Transcripts For CSPAN2 Key Capitol Hill Hearings 20150505 :

CSPAN2 Key Capitol Hill Hearings May 5, 2015

Its front pain daily basically all european papers and the equivalent in social media. Its a huge debate and many people are very concerned about it. The debate has shown that people are concerned about theth what shay see as possible impacts. Public services, regulatory, investment arbitration environment, et cetera. Men of those fears north justified aft all by facts bit they show that people feel distanced from politics, from trade policymaking, they want to be involved and this is something we need to address. So our challenge is to provide a broad response to this and other challenges. And we are doing that by asking questions about four groups of issues. First, how do we find a way to seek broader engagement and broader trust from the public . This has bun one of my priorities so far. We have put basically all documents on the european side online so that everybody can see what we are negotiating and what we north negotiating. So were looking at now how we can be more transparent across the rest of our agenda, and that is always we need to work very closely with eu Member States and of course our European Parliament. They represent our citizens are and essential for our work because in the end they need to give their consent to any trade agreement. Second europes trade policy must also have a broad conception of how to advance our values. Trade cannot solve every problem of the world but can drive the right kind of change. How can we do more to strengthen human rights, labor rights snow. One idea is responsible supply chains. In addition to our initiative in bangladesh were also working to address issues around Raw Materials sourced from conflict zones in the world. The question is whether to look at further ways to address these issues by promoting the concept of fair trade more generally. First, our strategy muss be broad when it comes to hard economics. Recent the scope of trade policy has expanded greatly there was tame when the main negotiation was about tariff, then trade agreements took a few weeks. This is not the case anymore. We have to continue to broaden this if we want to be effective need. To explore youth digital trade mobile of people who want to provide services and maintain goods already sold, and new disguised subsidize0. Are strategy must look at how to move to deepen existing worlds in areas like energy and regulatory cooperation. Regulatory issues are the core issues. Can we find a way to make a different regulatory decision more compatible while making sure that regulations still protect people and consumers . And, fourth, even with limped resources, we need to keep up the broad geographical scope of a trade agenda and make sure we deliver. The best way to tackle many cos the wto now. Trade agenda need to look at the post bali agenda and we need to seek ways to use the energy in bilateral negotiations to drive the multilat multilateral process, and open trade from roughly a quarter to 2 3 in the coming years inch asia we have deals with korea and singapore. Were moving towards concluding with vietnam and japan. We want to finalize our Investment Agreement with china. Within malaysia last weekend to meet with the trade ministers and we discussed how we can move forward in a region to region trade agreement in the future. Were also exploring bilateral negotiations with countries such as malaysia, nosa, philippines can et cetera. We are working to a new phase in our relationship with africa. Last year we concluded Partnership Agreements with 27 african countries and these are very much about development but also about partnerships. Because countries need to slowly gradually and sensitively open their markets for the European Union and this is positive step that signifies maturation a partnership of equal. In the americas we concluded a groundbreaking agreement with canada in latin america we have a Broad Network that includes Central America care caribbean and the entire pacific coast. Our new strategy will look at filling the gene by deepening our existing but ol grandma of agreement with mex and chile and then we have to deliver. Doing a deal with our trade and Investment Partners will make a major contribution to expand the amount of our trade. Ttip is the lead negotiation to test the most advanced type of trade displays. Both sides have to go further on regulatory cooperation than any any other free agreement including the tpp and we want to feel that strengthened regulatory protection while facilitating trade. We want to make sure we can set joint standards that can be leading globally. And we want to make sure that we set state of the art from everything from Stateowned Enterprises to small and medium sized enterprises. When we come the politic of trade, ttip is important too. Its a testing ground for the rest of the trade policy. Ttip is very much about the strengthening our shared transatlantic value never forget that stands for partnership, and we share many of those values, everything from open market to high levels of leakinger to protection for environment, health, consumers and also our dedication to democracy, human rights, and rule of law. And by coming together around these principles, the u. S. And europe can strengthen our partnerships to defend them, also globally and thats why ttip will be a vital part of the future a property of the world trade system. As secretary kerry said last week by working together we create habits of cooperation that spreads to every a part of our relationships and that gives us a chance to lead together. So, ladies and gentlemen, making trade policy is not easy. It always involves tough discussions and negotiations with partners all around the world, and tough discussions with many different interests at home. You know that and we know that. In keeping up to date is not easy either. I it involves learning new skills and addressing new political challenges, but its worth the effort. We live in a world that becomes more integrated every day. An ancient philosopher said the human family now exists under the conditions of a global village. That was 1962. And its hard to conceive what he would have made out of todays international connections. Opening to the world is an essential natural response and a resource we have to develop. Only by engaging actively and continue obviously consistently, with the world can we hope to shape it and benefit from it. A trade policy backed up by a Clear Strategy is vital to do that and we need a global trade agenda for globalized world and this is waltz were becaming to do wind the European Unionism know these challenges i outlined are the same challenges you are discussing here in the u. S. , so we are looking forward to working closely with you on that. With that, thank you very much for your kind attention and im looking forward to the discussion. [applause] thank you so much. Youre the best advertisement for a csis intern. You can become a European Union commissioner. My name is heather conly the Senior Vice President here for europe and eurasian. The last time we hosted you commissioner malmstrom was in our old building and you and former deputy secretary of homeland security, were in a dialogue on cyber security. And we can turn to that. Were just delighted to halve you here. What we have, and i think we have about 45 minutes of conversation and discussion. Im going to get you warmed up a little bit before we let our audience ask you questions. I know the title is ttip and beyond but im going to focus more on ttip rather than the beyond. I know youre fully prepared for that. Let me begin as a nontrade person i am confused. Im confusioned about the investor settlement dispute issue. The European Union just completed aen agreement with canada. Ifds was in there. Of the approximation 117 cases worldwide last year, believe isds 75 were used by european firms towards european governments. Why now do we have this huge concern about isds, the privatization of arbitration . This could be a showstopper and were confused because this is in well over 50 of all bilateral trade instruments. Help us understand what happened that has created this enormous concern and response from europe. Well, its a very good question and it does not have an easy answer because these agreements isds, is now the most toxic acronym in europe, all over. You have hundreds of thousands of people who talk about this every day. Of you going it it means International Shepherd dog society. But thats not what were talking about today. We are talking about these bilateral Investment Protection agreements that exist since 1959. Its a german invention and i think theres almost 3,000 globally. But it has somehow become a symbol of Big Companies challenging the right to govern or the right to regulate for governments. And i spend half of my working time to answer questions about this. I think it has to do i know thats a debate here as well growing. I think it has to do a little bit with the economic crisis, where its seep as the economic crisis were caused by Big Companies and they were not following the rules. And putting states in difficult positions. So its in the big company blame game. A little bit. Some countries this is more frequent than others. So what we started to do in and my predecessor started in the canadian agreement to make them more up to date. Its true they are oldfashioned. And they have been they were created in the 60s and had more the companys interest than the right to regulate, and with the Consumer Protection this has grown immediately. So what we are trying to do in the canadaan agreement was to reform it to make them more transparent, more open, more limited to really make sure that they can only be used for clear cases of when investments are in question. What were doing now in the European Union is moving from that toured a modernized system of investment arbitration where investors can feel safe, that theyre investments will not be confiscated or discriminated or nationalized but that this is done in an open, transparent way that creates confidence, and we are working with this intensively since well, since my first day in office, actually and we will present some ideas this week to the European Parliament and Member States. Hopefully we can then sort of have that question resolved, or at least we can focus on other aspects of it. Let me move to another issue that were following care through. Plat week we issued a new report fueling online trade and you mentioned the digital agenda, how critical that is. Yet we know Data Protection, transatlantic sharing of data, is a very difficult subject the safe hash pore agreement is now being safe harbor agreement is being reviewed and renewed and we know theres enormous impact still in europe over the nsa revelations. Tell me what your perspective is on Data Protection and getting that right . Because were seeing obviously a lot of activity on localization, of servers. The commission is taking strong measures against google and other American Information Technology sectors is dominant in europe, dominant. And theres some reaction to that simply the competitiveness. How are you approaching Data Protection and that important transatlantic sharing of digital information. Well, this is indeed very important part of the negotiations because that da flows across the atlantic every second, and we continue to do so. So its important we facilitate trading data and data flows in companies. This is the future in many ways and we will be discussing this in the ttip negotiations as well. When it becomes difficult is when we talk about personal data and how it is used, and thats we have so far that the Data Protection regime of europe is nose going to be negotiated with ttip. Were operating our rules. We also have the safe harbor, as i understand this is about to be very soon and i welcome that. And we are also negotiating that my colleague who is responsible for justice and the issue of an umbrella agreement between the u. S. And eu. Why that is not part of ttip it would be very beneficial to set the standard and the umbrella conditions there. So we will find a way to facilitate and is treated in accordance with u. S. The president has been very active in correcting some of the nsa how shall i put it some of the ways nsa was using data. That was not appreciated by lots of the american people, of course. So i think this is a movement that we welcome and that is moving forward. It has created problems for the trust between us. This whole issue and its important that we build steady on the reforms being made on both sides and on the reforms were working on together. Do you sense from broadly the European Parliament a little more focused on the data question and Privacy Protection issues or more focused on the isds. What this Europeans Parliament most concerned about today. Oh. Dont have long enough. Both the Data Protection issue has been very high on the agenda for many years and they are the elected rem todays the people these are concerned the people feel not only in the nsa snowden context but we have had our issues internally as well and also with the fight against terrorism to get the balance right. But, yet we should fight terror jim but shoals be protection for the integrity. So they have been concerned for that for a long time, which is good. But i would say that these issues and with isds and the ttip cop text are probably the most complicate ones. Let me ask you an unfair question so forgive me. When i speak with european officials that have been edge gauged in the ttip discussion i hear a common concern concern that the United States is not as ambitious as europe would like forwardleaning and using ttip as a way to really push boundaries even whether its tariff reduction which theyre low but still or even looking at the regulatory issues. Would you agree that the statement that you wish the u. S. Side was a bit more ambitious being more dramatic and pushing forward some bold we would like to finish the negotiatings as quick as possible, but we also aware of the political realities. I know that in the congress right now theres an intense debate on the trade promotion authority, also the tpp the trade so many acronyms the Pacific Partnership in the finalities, of course. This is limiting a little built the possibilities for the administration to fully focus on ttip with business being winded up we hope the full focus can be on ttip. We have very high ambitions and it has been confirmed by president obama as well we really want an ambitious agreement. Because with could get rid of a few tariffs and that would that could have been done years ago but we trade for billions every day but we want to have this broad ambitious agreement. Yes, looking at tariffs bus theyre still affecting small and Medium Size Companies and look at access to our markets when it comes to public procurement. When it comes to rules and regulatory talk about energy. Its a very ambitious agreement that we have sort of in our preparatory work set out together. So we hope and we trust and we think that we can hadnt been easy would have done it a long time ago to deliver and make the biggest Free Trade Agreement ever. That question of timing is increasing you have an election coming up. Yes a Little Something happening in 2016. But i think remembering when the political rhetoric, the euphoria remember that one tank of gas we were going to get ttip i joke, has to be a prius because were going to be on this one tank for a while and the concern is that obviously tpa tpp and taking enormous amount of Political Energy here, that in 2016, election years are not the best time for big steps to be taken. And i certain of asked a similar question to ambassador sullivan last week, saying itself feels to me we sort of stalled a little bit in the ttip. He says, no, no this is just the boring bit. This where is we get quiet and focused that you dont see. I said, okay, its boring, but it feels like externally its losing a little of its energy and this is when a lot of the groups who dont want this dealing to be successful, you mentioned the toxicity in europe today. Thats what it feels like is taking hold. I worry we are going to get into 2016 and its just going to look like 2017. The u. S. Is never in one administration started and completed a trade negotiation. Ever. In our history. Well, famous british austrian said optimism is a duty. Thats my moto. We support the fair eleakses but they complicate the time timetables. I have time. Im here until 2019 unless theres a revolution. Youre not going anywhere. We have plenty of elections. 28 countries and there are regional elects. A big one on thursday. A big one in a country we all know very well, the unite kingdom, and then next year, the well be busy. Hopefully we can thats what we are aim agent intense identifying the debate. So some of the really political issues can be shoveled solved now and leaving the boring technical things for when the debate becomes intense. That could be easier. Well see. Absolutely. Its going to challenging. Let me turn, tracking back on the question of ambition. The one ambition you dontors have had is creating an energy chapter, and that has not been words something that is very attractive to the u. S. Side. Do you feel youre get something traction on getting the energy that National Resources question out there or quite frankly this is something that the americans are simply not interested in exploring . This is certainly difficult issue for eu. Were aware of that. I think since we started to wr

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