EC 1992 and US business - European Community - statement by Assistant Secretary for Economic and Business Affairs Eugene J. McAllister - Transcript

US Department of State Dispatch, June 15, 1992

US Government Actions

The US Government is actively pursuing all of our interests in the EC 1992 process through a variety of channels. Since the last set of hearings by this committee, the government has embarked on a number of new efforts. These include:

Joint Declaration. We signed a joint declaration on US-EC relations on November 23, 1990, establishing a framework for consultation on political and economic issues.

The agreement provides for greater consultations on economic and political issues through biannual summits and ministerial meetings, ad hoc consultations between the EC Presidency Foreign Minister and the Secretary of State, and biannual consultations between the Commission and the US cabinet.

Mission in Brussels. We have increased staffing in the US Mission to the European Community by 35% since May 1989, while at the same time we faced urgent staffing requirements in Eastern Europe and the need to open 15 new embassies in the Baltics and the new independent states of the former Soviet Union.

The new professional positions include two in the economic section, one new science and technology position, three new commerce positions, and a financial attache staffed by Treasury.

CEN/CENELEC. While there is still room for improvement, US access to CEN/CENELEC [European standards-setting bodies] has increased in recent years, due in part to the open dialogue on standards-related issues between the United States and the EC as well as to the efforts of the US private sector. We continue to encourage the EC to rely on international standards to the extent possible.

ANSI [American National Standards Institute] has an office in Brussels and has played an important role in promoting international standards and maintaining a dialogue with the EC on its plans for an EC-wide product testing and certification regime.

Procurement. In order to ensure non-discriminatory access for US firms to key EC markets, the Office of the US Trade Representative and the Department of Commerce have been working together to ensure that those European countries with which we have reciprocal memoranda of understanding (MOUs) on defense procurement are also members of the GATT Government Procurement Code.

The Administration is also working with our allies to establish, within NATO, a code of conduct on defense trade. We intend that the code of conduct will address many of the issues that have proved troublesome to the US industry, including disciplines on offset requirements that foreign governments often use in evaluating bids and in making procurement awards. In addition, the Departments of Defense and Commerce have incorporated annexes on procurement procedures in several MOUs to provide US industry greater transparency and visibility into allied requirements.

Justice Competition Policy. In September 1991, the US and EC signed a bilateral agreement on anti-trust cooperation. Like our prior agreements with Germany, Australia, and Canada, the US-EC agreement provides for notification and consultation on anti-trust matters that may affect important interests of the other party.