Resetting the Transatlantic Economic Council: A Blueprint

8/9/2019 Resetting the Transatlantic Economic Council: A Blueprint

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ResettingtheTrans-Atlantic

EconomicCouncil

ABlueprint


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INTRODUCTION

ThismemoisajointeffortoftheBertelsmannFoundationandtheAtlanticCouncilandisintendedasa

contributiontoadvancingtheintegrationofthetransAtlanticeconomy. Thisprojectwasconceivedas

ablueprintfortheTransatlanticEconomicCouncil(TEC)ontheoccasionoftheOctobermeeting.

In light of the role for the G20 in financial regulation, economic development, energy, and climate

issues,strongUSEUcooperationwithintheTEC is increasinglyessential. While theG20representsa

more balanced global leadership structure, a forum to directly coordinate between theworlds two

largest trade, investment, and regulationsetting partners who share common values and a like

mindedapproachtocrucialglobalissueswillbevital.TheTEChasacentralroletoplayincoordinating

strategic issues of climate change, intellectual property rights (IPR) protection, ehealth, investment

regulation,andfinancialmarketreform.Theseissueswillbeimportantlighthousepriorityprojectsfor

theTEC.

TheTECisatacrossroads.Ithasgreatpotentialasaforumfordiscussingstrategicissuesbetweenthe

United StatesandEurope,buthasoftenbeenboggeddown in singleissue gridlock.Progressat this

monthsgatheringwillprovidean important indicationofhowtransAtlanticeconomic integrationwill

moveforward.

TheOctobermeeting, the first under the newU.S. administration, offers the idealmoment to start

resetting theTECasaprocessandbetterdefinewhat theTECdoes.PresidentBarackObamavoiced

strong support for the TEC process during the April USEU Summit in Prague. In addition, German

ChancellorAngelaMerkelemphasizedtheimportanceofcontinuingtodeveloptheTECduringherfirst

visit

to

Washington

since

President

Obamas

inauguration.

The

October

TEC

meeting

is

the

starting

point

tousethispoliticalmomentumtosetaforwardlookingstrategicagendaofcooperation.

ThismemoprovidesablueprintforreshapingtheTECsothatitcanleveragethestrongeconomicties

betweentheUnitedStatesandEurope,and facilitateareturntotransAtlanticeconomicgrowth.The

memofocusesonfifteenkeypoints.ThefirstfivepointsarestrategicareasthatinwhichtheTECshould

takeadvantageofitsuniquerolecoordinatingacrossgovernmentalportfolios intheUnitedStatesand

the EU. The final tenpoints areorganizational recommendations intended tomake the TEC amore

effectiveinstitution.

WewouldliketothankthenumerousofficialsandstakeholdersonbothsidesoftheAtlanticwhohave

providedus

with

invaluable

insight

and

guidance

into

the

strengths

and

challenges

that

the

TEC

has

faced in itsfirsttwoyears.Weareparticularlygratefultothosewhoreviewedandprovidedextensive

feedbackonthisdocument.

Wewouldalso like to expressourdeepestappreciation toTysonBarker,ProjectManager for trans

Atlantic Relations at the Bertelsmann Foundation; and James OConnor, Assistant Director of the


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Program on Global Business and Economics at the Atlantic Council. Their excellent research and

developmentofthememosanalysiswasinstrumentalintheproject.

WehopethatthisjointmemocancontributetothedialogueontheTECandtheoverallfutureoftrans

Atlanticeconomicrelations.

Bestregards,

AnnetteHeuser FranBurwell

ExecutiveDirector VicePresident

BertelsmannFoundation AtlanticCouncil

October,2009


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EXECUTIVESUMMARY

AGENDA-SETTINGFORTHETEC

FocusonEnergyandtheGreenSector.

Developastrategicpathawayfromoil Determinetheeconomicconsequencesofshifting

toalowcarboneconomy

EnhanceR&Dcooperation Coordinateenvironmentalstandards Ensuretheinteroperabilityofcapandtrade

programs

GuaranteethatanytransAtlanticenergycooperationworkstogetherwiththeTEC

Work together on transAtlantic and thirdcountry IPR

developmentandpatentprotection.

CoordinateIPRprotectionforemergingsectors Consultongreentechnologytransfer AlignU.S.andEUpolicyoncounterfeitgoodsand

protectingIPRinthirdcountries Encouragecooperationbetweenregulatorsand

legislatorsonpatentreformPromoteeHealthandmedicalrecordregulatory

coordination.

Ensuretheinteroperabilityofstandardmeasuresandfields

Coordinateonnewregulationoffinancialservicesand

investment.

InitiatetransAtlanticimpactassessments Forgeacrosscuttingcoalition

DevelopguidelinesforacommonapproachtoFDIbarriers

Breakdownexistingandemergingbarrierstobilateralinvestment.

Addressissuesofmutualinterestintheregulationof

foodsafety.

Coordinatestandards,particularlyforimportcompliance

Createaworkinggroupforfoodsafety Coordinatetechnicalassistancetothirdcountries

onmeetingSPSstandards


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TEC2.0:INSTITUTIONAL

REFORM

DesignatetheUSVicePresidentandEuropean

CommissionPresidentasCochairsoftheTEC.

TheUnitedStatesshouldmovetheceremonialchairtotheofficeoftheVicePresident.

TheTECEUChairmanshipshouldbeunderthedirectpurviewofthePresidentoftheCommission

Create

a

two

track

system

to

make

the

TEC

a

strategic

forumonbroadeconomicchallenges.

TrackI:PrincipalsStrategicEngagement TrackII:DeputiesTechnicalEngagement

GuardagainstprotectionismintransAtlantictradeand

investment.

Fosterdialogueoncoordinatingtheroleofthestateintheeconomy

Definewhenandwherestateinterventionintheeconomyiswarranted(includingcompany

bailouts)andidentifythemethodologyformaking

thisassessment WorktoclosethegapbetweenU.S.andEU

approachestoantitrustandcompetitionpolicy DiscussthepotentialforaTransatlanticFreeTrade

Agreement

(TAFTA)

Betterengagethelegislativebranches.

Outlinespecificrolesforinvolvedstakeholderssuchas

theTransAtlanticBusinessDialogue(TABD)andTrans

AtlanticConsumerDialogue(TACD).

Incorporatelaborintothestakeholderprocessby

engagingwiththeEuropeanTradeUnionConfederation

(ETUC)andrelevantU.S.labororganizations.

CreatepermanentcoordinatingbureausinWashington,

DCandBrussels.

Createanopenmappingoftheapproximately27trans

Atlantic

working

groups

related

to

the

TEC

process ConsultwithEUmemberstategovernmentsand

U.S.stategovernmentsPlacegreateremphasisonstocktaking,evaluation,and

followup.

EmphasizeregularprogressreportstothecochairsbetweenTECmeetings

TakestockofpreviouslysignedagreementsbetweentheUnitedStatesandEU

CreateaWeb2.0presencefortheTEC.

EmphasizethecomplementarityoftheTECandtheUSEU

Summit.


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AGENDA-SETTINGFORTHETEC

ThestrengthoftheTECliesinitsabilitytobringtogetherabroadcrosssectionofregulatorstoremove

barriers and forge common approaches, particularly in emerging industries, on both sides of the

Atlantic.

Government

officials

and

stakeholders

agree

that

the

TEC

should

not

become

a

forum

for

addressingpastbilateral tradedisputes.Rather, the TEC can create an institutionalized structure for

regulationinnewsectors.

Withthisinmind,theOctobermeetingshouldaddressareasofregulationintherisingsectorsoutlined

below. Someof the followinghavealreadybeen identifiedas lighthousepriorityprojects; the rest

shouldbeaddedtothislist.

2. FocusonEnergyandtheGreenSector.The TEC should create a specific working group on energy, comprising experts from the relevant

agencies

in

Europe

and

the

United

States,

to

be

charged

with

identifying

the

most

economically

effective

projectsandtofostercooperationonR&Dontheseprojects.TheTECsworkontheregulatoryaspects

ofenergyandclimatechangemake itanatural forum fordiscussionon these issues. Inaddition, the

strength of the TECs ability to coordinate among agencies is essential to resolving disputes. In this

contexttheTECmeetingshould:

Develop a strategic path away from oil that promotes ecoefficiency, including commonstandardsandregulationof lowcarbonenergytechnologysuchaselectricmobility,hydrogen,

andbiofuels.

Determine the economic consequences of shifting to a lowcarbon economy for energysuppliers

and

major

energy

consumers.

For

example,

industry

has

recognized

that

coordinating

qualitystandardsforsecond andthirdgenerationbiofuelsisawinwinscenariofortheUnited

StatesandEurope,whichwillbecentersforenergyefficientautomobiles.

EnhanceR&DcooperationonjointresearchprojectsthatwillhelpincreasetheeffectivenessofR&Dexpenditureandavoidunnecessaryduplication.EarlyareasforcooperationincludeCarbon

CaptureandStorage(CCS)anddevelopmentofsmartgridtechnologytobetterallocateenergy

and connect renewable energy sources with consumers. Exchange of bestpractices and

technologyintheseareasshouldbeatoppriorityfortheTEC.

Coordinate

environmental

standards

including

on

new

emissions

standards

for

automobiles,

capandtrade programs for industry, and energyefficiency requirements for products and

buildings(suchasLEEDstandards).

Initiate informationexchangeon thescientificbasisofregulations, theirpotentialeconomicimpact, and theway inwhich they can be coordinated. Climatechange initiativesmust not

createnewbarriers to transAtlantic trade; toavoid this, coordinationon thedesignof such

regulationwillbeessential.


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Ensure the interoperabilityofcapandtradeprograms,allowing for sufficient safeguards forquality,withaviewtocreatingatransAtlanticmarketforcarbonemissionallowances.

Guarantee that any transAtlantic energy cooperation works together with the TEC tostrengthen the interdisciplinary consultative process. With this in mind, any discussion of

launchingaTransatlantic

Energy

Council

should

consider

the

Energy

Councils

relationship

to

the

TEC.CoordinatorsonbothsidesoftheAtlanticshouldworktogethertodetermineameansby

whichthetwobodiescanmaximizetheirefficiency.

CoordinationbetweentheUnitedStatesandEUwillalsobecrucialintheleaduptotheUNFramework

ConventiononClimateChange (UNFCCC) inCopenhagen inDecember2009.AstheUnitedStatesand

EU,includingitsmemberstatesgovernments,workonlegislationtotackleclimatechange,theTECcan

be a useful forum to ensure coordinated and compatible standards and systems for reducing

greenhousegasesandcarbonemissions.Toincreasetheeffectivenessofsuchclimatechangeinitiatives

andsecureagreement from largeemergingcountriesatCopenhagen, theUnitedStatesandEUmust

present

as

unified

a

front

as

possible.

3. WorktogetherontransAtlanticandthirdcountryIPRdevelopmentandpatentprotection.IPRandpatentprotectionareareasinwhichtheUnitedStatesandEuropehavelongrecognizedshared

interests.Bilaterally, theUnitedStatesandEUareworking together toeasejointpatent renewalon

bothsidesoftheAtlantic.Swedenhasplaced innovationattheheartof itsEUpresidency,makingthis

anopportunemoment foraction.Creatingmoreefficient IPRandpatent regimesbothbilaterallyand

with third countrieswillhelp theUnited States and Europemaintain their competitive advantage in

innovation.Inthislight,theTECshould:

Coordinate IPRprotection foremerging sectors suchas renewable energy technology, radiofrequencyidentification(RFID),andnanotechnology. Consult on greentechnology transfer ahead of the UNFCCC climatechange negotiations in

December.

AlignU.S.andEUpolicyon counterfeit goods andprotecting IPR in third countries.Effortsshould focus on: increased cooperation between European and U.S. customs authorities to

identifybestpractices,working together to concludenegotiationson theAntiCounterfeiting

Agreement (ACTA) and other such accords, and compelling third countries to enforce IPR

protectionandanticounterfeitinglaws.

Encourage cooperation between regulators and legislators on patent reform. The patentregistration issue centers on congressional involvement. The Patent Reform Act of 2009

envisionsa switch froma firsttoinvent to firsttofilepatent registration in theU.S.This

formofregistrationisconsistentwithpatentlawinEuropeandothermajorpatentoriginators.

The TEC should work proactively to encourage congressional involvement in discussions on

transAtlanticpatentreform.


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4. PromoteeHealthandmedicalrecordregulatorycoordination.Ehealth has great potential to improve and significantly cut the cost of healthcare by providing

physicianswithfasteraccesstogreateramountsofinformationatdecreasedcost.Asanewmarketwith

relativelyfewregulations,ehealthprovidestheTECanopportunitytoensurethesectorisconsistently

regulatedacross

the

Atlantic.

This

should

emphasize

patient

privacy

and

science

based

regulation.

The

firstsetofTECdiscussionsoneHealthshould:

Ensure the interoperability of standard measures and fields for the exchange of medicalinformation electronically among physicians, patients, insuranceproviders and hospitals. TEC

cooperationonehealthsystemswillimprovemedicalrecordkeeping,virtualcarebyspecialists,

dataaccessforpatients,and integratedhospital informationsystems.Thiswillreducethecost

of care and improve quality; in emergency cases, the ability to access detailed ehealth

informationquicklycouldprovecrucial.

5. Coordinateonnewregulationoffinancialservicesandinvestment.The Financial Markets Regulatory Dialogue (FMRD) has successfully maintained ongoing technical

dialogueonfinancialregulatorycooperation.TECcoordinationwiththeFMRDshouldcontinuetowork

topreventnewnontariffbarriers,buttheimpetusshouldbeputonthebankingandfinancialsectorto

bringissuestotheFMRDtoberesolved.Onthefrontiersoffinancialregulation,theTECshouldconsult

withotherstakeholderstopreemptpotentialinconsistenciesinpostcrisisregulatoryregimes.

Manyofthemostdangerousprotectionistmeasuresareemerging inthe financialsector,wherestate

aid can distort flows of investment. In addition, new financial regulations that need transAtlantic

coordinationareemerging.Regulatory changesonone sideof theoceanhavemajorand immediate

impacts

for

the

other

due

to

the

high

degree

of

trans

Atlantic

integration

of

financial

markets.

TEC

coordination is; therefore,essential taking intoaccountextraterritorialeffectsofnew legislationand

regulation.TheTECshould:

InitiatetransAtlanticimpactassessmentsofthenewfinancialandinvestmentregulationintheUnitedStatesandEurope.Inparticular,theTECshouldexamineareasformutualrecognitionof:

securitiesregulation;hedgefundandprivateequityregulation;establishingaminimumratiofor

solvency margins in insurance underwriting; insurance registration requirements; auditing

standards (which incorporate offbalancesheet assets); capitalrequirements regulation and

enforcement;andoversightofratingsagencies.

Forge a crosscutting coalition of the U.S. administration, the European Commission, U.S.Congress and the European Parliament (EP) to break down barriers between regulatory

authorities inboth systems.Oneexampleof thismaybeCongressmanPaulKanjorskisbill to

createanationalinsuranceofficethatwouldestablishfederalpolicyoninternationalinsurance

matters,andensurethatstateinsurancelawsareconsistentwithfederalpolicyforcoordinating

internationaltradeagreements.


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The InvestmentDialogueproducesuseful information forboth sidesof theAtlantic concerning their

engagementwiththirdcountries.It isalreadycreatingamatrixofbarrierstoforeigndirectinvestment

(FDI)inChina.TheInvestmentDialogueshould:

DevelopguidelinesforacommonapproachtoFDIbarriersinChina,India,andothercountries. Breakdownexistingandemergingbarrierstobilateralinvestment. TheTECshouldtransmit

information to theU.S.Congressor relevantagencies,and to theEuropeanCommissionand

memberstateparliamentsduring the legislativeprocess.Thiswillensure thatnew legislation

and regulations do not increase barriers to transAtlantic investmentwith the exception of

narrowlydefinednationalsecurityconcerns.

6. AddressissuesofmutualinterestintheregulationoffoodsafetyAcriticaldifferencebetweenU.S.andEUfoodsafetyregulations lies intherequirementsforverifying

compliancewith import standards on both sides of theAtlantic. For example, in theUnited States,

horticulturalimports

must

be

approved

by

U.S.

authorities,

whereas

imports

into

the

EU

must

receive

a

phytosanitarycertificateofcompliancefromtherelevantauthoritiesinthecountryoforiginforaselect

listofproducts.Toaddressthesebarriers,theTECshould:

Coordinate standards,particularly for import compliance, to thegreatestdegreepossible toimprovethesafetyoffoodimportsandincreaseexportopportunitiesfordevelopingcountries.

Createaworkinggroupforfoodsafetytoidentifybestpracticesinregulatorystandards,importregulations,andsanitaryandphytosanitary(SPS)measures.TheTECshoulddothiswithaview

tocreatingsciencebasedand,wherepossible,commonstandards,andtosimplifycompliance

withthesestandards,regulationsandmeasures.

Coordinate technical assistance to third countries on meeting SPS standards, which willsupport agriculture in developing countries, establish amore secure food supply, and lower

prices. TheU.S.and theEU share thegoalofpreventing the introductionofpestsandplant

disease. The TEC can improve compliance on SPS and other common USEU standards by

providing the political push to the agencies that administer technical assistance to third

countries.


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TEC2.0:INSTITUTIONALREFORM

SinceitscreationattheUSEUSummitinWashingtonin2007,severalstructuralweaknessesintheTEC

haveimpededprogressonkeyfrontsidentifiedintheframeworkdocument.Thedegreeofeffectiveness

oftheTECgoingforwardwillultimatelybeafunctionofaddressinginstitutionaldeficienciesthathave

been noted during the first two years of the process existence. The following ten points are

recommendationsthatwouldallowTECplannersandparticipantstooptimizetheTECmeetings,make

theprocessmorecontinuous,andyieldbothshorttermdeliverablesandlongtermstrategicresults.

1. DesignatetheUSVicePresidentandEuropeanCommissionPresidentasCochairsoftheTEC.Thestrengthof theTEC rests in itsability toworkacross regulators.Butcurrentchallenges regarding

staffing capacityandabilityhave impaired theTECs effectiveness.A radical restructuringof theTEC

chairmanshipwouldsendapowerfulsignalandhelprevitalizetheTEC.

The

United

States

should

move

the

ceremonial

chair

to

the

office

of

the

Vice

President.

This

movewouldbeconsistentwiththerolethatvicepresidentshavetraditionallyplayedinsimilar

efforts. The assistant to the U.S. Vice President for economic policy coordinating with the

National Security Council (NSC) would serve as the Sherpa for the U.S. side, ensuring

cooperationwiththeG20.TheNSCandOfficeofManagementandBudget (OMB)couldhave

principalsupportingrolesinthiscoordination.

The TEC EU Chairmanship should be under the direct purview of the President of theCommission,withtheEuropeanCommissionsHeadofCabinetservingastheEUSherpa.This

wouldreflect thestructureon theU.S.sideandease interagencycoordination.Currently,EU

responsibilityfor

the

TEC

is

under

the

Vice

President

of

the

Commission/Commissioner

for

Enterprise and Industry. This can cause challenges coordinating across other Directorates

General(DGs).

2. CreateatwotracksystemtomaketheTECastrategicforumonbroadeconomicchallenges.TheTECsfuture lies in itscontinuedabilitytobringtogethercabinetlevelofficialstodiscussstrategic

issues facing the transAtlanticeconomy. This serves two vital functions: Informally,ministers get to

know each other and identify the right person to callwhen seeking coordination across the ocean;

formally, their presence brings added politicalweight for agencies and groups to advance particular

issuesandprofitfromopportunitiesfortransAtlanticeconomiccooperation.

TheTECprocessshouldbeorganizedalongatwotrackstructurethatwillengagethegroupinstrategic

thinkingwhilesimultaneouslyadvancescrucialtechnicalwork. Thisapproachwouldhelpsetpriorities

andstreamlinetheagenda.

Track I: Principals Strategic Engagement: The TEC semiannual or annual meeting wouldprovideavenue forcabinetlevelofficials to focusonthemacroandstrategic issuesaffecting

the transAtlantic market, i.e., the economic crisis and response, conclusion of trade


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negotiations, cooperation on the formation of new regulation, joint approaches to third

countries,macroeconomic surveillance, and assessments of potentially new issues thatmay

affect the transAtlantic economy. In addition, Track I could identify new industries and

innovationassourcesofgrowthforEuropeandtheUnitedStates.TrackIwouldincluderegular,

ongoingcontactamongrelevantagenciesontheseissues.

TrackII:DeputiesTechnicalEngagement: Seniorworkinglevelofficialswouldfocusonsectorbased regulatory work that requires technical expertise and attention. This would entail

continuous,opendialoguethroughouttheyear,aswellasasessioninadvanceoftheprincipals

meetingtoteeup issuesthatrisetotheTrackIprincipals level.Thesetwotrackswillserveas

anearlywarningmechanismforemergingissuesinthetransAtlanticrelationship.

BothtracksoftheTECshouldbeforwardlooking, identifyingpotentialnewdisputesbeforetheyharm

thetransAtlanticrelationship.Theongoing,closeTrackIIcooperationamongregulatoryagencieswould

definethebuildingblocksofnewregulationi.e.,riskassessment,scientificandbestpracticeexchange.

Working

groups

would

assess

the

possibility

of

making

standards

and

data

used

in

creating

regulation

moresimilarinEuropeandtheUnitedStates.

3. GuardagainstprotectionismintransAtlantictradeandinvestment.Astheglobaleconomydeterioratedoverthepastyear,governmentshavecomeunderintensepolitical

pressuretoprotectjobsand industry.Protectionistmeasures,suchastheBuyAmericaprovisions in

theU.S.HousestimulusbillandsimilarprovisionsputforthbyFrance,theUnitedKingdom,Spain,and

otherEuropeangovernments,couldsendthewrongpoliticalsignalsandundermineconfidenceinopen

markets. Tocounterthis,theTECshould:

Foster

dialogue

on

coordinating

the

role

of

the

state

in

the

economy,

including

where

and

how

to apply economic stimuli and corporate bailouts. The debate over state intervention in the

economystillrepresentsamajorpointofcontentionbetweentheUnitedStatesandEU.ATEC

discussiononthesizeandstructureofeconomicstimulusandindustrybailouts(particularlyfor

firms thatoperatecrossborderand transAtlantically)willhelp temperdisagreementson the

futureuseofsuchmeasures.

Definewhenandwherestate intervention in theeconomy iswarranted (includingcompanybailouts)and identify themethodologyformaking thisassessment.Theserecommendations

canthenbeusedbytheEuropeanCommission,EUmemberstates,andtheU.S.governmentto

informtheirdecisionmakingonstateinterventionintheeconomy.

WorktoclosethegapbetweenU.S.andEUapproachestoantitrustandcompetitionpolicy,particularly in the methodology for assessing anticompetitive behavior, as divergent

approaches to antitrust regulation and enforcement can have distorting effects on trans

Atlanticmarkets.


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Discuss the potential for a Transatlantic Free Trade Agreement (TAFTA) once conditions inCongress, theEP,andEUandU.S.publicopinion areamenable.The transAtlanticmarket is

deeply integrated across trade and financial sectors. This integrationmust be protected and

enhanced.However,Congress and theU.S.administrationmust resolve theColombia, South

Korea,andPanamaFTAsbeforediscussionsonaTAFTAcanbegininearnest.Atpresent,theTEC

can emphasize mutual enforcement of existing trade agreements bilaterally and with third

countries.

4. Betterengagethelegislativebranches.Congress and the EP should bemade integral participants in the full TECmeetings. AMarch 2009

CongressionalResearch Service (CRS) reportprovidedabroadoutlineof the structuraldeficits in the

way that the TEC currently engages Congress.Unlike the preLisbon EP, Congress has the ability to

initiate legislation that can have a significant regulatory dimension. There are numerous examples

whereearlylegislativebuyintotheregulatoryprocesscouldhavedramaticallyimprovedtheoutcome

forbothsides(i.e.,SarbanesOxley,REACH,cargoscanning,andtheforeignownershipprovisioninthe

Open

Skies

agreement).

Congressional and EP participation in the TEC processmust be functionally driven. Because the TEC

dealswith issuesthatarehighlytechnical innature, incorporatingtherightmembersofCongressand

theEP intothediscussion iskeyto facilitating legislationthatwillpositivelyaffecttransAtlantic trade

and investment. While the Transatlantic Legislators Dialogue (TLD), the EU Caucus, and other

parliamentary groupings demonstrate a holistic interest in the transAtlantic relationship, their

functionalroledoesnotalwayscoincidewiththeTECagenda.Tooptimizelegislatorparticipationinthe

TEC,coordinatorsmustworkwiththeTLDsecretariatsonbothsidesof theAtlantictoshapetheTEC

agendaearlyandconsistently.

5. OutlinespecificrolesforinvolvedstakeholderssuchastheTransAtlanticBusinessDialogue(TABD)andTransAtlanticConsumerDialogue(TACD).

TheprincipalstakeholdergroupssetuptoinformtheTECmust:bebroughtintotheprocessearlier;be

givengreateraccessto informationontheprogressoftheTEC,theworkinggroups,andthetimingof

meetings;andhaveagreatersayintheformingoftheagenda.Greaterinformationaswellasearlyand

meaningful input intotheTECprocesswillencouragethetransAtlanticprivatesectorandcivilsociety

toplayamoreactiveroleintheprocessandputforthmoreconcreteproposalsforworkinggroupsand

meetings.Thiswillhelpcreateademanddrivenagendathatmoreaccuratelyreflectsthe inputofthe

businesscommunityandconsumersonthetransAtlanticeconomicrelationship.

6. Incorporate labor into the stakeholder process by engaging with the European Trade UnionConfederation(ETUC)andrelevantU.S.labororganizations.

LaborisamajorconstituentgroupnotamongtheTECsofficialstakeholders,yetisamajorstakeholder

inthetransAtlanticeconomy.InvitingtheETUCandmajorU.S.labororganizationssuchastheAFLCIO

to engage in the TEC process will help mitigate protectionist pressure on transAtlantic economic


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integration. On issues whose regulation directly affects job creation and growth, early input from

organizedlaborwillenhanceregulatoryandlegislativeeffectiveness.

7. CreatepermanentcoordinatingbureausinWashington,DCandBrussels.TransparencyhasbeenachallengefortheTECsince its inception in2007.Asan interagencyprocess,

theTEC isuniquelysuitedtoprovideatransparentaccountofprogressacrossregulatoryagenciesand

departments in the United States and the EU. At the same time, the disparate set of portfolios

encompassed in theTEC canmake itdifficult tomaintain the bigpictureknowledgeofall relevant

workinglevel dialogues and agencies. Clearlydefined secretariats in the U.S. government and the

European Commission that operate as aworkinglevelway station for the TEC could help establish

greatertransparencyandefficiencyintheTECprocessasawhole.TheTECcantakethefollowingsteps

toincreasetransparencyandeffectiveness:

Createanopenmappingoftheapproximately27transAtlanticworkinggroupsrelatedtotheTECprocess,identifyingareasofpurview.OntheU.S.side,severaldepartmentsincludingState

andCommerce

are

working

on

this.

This

comprehensive

schematic

is

consistent

with

the

stock

takingeffortsthatcanbepartoftheresettingstrategyfortheTEC. Asecretariatonbothsides

oftheAtlanticalsoofferstheprocessanormalizedgatewaytotheappropriateworkinggroups,

withregulatorycompetenciesrelatedtoastakeholdersissues. Toovercomethecasebycase

adhocapproachadopted inregulatorycoordination,governmentsshould institutionalizethe

process. Regular progress reports from all working groups could also be housed at the

secretariatanddisseminatedtointerestedstakeholdersuponrequest.

ConsultwithEUmemberstate governments andU.S. state governments, allofwhichhaveexclusivejurisdictionandenforcementareasoncertainregulations.Theyshouldbe informally

broughtinto

the

coordination

process.

Apotentialsecretariatcannotbetaskedwithprovidingthepushforprogressattheworkinggrouplevel

ormakeexecutivedecisionsrelatedtotheTECprocess.ThepushwillcontinuetocomefromtheTECco

chairsandtheirstaffs.Rather,thesecretariatsshouldbeseenascoordinatingbodiesand information

clearinghousesforregulatorsandoutsidestakeholders.

8. Placegreateremphasisonstocktaking,evaluation,andfollowup.Preparations for TECmeetings typically begin four to sixweeks in advance. The gaps between the

meetings,andtheir irregularity, inhibitbuildingmomentumwithinthe implementingagenciesonboth

sidesof

the

Atlantic.

This

can

lead

to

an

intensified

push

for

agenda

items

and

hastily

indentified

deliverables inthemonthbeforethemeeting.This isparticularlytruewhenthecapacityforfollowup

bythecochairs isovertakenbyotherevents. Tosmoothplanningand improveagendadevelopment,

theTECshould:

EmphasizeregularprogressreportstothecochairsbetweenTECmeetingstoprovideagaugeof areas that require further political pressure. Coordination between the cochairs and a


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potentialsecretariatcouldhelpadvancetheprocessattheworking levelthroughouttheyear.

WhiletheTECshouldnotgetcaughtupinthechasefordeliverables,itshouldtakeadvantageof

the achievements that its working groups have facilitated and successfully concluded by

publishing them in the form of periodical updates. Thiswill add to the TECs credibility and

provideconsistencybeyondannualorbiannualTECmeetings.

TakestockofpreviouslysignedagreementsbetweentheUnitedStatesandEU,particularlytheMutualRecognitionAgreements(MRAs)signedbetween1994and1998.Thisisanopportunity

fortheTECtodetermineifimplementingmoribundagreementsisfeasible.

9. CreateaWeb2.0presencefortheTEC.AWeb 2.0 presence for the TECwould communicate its activities in a transparent and interactive

manner.StakeholdershavebeencallingforanuptodateWebplatformontheTECsinceitsbeginning.

The lack of a viablewebsite has contributed to the perception that outside stakeholders are being

discounted. The current U.S. administration has demonstrated a commitment to transparency and

opennessin

government.

Sites

like

www.change.gov

and

www.whitehouse.gov

have

demonstrated

that

successful implementation of interactive Web platforms can increase transparency and public

engagement.

TheUnitedStatescurrentlyhasnoWebplatformfortheTEC.TheEuropeanCommissionhasone,butit

hasnotbeenupdated since theU.S.EU Summit in Slovenia in June, 2008. TheTEC cochairs should

maketransparencyapriorityandcommittolaunchingawebsitebytheendof2009.Thewebsiteshould

beajointendeavor,maintainedandupdatedbythecoordinatingsecretariatsintheU.S.administration

andtheEuropeanCommission.Thiswebsitewouldbeacentral informationhubwherethesecretariat

canpostopenbriefingmaterialsfromoutsidestakeholders,providecommuniqusandpublishminutes

ofTEC

meetings.

10.EmphasizethecomplementarityoftheTECandtheU.S.EUSummit.ByschedulingtheTECmeetingaweek inadvanceoftheU.S.EUSummit inNovember,theorganizers

have set a timetable that lends itselfwell to follow up and to providing input on a comprehensive

agenda.TheTECmeetingwillbeanopportunitytosetagendaitemsfortheSummit,trackprogresson

pastinitiatives,thinkcreativelyaboutrisingsectorsandpotentialbarrierstothetransAtlanticeconomic

relationship,andoutlinenew initiatives.The close calendarproximityof theTEC andUSEU Summit

promotesthesegoalsandshouldbeinstitutionalized.

Outsidetimetables

will

always

affect

TEC

dynamics.

The

current

transition

of

the

European

Commission

isanoutsideoccurrencethathasledsomeobserverstoquestionsiftheOctoberTECmeetingshouldbe

postponed until early 2010. Itwill be important to institutionalize the TEC timetable to optimize its

effectivenessandregularity.LinkingTECmeetingstothetimingoftheUSEUSummitwouldbeoneway

ofdoingthis.


15/15

14

AWAYFORWARD

The success of the TEC is ultimately a question of sustainedpoliticalwill. Both sides of theAtlantic

shouldavoid

calls

for

creating

new

institutions.

Rather,

the

United

States

and

Europe

should

take

advantageoftheOctobermeetingasafirststeptorevitalizetheTECprocessandchartapathtoward

greatertransAtlanticeconomicintegration.

Documents

Resetting the Transatlantic Economic Council: A Blueprint