Europa y EEUU estudian cómo hacer frente a la alianza China-India-Brasil y buscan fórmulas para aislar a Venezuela, Bolivia y Cuba de la negociación
ID: 249182
Date: 2010-02-17 13:31:00
Origin: 10BRUSSELS183
Source: USEU Brussels
Classification: CONFIDENTIAL
Dunno:
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RR RUEHAG RUEHROV RUEHSL RUEHSR
DE RUEHBS #0183/01 0481331
ZNY CCCCC ZZH
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FM USEU BRUSSELS
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INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
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RUEHBR/AMEMBASSY BRASILIA
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C O N F I D E N T I A L SECTION 01 OF 07 BRUSSELS 000183
SIPDIS
NSC FOR DNSA FROMAN, KVIEN, BELL
STATE PLEASE PASS TO USTR FOR SAPIRO AND WILSON
E.O. 12958: DECL: 02/16/2020
TAGS: EAID, ECON, ECPS, EFIN, ENRG, EINV, ETRD, EUN, KGHG,
PREL, SENV, BR, CH, HA, IN, SF
SUBJECT: SUBJECT: DEPUTY NSA MICHAEL FROMAN VISIT TO
BRUSSELS, JANUARY 27, 2010
SUMMARY
——-
1. (C) Deputy National Security Advisor for International
Economic Affairs Michael Froman held wide-ranging discussions
with over 25 senior EU officials in Brussels January 27.
Froman and the Ambassador met with Commission President
Barroso, the incoming European Commissioners for Climate
(Hedegaard), Internal Markets (Barnier) and Trade (De Gucht),
and with new European Council President Van Rompuy,s Chief
of Staff. Froman and the Ambassador also lunched with a
dozen Directors General and Commissioner cabinet chiefs, and
led a roundtable with Member State Ambassadors. The EU
officials welcomed Froman,s call for stronger bilateral
cooperation to boost our economies, improve coordination on
climate, Doha and financial regulation, and push back against
coordinated opposition of BASIC countries (China, India,
Brazil, South Africa) to our international positions. They
also appreciated the Ambassador,s message that they must
capitalize on the Obama Administration commitment to
multilateralism to secure with the U.S. concrete achievements
to strengthen growth and create jobs.
2. (C) DNSA Froman and Hedegaard committed to work closely to
define the right Post-Copenhagen climate negotiating group
and process, and agreed to hold a DVC prior to the February
11 European Council. Froman and De Gucht committed to share
ideas to improve the Transatlantic Economic Council (TEC),
with De Gucht planning a February-March DC visit to discuss
TEC and trade issues. Froman, Barnier, and lunch attendees
agreed on the importance of bilateral coordination to improve
G20 and other work on financial reform. De Gucht and other
officials noted the urgency of building U.S.-EU crisis
response and development cooperation in the wake of the Haiti
earthquake. Finally, Froman expressed U.S. support for the
new EU Lisbon Treaty structure; the officials explained that
the EU will need time to adjust to the new format but should
emerge with better, more streamlined decisionmaking. END
SUMMARY.
A PACKED AGENDA WITH SENIOR EU OFFICIALS
—————————————-
3. (C) Deputy National Security Advisor for International
Affairs Michael Froman held intense, broad-ranging
discussions with EU and Member State officials on January 27
enroute to the Davos World Economic Forum. Ambassador
Kennard accompanied Froman throughout the day. Froman met
with European Commissioners-designate for Climate Connie
Hedegaard and for Internal Markets Michel Barnier, current
Development Commissioner and Commissioner-designate for Trade
Karel de Gucht (plus staff for all), and new European Council
President Herman Von Rompuy,s chief of staff Frans Van
Daele. Froman also met briefly with Commission President
Jose Manuel Barroso and with Director General for External
Relations Joao Vale de Almeida. Froman attended a lunch
hosted by Vale de Almeida featuring:
– Marco Buti, Director General for Economic and Financial
Affairs Jonathan Faull, Director General for Justice, Freedom
and Security
– Antonio Cabral, President Barroso Senior Economic
Policy Adviser
– Fernando Andresen Guimaraes, President Barroso
Diplomatic Adviser
– James Morrison, Head of Cabinet for High Representative
and Commission Vice President Catherine Ashton
– Olivier Guersent, Head of Cabinet for
Commissioner-designate for Internal Market and Services
Michel Barnier
– Timo Pesonen, Head of Cabinet for
Commissioner-designate for Economic and Financial Affairs
Ollie Rehn
– Mark Vanheukelen, Head of Cabinet of
Commissioner-designate for Trade Karel de Gucht
– Alan Seatter, Director for North America in Directorate
General for External Relations
– Jean Claude Thebault, new Commission Deputy Secretary
General
BRUSSELS 00000183 002 OF 007
4. (C) Froman and the Ambassador ended with a roundtable
including Member State Permanent Representation (COREPER II)
Ambassadors from: Austria (Hans Dietmar Schwiesgut); Belgium
(Jean De Ruyt); Denmark (Poul Skytte Christoffersen); France
(Philippe Etienne); Italy (Fernando Nelli Feroci); Poland
(Jan Tombinski); Sweden (Christian Danielsson); and the UK
(Kim Darroch).
5. (C) Discussions centered around six themes: the need to
improve U.S.-EU bilateral coordination on a range of
transnational issues (including climate, Doha and financial
reform), to avoid repeating what Froman termed
&disappointments8 of 2009 and to meet the rising challenge
of surprisingly united BASIC countries (China, India, Brazil
and South Africa); close coordination on climate to build
upon the fledgling Copenhagen Accord; better coordination on
G20 and financial supervisory and regulatory reform issues;
our joint commitment to reach a Doha Development Agenda
Agreement; the need to improve the Transatlantic Economic
Council (TEC) and use it to secure concrete achievements that
boost growth and create jobs; and improving U.S.-EU crisis
response and development cooperation in the wake of the Haiti
earthquake.
IMPROVING U.S.-EU COOPERATION TO MEET THE &BASIC8 CHALLENGE
——————————————— ————–
6. (C) DNSA Froman made two major points to his interlocutors
on bilateral relations. First, he stressed, 2009 was a
transition year for both the U.S. Administration and EU
institutions, with both facing enormous challenges. Despite
our mutual good intentions in relaunching U.S.-EU relations,
Froman said, and great improvement in tone, we continued to
talk past each other on some issues. He cited Copenhagen as
an example, where both sides misread each other,s
negotiating bottom lines, and stressed that EU leaders,
&one-upsmanship8 model of outdoing each other to push
EU-wide policy did not/not work in dealing with the U.S.
Administration.
7. (C) Second, Froman told the EU officials, it is remarkable
how closely coordinated the &BASIC8 group of countries
(China, India, Brazil and South Africa) have become in
international fora, taking turns to impede U.S./EU
initiatives and playing the U.S. and EU off against each
other. BASIC countries have widely differing interests, he
said, but have subordinated these to their common short-term
goals to block some Western initiatives. The U.S. and EU
need to learn from this coordination, Froman said, and work
much more closely and effectively together ourselves, to
better handle third country obstructionism and avoid future
trainwrecks on climate, Doha or financial regulatory reform.
8. (C) Ambassador Kennard underscored that this is a
significant moment for U.S.-EU relations. There is important
alignment between our interests, he said, with President
Obama as a committed multilateralist in the White House. We
must feel urgency to work together to deliver real benefits
that will boost growth and create jobs, the Ambassador
stressed, given that we have a limited window of opportunity
before a political referendum occurs on these efforts.
9. (C) The EU officials welcomed Froman,s and the
Ambassador,s calls for closer cooperation. Director General
for External Relations Vale de Almeida emphasized that the
Commission transition and Lisbon Treaty implementation, while
seeming to add to the complexity of EU institutions (for
example, with greater power for European Parliament) will
produce a streamlined EU that is an indispensible U.S.
partner. Commission President Barroso is committed to closer
relations, Vale de Almeida said, highlighting his shift of
TEC leadership to the Trade Commissioner as a positive step.
Vale de Almeida asked for U.S. understanding in the EU
attaching political importance to annual U.S.-EU Summits and
other &processes8; these processes are the way the EU
produces results, he declared. He acknowledged the U.S.
desire for concrete outcomes but stressed that symbolism is
important to EU institutions.
BRUSSELS 00000183 003 OF 007
10. (C) Council President Van Rompuy Chief of Staff Van Daele
elaborated on the theme that the Lisbon changes, in adding a
permanent EU Council President and Foreign Policy High
Representative, will strengthen the EU,s capacity to be an
effective U.S. partner. Froman responded that the U.S.
welcomes the Lisbon changes and wants to help Van Rompuy in
his new position. Van Daele welcomed this, saying he
understood U.S. policy constraints on climate and financial
regulation, given Capitol Hill dynamics. We must work
together on economic reform and must look forward together,
he added; there is &no good from wagging fingers.8 The
U.S. and EU must focus more on getting China more invested in
global cooperation, he concluded, to make the Chinese realize
they &can,t have their cake and eat it too.8
11. (C) Member State Permanent Representation Ambassadors
appreciated the good will of Froman and the Administration to
work for better relations with Europe. UK Ambassador Darroch
stressed that President Obama,s engagement with Europe (the
President has made six trips to Europe since his
inauguration, Froman noted) is welcome, and that European
leaders &haven,t sufficiently responded yet.8 The
Ambassadors were skeptical that Lisbon would bring rapid
benefits. They noted that EU institutions will require an
adjustment period to the new structure, implying delay in a
fully effective EU under the new treaty. Polish Ambassador
Tombinski expected &a big institutional fight,8 but thought
eventually Lisbon may speed up EU operations. French
Ambassador Etienne said the challenge will be to use these
new capabilities effectively so the EU can act coherently
with its major partners. Ambassadors Danielsson of Sweden
and Christofferson of Denmark agreed that the lesson of our
mutual misunderstanding in Copenhagen should be ensuring
better communication to avoid a recurrence in other fora.
CLIMATE CHANGE: BUILDING UPON THE COPENHAGEN ACCORD
——————————————— ——
12. (C) Climate Commissioner-designate Hedegaard thanked
Froman for President Obama,s efforts in Copenhagen. She
asked about U.S. legislative efforts on climate and U.S.
political dynamics around mid-term Congressional elections
and how they might impact U.S. international cooperation
moving toward COP-16 in Cancun, Mexico. Froman responded
that the U.S., overriding international goal, to work on
implementing the Copenhagen Accord as well as on the other UN
tracks, will not change. We will still work toward domestic
legislation as well, Froman said. He thought midterm
dynamics would not strongly impact our work going into
Cancun.
13. (C) Froman and Hedegaard reviewed Copenhagen outcomes.
Froman said that while nobody considered the agreement
complete, it is a good step forward. Hedegaard said
Copenhagen left some disappointed in the UN process, but
stressed that we can,t give up. The Accord contains a lot
of good points, she said, that should not be wasted. She
hoped that the U.S. noted the EU was muting its criticism of
the U.S., to be constructive.
14. (C) Both officials agreed we must focus now on
operational steps to implement the Copenhagen Accord. Froman
said the U.S. will work in the next few weeks on getting
countries to sign up for (&associate themselves with8) the
Accord, and to inscribe their targets. The U.S. would be
happy, he suggested, with the seven emerging market countries
in the Major Economies Forum (MEF), saying others would then
follow. We also need to work on financing, he added.
15. (C) Froman emphasized that we need to determine the right
process and grouping of countries to go forward. This could
be the Greenland group of 28 countries from Copenhagen, MEF
members, or countries signing the Accord, he speculated. The
U.S. is not wedded to a particular grouping, he said, but
there seems to be broad consensus that relying on the two
UNFCCC working groups is insufficient. Hedegaard agreed,
suggesting that an informal MEF grouping might be effective.
It would be critical that this have legitimacy, she said.
BRUSSELS 00000183 004 OF 007
The Greenland group is an option, she said, but others might
resent this designation.
16. (C) It is vital to get G-77 agreement to whatever
grouping we use, Hedegaard continued. Both agreed it will be
important to talk to incoming G-77 chair Yemen, with Froman
adding it will also be important to be in close touch with
Mexico as COP-16 chair. In fact, Froman added, we need all
major groups ) the EU, MEF, BASIC, G-77, the island
countries ) to agree to a negotiating mechanism. Hedegaard
responded that we will need to work around unhelpful
countries such as Venezuela or Bolivia. Froman agreed that
we will need to neutralize, co-opt or marginalize these and
others such as Nicaragua, Cuba, Ecuador. Hedegaard noted the
irony that the EU is a big donor to these countries, while
Cuba, for example, is actively discouraging others from
signing on to the Accord.
17. (C) Both agreed that we need processes for coordination
and avoiding recriminations. Hedegaard said the EU will use
the February 11 informal European Council meeting to reflect
on how to be more focused and effective on climate. Froman
noted he will do likewise for the U.S. in meetings with
Climate Special Envoy Todd Stern and other Administration
officials. He suggested that he and Hedegaard speak before
the Council meeting to coordinate; she agreed to a
videoconference February 10, the day after the new Commission
is expected to be formally approved by the European
Parliament.
18. (C) Froman and Hedegaard then discussed specific goals
for the Bonn and Cancun meetings. Hedegaard said we must
have universal acknowledgment that &the world cannot
afford8 failure to reach a binding agreement. Froman
thought that we should try for progress by Cancun on MRV
(monitoring, reporting and verification), the adaptation
framework, technologies, and some resolution of process.
Both agreed that we should also get countries to inscribe
2020 targets.
19. (C) Froman and Hedegaard also discussed their respective
domestic policy developments, noting the complex issue of
carbon border taxes. This is an issue of great concern to
China, Froman noted. Hedegaard noted the EU,s struggle with
how to manage inclusion of aviation and maritime sectors in
the EU,s Emissions Trading Scheme. Both agreed it is vital
to show economic benefits and potential job creation from
bilateral cooperation on climate and clean energy
technologies, to build public support for our efforts;
Hedegaard committed to provide to Froman EU studies showing
such impacts.
20. (C) Froman summarized his climate points for the Member
State Ambassadors; while some Post-Copenhagen soul searching
is warranted, he said, we need to focus on avoiding a
damaging replay of our division there in the runup to Cancun.
We need to work to make the Copenhagen Accord real, getting
all countries that matter to associate themselves with the
agreement and inscribing their targets. We need early
U.S.-EU agreement on the right group and process to take
discussions forward, and need progress on financing,
technical points and transparency and verification; all are
important, he concluded.
G20/REFORM OF FINANCIAL SUPERVISION AND REGULATION
——————————————— —–
21. (C) Froman heard at length from Internal Markets
Commissioner-designate Barnier and several lunch participants
on the importance of coordination in the G20 and elsewhere on
reform of financial supervision and regulation. Froman
stressed with all that the U.S. wants to work closely with
the EU on all G20 issues, particularly on agreeing to common
principles. The G20 is an important framework for this
cooperation, he said, and it is vital that we deliver results
on G20 commitments not just for their own sake but to build
the credibility of the G20 framework. Froman said he wants
to ensure the G20 is effective.
BRUSSELS 00000183 005 OF 007
22. (C) Director General for Economic and Financial Affairs
Buti agreed that the ascendency of the G20 has raised our
need for bilateral coordination. He lauded the new
macroeconomic and financial dialogue with Treasury launched
just days ago, noting we have agreed to hold this to
coordinate views before major events. Buti said 2009 was a
&fantastic year8 for the G20, and noted we are delivering
on many of the major commitments, including IFI reform,
resources and quotas, the framework for balanced growth
agreed in Pittsburgh, and sharing plans for withdrawal of
stimulus when appropriate. Froman responded that a major
medium-term challenge should then be more structural reform;
Buti agreed. Vale de Almeida said the G20 is improving and
streamlining as it develops, which is positive. He pointed
to Buti and others at the lunch as those who can deliver on
EU commitments and cooperation in the G20.
23. (C) Barnier told Froman he wants to work closely and in
confidence with the U.S. He wants to move as much as
possible in step with the U.S., he stressed. Barnier,s
first non-EU trip will be to the U.S., he added, possibly for
the April G20/IMF Spring Meetings. Froman responded that
Treasury had the primary role on financial services issues,
but that he looked forward to staying in touch. Before
President Obama,s recent announcements on banking reform,
Barnier noted, there had been doubts in the EU on U.S.
willingness to fulfill G20 commitments. There have been
doubts about U.S. willingness to implement Basel II bank
capital rules, but said this is important to ensure a level
playing field. Froman again emphasized U.S. willingness to
work with Europe on these issues.
24. (C) Barnier said he was impressed by President Obama,s
announcements on bank size and scope. He noted EU reaction
has varied, with the UK against, the Dutch in favor and the
French &supportive of the direction.8 David Wright,
Director for DG Internal Market, said the announcements were
a significant and structural change from what had been under
discussion in the international community. He emphasized
that the EU normally does not regulate via caps on particular
business lines but through competition policy. Vale de
Almeida in the lunch also questioned whether the
announcements were &off-mark8 from the G20. Froman
responded that these proposals were consistent with what had
been raised previously, noted that we were not alone in
showing leadership on these issues, but returned to the U.S.
commitment to cooperate toward agreement on basic principles
and avoid damaging regulatory arbitrage.
25. (C) Barnier said &his roadmap is the G20 roadmap,8 and
he seeks relevant, proportionate regulation in Europe that
leaves no market or player unregulated. He said his
immediate priorities include resolving Council-Parliament
differences over EU financial supervisory architecture, OTC
derivatives (and cooperation here with the U.S.), corporate
governance, and improving crisis prevention and management
tools.
WORKING TOWARD A DOHA DEAL
————————–
26. (C) Froman emphasized to Commissioner De Gucht and other
EU officials the U.S. commitment to try to complete an
ambitious Doha Development Agenda agreement, but said that
public spats over negotiations were damaging; we should work
to prevent this going forward. Froman described our Doha
position, and our bilateral engagement with India, Brazil,
China and others to produce market access. He emphasized the
vital importance of this market access to our stakeholders
and the Congress. Froman said that the current offer is not
acceptable to U.S. agriculture, NAMA or services
stakeholders. De Gucht responded that it is important to
close the Doha Round, and that blaming others does not get us
there; the question is how to manage the process with
appropriate ambition. He said that the EU can live with the
result on the table, but if other things come onto the table,
we will need a &new equilibrium.8 De Gucht said he hoped
that the U.S. bilateral efforts would not interfere with the
ability to nail down existing tariffs (Comment: this probably
BRUSSELS 00000183 006 OF 007
refers to proposed bound tariff reductions in recent DDA
texts, which reduce maximum permitted ) bound ) tariffs but
do not reduce currently applied tariffs significantly. End
comment).
27. (C) De Gucht added that he faces a similar challenge,
because the Spanish Presidency is pushing for bilateral FTAs
with Latin America, and he wants to ensure such efforts do
not interfere with the DDA. Froman responded that
eliminating &water8 between bound and actual tariffs is
insufficient, that there has to be additional market access.
Froman emphasized the importance of the U.S. and EU sending a
consistent message on this issue to third countries, even
though he recognized that our positions, though similar, are
not identical. He encouraged open dialogue and transparency
with the EU. Froman said he did not want there to be
misunderstanding among our trading partners (similar to what
happened in Copenhagen) that the U.S. would ultimately agree
to what is on the table.
MAKING THE TRANSATLANTIC ECONOMIC COUNCIL DELIVER
——————————————— —-
28. (C) Froman emphasized to all of his interlocutors the
Administration,s interest in making the TEC deliver real
results. We are open to all ideas, he said; we can reform,
restructure or even eliminate the TEC, based on what we
identify together as the best way to secure concrete
achievements. The Ambassador added that the bottom line
should be generating growth and creating jobs, which could
help us prioritize issues for the TEC agenda.
29. (C) De Gucht welcomed Froman,s interest in the TEC. He
viewed the TEC as very important, particularly in the context
of the rising Chinese economy and significant trade deficits
of both the U.S. and EU with China. De Gucht noted that as
U.S.-EU tariffs have fallen, non-tariff barriers (NTBs) are
the logical next challenge. De Gucht Chief of Staff
VanHeukelen stressed that U.S.-EU economic links are &hard
to overestimate,8 with &colossal8 bilateral FDI. De Gucht
highlighted a recent study showing that if we could remove
one half of existing bilateral NTBs, the EU and U.S. would
get many billions of dollars in welfare gains (GDP increases)
by 2016, or greater than Doha. Seatter of DG External
Relations pointed to the 12-14 million jobs dependent on
transatlantic trade, stressing that steps to expand these
jobs could be an important near-term TEC achievement.
VanHeukelen said that to date the TEC has not been seen as
extremely effective, but it is important that it do better.
30. (C) Both the EU and U.S. need more growth, De Gucht said,
in the face of such challenges as rising social security and
health care costs. De Gucht recognized, however, that there
are political problems with addressing some NTBs. He agreed
it is important that the next TEC meeting produces concrete
results, and should not be a simple get-acquainted session.
Therefore, he added, we must prepare carefully, out of the
spotlight. He said Spain is pushing for a TEC before its
Presidency ends June 30, but noted it is unclear if this
would provide adequate preparation time. He said a
low-profile planning meeting might be more appropriate in the
near term. He added he is preparing a paper on TEC goals to
send to the U.S. in the next few weeks and hoped the U.S.
could do the same. De Gucht said he hopes to visit
Washington in late February to discuss key TEC and trade
issues with Froman and others. (Note: his staff clarified
that the trip will likely be in early March. End note).
31. (C) Both agreed that possible TEC topics could include
Doha, climate, China/third country issues, and financial
regulation. Froman agreed that there should be no
&artificial deadlines8 for the TEC, and that the important
thing is to ensure the next meeting produces significant
results, to justify the presence of high-ranking officials
and respond to stakeholders. We are flexible on timing, and
can take five to nine months to achieve concrete results, he
underscored. Froman committed to producing a U.S. paper to
discuss with the EU.
BRUSSELS 00000183 007 OF 007
IMPROVING CRISIS RESPONSE AND DEVELOPMENT COORDINATION AFTER
HAITI
——————————————— —————
32. (SBU) Commissioner De Gucht offered Froman his views on
the situation in Haiti, where De Gucht visited the previous
week in his capacity as current Development Commissioner. He
said that what had happened was a disaster, guessing that
&at least 250,0008 were killed, with &20 percent8 of
Port-au-Prince destroyed. He thought the Haiti situation
manageable, however, with time and money needed for recovery.
The Southeast Asian tsunami had been much worse, he noted.
A lot of assistance food stocks were already in Haiti when
the earthquake hit, he said, and water and food distribution
was OK. Roads were mostly unaffected, he added. The biggest
near-term problem, De Gucht explained, will be for 250,000
homeless when the rainy season begins in six weeks. The GOH
and donors need to rapidly build camps, he said, to avoid
pandemics once rains start. Overall, in De Gucht,s view,
life in Haiti is &picking up8 again, and despite media
reports, security problems are not serious.
33. (SBU) Morrison of Ashton,s cabinet noted our &great8
bilateral cooperation on Haiti, and stressed that the EU is
committed long-term to rebuilding the Haitian economy and
state. High Representative Ashton seeks greater development
cooperation with the U.S., he said. Seatter of DG External
Relations said that the challenges we have faced and met in
Haiti coordination underscore our need to work on our crisis
response and overall development coordination. This is an
area where we can achieve strong results this year, Seatter
added.
34. (U) This cable has been cleared by Deputy National
Security Advisor Michael Froman.
MURRAY
End Cable Text
Zenaida X Toledo 07/30/2008 04:04:14 PM From DB/Inbox:
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