Bradford on the power and influence on the European Union. Its a subject of her book the brussels effect. Good evening, everyone. Thank you so much for being with us. I am David Schizer one of the codirectors of the Richmond Center and i i also served of Columbia Law School from 20,422,014 which i mentor for a very particular reason, i was the dean when professor anu bradford joined our faculty and its one of my brightest moments to persuade her to do that. Im on a stick kickoff a fascinating discussion about the influence of europe on the global marketplace. Last year, the wall street journal called the decline w of europe as a remote consequential shift of the last hundred years. There is some truth in that t since world war ii, the military influence in europe declined and also true that europes Economic Growth has not compared favorably with that of the United States or with china or india. And of course efforts to maintain an Economic Union so europe has been more complicated lately with brexit as we all know but i think professor bradford sees things a little bit differently and in her new book the brussels effect, the European Union rules the world which is here and also back there and you must haveac a cop. Professor bradford argues that the remains are critically important economic superpower. And she makes the case very persuasively, it continues to yield in lateral power in regulating their market and thats a phenomenon called the brussels effect. What does it mean, many, many examples, the eu shapes policies in areas for privacy and Consumer Health and safety of the mental protection, antitrust and online hate speech, you read about this every day in e the paper. What is remarkable that you exert this influence without coercing everyone to do anything, its if you want to sell any European Union you have to comply. So his book explores the b compx topic in the research has received welldeserved and significant praise. Foreign affairs noted recently that the brussels effect may be the single most important book on your mobile influence to appear in a decade. The Financial Times called this albook the definitive reference guide for those wishing to understand the brussels effect. So we have a a treat ahead of us before we begin, a few words about the organizers about tonights event. An institute for Global Business is entered to disciplinary hub of Global Business of Columbia Business School. Institute supports research on Global Business sponsors provocative forms likee this one and since Columbia Business School students on a host of globalal programs including stuy tours and classes during winter and spring break, and proud to say the next month that the institute will send 10000 students overseas, that is quite an accomplishment. The other sponsors impoverishment center for business law and Public Policy of Columbia University. Its a joint venture of columbias business and law school. The goal is to Foster Collaboration among Columbia University distinguished business and legal scholars in order to generate curricular innovations, advanced research that has the potential to infort Public Policy as well as practice just like brussels is fact. Withouts further ado to explain the brussels effect and its many implications, im pleased to it welcome anu bradford of the Columbia Law School who is also a senior scholar at Columbia Business School. And we are very privileged to have peter coy, economics editor for bloomberg businessweek. Anu and peter will talk to 45 minutes and then will have 15 minutes at the end for q a. Also she will be signing copies of her book which is for sale in the back of the room. Thank you all. [applause] thank you everybody for being here, can i get a sense in the room, how many people are connected with the business school. How many people are connected to theeo law school . And how many people thought this was about brussels belgium. [laughter] so enjoyed. This is a great book, i hope you all read it. I will not take this to 45 minutes because i know theres a lot of smart people that will have comments and questions that i might not have thought of but i will probably open up much sooner but then come back and to other questions. And then will have some conversation so you not to be completely surprised when i ask you these questions. I want to read from the introduction in the sense that got me, probably like a lot of you i share concern that is europe dating, isnt it really nott that important and i said examples of eus regulatory abound across global market, they determine how timber is harvested in indonesia and honey is produced in brazil, what pesticides Cocoa Farmers using camarillo, what chemicals are incorporated in plastic toysls n japan as well as how much privacy is imported to Internet Users in latin america. You could have gone on with pages of examples. The center chapters ofof the bok are explaining the brussels effect in great detail. The book goes on to Chapter Eight and nine and is a brussels effect good or bad and whats going to happen next, eight is the good or bad and nine is what happens to the next, and the feeling of a lot of questions and remarks will be about the chapters but we agreed we want to spend some time talking about the central core of the book where does it come from, why does it exist. You write on page 54 the brussels effect is the same effect that cause hostess or fish at ave dinner party. Police explain. [laughter] if you are having a dinner party and you are inviting a guest in one does not eat meat and then another one likes meat but its glutenfree. So then you wonder if you are going to tailor your dinner and i dont need this and have fish and vegetarian. Instead what you decide they may need to skip it and serve the same food for everybody. In many ways we tend to gravitate towards the center that incorporates everybodys preferences. In the hassle of catering to individualized needs for every guess that is coming to the house. That is the concept of nondivisibility can you elaborate on what that means. The nondisability is a ver very it explains why they have the european standard across the goebel is a sham. We understand if you are a Global Business and you want to do trade for the European Market. You want to follow the rules. And then whether you follow the same rules across the other market itself or whether you want a separate production line for the other markets. In the economy of uniform production lead you to conclude that i will perform uniformity, i do standardize because that accommodates in all the markets. And i can produce one product and across all the markets that i operate. There are different kinds of nondivisibility, legal, technical and economic. Legal, let me start from the legal not disability. I did competition law in one study emerges. In america and the other regulators around the world have a say on where transaction can defeat. If the u. S. Is theres nothing log withh allowing ge in the deo says no, we did not let the transaction go forward, that transaction is dead worldwide. It is the most regulator that prevails, you cannot have third and global in one jurisdiction but not in another. So technical nondisability explains why we have a lot of the Tech Companies for an a instant following a single Privacy Policy. So facebook, google, microsoft, they have a Privacy Policy and echoes the europeanol policy. And sometimes it is too cumbersome to divide and you can do locationsu but often they wt to promote the risk and expected to be too difficult and you think of another example of f different ones from the era of safety. So eu is just like gmos. If you are a farmer say from brazil and you want to serve in European Market, you need to make sure you do not have gmos in your products. There is a few even if you also had a Market Opportunity in the u. S. , theres crosspollination. So technically sometime it is difficult to separate the cultivation, the hardest thing, the story, c distribution. So ten times the products become nondivisible. And then i talk about what i think is the biggest category, then onn disability, that is a scale economy. It does not make sense if you remove certain chemicals from your product in order to be safe for the European Market that you will then insert the chemical back into some of your product for the other market. So the cosmetic manufacture in American Companies has made all of its cosmetics consistent with european chemical regulation. It hasas not been introduced or kept those chemicals with products for the newest market. The scale economy also benefit relating to have a global brand. For instance the Business Model of facebook, they want to pride themselves on having one facebook and having a single global conversation. So if they follow different hate speech in america and in europe, you will have a difficult to have a conversation between an american and european. Because some speech would not be visible to some people. Going back to the legal example of nondivisibility but some people would argue that that is going too far, these are two American Companies, this goes back to 2001 and shouldnt they be allowed to merge. He seems like an example of expiratory reality it either it is word isnt. It is expiratory terry and in a sense but those are the facts of the European Market and the consumers and if you think about what would be the alternative, the companies that listed herself in a place outside of europe and the merger review. It is very difficult to think about an area where you can have a Forum Shopping where you can opt into some jurisdiction that does not care about the mergers. And it does fracture ratchet thd up in their legitimate concern whether we have the ultimo standard marketplace. One of those fascinating aspects of the brussels effect represents a race to the top and they worry about a race to the bottom so people actually gravitate to the place where theres a leas regulation. Is there a race to the bottom or is there race to the top or is there both in the world. There are lots of colors in Public Discourse associated with this idea the International Trade and globalization inevitably leads to the lowering of the standards and the idea that the countries want to gain competitive advantage and boost them to compete by lowering the environment standards and the burdens on the companies and the safety regulations. But the scholarship does not show this one to be true, the companies are not locating and trying to relocate or try to engage in practices that will be consistent with the hypothesis. But the brussels of cracks lays out a business rationale that leads the companies voluntarily to ratchet up the standard. What we dont need to see is the rates that the u. S. Will be ventilating in your standards. That happens in some areas as well, that the standards get replicated by the government in race to the top. But the core of this is that we see a race to the top or the American Companies start producing even in america to the new standard even if they went to do so by u. S. Law. I have a lot more questions but as i said i really do want to get the audience involved early on so i dont know what the deal is with the mike, we will bring a mike teal, does anybody have a question now, i see wondering here. State your name. I am from the biz and group. I appreciate you sharing with regards to how the law affects companies in america in the developed world, what does it mean for entities or the economies in emerging markets in africa or asia and how are those laws shaping as you put it. I think its partially impacting them in a descriptive matter and what we see is the Companies Operating in this market to the extent that they are exporting to the European Market. They are adjusting practices, they are adopting eu, some reluctantly but is only way to continue to do trade in europe. The other question is whether its good or bad for the development of the country with this idea and there he took a little bit in the book and it goes both ways. There could be a criticism relating to gmo and that what eu is forcing the african farmers to do is not good for africa. And they would need the gmos to feed the population. There is also Research Showing that allows them to develop a product that allows them to tap into the higher level of the market and be better off financially in the end, for example that you mention on the cocoa beans, now they have an approval with european Safety Standards in many other markets as well because they have shown that the quality of the cocoa bean. In many ways it can also serve the companies and it can also wrve governments for instance that are constrained and they do not have the capacity and mergers that harm big consumers. They do not have the capacity to enact the private regulation for any regulation they keep consumers and citizens safe. So some of them on the effort of the european regulator. With global cartel, that would increase the prices of consumers in africa. I think there is no single answer that would lead the government to embrace or criticize the brussels effect because on industry and the actor in question. Is a question if youre in the second row. Peter from the law school very happy colleague and before you call them the brussels effect, a couple of scholars published another book our new global rulers with International Standard organization and what if its part of the brussels effect it has 27 votes in the International Standard. There some criticism occasionally of the ability to liberate the 27 votes when it needs to getli something done yu have to use it to regulate with a single voice. But at the same time the standardsetting has an interesting interaction with the brussels because if you look at the law of the eu own standard, that you regulation, they can be mortal after International Standard which eu takes onto its regulation and further externalizes advancing not only ease regulatory but a vision of International Organization and at the same time given the 27 votes and that you has experienced, it was quite effective in effecting and influencing the standard set to emerge from those organizations. It is a twoway street, wouldve come across in the research the International Standardsetting and allowing itself to be influenced by those standards that emanate from those institutions. I will go to one question and then come to you next. There was an example in the book of the eu overreaching and mission trading scheme involving airlines. Can you walk through that story and talk about why you came out differently. That was a very fascinating story. We all know that Climate Change is one of the priorities for that year. Well know that multilateral corporation in tackling Climate Change has been limited. So the eu has decided to try to move ahead on its own and partially the brussels effect, this is meeting to its limits and this is the story i engaged within the book, when that you tried to extend the omission trading to aviation and if you are american airlines, flying from new york to london and plane from new york to paris, you would need to buy it for the duration of the entire flight only for small part takes place in the european airspace in the same thing find back to the United States. In this cost a massive backlash by growing governments but also foreign airlines. Who then use a collective power to lobby against it and thought that you. Eu wouldve lost massive, stakes are huge, they found out if you have collective response from the get Business Community that pushes back. They actually needed it to back off and they said it is not Going Forward with the extension to aviation when it applies to noneuropean planes. But its also a story for the brussels effect because with the email and to do is managed to catalyze International Negotiation and when it comes to omission trading in the industry. Because that you had the Bargaining Power of the knowledge that that you would be doing something unilaterally and the other actors do not come to the table. Ethic its interesting that the limits of the brussels effect but also the contention unilateral and way again catalyze international corporation. You have a. Question. Please identify yourself. Hi im from columbia alumni. Wewe talk about how you developd a strong power to be a judgment maker and what percentage of buying power, lets say food purchase, what percentage with the eu be that people are saying we have to tell