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US and EU agree 'single market' | |
(about 9 hours later) | |
The United States and the European Union have signed up to a new transatlantic economic partnership at a summit in Washington. | |
The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market. | The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market. |
The two sides also signed an Open Skies deal, designed to reduce fares and boost traffic on transatlantic flights. | |
But little of substance was agreed on climate change. | |
However, EU leaders were pleased the US acknowledged human activity was a major cause. | |
Richest regions | Richest regions |
The two sides agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. | |
Without the US there can't be any success in coping with a globalised world European diplomat Limited hopes for EU-US summit The aim is to increase trade and lower costs. | Without the US there can't be any success in coping with a globalised world European diplomat Limited hopes for EU-US summit The aim is to increase trade and lower costs. |
Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars. | Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars. |
German Chancellor Angela Merkel, whose country holds the EU's rotating presidency, said last month that if the US and EU could set business norms today, they would "secure the markets of tomorrow". | |
She has made repairing damaged relations with the US a top priority, since she came to office 18 months ago. | She has made repairing damaged relations with the US a top priority, since she came to office 18 months ago. |
Emission cuts | Emission cuts |
According to the Reuters news agency, a draft statement to be agreed at the summit says climate change is a central challenge that requires "urgent, sustained, global action". | According to the Reuters news agency, a draft statement to be agreed at the summit says climate change is a central challenge that requires "urgent, sustained, global action". |
The draft reportedly also says the EU and US are committed to stabilising greenhouse gases, acknowledges the work of the Intergovernmental Panel on Climate Change (IPCC) and urges the development and commercialisation of advanced technologies to "significantly cut" global emissions. | The draft reportedly also says the EU and US are committed to stabilising greenhouse gases, acknowledges the work of the Intergovernmental Panel on Climate Change (IPCC) and urges the development and commercialisation of advanced technologies to "significantly cut" global emissions. |
But correspondents say Ms Merkel faces a hard task persuading the US to agree to binding international commitments on fighting climate change, before a G8 summit Germany is chairing in six weeks' time. | But correspondents say Ms Merkel faces a hard task persuading the US to agree to binding international commitments on fighting climate change, before a G8 summit Germany is chairing in six weeks' time. |
President George Bush has refused to impose national limits on greenhouse gas emissions, saying they would harm the international economy. | President George Bush has refused to impose national limits on greenhouse gas emissions, saying they would harm the international economy. |
Visa hope | Visa hope |
The EU is hoping that the US will agree to withdraw its demand for travellers from a number of EU states to apply for visas. | The EU is hoping that the US will agree to withdraw its demand for travellers from a number of EU states to apply for visas. |
It also wants an agreement to start work on another aviation deal, that would deepen the Open Skies pact, and enable Europeans to buy US airlines. | It also wants an agreement to start work on another aviation deal, that would deepen the Open Skies pact, and enable Europeans to buy US airlines. |
The President of the European Commission, Jose Manuel Barroso, is also representing the EU side. | |
In three working sessions with President George Bush, they were expected to discuss Iran, Kosovo, Iraq and Afghanistan. |