EU-US Summit, June 2003

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Series Details 30.6.03
Publication Date 30/06/2003
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The latest EU-US Summit was held in Washington on 25 June 2003. It was the first to take place since the Iraq crisis - a point made by Greek Prime Minister Costas Simitis, representing the Presidency of the Council of the EU. Speaking at the post-Summit press conference, Mr Simitis said 'This is our first meeting after the crisis in Iraq. I want to stress, because many people said that there was a serious period of strain, that the transatlantic relationship does work, it produces results and it is important for both of us.'

The Summit certainly produced results, in the form of a wide range of agreements, notably on an Open Aviation Area, the Hydrogen Economy, and weapons of mass destruction. However, it also highlighted differences on a number of issues, including genetically modified foods and the Middle East.

Officially, the two sides stressed the positive nature of the relationship, with President Bush saying 'We are united in common values and we will seek common solutions to our shared challenges.'

Background

Regular Summit meetings between the President of the United States, the Presidency of the Council of the EU, and the President of the European Commission have been held since the two sides signed the Transatlantic Declaration in 1990. Details of the following meetings are available via the website of the Commission Delegation in Washington:

December 1997
May 1998
December 1998
December 1999
May 31, 2000
December 18, 2000
June 14, 2001
May 2, 2002
June 25, 2003

Although a significant event, the formal Summit meeting was a brief affair which lasted only a few hours. Leaders convened at 10:30 in the White House Oval Office, with the post-Summit press conference scheduled for 13.20.

Some of the developments announced during the Summit were therefore agreed at other events, which took place on the periphery of the main meeting. Those events included:

  • a presentation by President Prodi on 24 June to a conference on 'EU-US Co-operation or Competition'
  • signing of a Charter for a Carbon Capture and Storage Technology Initiative, by Transport and Energy Commissioner Loyola de Palacio
  • discussions on the Transatlantic Open Aviation Area Agreement - also involving Commissioner de Palacio
  • talks on the Transatlantic Business Dialogue (TABD) and the Transatlantic Consumer Dialogue (TACD), reached by the Commissioner for Enterprise and Information Society, Erkki Liikanen
  • a speech by Trade Commissioner Pascal Lamy to the Global Business Dialogue

Both sides realise and appreciate the value of EU-US links. Before the Summit, the President of the European Commission, Romano Prodi, highlighted the significance of the economic ties:

'Look at how much we invest in each other's future. A recent study by the School of Advanced International Studies reveals the primacy of the transatlantic economy for both the United States and Europe. Europe's investments in the US rose to $835 billion in 2000. That accounts for 75% of all European investment abroad. And US investments in Europe amount to $640 billion - 50% of all US investments abroad. European investments in Texas outstrip US investments in Japan. And the United States invests twice as much in the Netherlands as it does in Mexico.'
(See speech: Looking ahead in transatlantic relations).

There is more to the relationship than economics and trade, even where disagreements are concerned. Although there have been traded-related disputes between the two sides over - amongst other things - bananas, steel, beef and genetically modified food, it is political issues which have recently come to dominate the agenda.

That said, GM food was on the menu, if not the agenda, in Washington, with the Financial Times reporting President Bush as joking 'Let's go eat some genetically modified food for lunch.' Although Mr Bush's spokesman said the EU delegation laughed at the President's quip, the issue is a serious one and, according to the FT, 'they were clearly not amused' (see Europeans not amused by Bush's rhetoric).

The FT revealed that Commissioner Lamy took the opportunity of the Summit to ask President Bush 'to tone down his rhetoric on the issue'. The Commissioner had been annoyed by accusations from Mr Bush that the EU's position on GM foods is increasing starvation in Africa, because an EU trade ban means that countries can't take up GM technologies (which, according to the US, would increase crop yields). Mr Lamy felt it was 'one thing to disagree', but 'it is another thing to use starvation to advance a position in this debate.'

Ironically, the European Commission wants the Member States to lift the ban - something which Mr Lamy thinks is unlikely to happen as long as the US maintains the present level of rhetoric and Europeans see the issue as one concerning the ability of American agribusiness to earn subsidies for dumping unwanted produce on developing countries.

The politics of the Middle East were also cause the cause of some tension between the EU and US, with President Bush urging 'leaders in Europe and around the world to take swift, decisive action against terror groups such as Hamas, to cut off their funding [and their] support' (see European Leaders Act to Fight Global Terror). The EU, however, sees the political wing of Hamas as a key component of any ceasefire deal. It accepts the need to cut off Hamas' funding, but doesn't want to drive the organisation underground.

Such disagreements aren't going to put an end to the relationship, as Mr Lamy made clear on 26 June in his speech Partnership of a Great Purpose: 'one of the key messages that came out from a rather constructive and workmanlike summit ... is that the authorities on both sides of the Atlantic, want to continue with their partnership.'

Reference was also made to the 'old Europe / new Europe' spat started by US Secretary of Defense Donald Rumsfeld in the lead-up to the war in Iraq. (Mr Rumsfeld didn't attend the Summit). President Prodi diplomatically commented:

'many people have said that Europe is too old. Maybe, but the old age helps us to understand our strength and our weakness and the reality of the world. And so, I say that ... if we stay alone ...Europe is too old and the United States too young ... to be able to bring peace in this world. And it is our duty to stick together to bring peace to the world.'

Decisions announced at the June 2003 EU-US Summit

Announcements were made concerning a number of important initiatives. These included a Joint Statement on the Proliferation of Weapons of Mass Destruction, in which the EU and US agreed to:

  • use all means available to avert WMD proliferation and the calamities that would follow
  • work together to strengthen the international system of treaties and regimes against the spread of WMD
  • seek to ensure strict implementation and compliance ('We are willing to work with all those who respect international non-proliferation norms; we are committed to dealing effectively with those who ignore them or cheat')

The Statement also condemned North Korea's nuclear weapons programme and expressed the 'continuing serious concern' of leaders over the nuclear programme being pursued by Iran.

In a Joint Statement on the Hydrogen Economy, the two sides undertook to 'collaborate on accelerating the development of the hydrogen economy as part of our broadening cooperation on energy', saying their cooperation will 'lay the technical, legal, and commercial basis needed to accelerate the commercial penetration and trade of emissions-free hydrogen technology world-wide, in cars, buildings and power generation, to secure to our citizens and our posterity the abundant, secure, and clean energy required to sustain growth, ensure security, and protect the environment.'

They agreed a number of actions in support of the International Partnership for the Hydrogen Economy, including:

  • furthering the goals of sustained economic growth
  • strengthening cooperation to work for universally compatible codes, standards, and regulations
  • strengthening cooperation on research and development
  • working together to foster public-private collaboration

Following a decision by EU Transport Ministers on 5th June authorising the Commission to negotiate a comprehensive air services agreement with the United States, the EU and US agreed at the Summit to start negotiations on an open aviation area. They announced that negotiations will begin in Autumn 2003, saying:

'This is an historic opportunity to build upon the framework of existing agreements with the goal of maximizing benefits for consumers, airlines, and communities on both sides of the Atlantic. The United States and the European Union will work together in a spirit of cooperation to develop a mutually beneficial approach to this crucial economic sector in a globalised economy.'

Leaders described the signature of EU/US Extradition and Mutual Legal Assistance Agreements as 'a significant event in the history of the Euro-American relations' intended to help the two parties 'efficiently fight crime and, in particular, transnational organized crime.' The texts signed apparently had their origins in discussions which took place in the immediate aftermath of the terrorist attacks of 11 September 2001.

The Transatlantic Business Dialogue (TABD) received a boost when Commissioner Erkki Liikanen and US Commerce Secretary Don Evans agreed to relaunch it 'in a new, more focused and efficient format.' Commissioner Liikanen said the business community is the driving force behind transatlantic economic integration:

'Its vigilance is needed to bring trade-barriers and frictions to the attention of governments and to make them find solutions to these problems. TABD has contributed positively to the improvement of transatlantic economic relations through innovative ideas that have advanced trade liberalisation. The new Transatlantic Business Dialogue will be a lean and focused business-driven process developing policy recommendations for administrations. The EU and the U.S. have joined in commitment to review and implement recommendations coming from the TABD.'

(There was, however, concern in some quarters over the TABD relaunch. A spokesman for Corporate Europe Observatory (CEO) commented that 'Boosting the power of business over trade and regulatory policies is the worst possible response to the escalating number of EU-US trade conflicts' (see NGOs oppose relaunch of controversial business dialogue). According to the CEO, the TABD process has been criticised by civil society groups for being 'unaccountable, undemocratic and harmful to environment and consumer concerns.')

The opportunity was also taken to issue a Joint statement from the US Customs and Border Protection and the European Commission on the Container Security Initiative and other customs-related aspects of security of international trade: 'This is an important opportunity to maximise supply chain security on both sides of the Atlantic and to facilitate legitimate trade. The United States and the European Union will continue to expand and intensify customs cooperation and to take practical measures to improve the security of ocean-going and other modes of international trade.'

Further information within European Sources Online

European Sources Online: Topic Guides:
The European Union and the United States
 
European Sources Online: In Focus:
07.03.02: US imposes steel import tariffs, March 2002
18.06.02: EU to develop stronger ties with Iran, June 2002
15.07.02: The United States Farm Bill 2002, July 2002
23.07.02: EU foreign ministers postpone possible retaliation against US steel tariffs, July 2002
16.09.02: United States' Foreign Sales Corporation programme: European Commission names products that could be subject to countermeasures
30.09.02: Steel: European Commission adjusts safeguard measures against US steel import tariffs, September 2002
01.10.02: International Criminal Court: EU foreign ministers agree to bilateral agreements with the United States, October 2002
11.11.02: Air transport: European Court of Justice ruling opens the way to a Trans Atlantic Common Aviation Area, November 2002
16.12.02: Developments in EU-Iran relations, December 2002
27.02.03: United States' Foreign Sales Corporations: European Commission publishes revised list of products, February 2003
16.04.03: EU tackles the proliferation of weapons of mass destruction, April 2003
03.05.03: Quartet aims to guide Middle East on the road to peace, May 2003
19.05.03: US launches WTO case against EU moratorium on genetically modified organisms (GMOs), May 2003
06.06.03: Air transport - Commission becomes chief negotiator, June 2003
13.06.03: NATO slimmed down, as EU-US tensions continue, June 2003
17.06.03: EU strategy against the proliferation of weapons of mass destruction, June 2003

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission:
DG Press and Communication
  EU-US Summit, 25 June 2003
 
Press releases
  25.06.03: Joint Statement by European Council President Konstandinos Simitis, European Commission President Romano Prodi and U.S. President George W. Bush on the Hydrogen Economy
  25.06.03: European Union and The United States of America agree on opening negotiations on open aviation area
  25.06.03: Joint Statement by European Council President Konstandinos Simitis, European Commission President Romano Prodi and U.S. President George W. Bush on the Proliferation of Weapons of Mass Destruction
  25.06.03: New Transatlantic Business Dialogue: Liikanen and Evans Reaffirm Commitment to Transatlantic Partnership [IP/03/896]
  25.06.03: Romano Prodi: Summary of remarks made during the joint press conference
 
Speeches
  24.06.03: Romano Prodi: Looking ahead in transatlantic relations, Washington, 24 June 2003 [SPEECH/03/322]
  26.06.03: Poul Nielson: Launch of the Guidelines on the Use of Military and Civil Defence Assets to Support United Nations Humanitarian Activities in Complex Emergencies [SPEECH/03/320]
  26.06.03: Pascal Lamy: Partnership of a Great Purpose: The European Union, the United States and the WTO [SPEECH/03/328]
 
DG External Relations:
Homepage
 
EU-US Summit:
Overview
 
DG Taxation and Customs Union
Homepage
25.06.03: Joint statement of the U.S. Customs and Border Protection and the European Commission
 
Delegation to the US
Homepage
EU-US Summit, June 2003
European Council President Simitis, European Commission President Prodi & US President Bush: Weapons of Mass Destruction Proliferation Joint Statement
European Council President Simitis, European Commission President Prodi & US President Bush: Hydrogen Economy Joint Statement
Greek Minister of Justice Minister Philippos Petsalnikos, President of the EU Justice & Home Affairs Council: EU/US Extradition and Mutual Legal Assistance Agreements Signing Statement
EU/US Open Aviation Area Negotiations Agreement; Joint Statement by European Council President Konstandinos Simitis, European Commission President Romano Prodi & US President George W. Bush on Transatlantic Aviation Negotiations; EU/US Agreement to Open Aviation Talks
EU Enterprise Commissioner Liikanen & US Commerce Secretary Evans Reaffirm Transatlantic Business Dialogue
 
Greek Presidency of the Council of the EU
Homepage
25.06.03: EU-USA Summit: joint press conference of US President George Bush, President of the European Council Costas Simitis and European Commission President Romano Prodi
25.06.03: EU-USA Summit: Joint Statement on the Hydrogen Economy
25.06.03: EU-USA Summit: Joint Statement on the Proliferation of Weapons of Mass Destruction, Washington, 25 June 2003
25.06.03: EU-USA Summit: Joint Statement on Transatlantic Aviation Negotiations
 
Other organisations
 
Agence France-Presse
25.06.03: Festering disputes dog US-EU summit
 
BBC News Online
24.06.03: EU seeks to mend fences
25.06.03: US escalates GM trade war
26.06.03: Bush urges EU action on Hamas
27.06.03: EU rejects full Hamas ban
 
European Sources Online: Financial Times
25.06.03: EU paves way for emissions trading
25.06.03: Europeans not amused by Bush's rhetoric
25.06.03: US and EU agree on halting spread of arms
25.06.03: US and EU make steps towards healing of wounds
 
Corporate Europe Observatory
Homepage
23.06.03: NGOs oppose relaunch of controversial business dialogue
 
United States Mission to the European Union
Homepage
US-EU Summit in Washington, June 25, 2003
 
US Department of Energy
International Partnership for the Hydrogen Economy
16.06.03: DOE Secretary Wants International Partners for a Hydrogen Economy
 
US Department of State
Homepage
2003 US-EU Summit
23.06.03: EU-US Summit, Washington, 25 June 2003
25.06.03: President Bush, European Leaders Act to Fight Global Terror
Fact Sheets
25.0603: Cooperation on the Development of a Hydrogen Economy
25.0603: Informal Financial Markets Dialogue
25.0603: Transatlantic Business Dialogue - United States and European Union Business Leaders Met with U.S.
25.0603: Transatlantic Cooperation on Trade
25.0603: United States-European Union Cooperation in the Balkans
25.0603: United States - European Union Relations
25.0603: United States - European Union Support for Afghanistan
25.0603: U.S.-EU Aviation Agreement
25.0603: U.S.-EU Counterterrorism Cooperation

Eric Davies
Researcher
30 June 2003

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