Speeches and Texts
As prepared for delivery.
The Transatlantic Marketplace 2010:
Challenges and Opportunities Beyond 2010
4th Annual Transatlantic Business Conference
Frankfurt, October 28, 2010
Ambassador Philip D. Murphy
Es ist mir ein großes Vergnügen, an der jährlichen Transatlantischen Jahreswirtschaftskonferenz teilzunehmen. Ich möchte meinem guten Freund Fred Irwin sowie derm American Chamber of Commerce in Germany ganz herzlich dafür danken, dass er mich wieder eingeladen und es mir ermöglicht hat, mit Ihnen einige meiner Gedanken über die Bedeutung der transatlantischen Zusammenarbeit in der globalen Wirtschaft zu teilen. Anfang des Monats hatte ich die Ehre, an den Feierlichkeiten zum 20. Jahrestag der deutschen Freiheit und Einheit in Bremen und Berlin teilzunehmen.
[It is a great pleasure to return to the Annual Transatlantic Business Conference. I would like to extend my sincere thanks to my good friend Fred Irwin and the American Chamber of Commerce in Germany for inviting me back and allowing me to share with you my thoughts about the importance of transatlantic cooperation in the global economy. Earlier this month, I was proud to attend the 20th anniversary celebrations of German Unity in both Bremen and Berlin.]
Those celebrations of German Unification were also a tribute to a Europe, whole and free. Both of those accomplishments were by no means inevitable and they required the vision and the courage of leaders, Americans and Europeans alike.
That brand of visionary leadership had a number of important spinoff effects, such as the economic recovery of Europe as well as the establishment of international financial institutions which became the linchpins not only of the transatlantic partnership but also of global economic growth and political stability. Given the enormous challenges and opportunities we face today, we need to bring to bear the same level of energy and commitment.
Since the fall of the Berlin Wall, we have seen significant changes in the international landscape. Perhaps the most significant of these changes has been the unrelenting trend toward global interdependence. It is clear that we need to adapt our strategies to the times – strategies that mobilize the broadest possible international cooperation.
Partnership with Europe remains, however, the core of America’s foreign policy. Over the past six decades, the transatlantic partnership has developed basic principles of engagement that are of enduring value. They include leadership, responsibility, strong alliances, capable institutions, and respect for human rights and dignity. These best practices are still relevant and are indeed applicable to the new international landscape that I just referred to. A global economic system that is durable, flexible, equitable and effective and markets that are stable, open, and smoothly functioning are prerequisites for trade and investment. And in today’s world, trade and investment drive jobs and innovation. They are the key factors not only for the prosperity of our nations but also for sustainable global growth.
Within the last two decades, the number of multinational corporations operating worldwide has more than doubled. The number of employees of multinational companies has quadrupled, as has the number of foreign affiliates worldwide. These foreign affiliates point to a deeper level of economic integration among nations. They show a purpose and commitment beyond one-time sales or market entry into well-established trade patterns.
Despite the increasing strength of emerging economies, the U.S.-European economic relationship is today – and it can be tomorrow – the central driver of the world economy. The European Union and America are each other’s most important investment, trade and financial partners. What we do together as partners sets the course for the prosperity of our nations. It also sets the bar for the rest of the world. There is no reason not to set the bar high.
As multinational companies play a greater role in overseas investment, the need for a consistently-applied set of rules and principles becomes ever more essential. This requires an even greater focus on policies that foster and protect trade and investment – within the structure of the international organizations that were put in place in the aftermath of World War II, within more targeted fora such as the TEC, and also within more recent global institutions. In the aftermath of the financial crisis, for example, the G-20 played a leadership role in calling for a commitment by the world’s largest markets to the principles of fair and open competition. These principles are essential for sustainable global economic growth. Member nations are following that call. The global economy has started growing again but the path to recovery will not necessarily be a straight line. Economists believe we will be studying the financial crisis decades from now. It was an event of historic proportions. We entered uncharted territory and it is probably too soon to say it is completely over.
Clearly, however, we have moved into a new phase of the recovery and I think it is fair to say that within the context of both the G-20 and other negotiations, the United States and the European Union assumed a special responsibility for contributing to a more balanced and sustainable pattern of growth and to a more stable global financial system.
At the same time, we must also recognize that different economies face different challenges and constraints. We want China, India, Russia, Brazil and other major emerging economies, including those in Africa, to play an integrated and responsible role in the global economy. Individual countries need, however, to find sustainable solutions to address demographic shifts, local wage issues, unemployment, and other issues. Those solutions may vary but the final goal has got to be the same. As transatlantic partners, we have some pretty good “lessons learned” on how to manage our disagreements. If I might add, we also have an excellent track record on solving common problems.
There may be disagreement on country-level structural reforms that address imbalances in the global economy. For example, the U.S. economy can no longer be the driver of global demand. President Obama has established a national mandate to expand America's export potential. Indeed he has set an ambitious target of doubling exports. New investments in clean energy, improved infrastructure, education and innovative research have also been made to ensure that United States remains a robust competitor in the global marketplace – both in terms of trade and investment.
Traditionally there are a number of reasons why foreign investors are attracted to the United States and by the way, the United States is the world’s largest recipient of foreign direct investment and most of that investment still comes from Europe. But the reasons that motivate European investment are also of increasing interest to investors from other parts of the world. Do not underestimate the potential of proximity to the American consumer; an adaptable economic environment; a well-established system of laws that is consistently-enforced with a minimum of government intervention; a skilled work force; and not to forget, America’s famous spirit of innovation. In the current economic situation, foreign investors have an historic opportunity to capitalize on these strengths. Prices are low; unemployment is high; U.S. suppliers are competitive; and most important, American companies are hungry for international markets and partners. Now is the time for investment.
In short, there is tremendous opportunity to strengthen America’s already significant economic relationship with Europe and in particular our relationship with Germany. These economic relationships feed in turn the broader aspects of our bilateral partnership. This is one of the most cooperative and productive relationships the United States has in the world, and it is based on years of working together toward common goals.
We can take that partnership to new heights not only by making sure that we work together as good business partners. Our governments are working together to seek solutions to the security challenges that pose threats that were unforeseen just a few short years ago.
It is also crucial that we reach out to younger audiences who do not have the same sense of shared responsibility as those who grew up during the Cold War. The United States is proud it could play a role in the past working with Europe to build the post-war global order; and we are proud to work with Europe today to help develop the capacity to promote sustainable progress and prosperity in the future. That vision of the future is a global architecture in which greater opportunities for prosperity and security are available for all. Our children must carry out that promise. Like the participants in AmCham’s new internship program, the some 30,000 German and American high school and university students who study in each others’ countries annually give our relations the personal dimension that I believe was a key to our success in the past. They need to be infected by the same kind of commitment that AmCham members have brought to the German-American partnership over the years. Now and in the future, we must continue working effectively together to address common challenges.
Germany is a country of dynamism, ambition, and vision. Our partnership has many accomplishments to celebrate from which we profit today. Twenty years ago, the United States was an unwavering supporter of German Unification. It was an important milestone not only for this country, but for the world. Twenty years from now, it is my hope that the young people of today can look back with the same sense of pride and satisfaction.
Thank you again for your commitment. Vielen Dank für Ihre Aufmerksamkeit.
As prepared for delivery.
As prepared for delivery.
The Transatlantic Marketplace 2010:
Challenges and Opportunities Beyond 2010
4th Annual Transatlantic Business Conference
Frankfurt, October 28, 2010
Ambassador Philip D. Murphy
Es ist mir ein großes Vergnügen, an der jährlichen Transatlantischen Jahreswirtschaftskonferenz teilzunehmen. Ich möchte meinem guten Freund Fred Irwin sowie derm American Chamber of Commerce in Germany ganz herzlich dafür danken, dass er mich wieder eingeladen und es mir ermöglicht hat, mit Ihnen einige meiner Gedanken über die Bedeutung der transatlantischen Zusammenarbeit in der globalen Wirtschaft zu teilen. Anfang des Monats hatte ich die Ehre, an den Feierlichkeiten zum 20. Jahrestag der deutschen Freiheit und Einheit in Bremen und Berlin teilzunehmen.
[It is a great pleasure to return to the Annual Transatlantic Business Conference. I would like to extend my sincere thanks to my good friend Fred Irwin and the American Chamber of Commerce in Germany for inviting me back and allowing me to share with you my thoughts about the importance of transatlantic cooperation in the global economy. Earlier this month, I was proud to attend the 20th anniversary celebrations of German Unity in both Bremen and Berlin.]
Those celebrations of German Unification were also a tribute to a Europe, whole and free. Both of those accomplishments were by no means inevitable and they required the vision and the courage of leaders, Americans and Europeans alike.
That brand of visionary leadership had a number of important spinoff effects, such as the economic recovery of Europe as well as the establishment of international financial institutions which became the linchpins not only of the transatlantic partnership but also of global economic growth and political stability. Given the enormous challenges and opportunities we face today, we need to bring to bear the same level of energy and commitment.
Since the fall of the Berlin Wall, we have seen significant changes in the international landscape. Perhaps the most significant of these changes has been the unrelenting trend toward global interdependence. It is clear that we need to adapt our strategies to the times – strategies that mobilize the broadest possible international cooperation.
Partnership with Europe remains, however, the core of America’s foreign policy. Over the past six decades, the transatlantic partnership has developed basic principles of engagement that are of enduring value. They include leadership, responsibility, strong alliances, capable institutions, and respect for human rights and dignity. These best practices are still relevant and are indeed applicable to the new international landscape that I just referred to. A global economic system that is durable, flexible, equitable and effective and markets that are stable, open, and smoothly functioning are prerequisites for trade and investment. And in today’s world, trade and investment drive jobs and innovation. They are the key factors not only for the prosperity of our nations but also for sustainable global growth.
Within the last two decades, the number of multinational corporations operating worldwide has more than doubled. The number of employees of multinational companies has quadrupled, as has the number of foreign affiliates worldwide. These foreign affiliates point to a deeper level of economic integration among nations. They show a purpose and commitment beyond one-time sales or market entry into well-established trade patterns.
Despite the increasing strength of emerging economies, the U.S.-European economic relationship is today – and it can be tomorrow – the central driver of the world economy. The European Union and America are each other’s most important investment, trade and financial partners. What we do together as partners sets the course for the prosperity of our nations. It also sets the bar for the rest of the world. There is no reason not to set the bar high.
As multinational companies play a greater role in overseas investment, the need for a consistently-applied set of rules and principles becomes ever more essential. This requires an even greater focus on policies that foster and protect trade and investment – within the structure of the international organizations that were put in place in the aftermath of World War II, within more targeted fora such as the TEC, and also within more recent global institutions. In the aftermath of the financial crisis, for example, the G-20 played a leadership role in calling for a commitment by the world’s largest markets to the principles of fair and open competition. These principles are essential for sustainable global economic growth. Member nations are following that call. The global economy has started growing again but the path to recovery will not necessarily be a straight line. Economists believe we will be studying the financial crisis decades from now. It was an event of historic proportions. We entered uncharted territory and it is probably too soon to say it is completely over.
Clearly, however, we have moved into a new phase of the recovery and I think it is fair to say that within the context of both the G-20 and other negotiations, the United States and the European Union assumed a special responsibility for contributing to a more balanced and sustainable pattern of growth and to a more stable global financial system.
At the same time, we must also recognize that different economies face different challenges and constraints. We want China, India, Russia, Brazil and other major emerging economies, including those in Africa, to play an integrated and responsible role in the global economy. Individual countries need, however, to find sustainable solutions to address demographic shifts, local wage issues, unemployment, and other issues. Those solutions may vary but the final goal has got to be the same. As transatlantic partners, we have some pretty good “lessons learned” on how to manage our disagreements. If I might add, we also have an excellent track record on solving common problems.
There may be disagreement on country-level structural reforms that address imbalances in the global economy. For example, the U.S. economy can no longer be the driver of global demand. President Obama has established a national mandate to expand America's export potential. Indeed he has set an ambitious target of doubling exports. New investments in clean energy, improved infrastructure, education and innovative research have also been made to ensure that United States remains a robust competitor in the global marketplace – both in terms of trade and investment.
Traditionally there are a number of reasons why foreign investors are attracted to the United States and by the way, the United States is the world’s largest recipient of foreign direct investment and most of that investment still comes from Europe. But the reasons that motivate European investment are also of increasing interest to investors from other parts of the world. Do not underestimate the potential of proximity to the American consumer; an adaptable economic environment; a well-established system of laws that is consistently-enforced with a minimum of government intervention; a skilled work force; and not to forget, America’s famous spirit of innovation. In the current economic situation, foreign investors have an historic opportunity to capitalize on these strengths. Prices are low; unemployment is high; U.S. suppliers are competitive; and most important, American companies are hungry for international markets and partners. Now is the time for investment.
In short, there is tremendous opportunity to strengthen America’s already significant economic relationship with Europe and in particular our relationship with Germany. These economic relationships feed in turn the broader aspects of our bilateral partnership. This is one of the most cooperative and productive relationships the United States has in the world, and it is based on years of working together toward common goals.
We can take that partnership to new heights not only by making sure that we work together as good business partners. Our governments are working together to seek solutions to the security challenges that pose threats that were unforeseen just a few short years ago.
It is also crucial that we reach out to younger audiences who do not have the same sense of shared responsibility as those who grew up during the Cold War. The United States is proud it could play a role in the past working with Europe to build the post-war global order; and we are proud to work with Europe today to help develop the capacity to promote sustainable progress and prosperity in the future. That vision of the future is a global architecture in which greater opportunities for prosperity and security are available for all. Our children must carry out that promise. Like the participants in AmCham’s new internship program, the some 30,000 German and American high school and university students who study in each others’ countries annually give our relations the personal dimension that I believe was a key to our success in the past. They need to be infected by the same kind of commitment that AmCham members have brought to the German-American partnership over the years. Now and in the future, we must continue working effectively together to address common challenges.
Germany is a country of dynamism, ambition, and vision. Our partnership has many accomplishments to celebrate from which we profit today. Twenty years ago, the United States was an unwavering supporter of German Unification. It was an important milestone not only for this country, but for the world. Twenty years from now, it is my hope that the young people of today can look back with the same sense of pride and satisfaction.
Thank you again for your commitment. Vielen Dank für Ihre Aufmerksamkeit.
As prepared for delivery.