MDB WISSMANN OUTLINES VISION OF NEW TRANSATLANTIC

UNCLAS SECTION 01 OF 02 BERLIN 000494

SIPDIS

STATE FOR DAS MOORE, EUR/ERA
NSC FOR TMCKIBBEN
COMMERCE FOR DEFALCO

E.O. 12958: N/A
TAGS: ETRD EFIN PGOV PREL GM
SUBJECT: MDB WISSMANN OUTLINES VISION OF NEW TRANSATLANTIC
ECONOMIC PARTNERSHIP; FOCUS ON REGULATORY COOPERATION

REF: BERLIN 1747

SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY


1. (U) Summary: Building on his previous calls for closer
transatlantic economic ties (reftel),Matthias Wissman,
Chairperson of the Bundestag Committee on EU Issues,
presented his latest ideas on further integrating the
transatlantic economy at a press roundtable March 8.
Wissmann told the press the U.S. and EU -- drawing from their
common values -- could develop a model for free trade and
closer regulatory cooperation that would demonstrate to the
world the benefits gained from international commerce and
provide momentum for on-going multilateral trade
negotiations. He emphasized his proposals -- and Chancellor
Merkel's transatlantic economic initiative -- are not in
competition with the Doha Round. Germany's leadership as EU
and G-8 president, Wissmann continued, puts it in excellent
position to lay the foundation for a long-term strategy of
closer transatlantic economic cooperation. He said April's
U.S.-EU Summit offers the opportunity to bring renewed focus
to the economic pillar of the transatlantic relationship. End
Summary.


2. (U) Wissmann, at a press roundtable, presented his latest
paper on integrating the transatlantic economic region.
Wissmann's paper, which echoed many of the ideas put forth by
Chancellor Merkel, built off his previous efforts to
encourage closer economic cooperation between the EU and
North America. Wissmann emphasized the need to focus on the
areas which present the opportunity for the greatest benefits
- namely lowering the regulatory barriers that currently
exist between the U.S. and EU through greater cooperation.
He said the U.S. and EU have an opportunity, through their
cooperation, to draw from their common values and establish
models for the global market in areas such as IPR and
technical standards. He also said it is important not to
exclude countries that share these values; the door should be
open for Canada to participate as well. Wissmann referred to
the European Single Market as a possible model for deeper
transatlantic integration, noting the similar challenges the
single market has faced in its integration. He said Germany
should utilize its leadership role in the EU and G-8,
including during the upcoming U.S.-EU Summit, to revitalize
existing regulatory cooperation and promote agreement on new
areas for future cooperation.


3. (U) In his report, Wissmann offered a time line for
U.S.-EU regulatory cooperation: by 2010 the U.S. and EU
should agree upon common legal standards in regulatory fields
with existing mechanisms for collaboration; 2015 should be
the goal for establishing a transatlantic "level playing
field" in all major regulatory fields. The goal of the April
30 U.S.-EU Summit, according to Wissmann, should be a binding
agreement on improved regulatory cooperation with funding for
the regulatory bodies on both sides of the Atlantic to cover
the costs of their activities. In addition, the U.S. and the
EU should agree on undertaking studies analyzing the
cost-benefit ratio of regulatory cooperation by sectors.
Wissmann acknowledged the different U.S. and EU regulatory
systems have posed challenges to cooperation in the past, but
his proposal aims at finding a common ground.

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NTEP and Doha: Complementary not Competitive
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4. (U) Wissmann explicitly stated that his proposal -- as
well as the Chancellor's -- in no way is an alternative or is
in competition with the on-going multilateral WTO trade
talks. He opined a U.S.-EU summit agreement for more
integrated transatlantic economic relationship could provide
momentum for moving Doha to a successful conclusion. On a
broader level, Wissmann said bringing the transatlantic
economy closer also provides left-leaning European
governments a way to support the larger transatlantic
relationship with little risk of domestic political backlash.

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Comment
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5. (SBU) Beginning last year with his short-lived proposal
for creating a transatlantic free trade area (TAFTA) (reftel
B),Wissmann has been one of the original supporters for
Germany working to create a closer transatlantic economic
relationship. Despite the setback on his TAFTA proposal, his
fundamental idea of strengthening the overall transatlantic
relationship via the economic pillar has captured the
Chancellor's interest and has given him a voice in the
development of Merkel's transatlantic initiative within the
Chancellery. Not surprisingly, his redefined proposal
calling for closer regulatory cooperation reflects many of
the ideas found in Merkel's new transatlantic proposal.
Wissmann also recognizes the need to maintain political
momentum for this initiative to succeed and has actively
engaged high-ranking German and EU officials on pursuing
closer transatlantic economic cooperation. End Comment.
TIMKEN JR