The U.S. and the EU: Global Partners or Rivals?

Introduction

Wherever you look these days, Europe is expanding -- as a potential military partner with NATO, as a political and economic union, as a power on the world stage. And, in my view, the policymakers in Washington and Brussels and the member state capitals are taking notice.

The U.S.-EU global partnership is different from any in history, sharing 50% of the global economy and a $1.4 trillion-a-year trade and investment relationship. Together, we have experienced a lot of positive growth and prosperity and we can accomplish much in the future.

Right now, our relationship is undergoing a tremendous period of change. We are experiencing visible strains and growing pains that must be addressed. Many issues require our thoughtful attention as partners: Dealing with the threat of terrorism; the Middle East; Turkey's role in Europe; and Iraq.

We listen carefully to the substance and tone of the public debate on both sides of the Atlantic on these issues. As noted in a recent survey by the Chicago Council on Foreign Relations and the German Marshall Fund, there is actually much our publics share in common in key foreign policy goals. According to the survey:

• Europeans and Americans both favor a stronger role for the EU in international affairs.
• International terrorism followed by Iraq and its development of WMD [weapons of mass destruction] are the most important threats.
• Americans and Europeans are equally enthusiastic in their support of global institutions -- especially the United Nations.
• NATO is viewed as an essential element, and the majority of both Americans and Europeans support NATO enlargement.

There is about an 80% overlap. Where opinions differ is in the approach to or actions in support of these goals.

As the EU is expanding and reinventing itself, we have been strong supporters of enlargement and share your goal of a united, free, and prosperous Europe. At the same time, closer relations with the EU should not subtract from the existing economic and political relationships that the candidate countries now enjoy with the U.S.

We recognize that we have unique histories, but as we move forward, our job is to encourage more frank communication between the EU and ourselves, and channel our energy into positive initiatives. With this in mind, this morning I will address:

• Positive achievements;
• Getting beyond differences;
• Looking at means to strengthen the relationship and channel our energy.

Positive Achievements

Fight against terrorism: Last December we signed the "Europol 1" agreement to share strategic data and to facilitate cooperation on joint threat assessments. We are now in the process of concluding a second Europol agreement to allow the exchange of personal data in criminal cases. We are also working hard on an unprecedented agreement on Mutual Legal Assistance and Extradition. With the help of the EU and other governments, we have blocked over $121 million in terrorist assets and have deterred donors and supporters from providing financial aid to terrorist groups.

The President's Homeland Security Advisor, Tom Ridge, visited Brussels in November to discuss a variety of security-related issues, primarily container security. His visit resulted in the announcement of a decision to work toward a shared statement of principles, as a way for the U.S. and EU to include all major European ports in the U.S. Container Security Initiative. We have come a long way since 9/11 in our joint ability to track down and bring terrorists and other cross-border criminals to justice.

Afghanistan: After waging a successful war in Afghanistan with European allies, our focus now is helping that nation to rebuild. We expect to be in Afghanistan for as long as is necessary. The U.S. government so far has spent over $588 million on reconstruction projects and humanitarian aid in Afghanistan. The European Union's contribution of some 300 million euros to Afghanistan's recovery in 2002 also shows a real commitment to that country's future.

We welcome the recent European Union announcement of food purchases in Kazakhstan of 44,000 tons that will arrive in time for the Afghan winter. Food is the factor that will get Afghanistan through the winter; lack of food could cause a huge reversal in repatriation.

The Middle East: The Quartet mechanism -- the regular coordination between the EU, Russia, the UN, and ourselves -- has focused the international community's efforts for peace in the Middle East. The Quartet's "roadmap" for the Israelis and Palestinians provides a way forward to achieve President Bush's vision of two states living together side-by-side in peace.

Israel does have a right to defend itself, but at the same time needs to take effective steps to prevent civilian casualties in its operations and to ease the humanitarian situation in the West Bank and Gaza. Ultimately, only an end to violence and terror, including real security reform and sustained, effective security performance from the Palestinians will enable us to progress. To build the institutions for Palestinian statehood, we will continue working with the EU and other donors to support Palestinian political, civil, and economic reform via the Quartet's International Reform Task Force.

Doha Trade Round: The U.S. and EU are working together to look at ways to fight global poverty by opening up markets. This effort has a moral component while also being in our enlightened self-interest. On November 26, the U.S. announced a proposal to create a tariff-free world by the year 2015. Only through close collaboration between the U.S. and the EU can such an ambitious goal be achieved.

Financial markets dialogue: Regulation of capital markets is increasingly a global business. It is also a very fruitful area in our economic relationship with the EU that I have made a Mission priority. Many U.S. stakeholders are very interested to see the EU succeed in implementing the Lisbon process and its Financial Services Action Plan. If we want to reduce the cost of capital and fuel future growth, we need to work together now to prevent intrusions on sovereignty and the burden of double regulation.

And that's what we are doing. The SEC Chairman was in Brussels in October, and invited European policymakers and executives to comment on how our new corporate governance legislation affects European business. The U.S. accounting standards board and the European IASB -- which are working to create a set of universally recognized global standards -- have agreed to work toward convergence where possible. At a meeting I chaired recently in Brussels between top Treasury and Commission Internal Market officials, we took stock of our discussions to date, especially where the EU is heading on supervision of financial conglomerates.

Getting Beyond Differences

It's not enough just to share common goals. We need to explain our different positions frankly and objectively and find ways to work together.

Iraq: Iraq is a serious point for our relationship. Disarmament of that regime is our goal; that is what we made clear in our proposal to the United Nations Security Council.

By a unanimous 15-0 vote, the Security Council passed a strong, principled resolution that gives Iraq a final opportunity to disarm or face serious consequences. We listened to Europe and to other partners in taking our position to the UN.

Through his efforts to create weapons of mass destruction and his resistance to inspections, Saddam Hussein has repeatedly violated international law. Here law and force do not stand separately. Thus NATO's resolution of November 21 sends a strong message to Baghdad: "NATO allies stand united in their commitment to take effective action to assist and support the efforts of the U.N. to ensure full and immediate compliance by Iraq, without conditions or restrictions."

We expect a similar endorsement by the EU Council. We must not let Iraq undermine our shared goal of peace.

Turkey: Many prominent voices on both sides of the Atlantic have joined the debate over Turkey's membership in the EU. From our perspective -- as a close ally and friend to the parties involved -- we do have a strong opinion: We agree with the Helsinki decision that Turkey belongs in Europe. The sooner it becomes a member of the EU -- embraced within those political, security, and economic ties -- the greater the benefits for Turkish citizens and for regional stability.

Biotech: We all are aware of the mounting famine crisis in Southern Africa. Did you know that Zambia recently rejected U.S. food aid, in the face of a starving population, because it contained GMO [genetically modified organism] grain?

The Government of Zambia, we believe, disregarded the scientific evidence about the safety of this food for human consumption. It also ignored the advice of the European Commission: that this safe maize would help avert human catastrophe.

The lack of EU progress on restarting biotech approvals and the Commission's GMO labeling proposals have failed to counter the scare-mongering on biotech that has gripped the developing world. We must find ways to deal with the humanitarian crisis in Southern Africa -- together -- in spite of our differences on biotechnology. It is no longer a matter of consumer preference; human lives are at stake.

We have stated that the Commission's labeling proposals are unworkable, costly, and subject to fraud. We believe the proposals will seriously impair trade in agricultural biotech products and make it harder for developing countries to reap the benefits of a promising new technology to address hunger and malnutrition and reduce environmental stress on cropland.

Anti-Americanism: Then there is the issue of anti-Americanism as I have observed it here in the last year. I was born in the Netherlands and therefore have a connection to Europe, so it disturbs me to hear Europeans using the U.S. as a scapegoat for problems that have many complicated causes. This is very different from the thoughtful concerns we hear from European colleagues on issues of legitimate disagreement.

We respect deeply held views on the European side. But it's only fair to expect the same understanding for our views in return. Let's both keep our eyes on the prize: making this global partnership work for our mutual benefit and, equally importantly, for the benefit of the developing world.

Means To Strengthen the Relationship

Finally, I would like to mention some initiatives our Mission is engaged in to strengthen the relationship -- areas where we are focusing our energies to limit our differences.

TABD: I traveled to Chicago in early November to participate in the Trans-Atlantic Business Dialogue. Alongside Commerce Secretary Evans and Commissioners Lamy and Liikanen, I listened to real-life problems raised by business from both sides of the Atlantic.

One industry that is particularly concerned about the future is chemicals. New regulations being drafted by the European Commission will require retesting of some 30,000 chemicals and pose serious risks to a $1.7 trillion-a-year industry -- with possible massive job losses here in Europe. I am working with both U.S. and European CEOs to reduce the costs of this potentially burdensome regulation while maintaining our shared objective to safeguard the environment.

PSC: On the political and security front, we have kept pace with the growing responsibilities of the European Union as it develops a common foreign policy. At the invitation of the EU's Political Security Committee, high-level U.S. officials have briefed European policy-makers on issues and regions where we have joint concerns, such as terrorism and South Asia.

Recently, our Assistant Secretary for Non-proliferation, John Wolf, met jointly with the Political and Security Committee and the North Atlantic Council at NATO to address the worldwide threat of nuclear proliferation. And we have briefed Commissioner Chris Patten on the nuclear program recently revealed in North Korea. Similarly, we are active in the efforts to bridge military planning and capacities between the EU and NATO.

Trans-Atlantic Legislative Dialogue: Working with the European Parliament, we are building a greater dialogue between our respective legislative bodies. To that end, we supported the Parliament's U.S. delegation on its trip to Washington and San Diego this fall. And we have been exploring with several U.S. Representatives the possibility of creating an EU Caucus in our Congress.

In Conclusion

We have looked at some of the positive achievements in the U.S.-EU relationship, talked about points that allow us to discover and get beyond our differences, and mentioned issues that can pull us together to strengthen the relationship.

We know that when we work together we accomplish a great deal. We clearly see the economic and political potential of Europe. Moving forward, there are many areas of mutual concern, such as global poverty and elimination of terrorism, where the combined power of the U.S. and EU working together can change the world.

Let's get to work. Thank you.