MONTHLY NEWSLETTER: JULY 2012

TRANSATLANTIC VOICES

Former TABD EU Executive Director, Jeffries Briginshaw reflects on his experiences at TABD and comments on transatlantic trade relations in the 21st century. Mr. Briginshaw is currently the Managing Director of BritishAmerican Business in London. I’m installed, plugged in, and switched on, 10 days into my new job as Managing Director British American Business (amongst other things the UK affiliate member of the AMCHAM family) in London, so please be in contact. I can be reached by email at jbriginshaw@babinc.org. It also feels like a good time to look, momentarily, into the rear view mirror at the outlines of my five years as TABD’s EU Executive Director in Brussels, just as some of the shapes fade, well, into a warm fuzzy glow. But to continue just one last time with the auto metaphor, as it says on the mirror, ‘things may appear further away than they really are,’ so here are some random reflections that I am taking with me into my new role:

1. With radical shifts towards a multi-polar economic order underway, the open question that must be answered by a newly elected U.S President, European leaders and the High Level Working Group later this year is can the impeccable geo-strategic logic of transatlantic economic leadership translate into providing new answers to old questions on the bilateral economic relationship? I mean the square brackets in the interim report of the High Level Working Group around intentions on regulatory cooperation, regulatory agency mandates and standard setting collaboration, but also on other issues like tariffs, government procurement and SPS access. Put another way, how scared are we and can we get real?

2. Transatlantic regulatory convergence is difficult, and although we know all the numbers to the safe with the extra jobs, gdp and business inside, we haven’t managed to roll the dials to the right combination. But it is the holy grail so we just have to stick to the quest. Projects, often with the potential to ‘front run’ global sectoral leadership

This Newsletter Includes:

• Transatlantic Voices

• Member Spotlight • Upcoming Events • News & Highlights • The Final Say

Contact Information: TABD Secretariat U.S. Claire Layton 1717 Pennsylvania Avenue, NW, Suite 1025 Washington, D.C. 20006 Tel: +1.202.559.9299 Email: clayton@tabd.com TABD Secretariat EU Emanuel Adam Rue Keyenveld 101 B-1050 Brussels Tel: +32.2.514.05.01 Email: eadam@tabd.com

developments like with EU - U.S. electric mobility cooperation, are tangible and practical and a good thing. They can capture the imagination, define a specific interest for companies and sectors to chase and provide a focused way to drive the sterile debates about methodologies and mandates. By their nature the projects stretch the status quo and can build new precedents, but they need intensive industrial and political support, on a daily basis. And the politics need coordination, hence the Transatlantic Economic Council.

3. I still have not understood why some people think that we can innovate in a sustained way, especially in relation to science-based business R&D, without a strong IPR system. Everything I have seen tells me that the opposite is true and that growth, jobs, value add export capacity and the global level playing field all depend upon the innovation IPR model and on strong enforcement of the model through concerted transatlantic cooperation in third countries and multilateral fora.

4. ‘Transatlantic business’ means something in Brussels and the collective weight of the key transatlantic business organisations constitute a strong voice. We don’t win all of the arguments, but we almost always are heard. Despite not being a member of the European Union, U.S. interests are well represented, so FDI presence and on-the-ground human resources are both key factors, alongside political and/or geographical comity in how to influence in Brussels. German industry has played a proactive organising stakeholder role in transatlantic economic relations, making strong, simultaneous use of bilateral and EU platforms to drive policy priorities. In my experience, other national business lobbies have tended to play more defensively in Brussels and have therefore, not surprisingly, been less influential in creating and sustaining the U.S. EU agenda.

5. The debate about financial market regulatory reform, transatlantic regulatory convergence, and fragmentation has largely been conducted without much reference to users of capital like companies and entrepreneurs, or impacts on the broader economy, often away from public gaze or scrutiny. Most dialogue with government, in the context of transatlantic consultation, has been ex post facto rather than in advance, and ad hoc, informal agenda setting has been celebrated rather than questioned. As financial market actors prepare for new U.S and EU regulatory paradigms against a backdrop of shifting global financial market conditions, there is an even greater need for a transatlantic financial alliance, fashioned from inclusive dialogue with all stakeholders.

6. And TABD? A great platform, a good brand, good colleagues with minimal resources and on a good day (and it has many) a substantive and agile performer. It did not waver in its support for TEC even when it was unfashionable to be positive, and did exactly what it was asked to do – provide a public service beyond its membership as a convenor of other, often much better endowed, voices.

MEMBER SPOTLIGHT

In the following note, Sven C. Oehme recounts his experiences at the SME Conference in Rome earlier this month. Sven is the Founder, President & CEO of the European-American Business Organization and an Executive Board member of TABD.

The third EU-U.S. workshop on Small and Medium-sized Enterprises (SMEs) in the framework of the Transatlantic Economic Council (TEC) took place in Rome on July 12 and 13. The workshop, under the auspices of the European Commission and the United States Trade Representative's office, was organized by the Italian Ministry of Foreign Affairs and by Confindustria, the Italian Confederation of Industry.

Upcoming Events of Interest September 19-20: TABD JPC Meetings, Brussels September 19: CSI Global Services Summit, Washington October 4: eWaste and Recycling Summit, Washington November: TABD Financial Market Conference, Brussels November 6: U.S. Presidential Elections November 14-15: AmCham Germany’s BDI/TABD 6th Annual Transatlantic Business Conference, Frankfurt December: TEC and U.S.-EU Summit (tbc) December 31: Cyprus EU Council Presidency ends January 1: Irish EU Council Presidency begins

Ambassador Miriam Sapiro, Deputy U.S. Trade Representative, headed the U.S delegation, and the highest ranking European official was Antonio Tajani, Vice President of the European Commission. The workshop started with a plenary session at the Italian Foreign Ministry. Opening speakers where Marta Dassu, Under- Secretary of State for foreign affairs of Italy, Antonio Tajani, Vice President of the European Commission, Ambassador Miriam Sapiro, Giorgio Squinzi, President of the Italian Confederation of Industry and Ambassador David Thorne, U.S. Ambassador to Italy.

Vice President Tajani made reference to a letter of intent between the United States of America and the European Union concerning cooperation in support of the activities of small and medium-sized enterprises. The Vice President and the acting secretary of the Department of Commerce, Rebecca Blank, signed this letter of intent earlier this year. Among the items mentioned was the development of a framework for cooperation between the International Trade Administration and the Enterprise Europe Network. Furthermore, Mr. Tajani emphasized joint efforts to expand business opportunities and business partnerships for SMEs.

Ambassador Sapiro drew attention to the fact that small companies that export grow faster, add jobs more quickly, and pay higher wages than those that do not. She mentioned that the U.S. administration is ready to focus on the measures that disproportionately affect SMEs. For SMEs that manufacture it is frequently difficult to meet the foreign standards, specifically testing and certification requirements. Furthermore, SMEs proportionally are more affected by insufficient intellectual property protection.

Peter H. Chase, senior European representative of the U.S. Chamber of Commerce, pointed out that the focus should not only be on manufacturing but that the service sector plays an increasingly important role as far as SMEs are concerned.

One of the issues that received a lot of attention during the many panel discussions was crowd funding, an Internet-based instrument to collect funding from the participants who make payments in anticipation of receiving a product later. According to the presenters the sale of shares over the Internet is not legal in the U.S. They seem to anticipate that it may be legalized at some point in the near future.

A suggestion that I made as a panelist on panel 4, “Innovation and entrepreneurship programs,” has as its focus establishing an exchange program for craftsmen and tradespeople. In my submission regarding the request for comments concerning the U.S.-EU High-Level Working Group on Jobs and Growth earlier this year I had already suggested establishing a program which would allow young workers the opportunity to do an internship abroad at a facility where they can participate in training their manual and technical skills. Under such an exchange program the participants may go to European countries for about six months and work with local companies. Europeans would be able to come to the U.S. The experience that the participants will acquire will be extremely valuable for their future careers. It is not going to replace the lack of vocational training in the U.S., but it is certainly a step in overcoming this disadvantage. The chair of the panel, Johanna Drake, director, promotion of SME competitiveness at DG Enterprise was intrigued by this suggestion and asked for more information.

In the discussion about entrepreneurship, it was revealed that bad attitudes in the U.S. and Europe differ. 45 percent of European citizens prefer to be self-employed; the respective number for the U.S. is 55 percent.

The meeting closed with the adoption of an EU-U.S. joint declaration for ‘Enhanced Economic Cooperation between Small and Medium-sized Enterprises".

A number of small and medium-sized businesses from a variety of sectors attended this workshop. They were primarily from Italy and the United States, with the Italian SME’s best represented. The workshop was another expression of the strong commitment on the European and the U.S. side to move forward the agenda of free trade of goods and services and investments across the Atlantic.

NEWS AND HIGHLIGHTS E-MOBILITY ROUNDTABLE: “ADVANCING TRANSATLANTIC E-MOBILITY COOPERATION ON

STANDARDIZATION

TABD, in collaboration with DG Trade and U.S. Mission to the EU, hosted this roundtable on June 20 in Brussels to bring together American and European standards-setters, government officials, and legislators to discuss and advance priorities for a transatlantic roadmap on eMobility. TABD member, Mike Tinskey of Ford, and Damien Levie of DG Trade shared their views on priorities in the key components of standardization for electric vehicles. BREAKFAST DISCUSSION IN THE EUROPEAN PARLIAMENT Daniel Caspary MEP and Dr Godelieve Quisthoudt-Rowohlt MEP hosted this breakfast on June 21 to discuss the prospects for an ambitious transatlantic trade agreement and its impact on job creation and growth. TABD member Intel co-sponsored the event, and Intel’s Vice-President Peter Cleveland spoke about Intel’s perspective on the High Level Working Group and the interim report due at the end of June. Government responses were made by Ignacio Garcia Bercero, Director, European Commission, and Elena Bryan, Senior Trade Representative, U.S. Mission to the EU. TABD DINNER IN HONOR OF DG ENTERPRISE DIRECTOR GENERAL DANIEL CALLEJA

On the occasion of the visit of DG Enterprise’s Director General Daniel Calleja to Washington on 24 June, TABD hosted a dinner in his honor. The dinner discussion focused on the treatment of regulatory cooperation within the HLWG and prospects for accelerating regulatory cooperation work under the TEC umbrella and through the High Level Regulatory Cooperation Forum. LUNCH DISCUSSION WITH COMMISSION OFFICIALS FROM DG TRADE, ENTERPRISE AND

MOVE This small roundtable discussion with Peter Balas, Deputy Director General, Laurence de Richemont, Member of President Barosso's Cabinet, and Antti Peltomäki, Deputy Director General on 26 June in Brussels conveyed a strong message from industry to advance decisive actions of the High Level Working Group for the second half of 2012. Regulatory cooperation is a key component of a meaningful trade pact, and participants emphasised that new and creative thinking is crucial to make a difference. We thank Heitkamp & Thumann for sponsoring this TABD event. CAPITOL HILL BRIEFING ON U.S.-EU REGULATORY CONVERGENCE: STANDARDIZATION

PRACTICES IN EU AND U.S.” On Tuesday June 26, Director General Calleja, joined by Congressman John Lewis (D-GA), briefed stakeholders regarding the U.S. and EU regulatory and standards systems. The meeting focused on toy safety, and several specialists spoke on the regulatory differences between the transatlantic partners and the

implications therein. The speakers included Jan Eric Frydman, Head of Unit for International Regulatory Agreements and Toy Safety for the European Commission; Richard O’Brien, Director of International Programs for the U.S. Consumer Product Safety Commission; Maureen Logghe, Policy Officer for Toy Safety at the European Commisssion; and Joan Lawrence, Chair for the ASTM Subcommittee on Toy Safety and VP of Standards and Government Affairs of the Toy Industry Association. TOY SAFETY BRIEFING DELEGATION OF THE EU TO THE U.S. This meeting was a continuation of the morning meeting on the Hill, where several of the same experts and officials led a more technical, detailed discussion on toy regulation in the EU and the U.S. The presentations focused on the work of the standards bodies, ASTM and CEN, in the area of toy safety as well as the larger implications on how these standards impact trade, commerce and safety. TABD POLICY BRIEFING WITH THE HIDDO HOUBEN OF THE EU DELEGATION On June 27, EU Trade Counselor Hiddo Houben and members of his trade team briefed TABD members on key issues in transatlantic economic relations, including updates on TEC work streams and information on the HLWG interim report. Counselor Houben delivered a broad overview of the situation, and emphasized the efforts to reach an agreement should not be piecemeal, but comprehensive. Additionally, he said the input of business stakeholders was key to maintain the project’s momentum. TABD members had a productive informal discussion with the EU delegation following Counselor Houben’s remarks, raising issues of concern and offering suggestions for additional work. For more detailed notes, please email Melanie Wheeler at mwheeler@tabd.com. TABD SPECIAL POLICY BRIEFING WTH DOUG BELL ON “STRATEGIC IMPLICATIONS OF THE

HLWG” On June 28, Doug Bell, Counselor and Assistant U.S. Trade Representative for Trade Policy and Economics, briefed the TABD on the strategic implications of the HLWG interim report released in late June. Mr. Bell noted the report produced by the HLWG is straightforward and accurately conveys the reality of the situation. It conveys the essence of much of the work has been done during the past six months on each side, and the fact that, while the end product will be structured along traditional lines, it will also address 21st century issues (for example, state-owned enterprises). All players agree that the highest value-added product would be a comprehensive agreement between the transatlantic partners, which remains the primary objective. For more detailed notes, please contact Melanie Wheeler at mwheeler@tabd.com. U.S.-EU IP STAKEHOLDERS MEETING IN BRUSSELS In our role as TEC facilitator, TABD convened a public stakeholders session on the margins of the formal government-to-government US-EU IPR Working Group Meetings on the morning of July 10 in Brussels. The agenda covered a wide range of IPR issues, starting with the importance of IP in the innovation system to IPR erosion and enforcement. Business, consumers, and other stakeholders attended this public meeting that featured DG Trade Director General, Jean-Luc Demarty, as the opening speaker and U.S. Ambassador to the EU, William Kennard, as the keynote lunch speaker. TABD DEDICATED SESSION ON TRADE SECRETS TABD hosted a successful and well-attended seminar on trade secrets theft on July 10, 2012 in Brussels. Concern about trade secrets theft is a growing preoccupation for TABD members and the broader transatlantic business community. Last week's seminar elicited perspectives on the multi-faceted nature of this intellectual property challenge, and its implications for U.S. and European economic competitiveness. TABD member General Electric, represented by Thaddeus Burns, focused attention on state sponsorship of trade secrets misappropriation and offered a number of possible public policy responses. Mike Songer, a partner with Crowell & Moring LLP,

The Final Say When former EU TABD Executive Director Maire-Therese Huppertz announced her resignation just after the 2007 US-EU Summit, I thought I had lost my right arm. We had worked so effectively together to prepare the way for the creation of the Transatlantic Economic Council and the CEO meeting with President Bush, Chancellor Merkel and President Barroso. Suddenly, I had no counterpart in Brussels -- and then Jeffries Briginshaw walked into the role. I had known Jeffries from his time as the JPC representative from British-American Tobacco, but had not worked all that closely with him. What a wonderful colleague and friend, with his dedication to TABD, great sense of humor, and quirky hobbies, such as foraging used bookshops for vintage disco record albums (he even has a turntable!) Jeffries and I became a team. I valued his perspective, trusted his judgement and always knew I could rely on him both professionally and personally. Without a doubt, I fully understand his need to move back to London to be with his young family and I wish him nothing but the greatest success in his new role with British American Business. I will miss him terribly but always be grateful to have had such a close working relationship with a colleague who will remain a dear, dear friend.

KH

walked participants through a range of protection strategies that companies can deploy in order to deter misappropriation. Joseph Alhadeff of Oracle provided a fascinating review of the interplay between trade secrets and personal privacy issues. Geoff Gamble, DuPont's Director of International Government Affairs, urged U.S. and EU shared leadership in developing a stronger international rules framework governingprotection of trade secrets. Alain Berger of Alstom presented an interesting (and troubling) case study into that company's experience with trade secrets theft. And Chris Wilson from C&M International moderated a closing discussion focused on the trading system's possible responses to this growing problem. Finally, TABD was honored to host James Pooley, Deputy Director General of the WorldIntellectual Property Organization (WIPO), who wrapped up the discussion byurging that a focus on enforcement against trade secrets theft be balanced with a more fundamental analysis of the positive value of trade secrets as a tool for innovation and development. Intellectual property and trade officials from the U.S. administration and DG Trade of the European Commission participated actively in the discussion. At their direct urging, TABD will organize a follow-on roundtable, to be held in Washington this fall. At this next event, we'll look to "drill down" to a greater degree of detail on the advice we, as the transatlantic business community, can offer to public officials as they grapple with the policy complexities of the trade secrets challenge. TABD SUMMER SOCIAL EVENTS The TABD U.S. Secretariat held a farewell party on Friday June 22 for Assistant EU Director, Hendrike Kuehl, who returned to Brussels to take up the position of Acting EU Director. TABD members and friends joined the DC based staff to celebrate the start of summer and bid farewell to Hendrike, who had spent the last two months in the DC office. In Brussels on Tuesday June 26, TABD held a party to bid farewell to EU Executive Director, Jeffries Briginshaw, who after 5 years with TABD, will be joining British American Business (BAB) as Managing Director. We wish to extend our appreciation to Crowell & Moring LLP and its international consulting affiliate, C&M International, for their assistance and hospitality in co-hosting the July 10 event.

TABD will be taking a break from our newsletter in August. We hope you have a happy summer holidays!