The U.S. and the European Union held the second meeting of the Transatlantic Economic Council May 13 in Brussels to discuss ways to increase and improve economic ties. Outcomes of this meeting included the following.
Investment Policy. In their first-ever joint statement on the matter, the U.S. and the EU reiterated their commitment to “promoting open investment policies at home and abroad.” International investment “spurs the development and introduction of new technologies and business methods and provides for healthy competition that fosters innovation,” the statement asserts. “This investment brings to an economy jobs, expertise, increased productivity, and a wider range of goods and services at competitive prices.” At a time when global economic growth is slowing, the two sides state that they recognize their “responsibility in resisting protectionist sentiment at home and in working together to oppose protectionism abroad.”
One of the challenges to open investment policies has been the proliferation of policies designed to address national security concerns, but the statement asserts that the two are not incompatible. “Measures that address national security concerns should be transparent, predictable and proportionate to the national security concern identified,” it states, “and precisely circumscribed so as to avoid unduly disrupting the flow of investment.”
Poultry. Later this month the European Commission will propose a lifting of the ban on imports of U.S. poultry, which has been in place for over a decade due to EU concerns about the safety of a sanitary process used by U.S. producers. The decision could reopen the EU poultry market, which is worth an estimated $200 million, by this October. Press reports noted that this issue has been a particular sore spot for the U.S., which has suggested that it could threaten broader bilateral trade liberalization initiatives.
Cosmetics. The EU has agreed to revise its Registration, Evaluation, Authorization and Restriction of Chemicals system, which takes effect June 1, so that it does not adversely affect U.S. exports of cosmetics already on the market as of that date. Details have yet to be determined.
Standards. The Occupational Safety and Health Administration is again moving toward allowing the use of supplier’s declarations indicating that electrical, electronic and information and communication technology products conform to U.S. standards. Such a policy would eliminate the requirement for these products to be tested in U.S. labs.
World Trade/Interactive
