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8/9/2019 Resetting the Transatlantic Economic Council: A Blueprint
1/15
ResettingtheTrans-Atlantic
EconomicCouncil
ABlueprint
8/9/2019 Resetting the Transatlantic Economic Council: A Blueprint
2/15
1
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
8/9/2019 Resetting the Transatlantic Economic Council: A Blueprint
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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.
8/9/2019 Resetting the Transatlantic Economic Council: A Blueprint
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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.
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