A4-0387/98

Resolution on the 'Transatlantic Economic Partnership¨ between the European Union and the United States

The European Parliament

- having regard to the Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee: The New Transatlantic Marketplace (COM(98)0125 - C4-0271/98),

- having regard to the Transatlantic Declaration on EC-US relations of 22 November 1990 ((Bulletin of the European Communities 11-1990, point 1.5.3.)),

- having regard to the New Transatlantic Declaration Agenda (NTA) adopted in Madrid on 3 December 1995, and to the accompanying Joint EU-US Action Plan,

- having regard to the Transatlantic Business Dialogue (TABD) Chicago Declaration (9 November 1996) and to the results of the TABD Conference in Rome on 6-7 November 1997 and in Charlotte on 5-7 November 1998,

- having regard to the results of the EU/US Summits of 16 December 1996, 28 May and 5 December 1997, 18 May 1998 and to the preceding Senior Level Group reports,

- having regard to the results of the NTA Conference entitled 'Bridging the Atlantic: People to people links' held in Washington on 5-6 May 1997,

- having regard to the results of the Transatlantic Labour Dialogue (London, 24 April 1998),

- having regard to the Chairmen's Statement at the 49th meeting of delegations from the European Parliament and the United States House of Representatives (Houston, 28 June 1998),

- having regard to the results of the Transatlantic Consumer Dialogue (Washington, 25-26 September 1998),

- having regard to the WTO declarations in Singapore (13 December 1996) and Geneva (19 May 1998),

- having regard to its resolutions of 15 May 1997 on the suspension of the WTO dispute settlement procedure as regards the Helms-Burton Act ((OJ C 167, 2.6.1997, p. 150.))), 18 September 1997 on the negotiations between the Commission and the US Administration on the Helms-Burton Act ((OJ C 304, 16.10.1997, p. 116.))), 20 November 1997 on the New Transatlantic Agenda (EU-US relations) ((OJ C 371, 8.12.1997, p. 181.))), 15 January 1998 on transatlantic trade and economic relations ((OJ C 34, 2.2.1998, p. 139.)) and 16 September 1998 on transatlantic relations/ECHELON system ((Minutes of that Sitting, Part II, Item 17.)),

- having regard to the public hearing held on 24 June 1998 by its Committee on External Economic Relations on 'extra-territorial laws as unilateral sanctions',

- having regard to the report by the Committee on External Economic Relations and the opinions of the Committee on Foreign Affairs, Security and Defence Policy, the Committee on Economic and Monetary Affairs and Industrial Policy, the Committee on Legal Affairs and Citizens' Rights, the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Culture, Youth, Education and the Media (A4-0387/98),

A. whereas the European Union and the United States share a number of values and whereas their relations are based on common interests in the economic, political and security fields and a common perception of world-wide responsibilities, dependencies and needs,

B. whereas the EU and the US share common values, ranging from democracy, human rights, economic philosophy and social stability to environmental concerns and cultural sovereignty, as well as a common security policy,

C. whereas the transatlantic relationship is one of the most open and independent in the world, and constitutes, for both partners, the most important economic link in terms of trade, investment and technology exchanges,

D. whereas employment, on both sides of the Atlantic, depends to a significant extent on maintaining free flows of goods, services, capital and people between the EU and the US,

E. whereas the Council of Foreign Ministers considered the Commission's communication at its meeting in Luxembourg on 27 April 1998, and 'a number of Members of the Council expressed broad support, while others expressed specific concerns, and France reiterated its opposition' ((Council Press Release of 27.4.1998.)); whereas, however, the Council decided to pursue efforts for multilateral and enhanced bilateral cooperation, by progressively reducing or eliminating barriers that hinder the flow of goods, services and capital, but the more advanced ideas formulated in the New Transatlantic Marketplace concept for setting up a free-trade area for services and a bilateral mechanism for settling disputes were abandoned, and the Commission therefore adopted, on 16 September 1998, a 'Draft Action Plan' for Transatlantic Economic Partnership (TEP),

F. whereas, on 9 November 1998, the Council 'approved the TEP Action Plan, identifying areas for common actions with the US both multilaterally and bilaterally (...) and authorized the Commission to enter into negotiations with a view to the conclusion with the US of bilateral agreements in the fields of technical barriers to trade, services, public procurement and intellectual property¨ ((Council Press Release 12560/98, 9.11.1998.)),

G. concerned that EU-US negotiations are taking place against a background of institutional imbalance, because Europe has not implemented a commercial policy that is subject to an appropriate level of parliamentary scrutiny as Parliament requested at Amsterdam,

H. whereas the increased instability on financial markets and the recession in certain economies (notably in East Asia) highlights the need for stronger co-operation between the EU and the US; whereas, however, such cooperation must at the same time be pursued with the other partners with whom Europe has forged lasting links,

I. taking account of the Commission's annual report on American obstacles to trade and investment, which reveals numerous cases of protectionism on the part of the United States,

J. whereas the Council did not wait for the opinion of the European Parliament before giving a negotiating mandate to the Commission,

K. expressing its disapproval with respect to the Council's decision about the mandate and expecting that in the future it will be obligatorily consulted on important international agreements before the negotiating mandate is given,

L. whereas the TEP initiative should aim at enhancing sustainable development; whereas transatlantic economic, trade and investment relations should aim to deliver economic advantages not only for enterprises, but also for workers and consumers in a healthy environment,

1. Underlines the importance of a transatlantic relationship that encompasses both trade and economic relations and security and defence relations, to be examined regularly with a view to solving any problem that may have arisen between the transatlantic partners;

2. Underlines that future economic relations between the EU and US (bilateral and multilateral) will be based on the principle of sustainable development which implies that environmental concerns are integrated in the common policy and that environmental impact assessments play a more important role;

3. Roundly condemns the American threats to impose unilateral sanctions on the Union in retaliation for the changes to the banana regime; maintains that any American complaints should instead be addressed to the WTO disputes settlement body, as the multilateral trading system and the new Transatlantic Economic Partnership might otherwise be placed in jeopardy; requests specifically that the action plan to be implemented under the new Transatlantic Economic Partnership should be suspended until the threat of sanctions against Community products has been withdrawn;

4. Welcomes the proposal for the creation of a Transatlantic Economic Partnership (TEP), as set out in the Joint Statement agreed at the EU/US Summit (London 18 May 1998) and in the draft 'Action Plan' proposed by the Commission, and considers that this process has to be carried out with the participation of the relevant Parliamentary bodies; stresses the importance of the bilateral initiatives taken in order to ensure involvement of 'civil society' in the Transatlantic debate (e.g. Labour, Consumer, Business dialogues) and asks the Commission to reinforce these initiatives;

5. Draws attention to the fact that the TEP is part of the wider relationship defined in the New Transatlantic Agenda, and that the European Parliament should be adequately involved in all transatlantic initiatives;

6. Takes note that the TEP will be implemented by cooperative actions and formal trade negotiations, in the context of a joint Action Plan, identifying areas for common actions (both bilateral and multilateral), with a timetable for achieving specific results;

7. Remarks however that the TEP Action Plan, as adopted by the Council on 9 November 1998, differs significantly from the Draft transmitted by the Commission on 18 September, on which Parliament's discussion is based, in particular with regard to the following aspects:

on multilateral actions

- the commitment to promote greater GATS user-friendliness, in particular by examining the possibility of 'negative listing¨ to record any exceptions to National Treatment and unconditional market access, has not been retained in the Action Plan,

- the objective of including public procurement on the agenda of future WTO negotiations has been omitted,

on bilateral actions

- the approach of 'functional equivalence¨ of technical regulations as a way to achieve trade facilitation under MRAs for goods has not been mentioned,

- references to bilateral standstill for access to service markets have been omitted,

- objectives for cooperation on procurement and intellectual property have been significantly reformulated,

- 'public policy objectives¨ in the context of trade facilitation for electronic commerce are not mentioned;

Formal trade negotiations

8. Stresses the importance of the legal aspects of transatlantic relations, in terms of strict compliance with the standards of international law and of strengthened bilateral relations in the form of specific agreements on particular issues;

9. Regrets therefore, that the new piecemeal approach to the negotiations with the USA will result in a number of sectoral agreements being concluded under the procedure pursuant to Article 113 of the EC Treaty, thereby preventing the European Parliament from exerting direct influence on their substance;

10. Stresses the importance of achieving positive results in the area of technical barriers to trade in goods, in particular by means of new mutual recognition agreements (MRAs) for certain products and sectors, and a reinforced regulatory dialogue; insists that any mutual recognition agreement with the USA must be consistent with the EU's high level of protection for consumers, human, animal and plant health, safety and the environment and must allow its future development;

11. Calls for the start of serious negotiations with the US aimed at establishing a common GMO-free and organic food line; recalls that EU principles for an organic food line were decided in 1991 and that a GMO-free line is under discussion, whereas national organic food standards are being debated in the US;

12. Calls on the Member States and the Commission to take the necessary steps to ensure that the negotiations conducted in the context of the WTO and transatlantic relations do not affect the Community acquis and, in particular, services of general interest ensuring the economic and social cohesion of the European Union;

13. Takes this opportunity to recall that there is still a great deal of scepticism amongst European consumers concerning novel foods and the labelling thereof;

14. Calls on the EU and the US to include animal welfare issues and to enact trade-related measures genuinely designed to achieve improved standards of animal welfare;

15. Considers that the implementation of MRAs should involve adequate consultation of relevant industries and professional federations and that the extension of the MRAs to new sectors and products, and the recognition of 'functional equivalence' of technical or other regulatory requirements should involve not only consultations between the Commission and the Council's '113 Committee', but also adequate information and participation of the European Parliament;

16. Considers, in particular, that the conclusion of a 'framework agreement' on MRAs would constitute an external agreement of significant importance, under the 1984 Stuttgart Declaration, and entail the European Parliament's participation in the procedure;

17. Considers furthermore that bilateral negotiations on services should aim at creating new opportunities for business and consumers of both Parties, through the mutual recognition of requirements, qualifications etc. and that the European Parliament should be adequately informed of sectors which would be involved in MRAs; takes note that certain services, and in particular architecture and engineering services, are considered at present for inclusion in negotiations; asks the Commission to ensure that the Economic and Social Committee as well as the relevant trade unions and professional federations are consulted before the negotiation process;

18. Underlines that bilateral EU/US liberalisation in the field of services should comply strictly with multilateral rules, and in particular Article VII of GATS;

19. Supports the principle of negotiating a further opening of EU and US markets for government procurement, on the basis of reciprocity and progressive elimination of exceptions to commitments made in the context of the WTO agreement on government procurement, and the EU/US 1995 agreement; recalls, in this context, the report by its Committee on External Economic Relations ((A4-0113/95.)), which highlighted the need to monitor closely the implementation of the agreement and to inform the European Parliament on this subject; draws attention to the need to ensure the compatibility of bilateral agreements with the requirements defined in international declarations such as Rio, Kyoto, etc;

20. Stresses the importance of negotiations in the field of intellectual property, aiming to reach not only facilitations in the field of procedures for the grant and enforcement of patent rights, but also increased protection of geographical indications;

21. Stresses that the planned discussions should lead to commitments that are compatible with the 'acquis communautaire', in particular with regard to the obligations under the renewed Community Agricultural Policy (CAP) and cultural policies, with the economic and trade agreements concluded by the European Community with its traditional partners, in particular in the framework of the Lomé Convention and association agreements, and lastly with the enlargement process initiated on 30 March 1998;

22. Insists that the new partnership must not call into question the social legislation in force in the Member States of the European Parliament;

Cooperative actions

23. Considers that the EU and the US should closely co-operate within multilateral organisations, and in particular within the WTO, in preparation of the 1999 Ministerial Conference; welcomes in particular the proposal to set up a regular and structured dialogue at ministerial and official level;

24. Draws attention to the fact that the Union should enter the new WTO negotiations on the basis of an independent position; considers, however, that common EU/US approaches should be sought, involving in particular specific dialogue on dispute settlement, general standstill, implementation of WTO agreements, services, agriculture, trade facilitation, industrial tariffs, technical barriers to trade, intellectual property, investment, competition, government procurement, trade and environment, accession to the WTO, developing countries, electronic commerce, core labour standards;

25. Supports multilateral action by the EU and US, together with the social partners, to promote internationally recognised core labour standards and to reach agreement on an ILO declaration and follow-up mechanism, thereby rejecting use of labour standards for protectionist purposes;

26. Points out that in accordance with the conclusions of the WTO Conference in Singapore in December 1996 and in the framework of the transatlantic economic partnership, the US and the EU need to call for the establishment of relations between the ILO and the WTO:

27. Considers also that EU/US cooperation within the international financial institutions is crucial with a view to dealing with the current financial crisis; considers furthermore that multilateral agreement on prudential rules for financial enterprises should be sought;

28. Points to the need to address, within the joint Action Plan, (in addition to measures included in formal agreements to be negotiated) a series of bilateral initiatives, dealing with issues of particular importance for transatlantic relations;

29. Considers, in this context, that in the sector of regulatory cooperation, consultation in the earliest possible stages of drafting regulations should involve an enhanced exchange of technical and scientific information; asks the Commission:

- to supply information to the European Parliament on the committees and expert groups when they are being formed, concerning their procedures and mandates,

- to keep the European Parliament regularly informed of their activities;

- where legislative proposals are drawn up, to inform the European Parliament at the earliest possible stage and to consult it formally;

30. Is concerned at the dominant role the Action Plan confers on committees of experts and calls on the Commission to report to Parliament on the mechanisms for selecting such committees and on the nature of their mandate;

31. Welcomes furthermore the proposal to create an early warning system in the field of food safety, in order to ensure exchange of information at an early stage of planned legislation; supports the proposal for linking the EU and US rapid alert systems on dangerous products and considers that third countries, in particular developing countries, should also benefit from this system;

32. Stresses the need for progress in the field of investments, and recalls its abovementioned resolution of 16 September 1998, stating that US extraterritorial legislation, and in particular the Helms-Burton and d'Amato Acts, remain unacceptable to the European Union and asking the US Congress 'to act speedily in order to eliminate such legislation';

33. Emphasises the importance of the public being directly involved in trans-Atlantic relations, in order to generate support, and underlines in this context the need for continuous financial support for 'people-to-people' links by the EU and the USA;

34. Urges the EU governments and the US to extend the cooperation in education, training and youth programmes, increase the awareness of exchange opportunities and remove remaining obstacles for work-based exchanges, recognition of degrees and diplomas, as the free movement of persons is an indispensable component of globalisation;

35. Supports cooperation in the field of competition, and in particular the EU/US agreements on the application of competition laws and on 'positive comity', and asks the Commission to explore possibilities for strengthening such cooperation;

36. Considers that, within the TEP framework, the function of anti-dumping measures and countervailing duties designed to offset subsidies in Transatlantic trade should be re-examined as soon as possible and that the TABD could make a useful contribution to this process; stresses that discussion in transatlantic fora should gradually move towards dealing also with the more contentious issues;

37. Is of the opinion that an exchange of best practices in the field of SME policy could be mutually beneficial; points in this context to the possibility of selective application of legislation for specific SME groups in the US, which allows tailor-made support for specific SME sectors;

38. Remarks that the implementation of the Metric Directive 80/181 results in high costs for European businesses exporting to the US; calls, therefore, for an initiative with a view to encouraging the adoption of the metric system by the US;

TEP organisational framework

39. Welcomes the proposals to create, on the basis of existing NTA structures, an organisational framework designed to develop the new approaches defined in the TEP statement and Action Plan;

40. Understands that this effort would involve more frequent and regular ministerial meetings, as well as a more precise definition and organisation of the tasks of the Senior Level Group and the institution of specific working groups or committees, in particular in the field of mutual recognition;

41. Recalls however its abovementioned resolution of 15 January 1998, stressing the role of parliamentary bodies in monitoring negotiating processes (including 'administrative arrangements') and remarking that 'issues of democratic accountability will become crucial as economic interdependence and regulatory convergence between both sides of the Atlantic is developed to its true potential';

42. Insists therefore on the need to enhance considerably inter-parliamentary cooperation between the European Parliament and the US Congress, building on the experience of the present EP/US inter-parliamentary Delegation; considers that an EP/US Congress 'joint parliamentary committee' should therefore be closely involved in the setting-up and implementation of the TEP;

43. Stresses that the EU and US, on the basis of the TEP Action Plan, are committed 'to reinforce efforts to resolve bilateral trade issues and disputes¨, 'as part of the confidence-building process foreseen in the New Transatlantic Agenda of 1995';

44. Strongly condemns therefore the US initiatives aimed at imposing unilateral trade sanctions against the EU as a consequence of the banana regime dispute; considers that the imposition of unilateral US sanctions would undermine the multilateral WTO rules which the US purports to defend and should induce an adequate response by the EU;

Furthermore:

45. Recalls the importance of taking into account the development of the negotiations within AFTA (American Free Trade Area) and of the agreements between the European Union and the regional groupings in Latin America (Mercosur, the Andean Community and the Central American Community), Chile, Mexico and Canada;

46. Calls on the Commission and the Council to inform Parliament fully about the negotiating mandates, if necessary on a confidential basis;

47. Calls on the Commission and the Council to take due account of Parliament's position on the TEP initiative; points out the need for Parliament to discuss in future both the final Action Plan and the results of the forthcoming EU/US Summit, to follow closely any future negotiations and, if necessary, to issue recommendations on the basis of Rule 90(5) of its Rules of Procedure;

48. Calls for an interinstitutional agreement leading to revision of the present Luns and Luns-Westerterp procedures, in order to guarantee strengthened information of and input by the European Parliament with regard to negotiation and conclusion of external agreements;

49. Instructs its President to forward this resolution to the Commission, the Council, the governments of the Member States and the United States Congress and Administration.