Deputy Secretary's Speech

Deputy Commerce Secretary David A. Sampson
Trans-Atlantic Business Dialogue
Vienna, Austria

Thank you very much. And thank you to our hosts, Michael Klein (Citigroup) and Martin Broughton (British Airways) for this wonderful dinner.

On behalf of President Bush, and my boss, Secretary Gutierrez, I want to thank the Trans-Atlantic Business Dialogue (TABD) for the hard work and dedication that went into the recommendations it submitted for our Summit leaders to consider.

I know Secretary Gutierrez encouraged the TABD to be as specific as possible in making your recommendations. The more specific and focused we are, the easier it will be for our governments to deliver concrete results that will translate into real benefits for our companies and citizens. So I thank you for rising to the challenge.

U.S.-E.U. Economic Relationship
I think all of us share the goal of creating a barrier-free transatlantic market.

I believe that such a market would be the next step in a progression that began with Winston Churchill's "United States of Europe" some 60 years ago. Today the European Union is a strong alliance that grows stronger as more and more people enjoy the freedoms that democracy brings.

A barrier-free trans-Atlantic market would strengthen the E.U. And it would deepen the close ties that already exist among Europeans and Americans.

While there is still great untapped potential, the U.S.-E.U. economic relationship remains the largest--and most successful--trade and investment relationship in the world. Every day it benefits tens of millions of consumers, producers and workers on both sides of the Atlantic. Every day our trade totals some $1.8 billion.

$600 billion of annual trade is impressive, but it's only a fraction--just one-quarter--of our nearly $3 trillion commercial relationship. Indeed, it is investment and the inter-dependence of our economies that drive trans-Atlantic commerce.

This is an important point to consider, given the rising protectionist sentiments on both sides of the Atlantic. There is an active debate on how to balance our competitive challenges and security needs at a time of unprecedented global movement of people, goods, capital and services. And this is a good thing for free democratic societies.

But President Bush, and all of us in government, know that our prosperous relationship with Europe is the result of open trade and investment--not protectionism. We must all resolve to remain committed to free-market principles.

But our current unparalleled success is no guarantee of future success. If we are to preserve our prominent status in the global economy, we must continue to create an environment that:

• enhances our ability to compete globally
• champions innovation and technology, and
• helps citizens cope with the changes and complexities of globalization

We face no greater challenge in this than the Doha round of global trade talks.

We're at the most critical point in these negotiations since the talks began nearly five years ago. We need to see bold aggressive action--not a watered-down "Doha-lite," as some suggest. Tough decisions (on agriculture, services & other markets) must be made to reach an end-of-the-year finish.

So I encourage you to stay engaged, and help us move the negotiations forward.

U.S.-E.U. Economic Initiative
Over the past two years, we've taken a fresh look at the Atlantic relationship to determine if we have the right mechanisms in place to address new economic challenges.

During the 2005 U.S.-E.U. Summit--after a year of consultations with the TAB-D and other stakeholders--both U.S. and E.U. leaders agreed to work together on a core set of issues mostly likely to have the greatest impact on day-to-day business operations.

Based on your recommendations, we created a U.S.-E.U. High Level Regulator's Forum to discuss best practices and to identify potential areas for cooperation.

We also developed a joint working group to promote strong and effective enforcement of intellectual property rights (IPR). This is a very big issue, and it alone costs American companies over $250 billion a year.

U.S.-E.U. Innovation Initiative
The final point I want to make is about innovation. I absolutely believe that encouraging innovation is one of the greatest economic issues of our time.

If properly nurtured, research and technology will respond to the biomedical, energy and environmental imperatives that we face in the 21st century. Not only will this solve problems and improve quality of life, but it will also bring about economic opportunities that we can barely imagine today.

The goal of President Bush's American Competitiveness Initiative, announced in January, is to create the right conditions, the right nurturing environment, in which a new golden era of innovation can flourish.

As you know, Secretary Gutierrez and Commissioner Verheugen agreed to look at innovation in the trans-Atlantic context to complement the Lisbon Agenda and President Bush's competitiveness initiative.

I understand the TABD is developing ideas to enhance innovation on both sides of the Atlantic. We welcome this.

Private investment accounts for two-thirds of global R&D. So to be truly successful, there must be a strong cooperative effort with industry. I look forward to working with you on this very important agenda.

Conclusion
Let me end by urging you to stay focused on the issues of the day, and to be unafraid of taking risks and making decisions to address them. Today's fast-paced and increasingly integrated world markets demand this kind of decision-making.

And it is the kind of attitude we must have for a cooperative trans-Atlantic economic relationship that keeps us competitive and united.

In this new global era, none of us can afford to stand still or move backwards.

We must push back protectionism. We must continue with policies that keep us flexible enough to respond quickly and effectively as new challenges arise. And we must be optimistic about the future.

The U.S.-E.U. Economic Initiative is a big step in that direction. And it will secure and strengthen the economic and social progress we have achieved over the past 60 years.

Thank you very much.