Commission proposal for New Transatlantic Marketplace
Sir Leon Brittan, Vice President of the European Commission, explained the Commission's recent proposals for greater trade freedom between the EU and the USA in a speech at Harvard University on 19 March 1998. The proposal for a New Transatlantic Marketplace (NTM) was adopted by the Commission on 11 March 1998, and if implemented, would represent a huge leap forward in EU-US relations. Sir Leon emphasized to his audience that both Europe and the USA had much to gain from implementing a new bilateral deal along the lines of the Commission's proposal. It was, he said, a major initiative and he hoped that the United States would join Europe in this vision. "We both have much to gain through even closer cooperation, removing the sort of regulatory barriers which are now increasingly important." He warned against adopting protectionist policies, stating that, "If Europe and the US seek to protect themselves from each other, we will both be political and economic losers. And so will the rest of the world." The NTM proposal provides for action in four key areas: - The widespread removal of technical barriers to trade through increased mutual product recognition and/or harmonization; - A political commitment to eliminate all industrial tariffs by 2010; - The creation of a free trade area in services; - Further liberalization of investment, public procurement and intellectual property. The advantages of the NTM, as outlined by Sir Leon Brittan include further multilateral trade liberalization, ensuring enhancement and preservation of environmental and consumer protection standards. The NTM would be fully compatible with World Trade Organization rules and independent economic analysis suggests that the benefits of NTM to Europe alone, would be ECU 150,000 million per annum after the first five years. The Commission is seeking authorization from the Council to open formal negotiations with the US with a view to agreeing a deal on a New Transatlantic Marketplace. The next few months will show whether the political will for such a development is present, both in Europe and in the USA.
Countries
United States