Military Leaders Outline Plan for New Transatlantic BargainPosted by Kyle Atwell in Transatlantic Relations, US Foreign Policy on Friday, January 25. 2008
A group of European and American military leaders co-authored a report that was released last week, titled Toward a Grand Strategy for an Uncertain World, Renewing Transatlantic Partnership (PDF version available from CSIS). The top brass – all with NATO experience – argue that the Alliance remains critical to both Europe and the US:
We are convinced that there is no security for Europe without the US, but we also dare to submit that there is no hope for the US to sustain its role as the world’s sole superpower without the Europeans as allies.The manifesto begins by arguing that many current and future threats – such as terrorism, international crime, demographic shifts, energy security, climate change, etc. – cannot effectively be addressed by any single country on its own. Instead, NATO provides the best opportunity for western countries to address new threats because it "links together a group of countries that share the most important values and convictions and that took a decision to defend those values and convictions collectively." Continue reading "Military Leaders Outline Plan for New Transatlantic Bargain"
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Transatlantic Trade: Articles Recommended by our ReadersPosted by Editors in Transatlantic Relations on Monday, March 5. 2007
The Atlantic Review has a new feature Tips from Our Readers: Our sidebar contains a list of the latest links to articles on transatlantic issues recommended by our readers. If you are interested in contributing to our little web 2.0 project, please read more information here.
Our readers recommended these articles about transatlantic trade issues: • "US likes Merkel's Trans-Atlantic trade initiative -- but not now" Spiegel International. • EU responsible for 90% of all export subsidies paid by WTO members: IHT Blog. • "EU says US security rules hide protectionist agenda": Euractiv. • "EU wants rest of world to adopt its rules." Financial Times. Regarding hedge funds: • "EU to talk to U.S. officials about hedge fund guidelines" International Herald Tribune. • "German deputy still targets 'locusts'" Financial Times. Constantly updated recommendations from our readers are in the sidebar on the right. How To Talk to AmericansPosted by Joerg Wolf in Transatlantic Relations on Saturday, March 3. 2007
Daniel Mark Harrison, a financial journalist and Englishman in New York, describes the 12 "most subtle but important mistakes English people and Europeans in particular make when they come to America. In fact, I think on many levels, these are some of the reasons for break-downs in political and business communications between the USA and the EU."
According to him, a bit more cultural awareness would help European economies and improve transatlantic relations: "Building our trans-atlantic political and economic alliances to create a power center which is capable of doing bigger and better things is exactly what both Europe and the United States should be striving for." Do NOT:He explains all of this Do NOT advice in detail in his blog Global Perspective. I disagree with several of his explanations and consider some of his advice obvious or not helpful, but some is quite interesting. Just my personal opinion, of course. What is your advice? What should Europeans avoid in conversations with Americans? What should Americans avoid in conversations with Europeans? Not the obvious stuff, but the "hidden" dangers of putting one's foot in it (ins Fettnaepfchen treten). Or more positively put: What is the best way to impress Americans/Europeans, i.e. give a good first impression? Yeah, I know, tough question and very generalized. It all depends on the situation and the individual. Americans and Europeans have probably more in common than differences. Thus making a good impressing on an American or European is not so different. What do you think? Any tips to share? Related: The American blogger Scot has some great advice for Germans in his blog USA Erklaert: "Warum Amerikaner (Briten, Kanadier) nicht sagen, was sie meinen." Productivity Growth and Foreign Trade balances in the EU and the U.S.Posted by Editors in German Politics, International Economics on Saturday, February 10. 2007 UPDATE: Our reader Potsdam Amerikanerin has sent two links with more specific economic statistics than the data cited by the Financial Times: Deutsche Bank Research writes that "hourly labour productivity in the euro area in 2005 was 9.1% lower than in the US. Back in 1995 the euro area had been ahead by 1%, as chart 1 illustrates. Over the past 10 years productivity has risen by 13.2% in the euro area, but 25.8% in the US." This chart also shows that France has higher labor productivity than the US. The Deutsche Bank Research paper (pdf) is full of interesting graphs and analysis, including data about productivity per employed worker and productivity per capita. The European Union is catching up to the US: The Conference Board writes that labor productivity growth was slightly higher in the EU than in the US. There are considerable differences within the EU: Finland, Sweden and Germany had significantly higher labor productivity growth than southern EU countries and the US: U.S. labor productivity growth in 2006, at 1.4%, was the lowest in more than a decade and, despite a strong business cycle, the enlarged European Union saw modest productivity gains of only 1.5% last year. (...) U.S. labor productivity slowed for the third consecutive year in 2006 and was well below that of the other two largest advanced economies in the world, Germany and Japan (2.5% in 2006). The latest productivity estimates, running up to the third quarter 2006, suggest that most of the U.S. slowdown comes from service sectors.End of update. Original post with more information on foreign trade balances: Continue reading "Productivity Growth and Foreign Trade balances in the EU and the U.S." Merkel's Blitzvisit and the Harmonization of Technical StandardsPosted by Editors in International Economics, Transatlantic Relations on Monday, January 8. 2007
The American Institute of Contemporary Studies has compiled a page of links to German and American press reports regarding Chancellor Angela Merkel's extremely short visit to Washington, D.C., on January 4, 2007.
The International Herald Tribune (IHT) points out that President Bush was "conspicuously silent about Merkel's bilateral trade proposal": Merkel called on Europe and the United States to improve trade cooperation to withstand the challenge of Asian economies. She proposed harmonization in some areas, ranging from technical standards for patents to regulations governing financial markets. But some European officials were skeptical about the proposals.The IHT also explains the difficulties of the Doha round of trade talks and states that "efforts to clinch a trade deal could prove more difficult following the recent Congressional victory by the Democrats, who traditionally have more protectionist instincts than the Republicans." Christoph von Marschall explains in Der Tagesspiegel (in German) that Merkel is not proposing an ambitious Transatlantic Free Trade Area (TAFTA), but common technical standards and patent laws so that European and American companies do not need to please two bureaucracies. This is expected to increase trade. Von Marshall sees the problem that the EU and the US would try to force their standards on each other for reasons of prestige and suggests that it would be better if the EU and the US would just accept each others standards: If the US considers a new child safety seat safe, then the EU should consider this seat to be safe as well and allow the import of that seat; and vice versa. How likely is that?Related post in the Atlantic Review: European Union Directive: American exporters must only use the metric system after January 1, 2010. Endnote: The United States Mission to Germany has created a website about shared EU-US trade interests, the latest US trade policy developments and the US position on the trade disputes with the EU. (The embassy also chronicles the latest developments in US-German relations.) (Photo source: White House) UPDATE: Daniel W. Drezner, associate professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University, recommends these recent newspaper articles on trade issues and posts excerpts in his blog • William Overholt, "Globalization's Unequal Discontents," washingtonpost.com, December 21, 2006 • Jagdish Bhagwati, "Technology, not Globalisation, Drives Wages Down," Financial Times, January 3, 2007 • Susan Aaronson, "Labor Rights Not Optional," TomPaine.com, January 5, 2007. Merkel Wants to Boost Transatlantic Trade TiesPosted by Editors in International Economics, Transatlantic Relations on Thursday, January 4. 2007
[UPDATE: Financial Times: "US cautiously welcomes Berlin trade plans" ]
"Angela Merkel, German chancellor, will this month launch a sweeping initiative for the harmonisation of US and European legislation to boost investment flows and trade between the world’s largest economic blocs." The British Financial Times interviewed Chancellor Merkel about her thoughts for an "ever-closer" transatlantic economic partnership, the Middle East, the EU relationship with Russia, energy policy, revitalizing negotiations for an EU-constitution, EU-enlargement, and the Balkans. Related Financial Times commentaries: "Merkel faces a Brussels road test" and "Relations with US top Merkel's agenda". Related Atlantic Review posts: • Strong EU-U.S. Trade • Comparing Chancellor Merkel's and Schroeder's Perception of Russia and the US • "Germany's Comeback", Leadership and Exaggerations European Union Directive: American Exporters Must Use the Metric System OnlyPosted by Joerg Wolf in International Economics, Transatlantic Relations on Saturday, November 4. 2006
Our reader ROA writes: "Anyone from an EU country that complains about the US being power mad, arrogant, fascist, bullying, etc. should be ashamed of themselves. I personally would like to see the US implement the metric system, but think the EU's attempt to block any measurements other than metric is an example of a power mad megalomaniac bureaucracy run amok." ROA refers to the European Union Metric Directive, which means according to the U.S. Government's Export Portal:
After January 1, 2000, all products sold in the EU needed to specify and label in metric measurements only. Prior to implementation, the European Commission recommended a 10-year deferral of the metric-only directive, allowing companies to use dual labeling through 2009. The delay provides time for U.S. companies to prepare for a metric-only European market beginning January 1, 2010. After the EU Directive takes effect, member and associated countries will no longer permit dual indications of measurement. U.S. exporters can no longer label or print inches, pounds, or any other non-metric measurement on shipments. This affects labels, packaging, advertising, catalogs, technical manuals, and instructions.The US Department of Commerce organized a public forum on the EU's Metric Directive for all interested stakeholders on October 12, 2006. A Telegraph blog post, recommended by ROA, argues: An extraordinary row, involving major European and US industries, is blowing up over the European Commission's determination to make it illegal, in three years' time, for any products made in or imported into the EU to carry any reference to non-metric measures. Not only will this cost industries on both sides of the Atlantic billions of dollars and euros, but it is in direct breach of US federal law. The Commission is so set on stamping out the hated non-metric system that, as of January 1, 2010, it is imposing a total ban on what it calls "supplementary indications" – ie any mention of inches, pounds or other non-metric units in advertising, labelling, catalogues, manuals and the like.I doubt whether the directive is in breach of US law. The Telegraph blogger explains "Any European firm wishing to sell to the US will not be allowed to refer at all to the units its American customers understand. This in itself will be illegal under the US Fair Trade and Packaging Act, which permits use of metric units only so long as they are accompanied by a US non-metric "translation"." Though, I can't imagine that the EU is telling European companies that they must use metric labels only for their exports to the US. That would be bad for our companies. I think the directive concerns only imports to the EU. Endnote: The European Commission's Press Office in London debunks Euromyths. Re Metrication: Metrication in the UK is not the result of British membership of the EU. In 1965, eight years before joining the EEC, the Wilson Government decided to initiate the UK's metrication programme, in response to global moves in this direction – Ireland and all Commonwealth countries had already adopted the metric system. Transatlantic Free-Trade Zone as "NATO for the World Economy"Posted by Editors in International Economics on Sunday, October 22. 2006
Gabor Steingart makes "an argument for a trans-atlantic free-trade zone" in the English version of Der Spiegel:
The role NATO played in an age of military threat could be played by a trans-Atlantic free-trade zone in today's age of economic confrontation. The two economic zones -- the European Union and the United States (perhaps with the addition of Canada) -- could stem the dwindling of Western market power by joining forces."I find the idea fascinating," Chancellor Merkel told the EU committee in Germany's parliament, according to another Spiegel article in early October. The enormously difficult project of creating a Transatlantic Free Trade Area would be her backup plan, should the Doha trade talks ultimately prove untenable. Related Atlantic Review post: Will Germany Promote the Creation of a Transatlantic Free-Trade Area? Will Germany Promote the Creation of a Transatlantic Free-Trade Area?Posted by Editors in International Economics, Transatlantic Relations on Sunday, September 24. 2006
[UPDATE: The idea is not new. Already in 1997, Germany Foreign Minister Klaus Kinkel "proposed that a transatlantic free-trade zone, TAFTA, be created in the long term."]
"Spurred by concern about China's growing economic might, Germany is considering a plan for a free-trade zone between Europe and the US," writes the Financial Times (FT) in an article availabe at MSN Money: A senior aide to Angela Merkel said the chancellor was "interested" in promoting the idea as long as such a zone did not create "a fortress" but rather "a tool" to encourage free trade globally, "which she is persuaded is a condition of Germany's future prosperity". Separately, on Friday, the US, Canada and the European Union complained to the World Trade Organisation about China's tariffs on car parts, raising the prospect of Beijing facing its first WTO dispute.China's Prime Minister Wen Jiabao was on tour in Europe. Hopefully he was pressured on Darfur as well. Global Darfur Day was on Sunday and Jewels in the Jungle has a news round-up. Die Zeit's Kosmoblog criticizes a lack of attention for Darfur in Germany. The FT mentions only that Chancellor Merkel criticized China's poor human rights record and restrictions on foreign news agencies. [UPDATE: The Frankfurter Allgemeine Zeitung writes that Darfur was discussed and that Prime Minister said China supports UN troops in Darfur] The FT concludes: As German perceptions of China have grown more American, Washington's approach has shifted too. Speaking before his first trip to Beijing, Hank Paulson, US Treasury secretary, this week outlined a more balanced policy mixing traditional US criticism with praise for China's reforms.Prof. Drezner sees "many reasons to believe that TAFTA [Transatlantic Free-Trade Area] will never get off the ground", but finds the idea "very intriguing. Even if it takes ten years to negotiate, the combined weight of a TAFTA in terms of both market size and rule-setting behavior would be formidable." (HT: ROA) The FT advises caution: Ms Merkel's aide said it was "far too early" to tell whether the project of a transatlantic free-trade zone would be part of Germany's priorities when it assumes the six-month presidency of the European Union and chairs the G8 group of leading industrial nations from January. One Year after G8 Summit on Extreme PovertyPosted by Editors in International Economics, US Foreign Policy on Thursday, August 24. 2006
Foreign Policy Magazine writes:
Each year the Center for Global Development and FOREIGN POLICY look past the rhetoric to measure how rich-country governments are helping or hurting poor countries. How much aid are they giving? How high are their trade barriers against imports such as cotton from Mali or sugar from Brazil? Are they working to slow global warming? Are they making the world’s sea lanes safe for global trade?The Netherlands wins this year's competition, followed by Denmark, Sweden and Norway. Germany ranks at the 9th place and the United States at the 13th. Japan lost again. The British Times two months ago, that little has improved since last year's G8 summit on Africa and the Make Poverty History campaign due to leadership failures and aid cuts: Kofi Annan, the UN secretary general, is to chair an international group set up by Tony Blair to monitor pledges made to help Africa at last year’s G8 summit, the Prime Minister will announce today. Bob Geldof, the Live8 organiser, and President Obasanjo of Nigeria will also be on the Africa Progress Panel, which will be funded by Bill Gates.The Atlantic Review wrote about the magnitude of poverty and a popular myth: Around 29,000 under-fives die every day from causes that are easily prevented, such as diarrhoeal dehydration, acute respiratory infections, measles and malaria. According to a poll, most Americans believe that the United States spends 24 percent of its budget on aid to poor countries; it actually spends well under a quarter of 1 percent.Related post: Fair trade and more aid. Mas Protestas: What Connects Immigration and US-Latin-American PoliticsPosted by Sonja Bonin in US Domestic and Cultural Issues, US Foreign Policy on Wednesday, May 17. 2006
It was the textbook example of agenda setting: As soon as President Bush restarted the debate over (illegal) immigration, the majority of US-Americans considered the matter of greater importance than the war in Iraq. Hundreds of thousands of US citizens and non-citizens, legal and illegal, demonstrated on the streets from Washington D.C. to Washington State, often broadening the protest to include anti-war and anti-Bush statements. The fact that 461 bills concerning immigration and immigrants are currently pending in 43 state legislatures underlines that this is a smouldering issue, ready to be roused before the midterm election.
In his article Latin America's Left Turn in the May/June 2006 edition of Foreign Affairs the former foreign minister of Mexico, Jorge G. Castañeda, links the US immigration debate to its and Europe's policies towards Latin America: Continue reading "Mas Protestas: What Connects Immigration and US-Latin-American Politics" World Trade negotiations in crisis, EU punishes U.S., and wine dealPosted by Editors in International Economics, Transatlantic Relations on Tuesday, May 2. 2006
The negotiators at the World Trade Organization (WTO) failed to meet the April deadline to agree on ground rules for the liberalization of world markets for agricultural and industrial products. According to Oxford Analytica's op-ed in The Hill:
Progress in the Doha Round has consistently fallen short of even the most pessimistic expectations. Four years of talks in Geneva have provided the necessary technical basis for liberalization agreements, but key countries remain unwilling to make politically difficult choices necessary for progress. For example:Likewise, the Washington Times opines: If, as many observers argued, the Doha round on trade liberalization was on life support before highly regarded U.S. Trade Representative Rob Portman left last week to become White House budget director, it is hard to imagine what can be done to resuscitate trade negotiations now. (...) The political obstacles lined up to block an agreement in the United States pale compared to what confronts European negotiators and politicians in their homelands. If French President Jacques Chirac caved into the pressure from unions and student protesters over relatively minor reforms in France's labor law, imagine how quickly French nerve would collapse when Mr. Chirac or his successor is confronted by French farmers taken off the dole. Italy's political problems are equally daunting. With his political capital reduced, President Bush has apparently decided to cut his losses and toss the Doha failure on the heap next to Social Security reform and tax reform.Oxford Analytica concludes that time is now "desperately short to complete the negotiations." While past trade negotiations have also been beset by crises and delays, the lack of a real commitment by many parties "makes the outcome increasingly doubtful." According to the Financial Times the US and European Union blamed each other for the setback: Peter Mandelson, EU trade commissioner, accused the US of lacking realism on agriculture, while the US trade representative's office said it wished the EU would put the same energy into the negotiations as it did in finger-pointing.EU PUNISHES U.S. FOR VIOLATION OF WTO RULES: The European Union on Monday imposed new tariffs on U.S. goods, because U.S. companies continue to benefit from the Byrd amendment. From the BBC: The anti-dumping amendment lets US firms raise a levy from competitors' goods which it deems to be too cheap. The amendment was ruled illegal over a year ago and repealed in February, but US firms are expected to benefit from it for a further two years. This latest penalty brings the total extra tariffs imposed upon the US to $36.9m. Peter Mandelson - the EU trade commissioner - has said that while the trade dispute has been resolved, US firms are still receiving payments. (...) Since the Byrd amendment was passed in 2000, manufacturers in the metals and food businesses among others, have been the recipients of billions of dollars in payments.Trade disputes should not be exaggerated. The IHT points out: In a statement, the EU said the Byrd Amendment "has been a long-running irritant in the U.S.-EU trade relationship," but it added "that the huge bulk of EU-U.S. trade is trouble-free."THE GOOD NEWS: A fine wine sometimes needs some time. After only 20 years of negotiations, the European Union and the United States signed a bilateral wine accord in March 2006, which will bring major benefits for EU wine producers, says the EU: It will help EU winemakers to build on their current success in the US, which is by far the EU's largest export market. Annual EU wine exports to the US are worth more than 2 billion euros, around 40 percent of EU exports in terms of value. This agreement provides a clear demonstration that the US and the EU can resolve important and complex issues through bilateral negotiations and both sides are committed to doing so in the future.
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