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DE RUEHBS #0622/01 1201322
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R 301322Z APR 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 06 BRUSSELS 000622 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON ETRD EUN
SUBJECT: INTRODUCING THE EU, PART VII: EU-U.S. COOPERATION UNDER THE 
TRANSATLANTIC DIALOGUE (THE NTA PROCESS) 
 
REFS: (A) 2008 BRUSSELS 1790; 
       (B) 2008 BRUSSELS 1825; 
  (C) 2008 BRUSSELS 1880; 
      (D) BRUSSELS 108; 
  (E) BRUSSELS 276 
  (F) BRUSSELS 391 
 
SUMMARY AND INTRODUCTION 
------------------------ 
 
¶1.  (U) Policy consultation and coordination between the United 
States and European Union has grown enormously over the past decade, 
and in many respects now rivals the level of discussion we have with 
such key allies as the UK, Germany and Japan.  Our policy 
relationship with the EU differs from those others, however, in two 
key respects: 
 
-- The multi-tiered nature of dealing with the EU (where discussions 
in Member State capitals are a critical complement to dealing with 
the Brussels institutions); and 
 
-- The EU emphasis on "structured dialogues," itself a legacy of the 
days when EU officials hoped we would talk to them at least once a 
semester, and a reflection of their need for advance scheduling 
because of their crowded meeting agenda. 
 
¶2. (SBU) This cable focuses on the often-confusing raft of 
"structured dialogues" we have with the EU.  These dialogues are a 
necessary part of our relationship, helping ensure continuity in our 
discussions, although they are by no means sufficient.  Impromptu 
and informal visits, phone calls, emails and digital 
video-conferences are essential to ensure compatibility with EU 
policies, especially as we increasingly work together to respond to 
fast-breaking events. 
 
¶3. (U) The New Transatlantic Agenda has served as the framework for 
structured U.S.-EU cooperation since 1995.  Joint action under the 
NTA addresses common interests in almost all areas.  Cooperation 
takes place at several levels, including an annual Summit.  As 
detailed below, the NTA structures encompass a Senior Level Group, a 
Task Force, a number of working-level "troikas" on geographic and 
functional foreign policy issues, as well as other formal channels 
for discussing law enforcement and counter-terrorism, economic, 
energy and environment issues, including the Transatlantic Economic 
Council (TEC). 
 
¶4. (U) This message is the final in a series updating our EU cables, 
meant to help officers in positions requiring a good knowledge and 
understanding of the EU machinery.  Other cables in this series 
discuss the history of the European Union (Ref A); the chief 
political institutions of the EU (Commission, Council and Parliament 
- Ref B), the EU Presidency and the European Council (Ref C); the 
judicial, financial, supervisory and advisory bodies (Ref D); the EU 
structure, treaties and legal order (Ref E), and the enlargement 
process (Ref F). 
End Summary and Introduction. 
 
FRAMEWORK FOR COOPERATION 
------------------------- 
 
¶5. (U) In 1990, the United States and the European Community (now 
Union) adopted the Transatlantic Declaration, which took stock of 
our expanding common agenda.  The Declaration provided for 
semi-annual U.S.-EU Summits, ministerial meetings and 
Cabinet/Commission consultations.  It established semi-annual 
meetings of U.S. and EU Political Directors, and a network of 20 
working groups (called "troikas") on geographic and functional 
foreign policy issues. 
 
¶6. (U) In response to the dynamics of an "ever closer union" in 
Europe, and to help overcome the tensions caused by differences over 
the Balkans, the U.S.-EU Summit in Madrid in 1995 expanded on the 
Declaration with the New Transatlantic Agenda (NTA) as a new 
framework for a cooperation that had gradually deepened and 
broadened.  The NTA set out four broad objectives for U.S.-EU 
cooperation: 
 
-- Promoting peace and stability, democracy and development around 
the world: this included promoting peace in the Middle East; helping 
Russia and the Central European countries in strengthening their 
democracies; acting jointly on humanitarian assistance, and 
preventive diplomacy; 
 
-- Responding to Global Challenges: joint efforts to combat 
international crime and narcotics; a commitment to protect the 
environment by taking coordinated initiatives; setting up an early 
warning system to combat communicable diseases; 
 
-- Contributing to the expansion of world trade and closer economic 
relations: support for the WTO and strengthening the multilateral 
trade system; the creation of a New Transatlantic Marketplace to 
further liberalize transatlantic economic ties; 
 
BRUSSELS 00000622  002 OF 006 
 
 
 
-- Building Bridges across the Atlantic: expanding commercial, 
cultural, educational and scientific exchanges to ensure public 
understanding of and support for the transatlantic relationship. 
The Transatlantic Business Dialogue was an early example of such 
links, playing an important role in improving the flow of trade, 
investment, capital and technology across the Atlantic. 
 
¶7. (U) Although the NTA and its Joint EU-U.S. Action Plan replaced 
the 1990 consultation framework in large part, the Summits, 
ministerial meetings, Political Directors meetings and troikas were 
retained.  As described below, the NTA also established additional 
formal structures -- including the "Senior-Level Group" and "Task 
Force" -- to provide political guidance to and oversee this expanded 
engagement. 
 
THE SUMMITS 
----------- 
 
¶8. (U) The U.S.-EU Summits between the President, the head of 
state/government of the country holding the EU Council Presidency 
and the President of the European Commission provide the overarching 
policy guidance for transatlantic collaboration.  We reduced the 
"formal" number of Summits to one per year in 2001, although in both 
2005 and again in 2009 this was supplemented by a meeting between 
the President and the heads of state and government of all EU Member 
States. 
 
¶9. (SBU) Over the past few years, Summit statements -- while not on 
best-seller lists -- have been instrumental in directing our 
officials to cooperate in key areas, including counter-terrorism, 
data privacy, energy and climate change.  The agenda-setting power 
of these statements makes it useful for us to enter Summit 
preparations with a bulleted list of actions we want from Brussels 
in each of the key areas of regional stability, justice and home 
affairs and economic issues.  The Summits have also provided an 
excellent hook for speeding agreements between the two sides - as 
with the Aviation Agreement of 2007. 
 
¶10. (U) If and when the EU Treaty of Lisbon comes into play, the EU 
side of the Summit table will change dramatically.  The key 
interlocutor of the U.S. President will be the Permanent President 
of the European Council, a new position to be established under the 
treaty.  The holder of the job, who will be appointed by EU leaders 
for a two-and-a-half-year term (renewable), will represent the EU 
externally, at the head of state/government level, particularly on 
matters related to Common Foreign and Security Policy (CFSP).  While 
the EU still has to determine how exactly the new treaty will affect 
the composition of its Summit delegation, we expect the six-month 
rotating Presidency of the Council to retain a seat at the table. 
The rotating Presidency, which will chair the specialized EU Council 
meetings (e.g., environment, JLS, etc.) will indeed play a key role 
in the formulation of EU positions at the Summit. 
 
OVERALL MANAGEMENT OF THE RELATIONSHIP 
-------------------------------------- 
 
¶11. (U) In addition to the Summits, U.S. government agencies and 
their EU counterparts hold a large umber of formal meetings each 
semester, a perod currently coinciding with the rotating Presidency 
of the EU Council.  (The Czechs currently chair the Council; they 
will be followed by Sweden for the second half of 2009 and Spain and 
Belgium in 2010.)  The EU side is generally represented by the 
"troika," which includes the Presidency, the European Commission and 
the Council Secretariat.  The Commission leads on issues (generally 
economic) of Community competence, while the Presidency, supported 
by the Secretariat, leads on most political and justice and home 
affairs issues. 
 
¶12. (U) As noted, the NTA created a Senior Level Consulting Group 
(SLG), which has overarching responsibility for managing the 
transatlantic relationship and for agreeing the key policy themes 
for the U.S.-EU Summits.  The SLG is meant to meet at least two 
times during each six-month Presidency of the EU Council and to 
focus on a range of issues of major concern: e.g., global issues, 
the regional issues of the moment, counter-terrorism and the trade 
agenda.  On the U.S. side, the SLG is co-chaired by the 
Undersecretaries of State for Political and Economic/Agricultural 
Affairs.  In part because the Under Secretaries now have more 
regular contact with their EU counterparts, the SLG has fallen into 
some disuse, and has met the last two years only on the margins of 
the UN General Assembly. 
 
¶13. (U) A Task Force made up of officials from the U.S., the EU 
Presidency, and the Commission also plays a key role in managing all 
aspects of Transatlantic cooperation, and leads in preparing Summit 
documents, in accordance with SLG guidance.  The Task Force meets 
three to four times per EU Council Presidency, often by digital 
video conference.  In general, the Task Force will discuss any issue 
of concern to either side and thus can serve an "early warning" 
function.  Although Task Force participants are not responsible for 
many of these issues, their role is to ensure that the responsible 
 
BRUSSELS 00000622  003 OF 006 
 
 
offices are addressing them and, if necessary, to devise alternative 
routes to resolve any impasses.  The Task Force is chaired on the 
U.S. side by the Department of State's Principal Deputy Assistant 
Secretary for European Affairs and includes the NSC Director for EU 
Affairs.  On the EU side, both the Task Force and the SLG are 
chaired by a representative of the rotating Council Presidency, 
usually the head of the MFA North Americas Department, with support 
from the European Commission's Director for American Affairs and his 
Council Secretariat counterpart. 
 
POLITICAL DIALOGUE: MEETINGS AT ALL LEVELS 
------------------------------------------ 
 
¶14. (U) The many foreign policy issues on our common agenda are 
addressed regularly at all levels.  At the top, the U.S. and EU 
generally hold two Foreign Ministers meetings during each EU 
Presidency.  The EU is represented by the Presidency foreign 
minister, the External Relations (RELEX) Commissioner and the High 
Representative for Common Foreign and Security Policy 
(CFSP)/Secretary General of the Council.  There is also 
traditionally an annual meeting with all Member State FMs, plus the 
External Relations Commissioner and the CFSP High Rep/Council SG, 
held during the UNGA session in New York.  EU Member States and 
institutions have yet to determine how changes in its leadership 
structure related to the pending Lisbon Treaty will affect their 
participation in ministerial (and Summit-level meetings) with us. 
For example, the creation of the position of High Representative for 
Foreign Affairs and Security Policy (combining the current 
responsibilities of the CFSP High Rep and the RELEX Commissioner) 
would logically reduce the number of our interlocutors and enable 
the EU to really speak "with a single voice." 
 
¶15. (U) The Political Directors (chaired by the Assistant Secretary 
of State for European and Eurasian Affairs and the current EU 
Presidency MFA counterpart) meet once per EU Presidency, generally 
in the first month, to review international political issues and 
stay in touch as events warrant throughout the Presidency.  This 
consultation usually includes a lunch with the Political Directors 
of all Member States and a restricted meeting with the Presidency, 
upcoming Presidency, Council and Commission representatives. 
 
THE FOREIGN POLICY TROIKAS 
-------------------------- 
 
¶16. (U) The 15-20 "troikas" -- working-level consultations between 
U.S. State Department, EU Presidency, Commission and Council experts 
-- operate relatively independently, coordinated by the Office of EU 
Affairs (EUR/ERA) at State.  Troikas are area-specific (Middle East, 
Latin America, Asia, Africa, various parts of Europe), or functional 
(arms control, non-proliferation, human rights, UN, consular, 
counter-terrorism).  (Note: In EU parlance the "troika" formation 
refers to a meeting at any level in which the Presidency head of 
delegation is assisted by the Commission and the Council 
Secretariat; the future Presidency is also often represented.  End 
note) 
 
¶17. (U) The foreign policy troika names match the corresponding 
Council working groups of officials from Member State capitals, 
which are chaired by Presidency officials.  While the EU Council 
working groups meet frequently during each presidency, reporting on 
major issues in their region to the EU's Political and Security 
Committee (PSC), the U.S.-EU formations generally meet once a 
semester.  With the U.S.-side led at the Assistant Secretary or 
Deputy Assistant Secretary level, these meetings offer an 
opportunity for in-depth discussion of key regions/issues, in which 
we can share analysis of events, describe our respective responses, 
and identify ways to better coordinate our actions.  In general, 
these discussions are most effective if supplemented by digital 
video-conferences, followed up with frequent contact at the working 
level, and used to inform the deliberations of the Ministerials, 
Senior Level Group and Task Force. 
 
OTHER DIALOGUES 
--------------- 
 
¶18. (U) The United States and EU undertake a large number of other 
consultations on areas such as justice and home affairs, 
counter-narcotics, the environment, S&T, energy, development 
assistance, competition policy, and financial market policy, in 
addition to the "formal" NTA and troika meetings. 
 
JUSTICE AND HOME AFFAIRS AND COUNTER-TERRORISM 
 
¶19. (U) Cooperation in Justice and Home Affairs has become a key 
feature of our relations with the EU.  We have high-level and 
regular troika meetings to discuss border protection issues, 
visa-free travel of EU and U.S. citizens, information sharing for 
law enforcement purposes, U.S. work with Eurojust and Europol 
pursuant to the U.S.-EU international agreements, combating 
terrorism and organized crime in line with the EU Counter-terrorism 
Strategy.  A number of EU-U.S. agreements have been concluded in the 
JHA area, including the Agreements on Extradition and on Mutual 
 
BRUSSELS 00000622  004 OF 006 
 
 
Legal Assistance (MLAT), the Agreement on the transfer of Passenger 
Name Records (PNR) and the Agreement on Swift Terrorist Finance 
Data. 
 
 
¶20. (SBU) A number of problems in this area stem from different 
perceptions of how our governments' law enforcement agencies protect 
personal data privacy.  To address this difference in perception, we 
established an informal "High Level Contact Group" (HLCG) to develop 
a set of common principles on data protection.  The HLCG includes 
representatives of the departments of Homeland Security, Justice and 
State; its work relates to concerns of the Treasury and Commerce 
departments as well.  This work is on-going, but may lead to an 
agreement between us to ensure that data protection concerns do not 
interrupt necessary law enforcement and counter-terrorism 
information sharing.  The EU side is politically constrained from 
concluding an agreement before the Lisbon Treaty enters into force 
as that Treaty will give the European Parliament greater say in 
these issues. 
 
¶21. (SBU) The troikas on counter-terrorism, terrorism finance and 
consular issues are still more platforms for policy dialogue and 
exchange of best practices. From 2004-2008, U.S. and EU terrorist 
financing sanctions practitioners met under each EU Presidency to 
explore issues related to freezing terrorist assets in a workshop 
format.  From 2009, these workshops will take place annually and 
continue to address operational issues related to countering 
terrorist financing.  Separate U.S.-EU troika meetings continue to 
take place once per EU Presidency to update each other on our 
respective developments in terrorism, terrorist financing, and 
consular issues.  Informal meetings take place ad hoc between 
experts (in person or virtually) to trouble-shoot common obstacles 
to effective counter-terrorism cooperation and consular matters. 
 
 
TRANSATLANTIC ECONOMIC INTEGRATION 
 
¶22. (U) Although political and JHA cooperation has intensified 
enormously over the past decade as the EU's competence in these 
areas has expanded, coordinating our economic relationship has 
always been a cornerstone of U.S.-EU ties because of our deep 
integration (over $3 trillion in two-way investment), our leading 
roles in global economic governance and our numerous trade 
irritants. 
 
¶23. (SBU) The SLG and Task Force structures created by the NTA 
quickly proved insufficient to manage trade disputes since the 
participants did not have authority over trade policy.  To address 
this problem, in 1998, we established the Transatlantic Economic 
Partnership (TEP), chaired by the Assistant U.S. Trade 
Representative for Europe and the EU DG Trade counterpart.  Among 
other things, the TEP helped establish the Regulatory Cooperation 
Guidelines, the Regulatory Cooperation Roadmap, and, in 2002, the 
Positive Economic Agenda (PEA). 
 
¶24. (SBU) The TEP process became less important after the launch of 
the WTO Doha negotiations, and the 2004 Summit directed officials to 
undertake extensive stakeholder consultations on ways to improve our 
economic relationship.  In part as a result of these consultations, 
at the 2007 U.S.-EU Summit, President Bush, German Chancellor Merkel 
(then the EU President) and Commission President Barroso signed the 
"Framework for Advancing Transatlantic Economic Integration" to 
advance collaboration in six major areas: regulatory cooperation, 
capital markets integration, investment, innovation, IPR protection 
and transport security. 
 
¶25. (U) The Framework also established the Transatlantic Economic 
Council (TEC), a new ministerial-level body to oversee, guide and 
accelerate implementation of the Framework work program.  The TEC is 
chaired by the Deputy National Security Advisor for International 
Economic Affairs and a Commission Vice-President, currently 
Enterprise and Industry Commissioner Guenther Verheugen.  The TEC, 
which has met three times (November 2007 in Washington, May 2008 in 
Brussels, December 2008 in Washington), brings together the most 
senior leaders on either side who have responsibility for issues in 
the Framework.  On the U.S. side, the Secretaries for Treasury, 
Commerce, Agriculture, Health and Human Services, Labor and many 
agency heads have attended.  On the EU side, the permanent members 
of the TEC in addition to the EU Co-chair are the Commissioners for 
External Relations (currently Ferrero-Waldner), for Trade (Ashton) 
and for Internal Market and Services (McCreevy).  Other 
Commissioners can participate upon invitation or upon their own 
request. 
 
¶26. (U) A number of U.S.-EU working groups, some pre-existing, now 
report regularly to the TEC: 
 
-- The High Level Regulatory Cooperation Forum, established in 2005, 
brings together the heads of all main U.S. and EU regulatory 
agencies to share best practices in regulation and in cooperating 
with one another.  Among other things, the HLRCF led to the 
establishment of a Toy Safety Working Group of Consumer Product 
 
BRUSSELS 00000622  005 OF 006 
 
 
Safety Commission and DG Consumer Affairs experts, which meets 
regularly, often by DVC. 
 
-- The U.S.-EU Financial Markets Regulatory Cooperation Dialogue 
(FMRD), co-chaired by Treasury and DG MARKT, reports regularly on 
efforts to minimize regulatory problems in financial markets, 
including in accounting standards, insurance, and securities 
markets. 
 
-- The U.S.-EU IPR Enforcement Working Group works closely with 
industry to promote IPR enforcement in third countries, notably, 
China, Russia and Latin America. 
 
-- For investment, the first TEC launched a formal dialogue aimed at 
reducing barriers to transatlantic investment and promoting open 
investment regimes globally.  The U.S.-EU Investment Dialogue has 
met well over a dozen times, often by video-conference, generating 
among other things an Open Investment Policy Statement for the 2008 
Summit and coordinated efforts to reduce specific barriers in target 
countries. 
 
-- Finally, on trade and security, the long-established Joint 
Committee on Customs Cooperation (JCCC) now regularly informs the 
TEC co-chairs on progress in facilitating trade flows despite 
increased security standards. 
 
¶27. (U) The TEC also includes a Group of Advisers, consisting of the 
co-chairs of the main transatlantic dialogues (TLD, TACD, TABD; see 
below) to reach out to the broader stakeholder community and to give 
a voice to their concerns. 
 
ENERGY AND ENVIRONMENT 
 
¶28. (U) Over the past few years, we have been intensifying our 
cooperation in the energy field through several agreements.  The 
2005 EU-U.S. Summit adopted a Declaration on energy security, energy 
efficiency, renewables and economic development to set tighter goals 
for energy efficiency and to increase the share of alternative 
energy.  The 2007 U.S.-EU Summit gave a further stimulus to the 
bilateral dialogue with a Joint Statement on Energy Efficiency, 
Security and Climate Change. 
 
¶29. (U) At their 2006 Summit in Vienna, the EU and the U.S. 
established an EU-U.S. High Level Dialogue on Climate Change, Clean 
Energy and Sustainable Development to build on existing bilateral 
and multilateral initiatives and further advance implementation of 
the G-8 Gleneagles Plan of Action.   The Joint Statement on Energy 
Security and Climate Change adopted at our 2007 Summit further 
underlined our mutual interest is tackling climate change.  The U.S. 
and the EU maintain regular bilateral contacts on environmental 
issues to promote a better understanding of each other's policies 
and legislation. 
 
S&T AND EDUCATION 
 
¶30. (U) The EU-U.S. Science and Technology Agreement (entered into 
force in 1998, renewed in 2004 and again in 2009) is the key 
instrument for expanding transatlantic scientific cooperation in 
areas where the EU and the U.S. are doing some of the most advanced 
research in the world; e.g., environmental science, information and 
communication technologies, cleaner energy sources, biotechnology 
and nanoscience. 
 
¶31. (U) The EU-U.S. Higher Education and Training Agreement, 
launched in 1995 and renewed in 2006 for an 8-year period, is 
intended to encourage innovative cooperation projects between EU and 
U.S. educational institutions, in particular through joint study 
programs that provide a framework for mobility for students wishing 
to spend part of their studies on the other side of the Atlantic. 
Educational links between the EU and the U.S. were further 
strengthened in 2004 with the launch of Erasmus Mundus, an EU 
program supporting European Masters courses and scholarships for 
graduates and scholars from all over the world, as well as 
partnerships and exchanges with higher education institutions 
outside the EU. 
 
DEVELOPMENT 
 
¶32. (SBU) In addition to all the above, the U.S. and EU are now 
exploring creation of a formal development policy dialogue, which 
should both bring together the major agencies involved in 
development policy (including in the U.S., State, AID, MCC, 
Treasury, USTR) to ensure overall policy coherence between the 
world's two biggest donors, as well as regular consultations in the 
field to improve the coordination of delivery. 
 
FOSTERING CIVIL SOCIETY COOPERATION 
----------------------------------- 
 
¶33.  (U) In addition to this long list of government policy 
dialogues, a number of people-to-people dialogues were set up under 
the NTA to enable various segments of civil society to become 
 
BRUSSELS 00000622  006 OF 006 
 
 
involved in policy-making by presenting recommendations to 
governments on matters that concern them and to help foster 
communication between the U.S. Congress and the European Parliament. 
 These dialogues, intended to "build bridges across the Atlantic," 
include the Transatlantic Business Dialogue (TABD), the 
Transatlantic Legislators Dialogue (TLD), the Transatlantic 
Consumers Dialogue (TACD), the Transatlantic Environmental Dialogue 
(TAED), and the Transatlantic Labor Dialogue (TALD), although the 
last two have not met for over a decade. 
 
COMMENT 
------- 
¶34. (SBU) Parallel to the EU's growth and expanding responsibilities 
has come the increasingly institutionalized mechanism of 
consultation and cooperation with the U.S.  The expanded 1995 NTA 
gives us the means to address common interests in almost all areas. 
Beyond the U.S.-EU annual Summits, SLG meetings, TEC and Troikas are 
the daily consultations between Brussels and Washington, most of 
which pass through the U.S. Mission to the EU.  Because of the EU's 
unique structure, our relations cannot be centered on any one 
player.  The top-level fora such as the TEC are useful to discuss 
both our short-term economic priorities and longer-term, strategic 
issues in a forthright and productive manner; however, it is 
important that they demonstrate concrete results. 
¶35. (SBU) Accomplishing our objectives with the EU requires the 
preservation of both formal and informal approaches and effective 
interaction with the Commission, the Member States, the Council and 
the CFSP High Rep, the European Parliament, civil society and the 
press.  In order to be effective we must be aware of the 
capabilities and constraints of a most complex partner.  The tools 
are labor-intensive and require that we pay attention to process; if 
effective cooperation ensues, it is worth the effort.  Leadership 
changes in both the U.S. and in the EU in 2009 (and the attendant 
expectations from both) offer a good opportunity to combine the best 
of U.S. and EU means to address joint challenges, including the 
current financial and economic crisis, with renewed dedication to 
this vital and inescapable partnership. 
 
MURRAY