TRANSATLANTIC BUSINESS DIALOGUE RECOMMENDATIONS FOR THE

UNCLAS SECTION 01 OF 02 BRUSSELS 001426

SIPDIS

E.O. 12958: N/A
TAGS: ECON PREL BEXP ENRG EINV EUN
SUBJECT: TRANSATLANTIC BUSINESS DIALOGUE RECOMMENDATIONS FOR THE
TEC

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1. (U) Summary: The Transatlantic Business Dialogue (TABD) has
submitted their annual recommendations to the Transatlantic Economic
Council (TEC). TABD requests to the TEC include focus efforts on
avoiding protectionism, ensuring aligned regulation, and promoting
transatlantic innovation. They stress the importance of coordinated
actions between the U.S. and EU in order to increase global
competition, create jobs and bolster transatlantic economic growth.
End Summary.


2. (U) TABD notes that the TEC should focus on issues related to the
global financial and economic crisis and recovery with the same
degree of intensity as is dedicated to the G20 process. Owing to its
valuable transatlantic focus, the TEC can add the perspective
necessary to coordinate transatlantic input into the G20.


3. (U) With respect to trade restrictions and protectionism
policies, the TEC should ensure that no discriminatory measures are
taken in domestic stimulus packages, and that no unilateral
regulation or investment restrictions are initiated. It is
particularly important that the U.S. and EU maintain open investment
policies, keeping in mind that more than 14 million "insourced" jobs
in the transatlantic market are a direct result of transatlantic
investment.


4. (U) The TABD recommends that the TEC also consider proposing
"rollback" measures in the case where transatlantic trade
restrictions already exist or are anticipated. These efforts should
encompass trade and investment restricting measures taken since
November 2008. The TABD is particularly concerned about the U.S.
requirement for 100% scanning of sea and air freight port before
shipment to the U.S. and believes that the TEC should initiate
policy changes to roll back such measures. In order to stem domestic
protectionist measures, TABD proposes that the TEC implement the
agreement previously reached on mutual recognition of the secure
trade programs, AEO and C-TPAT. It should also re-invigorate the
High-Level Regulatory Cooperation Forum, seeking to advance
regulatory convergence in the automobile, pharmaceutical and
chemical sectors.


5. (U) In terms of promoting regulation alignment, TABD recommends
work in the following five areas: coordinating transatlantic work on
financial market regulatory projects of the G20 process, regulatory
convergence in insurance markets, global acceptance of International
Financial Reporting Standards (IRFS) and promotion of International
Standards on Auditing (ISA),supporting increased collaboration
between the Public Company Accounting Oversight Board (PCAOB) and EU
regulators, and carrying out greater transatlantic regulatory
alignment and impact assessments.


6. (U) With respect to insurance, the TEC should develop a work plan
with specific goals and reporting requirements in order to achieve
regulatory convergence. Another policy objective is to create a
single barrier-free U.S.-EU financial market, to which end TABD
recommends the preparation of a detailed work program on
transatlantic financial market integration.


7. (U) TABD also recommends that the TEC reinvigorate the
Transatlantic Investment Dialogue and charge it with the
responsibility of removing bilateral barriers to trade. The
Investment Dialogue should also be the place where the U.S. and the
EU coordinate positions regarding Sovereign Wealth Funds (SWF) in
light of the Organization for Economic Cooperation and Development
(OECD) and International Monetary Fund (IMF) principles, develop a
joint approach on investment policies vis-`-vis third countries, and
implement OECD guidelines on freedom of investment in a coordinated
way.


8. (U) Stimulating innovation is the third goal prioritized by the
TABD in its recommendations to the TEC. TABD proposes the following
steps to achieve this: the creation of an inter-agency
intergovernmental council to focus on transatlantic energy
cooperation, the establishment of an expert panel to recommend best
practice models in healthcare innovation, and a greater focus on
upstream cooperation for new technologies, in particular
prioritizing RFID, nanotechnology and internet technologies. The TEC
should also be a strong advocate for International Property Rights
in international organizations such as the UN, WIPO, OECD and the
WHO.


9. (U) TABD proposes that governments need to remove barriers to
collaboration and provide economic stimuli to advance innovation in
new technologies, particularly for energy and healthcare. They also
suggest that the TEC initiate analysis of risks and opportunities
for the long-term security of raw materials supply and
sustainability.


10. (U) The TABD considers energy innovation to be especially
important, and suggests that the TEC add transatlantic cooperation
on research, development and deployment, energy efficiency and
regulatory alignment to its work program. Carbon-trading systems and
energy efficiency are also important areas for transatlantic

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alignment.


11. (U) Cncluding on the general approach of the TEC, theTABD
suggests that the TEC's strategic focus should have a five-year
timeline, with the goal of achieving tangible outcomes in the first
two years. TABD believes that the approach of one-size-fits-all
should be abandoned in order to speed up regulatory cooperation. The
effectiveness of the TEC could also be enhanced through improved
stakeholder involvement, including the TACD and TLD, so that they
can better contribute to TEC meetings and provide more meaningful
advice.

MURRAY