Maritime Container Security Conference in Bremen

UNCLAS SECTION 01 OF 02 HAMBURG 0001289 SENSITIVE SIPDIS DEPARTMENT FOR EUR/CE, EUR/ERA, EEB/TRA E.O. 12958: N/A TAGS: PTER EWWT TNGD PGOV PREL ECIN ECON ETRD GM SUBJECT: Maritime Container Security Conference in Bremen ¶1. (SBU) SUMMARY: On September 10 the EU Commission held a "Conference on Maritime Container Security" in Bremen that focused on EU and U.S. research aimed at enhancing container traffic and supply chain security. The event brought together approximately 150 maritime security stakeholders including harbor police, harbor masters, port authorities, port ministry officials, economists, and private industry representatives from Germany and abroad. Speakers included EU Commission Vice-President Guenther Verheugen and DHS Acting Under Secretary of the Science and Technology Directorate Bradley I. Buswell. The need for global cooperation was the dominant theme of the conference, and while 100 percent scanning legislation was discussed, it did not turn into a contentious issue at the conference. END SUMMARY. -------------- DHS Buswell: DHS Dedicated to International Research Cooperation -------------- -- ¶2. (U) DHS Acting Under Secretary Bradley I. Buswell addressed his directorate's task of delivering homeland security technological capabilities and highlighted DHS's focus on robust and flexible technology. Buswell invited technology contributions from abroad and encouraged international cooperation with his office. Buswell cited the recent bilateral research agreement between the United States and Germany, signed by DHS Secretary Janet Napolitano and Federal Minister for Education and Research Annette Schavan in March 2009, as evidence of the close and growing U.S.-German cooperation in the maritime security field. -------------- -------------- EU Position: U.S.-EU Trade Relations Crucial -------------- -------------- ¶3. (U) Vice-President of the EU Commission and Commissioner for Enterprise and Industry Guenter Verheugen affirmed that with bilateral trade of over USD 600 billion per year, "the U.S. and no one else is our strategic partner." Acknowledging the right of the U.S. Legislature to ensure maritime security, Verheugen -- referring to the 100 percent scanning requirement although not explicitly-- called for a pragmatic approach and practical solutions to address threats and develop common strategies, and stressed the EU Commission's preference for a "risk-based approach" that is not based solely on technology. Interestingly, Bremen Minister for Economics and Ports Ralf Nagel, while citing the "enormous costs" of 100 percent scanning, noted that the looming deadline of 2012 for implementation of that standard actually accelerated research efforts, calling that "a good thing." European Parliament Member Christian Ehler argued that mere coordination of container security efforts will not suffice; cooperation, he said, is needed. Noting that technology breakthroughs alone are insufficient, he called for increased efficiency in port operations as an important trade facilitation instrument. -------------- -------------- EU Customs: Concerns About 100 Percent Scanning Costs -------------- -------------- ¶4. (U) EU Commission's Director-General for Taxation and Customs, Walter Deffaa, focused on the costs of 100 percent scanning implementation. He stated that investment costs in the EU would top 340 million Euros by 2012, and estimated additional annual scanning technology operating costs of up to 180 million Euros at EU ports. Deffaa predicted a 10 percent increase of direct container transportation costs per consignment and said that the aggregated worldwide welfare loss due to 100 percent scanning would amount to 17 billion Euros annually. Deffaa emphasized that 100 scanning provides no protection for biological and chemical threats and no guarantee against post-scanning tampering. He reiterated that the EU favors a multi-layered risk-based approach to container security. Deffaa further underscored a need for enhanced international intelligence cooperation, and called for increased development of international instruments and open standards (e.g. electronic seals). ¶5. (SBU) COMMENT: Since the enactment of the SAFE Port Act, the vast majority of our maritime contacts have regularly voiced their concerns about 100 percent scanning. We expected this issue would feature prominently during this conference. However, apart from sporadic objections concerning financial implications and the limited effectiveness critique, the 100 percent scanning requirement was not outright rejected. Most European speakers emphasized that the multi-layered risk-based approach remains their preference. (Note: "Risk-based approach," however, is often code language for wanting to avoid the 100 percent scanning requirement. End note.) Calls by EU speakers for transatlantic coordination (e.g. standardization and mutual recognition of technologies),cooperation in R&D, and collaboration in devising maritime policies were recurring themes at the conference. Given the demonstrated level of commitment to transatlantic coordination, cooperation and pragmatism, the March 2009 bilateral research agreement between the U.S. and Germany has the potential to become a model tool in enhancing container traffic and supply chain security. END COMMENT. ¶6. (U) This message has been coordinated with Embassy Berlin. JOHNSON