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No. 46/06
June 19, 2006

TRANSCRIPT: MANDELSON BRIEFING ON EU-US SUMMIT

On Friday 16 June at 11:00 am, EU Trade Commissioner Peter Mandelson gave a briefing for journalists ahead of the EU-US Summit in Vienna on 21 June. He emphasized that "the economic and commercial context of this summit is an overwhelmingly positive one" and noted that 2005-2006 had seen the resolution of the FSC [Foreign Sales Corporation] dispute and the lifting of telecoms procurement sanctions that have been in place for over a decade. He noted that before the EU-US Summit the EU and the US would adopt a tough new joint strategy in the fight against counterfeiting and intellectual property theft.

A full transcript of the Commissioner's remarks follows:

EU TRADE COMMISSIONER MANDELSON: "Today’s background briefing was originally scheduled for Monday, but for logistical reasons we have brought it forward… I appreciate your forbearance.

"I wanted to try and give you some flavor of the key trade and economic issues we will be discussing at the EU-US summit in Vienna next week, (inaudible)...be dominated publicly by geopolitics and this tends to obscure the bulk of the substance of the trade dimension of the EU-US relationship which is essentially economic and the engine room of the relationship.

"My basic point is a simple one: the economic and commercial context of this summit is an overwhelmingly positive one. Never forget that the transatlantic relationship is worth over a billion dollars every day in trade, over a trillion dollars of transatlantic foreign direct investment…and about fourteen million jobs in the US and EU rely on Transatlantic trade.

"We have a free trade administration in the US. I have consistently welcomed President Bush’s commitment to an ambitious Doha Round – his remarks yesterday suggest that he senses the need for the US to match the EU in additional flexibility. The Summit is an excellent chance to discuss DDA [Doha Development Agenda] in greater detail with President Bush.

"I am very pleased that Susan Schwab has now been confirmed – that makes her my third USTR [US Trade Representative] and I only feel like I’ve been in the job ten minutes (laughs). She is a highly experienced operator who understands the flexibility all sides will need to show to move forward in the Doha Round.

"Partly thanks to Susan’s influence as Deputy USTR and now as USTR we have made real progress this year on the issues that attract the media's attention which are disputes. Please bear in mind that EU-US disputes still over affect less than 2% of EU-US trade. And this year we have reduced that (inaudible).

"The US Congress finally repealed the WTO-incompatible elements of the Jobs Act - the FSC. I pay tribute to the work of Chairmen [US Senate Finance Committee Chair Chuck] Grassley [R-IA] and [US House Ways & Means Committee Chair Bill] Thomas [R-CA] for their work on achieving that…An end is in sight on Byrd [Amendment]; while the US continues to phase out payments our sanctions will also be phased out. And – almost unnoticed – both sides have lifted telecom procurement sanctions after a dispute going back more than a decade.

"A second point to note… in the last year, since the summit that was held in Washington we have taken two important steps in achieving closer or… proactive cooperation.

"The first is putting in place the umbrella of the Transatlantic Economic Initiative that was set up following the summit at November's first-ever EU-US Economic Ministerial Meeting. We expect that there'll be another Economic Ministerial towards the end of this year. This tend to be very focused result-oriented meetings…I am not saying that the summits are not, of course…but the Ministerial Meetings tend to be even more result oriented focused on actions that we can take together The TEI is focused on non-tariff barriers for the simple reason that these are now by far the biggest hurdle standing in the way of growing transatlantic trade.

"The second step that has been taken during last year is joint action on intellectual piracy. Those of you who followed my work in China last week will know that this is a top priority for me because it goes to the heart of the EU competitiveness, it goes to the heart of our ability to gain greater market share, to increase our presence in third countries' markets which overwhelmingly are in the front of value-added goods which have created an intellectual content. So, not only we have to increase the presence of our goods and services in third countries' markets, once we are there the intellectual property of these goods and services has to be properly protected. That is why it is so important to us economically. (inaudible)

"The number of counterfeit items seized at EU borders has increased by more than 1000% between 1998 and 2004, rising from ten million items in 1998 to over 103 million in 2004 and that is just what it is seized in the border and that we know about it. Pirates of course are a huge problem in the luxury goods trade, but they are increasingly moving into car parts, aircraft parts, food and drink and pharmaceuticals.

"(Inaudible)…last November when Gunther Verheugen, Carlos Gutierrez and I agreed to put together a much tougher EU-US joint approach to intellectual property piracy and counterfeiting. It is a joint strategy which needed to be concerted and it needed to have some teeth.

"Now that work is now complete, we will adopt the strategy on Tuesday. Three key points for now: We are talking about closer customs co-operation including joint border enforcement actions. We are talking about joint enforcement in third countries, including the creation of teams of EU and US diplomats in third countries specially tasked with data- and intelligence-sharing and joint IP surveillance and responsibilities…and we need strongly increased collaboration with the private sector. As I know from China the European industry is exasperated with the costs and damage incurred for poor Intellectual property protection. So we are working very closely with the industry.

"Our initial efforts will focus on working with China and Russia in this field as well as other areas in Asia, the Middle East and Latin America. You’ll get a lot more detail next week. And Matthew can talk to you further about it if you want.

"Let me leave it there because I am afraid that in a couple of minutes I will run…you forgive me… and I want to take any immediate questions you may have."

 

 

Press Contacts: Anthony Gooch   Kasper Zeuthen
  202-862-9523
anthony.gooch@cec.eu.int
  202-862-9530
kasper.zeuthen@cec.eu.int

Further Contact Information
Press and Public Diplomacy
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766

 

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European Union - Delegation of the European Commission to the United States
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