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Viewing cable 07BERLIN2207, GERMANS PLEASED WITH TEC PROGRESS; IDENTIFY PRIORITIES FOR

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Reference ID Created Released Classification Origin
07BERLIN2207 2007-12-17 06:29 2011-08-24 01:00 UNCLASSIFIED Embassy Berlin
VZCZCXRO3168
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHRL #2207/01 3510629
ZNR UUUUU ZZH
P 170629Z DEC 07
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 0029
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNMEM/EU MEMBER STATES
RUCNFRG/FRG COLLECTIVE
UNCLAS SECTION 01 OF 02 BERLIN 002207 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12356:  N/A 
TAGS: ETRD EFIN EINV ECIN PREL PGOV EU GM
SUBJECT:  GERMANS PLEASED WITH TEC PROGRESS; IDENTIFY PRIORITIES FOR 
NEXT MEETING 
 
 
1. (SBU) SUMMARY: German government officials and industry 
associations are upbeat about the results achieved at the first 
Transatlantic Economic Council (TEC) meeting on November 9 in 
Washington.  Government officials also expect renewed focus on TEC 
during the Slovenian EU Presidency.  German industry identified 
patent legislation, auto safety regulations and biofuels standards 
as its top priorities for the next TEC review in 2008.  Right now, 
there is little desire to include new areas in the process. 
Industry and government representatives are seeking reassurance on 
the change of U.S. leadership of the Council.  A main objective for 
the Germans is to get the legislative branches on both sides of the 
Atlantic more engaged.  END SUMMARY. 
 
--------------------------- 
REFLECTIONS ON TEC PROGRESS 
--------------------------- 
 
2.  (SBU)  The German business community is generally satisfied with 
the progress made since the inception of the Transatlantic Economic 
Council at the US-EU Summit in April.  "The Transatlantic Council 
has made breakthrough decisions at its first meeting in Washington," 
said J|rgen Thumann, President of the German Federation of 
Industries (BDI) and Chairman-designate of the Transatlantic 
Business Dialogue.  "Very soon businesses and consumers will benefit 
from a more integrated transatlantic market."  Thumann was upset at 
the U.S. Chamber of Commerce's lukewarm evaluation of TEC's progress 
because he felt TEC had made significant progress. However, BDI 
later told EMIN that the U.S. Chamber of Commerce and BDI continue 
to cooperate well on TEC matters.  (Note: The Ambassador reported 
TEC's progress to senior executives of BDI's member companies on 
November 26. End note.) 
 
3. (SBU)  Sectoral associations echoed BDI's praise. Even skeptics 
like the German Chemical Industry Association (VCI) said that TEC 
had outlasted previous attempts at closer transatlantic regulatory 
cooperation and set up dialogues to prevent new regulatory barriers. 
 "The administrations on both sides of the Atlantic have committed 
to regulatory cooperation, and it is no longer [just] the 
stakeholders who call upon the administrations to act," Prof. 
Reinhold Quick, VCI's lobbyist in Brussels, wrote for a BDI 
publication. 
 
4.  (U) Among the TEC deliverables, U.S. acceptance of European 
firms' International Financial Reporting Standards (IFRS) statements 
stood out for special praise.  IBM supported U.S. recognition of 
IFRS because it hopes the EU will make a reciprocal measure 
permanent by August 2008.  Similarly, the Germany Savings Bank 
Association said its members will benefit from mutual recognition. 
 
 
5. (SBU) German interlocutors remain concerned about supply chain 
security potentially hampering trade.  BDI's Heiko Willems said the 
announcement of a road map to mutual recognition of trusted partner 
programs was promising, but he was disappointed it had not been made 
public.  Weert Boerner, North American Desk Officer at the Ministry 
of Foreign Affairs, said German officials do not expect Congress to 
reverse its 100 percent scanning requirement.  However, Boerner said 
they are debating whether to seek input into the Secure Freight 
Initiative pilot projects through the TEC to ensure credible 
findings on implementation and feasibility.  In an apparent shift in 
tone, MFA Director General for Economic Affairs Ruediger von Fritsch 
also told EMIN that Germany and other EU Member States will not 
reject implementation of the requirement but rather will only insist 
on their involvement in implementation plans.  These countries 
believe they can add value to the discussion and that a 
one-size-fits-all approach will not work for all ports. 
 
-------------------------- 
FUTURE INDUSTRY PRIORITIES 
-------------------------- 
 
6. (U) German industry's strategy now is to conclude negotiations in 
the priority areas ("Lighthouse Projects") identified in the 
Framework Agreement.  BDI representatives told EMIN that patent 
legislation is their top priority, followed by auto safety and 
biofuels standards desired by the German auto manufacturers.  BDI 
believes TEC should focus only on key Framework priorities as new 
issues (e.g. poultry) could overburden its already booked agenda. 
"Once we have moved forward on the lighthouse projects, we can add 
new areas," explained Sigrid Zirbel, BDI's Director for the 
Americas. 
 
-------------------- 
CHANGE IN LEADERSHIP 
-------------------- 
 
7.  (SBU) The departure of Al Hubbard as Director of the National 
Economic Council and U.S. co-chair of TEC created nervousness among 
 
BERLIN 00002207  002 OF 002 
 
 
German business representatives and some in the policy community 
about continued U.S. commitment to TEC.  On November 29 Ambassador 
Timken assured a forum of CDU/CS parliamentarians, journalists and 
industry reprsentatives that the U.S.' commitment to TEC remain 
strong.  German interlocutors were concerned tht Hubbard's 
replacement might not enjoy the sameaccess to President Bush, 
equivalent rank within he White House, or sufficient clout to 
engage Cainet secretaries.  Some of this concern has beenalleviated by Embassy 
outreach after the announcemnt that Deputy 
National Security Daniel Price wil be U.S. co-chair.  Boerner said 
Ministry of Foreign Affairs officials are familiar with Price and 
are receptive to his appointment. 
 
---------------------- 
LEGISLATIVE ENGAGEMENT 
---------------------- 
 
8.  (SBU) Policymakers and industry representatives increasingly 
call for greater legislative involvement to drive the process 
forward.  Industry representatives and foreign affairs observers say 
prior attempts to remove non-tariff barriers fell apart due to the 
lack of legislative support and question how best to engage Congress 
in light of the upcoming elections in 2008.  BDI is organizing its 
annual US-German Business Roundtable in Dresden in February 2008 and 
has invited the Ambassador as well as a number of Members of 
Congress to discuss the Transatlantic Economic Council.  The high 
turnout for the Ambassador's address to the CDU/CSU Bundestag Caucus 
reflected the prominence of the issue in Chancellor Merkel's party. 
 
 
--------------------- 
ROLE OF EU PRESIDENCY 
--------------------- 
 
9. (SBU) German stakeholders have mixed views on the importance of 
the EU presidency for TEC.  BDI told EMIN that the presidency is now 
less important to the process and that the organization trusts 
European Commissioner Guenther Verheugen's political instincts to 
drive progress.  Boerner said German officials were disappointed 
with the Portuguese presidency's lack of leadership on TEC, but they 
are optimistic that the Slovenian EU presidency will renew focus on 
the initiative.  Despite Slovenia's size and smaller resources, 
Boerner noted that it began preparing for its presidency up to two 
years in advance.  Germany allowed Slovenian counterparts to observe 
much of its deliberations as EU President so it could learn the 
mechanics of the role and develop a network of German counterparts 
to accelerate progress.  Boerner expects Slovenia's time at the helm 
to benefit TEC because an EU President determines which initiatives 
become part of the political agenda and control the channels into 
Brussels required to resolve issues quickly.  Andreas Nicolin, Head 
of the Chancellery's Foreign Trade Policy Division, told EMIN that 
Germany is already reaching out to France to ensure TEC remains a 
high priority during its EU presidency. 
 
Timken Jr