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Shaking Hands Across the Pond

EU and US Reach Agreement on Trans-Atlantic Economic Partnership

The EU and US have reached agreement on a trans-Atlantic economic partnership, DER SPIEGEL has learned. The treaty would dismantle non-tariff barriers to trade and bring economic benefits for both sides.

REUTERS

George W. Bush and Angela Merkel, shown here in a January 2006 file photo, have agreed on a draft text for a trans-Atlantic economic partnership treaty.

German Chancellor Angela Merkel has long been touting the benefits of closer trans-Atlantic cooperation. Now, the US and the European Union have come to an agreement which would work towards eliminating non-tariff barriers to trade.

According to information obtained by DER SPIEGEL, Merkel, US President George W. Bush, and EU Commission President José Manuel Barroso have agreed to set up a wide-ranging economic partnership which would have the aim of dismantling non-tariff barriers to trade. A confidential draft has already been drawn up for a treaty establishing a "new trans-Atlantic economic partnership" which the three politicians plan to sign at the EU-US summit in Washington next week.

"Our goal is a barrier-free trans-Atlantic market," the treaty draft reads. One main aim is to agree on common standards and norms for industrial companies and financial services providers. For example, the different accounting practices used by the US and EU would be mutually recognized by 2008. The same would apply to approval processes in the cosmetics, pharmaceutical and chemicals industries, as well as for car parts.

The Europeans and Americans also want to create a joint forum for energy technology, comprising 20 company heads from energy utilities and power station manufacturers. The forum would formulate recommendations for future energy developments.

Both the EU and the US would name a high-level official to be responsible for the new economic partnership. Barroso has said he would be willing to represent the European side.

Both sides predict the treaty between the world's two biggest economic zones will bring great benefits. German government experts expect an increase of 3 percent in the country's gross domestic product as a result of eliminating so-called non-tariff barriers.

Merkel, who currently holds the EU's rotating presidency, used her keynote speech at the World Economic Forum in January to push for closer economic links across the Atlantic.

dgs/spiegel

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