Identifier
Created
Classification
Origin
07STATE11634
2007-01-30 19:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Secretary of State
Cable title:
U/S/ SHEERAN DISCUSSES PROPOSED TRANSATLANTIC
how-toVZCZCXRO2842 PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV DE RUEHC #1634/01 0301928 ZNR UUUUU ZZH P R 301922Z JAN 07 FM SECSTATE WASHDC TO RUEHRL/AMEMBASSY BERLIN PRIORITY 2796 INFO EU MEMBER STATES COLLECTIVE
UNCLAS SECTION 01 OF 02 STATE 011634
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EAIR ETRD PREL EUM GM
SUBJECT: U/S/ SHEERAN DISCUSSES PROPOSED TRANSATLANTIC
ECONOMIC PARTNERSHIP WITH GERMAN ECONOMIC ADVISOR WEIDMANN
UNCLAS SECTION 01 OF 02 STATE 011634
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EAIR ETRD PREL EUM GM
SUBJECT: U/S/ SHEERAN DISCUSSES PROPOSED TRANSATLANTIC
ECONOMIC PARTNERSHIP WITH GERMAN ECONOMIC ADVISOR WEIDMANN
1. Summary. In a January 17 meeting with Chancellery
Senior Economic Advisor Weidmann, U/S Sheeran and EEB A/S
Sullivan praised Chancellor Merkel,s commitment to
strengthen the transatlantic relationship and said the USG is
examining her Economic Partnership initiative for
opportunities to enhance economic cooperation. Weidmann said
that Germany believes a clear commitment from the political
leaders to specific regulatory goals is required to introduce
a new level of ambition into the relationship. A/S Sullivan
told Weidmann that, with German leadership, a U.S.-EU air
services agreement is within reach for this year's Summit.
He also urged Germany to take the lead in achieving a Doha
Round trade agreement. End Summary.
2. Participants:
U.S. FRG
-------------- ---
U/S Sheeran Jens Weidmann
A/S Sullivan Andreas Nicolin,
Benedict Wolf, E Staff MFA Berlin
Eric Luftman, EUR/ERA Egon Kochanke,
Thomas O'Keeffe, EUR/AGS Econ MinCouns
John Struble, Helge Hassold, Econoff
EEB (notetaker)
3. On January 17, Chancellor Merkel,s Economic Advisor Jens
Weidmann called on Under Secretary for Economic and
Agricultural Affairs Josette Sheeran and Assistant Secretary
for Economic, Energy and Business Affairs Daniel S. Sullivan
to outline the Chancellor's proposal for a new Transatlantic
Economic Partnership (TEP). Weidmann said he understood that
there had been a White House meeting that same morning to
discuss the TEP. U/S Sheeran welcomed Dr. Weidmann, noting
that this would be one of her last meetings in the USG before
moving on to her new position as Executive Director of the
World Food Program. However, she has a keen interest in the
issues and wanted to take this final opportunity to engage.
Long-Term Transatlantic Project
--------------
4. Dr. Weidmann explained that Chancellor Merkel is
personally engaged in improving U.S.-European relations
during Germany,s EU Presidency. She envisions the TEP as
starting a long-term transatlantic project that can yield
both economic and political benefits. Only by working
closely together can the United States and the EU maintain
their competitiveness in the rapidly evolving world economy,
he said. There are many existing working-level initiatives.
Now it is critical to involve political leaders to give these
projects the support needed to achieve concrete results.
5. U/S Sheeran enthusiastically welcomed Chancellor
Merkel,s leadership and commitment to the transatlantic
partnership. The USG views Germany,s EU Presidency as an
invaluable opportunity to reenergize U.S.-EU economic
cooperation. In a global context, she said, it is clear that
it is the United States and the EU that are the responsible
stakeholders in the world economy, agreeing on far more than
they disagree.
6. Regarding to the TEP, U/S Sheeran said the USG views the
proposal as offering an opportunity to accomplish
long-standing shared objectives. The USG still is looking at
the specific components of the proposal. We face a tight
deadline if it is to be endorsed at this year,s Summit in
April. Specific questions that must be addressed include:
What deliverables are available for the Summit? Are there
initiatives that can be launched through the TEP? And are
there any current projects that are stagnant and should be
dropped? A/S Sullivan added that we must consider carefully
where we want to go with U.S.-EU economic cooperation. The
USG views the TEP as an opportunity to begin a process that
will continue beyond Germany,s EU Presidency.
7. Dr. Weidmann suggested that a bilateral working group be
established, to identify both &low-hanging fruit8 among
existing projects, as well as promising areas for future,
long-term cooperation. For example, he said that with new
technologies developing, new areas, such as radio-frequency
identification (RFID) technology and nanotechnology, are
emerging that may soon require regulation. The United States
and the EU need to begin cooperating now, so that they do not
find themselves with conflicting regulatory regimes in the
STATE 00011634 002 OF 002
future.
Political Commitment Key to Regulatory Cooperation
-------------- --------------
7. Weidmann continued that the FRG seeks to introduce &a
new level of ambition8 into transatlantic cooperation. He
stated that this requires a strong political commitment to
regulatory cooperation from leaders in the form of a binding
agreement. As envisioned by the FRG, such an agreement would
set specific targets and deadlines for regulators on both
sides of the Atlantic to reduce diverging regulatory
requirements.
Estimating Costs of Regulatory Divergence
--------------
8. Weidmann, who holds a doctorate in economics,
specifically proposed a project to estimate the economic
costs of the regulatory differences across the Atlantic is
needed to establish a baseline from which to set specific
targets for reducing regulatory costs. U/S Sheeran remarked
that balancing the costs and benefits of specific regulations
is crucial. She suggested that as a concrete example of what
regulatory cooperation can achieve, it would be useful to
identify a single product and determine how much regulation
adds to its total cost. She also suggested involving third
countries in the process. Weidmann agreed that this might
help deflect suspicions that the TEP is protectionist, while
maintaining the norm-setting role of the U.S. and EU.
9. Weidmann emphasized the importance of gaining the support
of legislators on both sides of the Atlantic in the
undertaking. He noted that in his meetings with
Congressional leaders, these issues seemed abstract to them.
U/S Sheeran agreed that arguments in terms of improved
U.S.-EU cooperation have little resonance. With the
Congress, the issue must be framed in terms of the economic
benefit for the United States. This is the advantage of one
concrete example, demonstrating the cost of unnecessary
regulatory divergence.
Biofuels
--------------
10. U/S Sheeran suggested biofuels as another emerging
technology where regulations had not yet been established,
and where U.S.-EU regulatory cooperation could be very
beneficial. She noted in this context that Europeans divide
economic and environmental aspects of issues differently than
the U.S., while a unified approach would help mutual
understanding.
Aviation Services
--------------
11. A/S Sullivan reported that the round of talks on U.S.-EU
Air Services the previous week had made significant progress.
Although much work remains to be done, an agreement can be
reached in time for the Summit with German leadership.
DDA
---
12. A/S Sullivan assured Weidmann that a successful outcome
to the Doha Round trade negotiations remains a key priority
at the highest levels of the USG. Strong German leadership
within the EU will be critical to achieving success.
RICE
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EAIR ETRD PREL EUM GM
SUBJECT: U/S/ SHEERAN DISCUSSES PROPOSED TRANSATLANTIC
ECONOMIC PARTNERSHIP WITH GERMAN ECONOMIC ADVISOR WEIDMANN
1. Summary. In a January 17 meeting with Chancellery
Senior Economic Advisor Weidmann, U/S Sheeran and EEB A/S
Sullivan praised Chancellor Merkel,s commitment to
strengthen the transatlantic relationship and said the USG is
examining her Economic Partnership initiative for
opportunities to enhance economic cooperation. Weidmann said
that Germany believes a clear commitment from the political
leaders to specific regulatory goals is required to introduce
a new level of ambition into the relationship. A/S Sullivan
told Weidmann that, with German leadership, a U.S.-EU air
services agreement is within reach for this year's Summit.
He also urged Germany to take the lead in achieving a Doha
Round trade agreement. End Summary.
2. Participants:
U.S. FRG
-------------- ---
U/S Sheeran Jens Weidmann
A/S Sullivan Andreas Nicolin,
Benedict Wolf, E Staff MFA Berlin
Eric Luftman, EUR/ERA Egon Kochanke,
Thomas O'Keeffe, EUR/AGS Econ MinCouns
John Struble, Helge Hassold, Econoff
EEB (notetaker)
3. On January 17, Chancellor Merkel,s Economic Advisor Jens
Weidmann called on Under Secretary for Economic and
Agricultural Affairs Josette Sheeran and Assistant Secretary
for Economic, Energy and Business Affairs Daniel S. Sullivan
to outline the Chancellor's proposal for a new Transatlantic
Economic Partnership (TEP). Weidmann said he understood that
there had been a White House meeting that same morning to
discuss the TEP. U/S Sheeran welcomed Dr. Weidmann, noting
that this would be one of her last meetings in the USG before
moving on to her new position as Executive Director of the
World Food Program. However, she has a keen interest in the
issues and wanted to take this final opportunity to engage.
Long-Term Transatlantic Project
--------------
4. Dr. Weidmann explained that Chancellor Merkel is
personally engaged in improving U.S.-European relations
during Germany,s EU Presidency. She envisions the TEP as
starting a long-term transatlantic project that can yield
both economic and political benefits. Only by working
closely together can the United States and the EU maintain
their competitiveness in the rapidly evolving world economy,
he said. There are many existing working-level initiatives.
Now it is critical to involve political leaders to give these
projects the support needed to achieve concrete results.
5. U/S Sheeran enthusiastically welcomed Chancellor
Merkel,s leadership and commitment to the transatlantic
partnership. The USG views Germany,s EU Presidency as an
invaluable opportunity to reenergize U.S.-EU economic
cooperation. In a global context, she said, it is clear that
it is the United States and the EU that are the responsible
stakeholders in the world economy, agreeing on far more than
they disagree.
6. Regarding to the TEP, U/S Sheeran said the USG views the
proposal as offering an opportunity to accomplish
long-standing shared objectives. The USG still is looking at
the specific components of the proposal. We face a tight
deadline if it is to be endorsed at this year,s Summit in
April. Specific questions that must be addressed include:
What deliverables are available for the Summit? Are there
initiatives that can be launched through the TEP? And are
there any current projects that are stagnant and should be
dropped? A/S Sullivan added that we must consider carefully
where we want to go with U.S.-EU economic cooperation. The
USG views the TEP as an opportunity to begin a process that
will continue beyond Germany,s EU Presidency.
7. Dr. Weidmann suggested that a bilateral working group be
established, to identify both &low-hanging fruit8 among
existing projects, as well as promising areas for future,
long-term cooperation. For example, he said that with new
technologies developing, new areas, such as radio-frequency
identification (RFID) technology and nanotechnology, are
emerging that may soon require regulation. The United States
and the EU need to begin cooperating now, so that they do not
find themselves with conflicting regulatory regimes in the
STATE 00011634 002 OF 002
future.
Political Commitment Key to Regulatory Cooperation
-------------- --------------
7. Weidmann continued that the FRG seeks to introduce &a
new level of ambition8 into transatlantic cooperation. He
stated that this requires a strong political commitment to
regulatory cooperation from leaders in the form of a binding
agreement. As envisioned by the FRG, such an agreement would
set specific targets and deadlines for regulators on both
sides of the Atlantic to reduce diverging regulatory
requirements.
Estimating Costs of Regulatory Divergence
--------------
8. Weidmann, who holds a doctorate in economics,
specifically proposed a project to estimate the economic
costs of the regulatory differences across the Atlantic is
needed to establish a baseline from which to set specific
targets for reducing regulatory costs. U/S Sheeran remarked
that balancing the costs and benefits of specific regulations
is crucial. She suggested that as a concrete example of what
regulatory cooperation can achieve, it would be useful to
identify a single product and determine how much regulation
adds to its total cost. She also suggested involving third
countries in the process. Weidmann agreed that this might
help deflect suspicions that the TEP is protectionist, while
maintaining the norm-setting role of the U.S. and EU.
9. Weidmann emphasized the importance of gaining the support
of legislators on both sides of the Atlantic in the
undertaking. He noted that in his meetings with
Congressional leaders, these issues seemed abstract to them.
U/S Sheeran agreed that arguments in terms of improved
U.S.-EU cooperation have little resonance. With the
Congress, the issue must be framed in terms of the economic
benefit for the United States. This is the advantage of one
concrete example, demonstrating the cost of unnecessary
regulatory divergence.
Biofuels
--------------
10. U/S Sheeran suggested biofuels as another emerging
technology where regulations had not yet been established,
and where U.S.-EU regulatory cooperation could be very
beneficial. She noted in this context that Europeans divide
economic and environmental aspects of issues differently than
the U.S., while a unified approach would help mutual
understanding.
Aviation Services
--------------
11. A/S Sullivan reported that the round of talks on U.S.-EU
Air Services the previous week had made significant progress.
Although much work remains to be done, an agreement can be
reached in time for the Summit with German leadership.
DDA
---
12. A/S Sullivan assured Weidmann that a successful outcome
to the Doha Round trade negotiations remains a key priority
at the highest levels of the USG. Strong German leadership
within the EU will be critical to achieving success.
RICE