Secretary Mosbacher reports to Business on EC 1992 and the outlook for Europe - European Community - Business America interviews Secretary of Commerce Robert A. Mosbacher - European Community '92 Update - interview

Business America, Feb 25, 1991

Secretary Mosbacher Reports to Business On EC 1992 and the Outlook for Europe

During the last two years, Secretary of Commerce Robert A. Mosbacher has put U.S. export interests in Europe at the top of his priorities. He has led the opening of key markets in both Western and Eastern Europe for U.S. business. Business America asked Secretary Mosbacher for his assessment of the European Community (EC) 1992 program and for his outlook on the shape of Europe in the 1990s.

Business America: Are U.S. exporters able to take advantage of opportunities in Europe?

Secretary Mosbacher: Yes. In Western Europe, our exports have grown 12 percent since last year. In Eastern Europe, U.S. companies' presence is growing. Europe is integrating. We need to alter our strategy to take advantage of the larger market opportunities.

Business America: Mr. Secretary, now that the EC has adopted almost all of the 1992 program, are U.S. exporters assured of a single market in Europe?

Secretary Mosbacher: American companies must understand that 1992 is an ongoing process that does not begin or end in the year 1992. While EC institutions have adopted over two-thirds of the 1992 directives, many of these measures have not yet been implemented by the EC member states. Further, while many directives already are in force, many others will not come into force for some time.

It's pretty clear that U.S. exporters will have access to almost all of the single market, but you can't say it's assured in all areas. The U.S. private sector and U.S. Government will have to work together to see where market access problems exist and then correct them. TV shows come to mind as one area where we have market access problems we haven't solved yet. Telecommunications is an area where we've made progress, but we still have more to do.

We are concerned about the EC's local content requirements in its public procurement directive covering water, energy, transport, and telecommunications. We are working toward an agreement in the GATT Government Procurement Code negotiations for a set of acceptable rules on public procurement in these sectors.

Business America: Standards play a big role in EC 1992. What can we expect for U.S. exporters in the way of standards?

Secretary Mosbacher: The Commerce Department reached an agreement with the EC in 1989 calling for the EC's standards process to be open to U.S. companies.

Awareness and understanding of new EC standards, testing and certification requirements is a top priority for U.S. businesses, and therefore for the Commerce Department. We are talking with the EC in a very positive way to make sure that U.S. exporters have the same access as EC companies to the EC's new system of standards, testing and certification. This area has an impact on a wide variety of industrial and high technology products. The details of this system are being worked out now.

In 1989, I began a comprehensive dialogue on these issues with my EC counterpart, EC Commission Vice President Martin Bangemann. We agreed that the European standards process should be open to U.S. companies. I also met with the Presidents of European regional standards organizations, the European Committee for Standardization (CEN) and the European Committee for Electrotechnical Standardization (CENELEC), who agreed to implement a mechanism allowing increased access to the standards drafting process, through international standards organizations. CEN and CENELEC also agreed to use the international standards in their regional work, wherever possible.

While I can't say we have a "seat at the table" for EC technical standards deliberations, the working relationship we have established with the EC Commission has worked to benefit American firms. I want to keep the momentum with the EC going in these areas. For example, U.S. firms do not have observer status in the early drafting stages of the EC's new standards process carried out by CEN and CENELEC. We would like to see this happen.

We also want to see nondiscriminatory, low-cost access for U.S. testing labs and certifying bodies. In an effort to minimize trade disruptions, we have encouraged the EC Commission to support continuation of existing bilateral testing and certification agreements.

Business America: What is the Commerce Department doing currently to ensure that U.S. business interests are accounted for in the EC standards area?

Secretary Mosbacher: I recently formed a special private sector advisory committee, the Federal Advisory Committee on the European Community Common Approach to Standards, Testing and Certification in 1992, to advise me on EC standards-related activities and to assist in developing an appropriate strategy on standards, testing and certification issues. The Committee consists of 28 private sector members, representing manufacturing companies and trade associations from a broad spectrum of industries. We encourage comments and contributions from interested parties on the work of the committee.

The advice of the members comes at an important time as the EC moves to complete key components of its internal market program. Of particular concern to U.S. business, the EC will soon be formalizing its policies on access to EC testing, certification, accreditation, and quality assurance systems. The EC is also proposing reforms to its standardization system in its recent Green Paper on standards, and we want to make sure these policies do not represent barriers to trade.