speeches
Business and Diplomacy
American Academy
Ambassador William R. Timken, Jr.
Berlin
November 15,2006
As prepared for delivery.
It is a pleasure to join Ambassador Ischinger for a discussion of business and diplomacy. Few countries know the importance of freedom and democracy better than Germany, with its tragic history and significant accomplishments in building a society that values tolerance and produces prosperity. Similarly, few countries know so well the importance of international business to diplomacy. Today, the world’s first and third largest, most affluent economies are working together to strengthen freedom, democracy and prosperity around the world.
The challenges facing both our nations are plain for all to see. In the United States, we have just seen democracy in action. Vigorous debates go on in the U.S. That’s healthy and as it should be – especially in times of challenge.
The election will change some things in Washington, but President Bush has assured the American people and the world that he will work with the new leadership of the Senate and House of Representatives to make these next two years productive ones. The Executive Branch, in cooperation with the new Congress, will continue to work with allies to promote our common interests and shared values. As the President's Representative in Germany, my goal has not changed, namely to build on and improve the bilateral relationship between our two great nations.
In world affairs, the big questions still remain. On the key issues, the President and his administration have charted a course that we will continue to follow. I would not anticipate dramatic or abrupt changes of direction in American foreign policy. That holds true as well for economic policy -- the issue we came here tonight to discuss.
However Congress can affect trade policy and the democrats campaigned for a review of the President’s open markets policies.
Over one-third of global trade takes place between the EU and the U.S. and our economies are the source of forty percent of the goods and services produced on this planet. Altogether, mutual trade and investment provides over 1.50 million jobs in our two countries alone. Over 3,250 German companies operate in the U.S. with an annual turnover of almost ½ trillion dollars. 1,250 American companies with an annual turnover of 260 billion dollars operate in Germany.
Even when disagreements over the Iraq War made other parts of the relationship difficult, it was the economic and business connections that helped us move ahead and maintain our purpose. In 2003, U.S. companies still poured $7 billion in investments into Germany.
So, in fact, there are a lot of businessmen involved in managing the transatlantic relationship. They seem to be doing a very good job.
As most of you know, I have a bit of experience with running a company that has also benefited greatly from the transatlantic relationship I learned firsthand that foreign policy is not just the work of the governments. Companies have always played an essential role in promoting the global reach of free markets, free trade and free enterprise.
As head of the Timken Company's global manufacturing operations, I found there were few occasions where I needed to rely on diplomats for assistance in doing business abroad – apart, of course, from the big picture negotiation of trade agreements or investment treaties, or to help resolve trade disputes. Admittedly, service industries and smaller-scale entrepreneurs sometimes have quite different needs.
What I have come to realize, however, especially since becoming Ambassador, is that diplomats need the help of businessmen: for example, to improve public perceptions and highlight the good news in transatlantic relations, like the job creation that has resulted from large-scale U.S. investments in Europe.
There is much to be said for what government and business can achieve through partnership to foster understanding. The best companies have never measured excellence simply in terms of profits. Economies flourish when people flourish. Economic growth, democracy, development and peace are more deeply connected than ever before.
At the Embassy, we have also been very encouraged by the generous response from the private sector and other organizations in support of two new Embassy exchange programs -- the Eastern German Teachers Initiative and “Windows on America.” I am particularly excited about “Windows on America” because it helps to make an American dream come true for young people who might not otherwise have the opportunity to experience another culture. “Windows on America” is a two-week exchange program designed to give a more diverse segment of young people, including minorities and those from less financially advantaged backgrounds, the opportunity to visit America. Time and time again, we hear how exchange experiences can change perspectives – and lives.
Learning to see the world as others see it opens up whole new possibilities. When I was in the private sector, I always encouraged manufacturers and their employees to do just that. That meant playing a more active role in the development of public policy by becoming part of the political process. There are no better Ambassadors than the people and companies who bring the capital to create jobs.
Today as Ambassador, I am just as resolute about recommending that companies do all they can to make the public aware of and supportive of the transatlantic relationship and the benefits it brings. An even deeper transatlantic relationship will ensure that this success continues, as we build on our strong partnership for the future.
