A New Era for Transatlantic Economic Cooperation
Ambassador William R. Timken, Jr.
Schwaben Chamber of Commerce,
Augsburg. July 26, 2007.
As prepared for delivery.
Sue and I are very happy to attend the annual summer festival of the Augsburg Chamber of Commerce.
This year the theme country of your festival is the United States. You couldn’t have picked a better year. Both the German-American and the transatlantic relationships are in excellent shape. Chancellor Merkel and President Bush share a strong personal relationship. I have been present at their meetings. The tone of their conversations is open, constructive and proactive. This has had a positive effect on the tone of both bilateral and multilateral discussions.
Chancellor Merkel presided over a very successful G8 in June. In collaboration with other leaders from the G8 Nations, Chancellor Merkel and President Bush took action to address a broad range of global issues.
A new global framework was launched to address climate change, energy security, economic growth and sustainable development. The G8 leaders committed to partnering with African countries to foster development, especially by empowering the private sector and aggressively combating disease. They called for a reinvigorated push for a balanced outcome in the Doha development agenda negotiations. They agreed to continued cooperation in the fight against terrorism and the spread of weapons of mass destruction. Common approaches and strategies in critical regions, including Iran, North Korea, the Middle East, and Afghanistan, were discussed. Most important, beyond advancing common interests, G8 leaders charted constructive ways forward on all these important issues.
At the practical U.S.-EU working level, Chancellor Merkel's commitment to strengthening the transatlantic relationship provided the perfect context for results. One of the main achievements of the German EU presidency was the new framework agreement on economic integration between the United States and the European Union and the formation of a Transatlantic Economic Council. The new council has already borne fruit. A day after the council co-chairs met with Chancellor Merkel in Berlin in late June, U.S. securities regulators agreed to stop requiring foreign companies to use U.S. accounting rules. This is one example of how the agreement will expand economic ties by reducing barriers to trade and investment.
With more than three billion dollars a day in trade, services and investment crossing the Atlantic every single day, something is obviously already going very right in the transatlantic partnership. But those numbers underline the need for increased cooperation. Fourteen million jobs depend directly on transatlantic trade.
One of the best responses to the competitiveness challenge of the 21st century is smart regulation. That’s what the Transatlantic Economic Council is all about. In reducing trade and regulatory barriers between our dynamic economies, there will be more growth and innovation. Having spent years in the business world, I know the great advantage of competition is that it brings out the best in both sides.
The Bavarian-American economic partnership is one of the best examples of that. Bavaria’s strongest foreign trading partner is the United States. American companies comprise half of all the foreign company presence in Bavaria. Why? One reason – apart from the friendly people, beautiful countryside… and great beer – is because Bavaria excels at “globalization.”
As Bill Gates says, Bavaria is Europe’s “high tech Mecca.” It accounts for close to a third of all German patent applications. Of the 700 U.S. firms located in Bavaria, over half are in a high tech field.
Bavaria – and this region in particular – is a center of excellence in environmental technologies. I understand that the Augsburg Chamber of Commerce and KUMAS, the Environment Competence Centre, have together been instrumental in making that happen. The best way to bring products and services involving new technology to market is to create a structure where government, science, research and development, education and commerce all work together. That’s exactly what you are doing here. As a result, this region and Bavaria as a whole, lead in the field of environmental technology.
In fact, there are a lot of parallels to what President Bush is doing in the United States in this same area. Our energy strategy brings together the federal government, state governments, local governments, America's private sector and nongovernmental organizations with a clear purpose. That is: to develop transformational technologies that will address climate change, reduce our reliance on oil, promote energy security, and reduce environmental pollution. Since 2001, the United States Government has devoted almost $30 billion to climate science, technology, international assistance, and incentive programs related to energy. The U.S. has always advocated a broad diversity of approaches to energy and the environment. Let me add that President Bush and Chancellor Merkel are on the same page here. They both agree that the bottom line in any energy debate is the need to diversify our energy supplies in a cost-effective and environmentally responsible manner. So, I commend the Augsburg Chamber of Commerce and KUMAS for your success in making that happen.
As new developments take place in the field of environmental technology, it is important that regulators work together from the very start. For example, one of the areas the Transatlantic Economic Council is looking at is a framework for harmonized standards for free trade in biofuel products.
It is at the product level that the new agreement on transatlantic economic integration can make the most difference – for business and consumers. Apart from biofuels, we have also agreed to move ahead on regulatory co-operation in the areas of cosmetics, medical devices, pharmaceuticals, chemicals, electrical equipment, and automobiles.
Here again we already have specific results to report. In June, the U.S. Food and Drug Administration concluded a number of agreements with EU counterpart agencies responsible for cosmetics, medical devices and food safety. These agreements are designed to facilitate the sharing of scientific information. They will extend the protection of public health on both sides of the Atlantic – and reduce trade barriers along the way.
Vehicle safety standards are another area in which regulatory co-operation will deliver big gains for consumers. You can’t purchase a BMW from a dealership here in Augsburg and import it to America because it doesn’t exactly meet U.S. safety standards. Yet both German and American regulators have the same broad goals in mind. There should be opportunities to rationalize these standards so that automobile manufacturers, whether BMW or GM, do not have to produce two different cars.
On behalf of the Embassy and the Consulate in Munich, I would like to thank the Augsburg Chamber of Commerce for highlighting our transatlantic partnership.
Personally, I have been frustrated because the government of Germany, under the Chancellor’s leadership, has declared German-American friendship as strong, vibrant and a fundamentally essential part of Germany’s future. Economically, millions of German families depend on a strong bilateral relationship. For security, Germany depends on America. Yet polls show a very unfavorable view of America. This doesn’t make sense. It seems terribly inconsistent. Today’s event warms my heart. Together we can make a change.
In May 1989, just as the old structures of the Cold War were beginning at last to crumble, President George H. W. Bush visited Germany. He described the German-American relationship as a partnership in leadership. “Leadership,” the first President said then, “has a constant companion: responsibility. Our responsibility is to look ahead and grasp the promise of the future."
American and European businesses are working together to do just that. The Augsburg Chamber of Commerce is a prime example of this partnership in leadership.
Thank you for your attention, your commitment and your initiative.
