Identifier
Created
Classification
Origin
03BRUSSELS5635
2003-12-16 12:23:00
CONFIDENTIAL
Embassy Brussels
Cable title:  

TRANSATLANTIC LEGISLATORS' DIALOGUE MEETING

Tags:  PREL EUN USEU BRUSSELS 
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C O N F I D E N T I A L SECTION 01 OF 05 BRUSSELS 005635 

SIPDIS

DEPT FOR EUR/ERA MICHAEL DIXON, AND H; H PLEASE PASS TO
HIRC HILLEL WEINBERG AND FRANK RECORD, AND TO CHRIS
CONNELLY, CHIEF OF STAFF OF CONG. JO ANN DAVIS

E.O. 12958: DECL: 12/16/2013
TAGS: PREL EUN USEU BRUSSELS
SUBJECT: TRANSATLANTIC LEGISLATORS' DIALOGUE MEETING

REF: A. A) BRUSSELS 5520


B. B) BRUSSELS 3619

Classified By: USEU POLOFF TODD HUIZINGA, FOR REASONS 1.5 (B) AND (D)

C O N F I D E N T I A L SECTION 01 OF 05 BRUSSELS 005635

SIPDIS

DEPT FOR EUR/ERA MICHAEL DIXON, AND H; H PLEASE PASS TO
HIRC HILLEL WEINBERG AND FRANK RECORD, AND TO CHRIS
CONNELLY, CHIEF OF STAFF OF CONG. JO ANN DAVIS

E.O. 12958: DECL: 12/16/2013
TAGS: PREL EUN USEU BRUSSELS
SUBJECT: TRANSATLANTIC LEGISLATORS' DIALOGUE MEETING

REF: A. A) BRUSSELS 5520


B. B) BRUSSELS 3619

Classified By: USEU POLOFF TODD HUIZINGA, FOR REASONS 1.5 (B) AND (D)


1. (SBU) Summary: The biannual Transatlantic Legislators'
Dialogue (TLD) meetings were held in Williamsburg, Virginia
on November 13-16 (list of participants in paras 20-21). The
six members of Congress and ten members of the European
Parliament (MEP's) reviewed the draft EU Constitutional
Treaty, and held a broad discussion on current political a
security issues where US and European views frequently
conflict, including Iran, Iraq, the Middle East, the war on
terror, and Guantanamo. The TLD also offered opportunities
to increase engagement with the European Parliament (EP) on
important issues to the USG where the EP plays an important
role, such as USG access to Passenger Name Record (PNR) data,
EU chemicals policy, and international corporate governance.
The next TLD meeting is tentatively scheduled for the spring
in Dublin. End Summary.

--------------
Draft EU Constitutional Treaty
--------------


2. (SBU) The discussion centered around a debate among the
MEPs on whether a draft constitutional treaty would transfer
sovereignty from the EU member states to the Union to a
significant degree, and whether such a development would be a
positive one. Swedish Conservative MEP Charlotte
Cederschioeld averred that the EU was based on pooling the
sovereignty of the member states, and that the constitutional
treaty's purpose was to make the EU more transparent,
efficient and democratic. UK Conservative Philip Charles
Bradbourn countered that the constitutional treaty proposed a
massive transfer of power to the EU at the expense of the
member states. He deplored, for example, the fact that the
EU Charter of Fundamental Rights had been incorporated into
the draft treaty as justiciable, whereas originally it had
been only declaratory. UK Conservative Caroline Jackson
stressed that the treaty did not represent "a Philadelphia
moment." She said "it's not a constitution, it's a
constitutional treaty...and it's a dreadful mess." UK

Liberal-Democrat Sarah Ludford, in contrast, lauded the
constitutional treaty as an attempt to consolidate all the
previous EU treaties into one document and set explicit
limits on the power of the EU, preventing Brussels "mission
creep" at the expense of the national capitals. Rep. J.
Randy Forbes asserted that, if history were a guide, the
constitutional treaty, once passed, would become a
constitution. He, along with Rep. Darrell Issa, wondered
whether EU member states were fully prepared for the possible
ramifications of a constitutional treaty.

--------------
Iraq
--------------


3. (SBU) MEP Bastiaan Belder (Dutch Calvinist Party) stressed
the EU's desire to work constructively with the U.S. on Iraq
reconstruction and reiterated the EU position that
sovereignty, and in the shorter term key aspects of
sovereignty such as certain policing and military tasks, be
given to the Iraqis themselves as soon as possible. Rep.
Phil English replied that, as a representative of a
congressional district with many Iraq expatriates, he
understood the need to encourage a speedy transition to
independence for Iraq. English added that the West needed to
give Iraq the investment it desperately needs, to emphasize
grants rather than loans for reconstruction aid, and to help
Iraq become a model of democracy in a battered region.

--------------
Iran
--------------


4. (U) Belder laid out the EP view that the EU should develop
closer trade and economic ties with Iran only if Iran made
visible progress on respect for human rights, cooperation
with non-proliferation regimes, stopping support for
terrorism and not undercutting the Middle East peace process.
He stressed EP support for U.S.-EU cooperation on Iran,
especially in the areas of non-proliferation and Iranian IAEA
obligations, and in pressing Iran to cut off its support to
Hamas and Hizbollah.

--------------
Middle East Peace Process
--------------


5. (U) Cautioning that he had voted against it because of
what he saw as its anti-Israeli slant, Belder reviewed the
October 9 EP resolution on "Peace and Dignity in the Middle
East." The resolution affirms that implementation of the
roadmap is the solution to the Israeli/Palestinian conflict.
It stresses that Palestinian terror is unacceptable, but also
condemns pre-emptive attacks by Israel and resulting civilian
casualties, as well as the Israeli security fence. Belder
stressed that in his view the resolution did not give enough
weight to the destabilizing influence of neighboring
countries, especially Iran and Syria. In this regard, Belder
decried the expected completion of the European Commission's
association agreement with Syria (ref A) as a false signal
that would encourage Syria to expect no negative fallout if
it continues destabilizing activities such as support for
Hezbollah. He lamented that the EU had not sufficiently
pressured the Palestinian Authority (PA) to make internal
reforms, and that Arafat was still in control of the PA
security services. Belder noted that an EP working group on
possible misuse of EU aid funds to the PA was due to deliver
a final report on its investigation soon.
-------------- -
War on Terrorism, Guantanamo, anti-Americanism
-------------- -


6. (SBU) After Belder's comments the discussion centered on
cultural issues related to the war on terrorism, such as
European attitudes towards the U.S., the root causes of
terrorism and European views of U.S. policy towards the
Guantanamo detainees. MEP Ludford averred that one must
attack the "root causes of terrorism as well, such as poverty
and alienation." Also, she warned that "competing images of
the United States" in the world were hindering U.S.
effectiveness against terror, and that the U.S. had to be
more careful to promote an image of the U.S. as a beacon of
democracy and the rule of law. As an example, Ludford said
U.S. policy on holding detainees without trial in Guantanamo
was doing immense damage to the reputation and image of the
U.S. in Europe. Ludford raised the October-November
Eurobarometer poll, "Iraq and Peace in the World," in which
more respondents (from EU member states) designated Israel as
a threat to peace in the world than any other country, with
the U.S., Iran and North Korea tied for second place.
Ludford said that, while the results should not be taken at
face value, they were reactions to "particular policies being
pursued at a particular time."


7. (C) U.S. TLD Chair Rep. Jo Ann Davis responded that she
had been to Guantanamo and could testify that the detainees
were being treated well with full respect for their human
rights. She said she had seen a BBC documentary on
Guantanamo on a recent trip to Rome, and was struck by how
inaccurate it was. Rep. Issa, who had also visited
Guantanamo, concurred, saying Bush had boldly stepped into
unprecedented territory to deal with the unprecedented threat
of global terror. Rep. English added that, by any objective
standard, U.S. policy in Guantanamo met the standards of
international law and respect for human rights. Rep. Cliff
Stearns specified that U.S. actions in Guantanamo, including
methods of interrogation and possible future military
tribunals, were in compliance with the Geneva Conventions.


8. (C) Rep. English took exception to the idea of "root
causes of terrorism." He said that he believed there was a
cultural division behind Islamist terrorism that was based on
a strain of Islamic fundamentalism that was anti-Western,
anti-Israel and anti-capitalist. This phenomenon had to be
confronted, and the U.S. and the EU needed to confront it
together.

--------------
NATO and ESDP
--------------


9. (SBU) MEP Belder and Rep. Davis concurred in their concern
regarding a possible EU military planning headquarters
separate from NATO and a mutual defense clause in the draft
constitutional treaty that could be divisive to the NATO
alliance. Rep. Davis said that more NATO capabilities were
needed, not more structures that would duplicate or compete
with NATO. UK Conservative MEP James Elles said that the
discussion about these issues was fluid, but that U.S.
concerns were being taken into account. He opined that, in
order to avoid an EU caucus within NATO, a strengthened
U.S.-EU dialogue was needed to discuss issues before they
reached NATO.

--------------
Passenger Name Recognition (PNR)
--------------


10. (U) MEP Cederschioeld assured her U.S. counterparts that
the EP recognized the U.S.'s right to have information about
people entering its borders, and expressed general optimism
that a compromise could be reached that solved the remaining
problems regarding purpose of data collection, data retention
time and the number of data fields to which the U.S. could
have access. Cederschioeld suggested that the U.S. and EU
should have mutual watch lists and share them with each
other. She invited Congress to send members to visit the EP
Citizens Rights Committee to talk about the issue.


11. (C) Rep. John Mica concurred that there had been a
mellowing on both sides on PNR, and reiterated that the U.S.
side shared the EU concern about data protection. He said
the watch list idea was an important one, and pointed out
that the U.S. has more than eleven agencies involved in this
issue and that, despite a statutory requirement, these
agencies had not yet succeeded in preparing a consolidated
list. Mica said that agreed and mutually recognized
transatlantic standards for security requirements and
measures were also lacking, and that the standardization of
passport and travel document information was lagging behind.
Mica said that the U.S. side might take Cederschioeld up on
her invitation sometime in the spring, and invited
Cederschioeld to send him an e-mail detailing EP concerns
about PNR.

--------------
WTO post-Cancun
--------------


12. (C) UK Labour MEP Arlene McCarthy said a far-reaching
reform of the WTO was needed in view of the frustrating
breakdown of talks in Cancun, and announced that the EP had
asked the European Commission to make proposals on how to go
about WTO reform. McCarthy specifically stressed the
importance of upholding the Doha agreement on access to
medicines. Rep. English said the failure of Cancun was a
result of the tactics of the G-21 countries, whose
unwillingness to compromise was not shared by the U.S.

--------------
Financial Services, Corporate Governance
--------------


13. (C) UK Labour MEP Peter Skinner said the EU was
determined that the financial sector be a key factor in the
development of a transatlantic market. On the Sarbanes-Oxley
audit-firm registration issue, Skinner said the EU's
number-one imperative was still to achieve mutual recognition
between the PCAOB and competent European authorities, so that
EU and national laws would be respected. Skinner said
congressional pressure on the Securities and Exchange
Commission (SEC) was needed to achieve this. (Note: Skinner
appears to have been kept in the dark by DG Internal Market
officials who have been discussing this issue with the PCAOB.
Internal Market Commissioner Bolkestein reported to member
state finance ministers in September that a mutual
recognition agreement was not in the cards. End note.)
Skinner also expressed the line of the European stock market
lobby that SEC failure to grant foreign exchanges
better-than-national treatment to operate their electronic
trading terminals in the U.S. under exemption from SEC
regulation was in fact a protectionist device aimed at
keeping EU-based exchanges out of U.S. markets. In order to
rectify this situation as well, he said, congressional
pressure on the SEC would have to play a crucial role.
(Note: Skinner also met with SEC officials during this
visit. End note.)


14. (C) Rep. Stearns expressed frustration with the
difficulty of solving the problem of corporate corruption if
the perpetrators are sufficiently determined. Remarking that
the U.S. approach was law-based and the EU's principle-based,
he said he was interested in EU views on corporate
governance. Skinner decided on that basis that he would
explore starting a high-level dialogue involving MEPs,
members of Congress and business leaders, among others, on
corporate governance and related regulatory issues.
--------------
GMOs
--------------


15. (C) MEP Caroline Jackson said the EU legislation of July
2003 on tracing and labeling of biotech food and feed was
necessary, despite its absurdities, because of European
consumers' concerns. Rep. Issa replied that he believed that
the legislation was costly and burdensome, and that, if
consumers were worried, they could choose themselves whether
or not to buy GMO products. Rep. English added that GMO
technology was very important for the developing world. He
said the U.S. was still taken aback about Zambia's having
rejected U.S. food aid in the summer of 2002, although
Zambians were facing starvation, because of concerns that
accepting GMO foods from the U.S. would negatively affect
trade with the EU. To Rep. Issa's comment that the EU
legislation was "unabashed protectionism," Jackson replied
that it might be more accurate to call it "unabashed
cowardice."

--------------
Chemicals
--------------


16. (C) MEP Jackson said that the proposed European
Commission chemicals regulation -- Registration, Evaluation
and Authorization of Chemicals (REACH) -- had been "watered
down" after comments from industry had come in, and there
would be further analysis of the cost of the proposed
regulation. Rep. Stearns greeted that news, and Rep. Davis
said that, in the event of a new cost analysis, the relevant
congressional and EP committees should coordinate to ensure
that there was a mutually understood basis for analyzing the
costs. Jackson agreed, and staff on both sides agreed to
follow up.

--------------
Open Skies
--------------


17. (C) Dutch Christian-Democrat MEP Peter Pex expressed a
basically positive outlook on the ongoing U.S.-EU open skies
negotiations. However, he lamented U.S. legislation limiting
the flexibility of U.S. negotiators to move on foreign
ownership of airlines, and criticized the Fly America policy
for official USG travel. ("I took a U.S. carrier to come to
this meeting, because I am a free man!") Rep. Mica said that
opening markets was difficult when so many U.S. carriers were
struggling. He asserted that some progress had been made on
legislation on opening up cabotage services in the U.S. to
European carriers.

--------------
Bilateral Trade Issues
--------------


18. (U) Participants discussed mainly FSC and steel, with
members of Congress exhorting their MEP counterparts to argue
for patience and moderation in EU retaliation, so as to avoid
unnecessary escalation of the conflicts. MEP James Elles
opined that bilateral trade issues came under the rubric of
the Transatlantic Market which had been endorsed by the TLD
in Rome in June (ref B). The question, said Elles, was how
to manage the trade disputes over the course of the next
eighteen months during which there would be elections on both
sides. He suggested that the TLD ask for a benefits analysis
of the Transatlantic Market within the next year, perhaps
getting endorsement for such an analysis from the next
U.S.-EU summit.

--------------
U.S. Industry on EU Medical-Device Regs
--------------


19. (U) Rep. Stearns raised, on behalf of the Advanced
Medical Technology Association (AdvaMed),concerns about a
draft EU directive up-classifying all shoulder, hip and knee
joint implants and thereby requiring manufacturers to submit
to a costly review process by European regulators. Skinner
said he would pass on U.S. concerns to appropriate colleagues
in the EP and the European Commission.

--------------
TLD Delegations
--------------


20. (U) U.S. Members of Congress participating were:

Jo Ann Davis (R, VA)
Phil English (R, PA)

J. Randy Forbes (R, VA)
Darrell E. Issa (R, CA)
John L. Mica (R, FL)
Cliff Stearns (R, FL)


21. (U) MEP's participating were:

James Nicholson (UK, Ulster Unionist)
Bastiaan Belder (NL, Calvinist Party)
Charlotte Cederschioeld (SW, Conservative)
Caroline Jackson, (UK, Conservative)
Peter Pex (NL, Christian-Democrat)
James Elles (UK, Conservative)
Baroness Sarah Ludford (UK, Liberal-Democrat)
Philip Charles Bradbourn (UK, Conservative)
Arlene McCarthy (UK, Labour)
Peter Skinner (UK, Labour)


22. (C) Comment: This TLD was useful in creating
opportunities for Congress to increase its engagement with
the EU in areas of particular interest: (1) a possible
congressional visit to Brussels to discuss PNR; (2) possible
cooperation on a cost analysis of REACH; (3) targeted
dialogue on corporate governance and related issues; and (4)
possible launching of a joint analysis of the benefits of the
existing transatlantic (U.S.-EU) market. Post is ready to
provide support in these and other areas of congressional
interest. End Comment.


23. (U) This message was not cleared by CODEL members.

FOSTER