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U.S. and Europe to Start Ambitious but Delicate Trade Talks | U.S. and Europe to Start Ambitious but Delicate Trade Talks |
(about 4 hours later) | |
ENNISKILLEN, Northern Ireland — European Union leaders and President Obama announced on Monday the start of negotiations for a far-reaching trans-Atlantic trade deal, but French indignation over recent remarks by a high-ranking Brussels official created a sideshow here at the Group of 8 meeting. | |
Mr. Obama said that the first round of talks would begin next month in Washington between the United States and the 27-nation Europe Union. “The U.S.-E.U. relationship is the largest in the world — it makes up almost half of global G.D.P.,” Mr. Obama said, referring to gross domestic product. “This potentially groundbreaking partnership would deepen those ties.” | |
But President François Hollande of France expressed disbelief at comments José Manuel Barroso, the European Commission president, made over the weekend. In an interview, Mr. Barroso had criticized as “reactionary” France’s insistence on protecting its film and television industries as a condition of supporting the trade negotiations. | |
“I do not want to believe that the president of the European Commission could have made the statements about France, or even about the artists, that were made,” Mr. Hollande said, according to the Web sites of several French news organizations. | |
Mr. Hollande did not appear in a media tent here at the Lough Erne Resort when Mr. Obama and Mr. Barroso — with Herman Van Rompuy, president of the European Council, and David Cameron, the British prime minister — announced the timing of the trade negotiations. French reporters said Mr. Hollande was busy preparing for his meeting with President Vladimir V. Putin of Russia. | |
Aside from trade, the two-day Group of 8 meeting was likely to be dominated by the civil war in Syria. Other financial issues on the agenda were measures to clamp down on tax evasion and the legal ruses multinational companies use to limit their tax liabilities. | |
Mr. Cameron, the host of the meeting, was by far the most effusive of the leaders who spoke about their trade ambitions. “We’re talking about what could be the biggest bilateral trade deal in history, a deal that would have a greater impact than all the other trade deals on the table put together,” he said. | |
A trade pact between the United States and the European Union has long been an ambition of policy makers. According to the European Commission, the executive arm of the bloc, such a deal would allow European companies to sell an additional 187 billion euros, $250 billion, worth of goods and services a year to the United States. | |
The angry French response highlighted the delicacy of the negotiations, which will aim to reduce trans-Atlantic tariffs and streamline regulations to stimulate economic growth in the United States and Europe. | |
Last Friday, after a campaign by French artists and politicians, European Union trade ministers agreed to accede to France’s demands to protect the audiovisual sector. | |
In his interview after the agreement, Mr. Barroso said France’s Socialist government was advocating an “anti-globalization agenda” that was “completely reactionary.” | |
Mr. Barroso’s comments were described as “scandalous and dangerous” in a statement on Monday from the French Socialist Party. | |
In addressing reporters on Monday, Mr. Barroso took no questions and did not comment on the French reaction. | |
Speaking in Brussels, Olivier Bailly, a spokesman for the European Commission, said that Mr. Barroso’s comments had referred not to the French government but to those who had “made personal attacks” against him before the negotiations. Mr. Bailly did not identify them. | |
In response to the French objections, some Europeans worry that the United States will seek to exclude financial services from the talks, reducing their scope significantly. | |
Mr. Obama acknowledged those concerns. “There are going to be sensitivities on both sides,” he said. “There are going to be politics on both sides. But if we can look beyond the narrow concerns to stay focused on the big picture — the economic and strategic importance of this partnership — I’m hopeful we can achieve the kind of high-standard, comprehensive agreement that the global trading system is looking to us to develop.” | Mr. Obama acknowledged those concerns. “There are going to be sensitivities on both sides,” he said. “There are going to be politics on both sides. But if we can look beyond the narrow concerns to stay focused on the big picture — the economic and strategic importance of this partnership — I’m hopeful we can achieve the kind of high-standard, comprehensive agreement that the global trading system is looking to us to develop.” |
This article has been revised to reflect the following correction: | This article has been revised to reflect the following correction: |
Correction: June 17, 2013 | Correction: June 17, 2013 |
Because of an editing error, an earlier version of this article stated incorrectly the timing of an interview with José Manuel Barroso. The interview was on Friday before trade ministers agreed to accede to France’s demands to protect the audiovisual sector, not after the agreement. | Because of an editing error, an earlier version of this article stated incorrectly the timing of an interview with José Manuel Barroso. The interview was on Friday before trade ministers agreed to accede to France’s demands to protect the audiovisual sector, not after the agreement. |