promote best practices, in particular where business and consumer interests converge. Sanford highlighted ongoing U.S.-EU regulatory cooperation on nutritional labeling as an example of an issue that is important to both consumer and business groups. Consumer groups noted that synergy where business and consumer interest overlap would be best accomplished by harmonizing upwards.

Intellectual Property Rights (IPR)

Deputy Assistant Secretary Stewart opened the IPR discussion by emphasizing the strong link between IPR protection and innovation. U.S.-EU cooperation on IPR is at an all time low, according to participants, due to disputes over pharmaceuticals and geographical indicators. Participants urged the U.S. Government and EU to find better ways to cooperate, particularly with regard to third country enforcement. Participants stressed that while much of the manufacture of counterfeit goods is occurring in other countries, a large portion of those goods are sold in the United States and the EU. Inconsistent IPR provisions in Free Trade Agreements were noted as another problem that companies must face. Participants praised U.S. Government efforts to have the Organization for Economic Cooperation and Development (OECD) study all the dimensions of the counterfeiting and piracy problem. Several positive comments were made about the new Strategy Targeting Organized Piracy as well as the Department of Justice Intellectual Property Task Force report. Participants asked the U.S. Government to stop splitting the IPR community between trademark and copyright holders in its debates and policy formation. Customs and Border Protection (CBP) had previously proposed regulations that would allow CBP to protect sound recordings and motion pictures from piracy while its copyright registration is pending.