The breakthrough, which came after 13 hours of tense talks, should enable Britain to hail the start of the trans-Atlantic trade discussions when the leaders of the Group of 8 biggest economies hold a summit meeting on Monday in Northern Ireland.
“The formal launch of negotiations between the world’s two largest trading blocs is now imminent,” Vince Cable, the British business secretary, said in a statement shortly after the deal was announced. “Achieving an agreement is in all our interests and would deliver a much-needed boost to the economies of all involved.”
The divisive issue of shielding films, TV shows and other audiovisual services from competition could be debated again at a later stage, and that promises more wrangling ahead between European nations over what to offer the United States in exchange for lower tariffs and streamlined regulations.
Although the French position could be scaled back, the fact that the other 26 trade ministers in the European Union acceded to France’s demand could make negotiations with the United States that much more difficult, given the protectionist impulses on both sides of the Atlantic that are likely to come into play.
A trade pact would aim to lower barriers between the world’s two biggest trading partners. But before formal talks can start, the European Union’s 27 trade ministers needed to reach a unanimous deal to give the European Commission, the bloc’s executive arm, the formal authority to start the negotiations.
The decision in Luxembourg was a preliminary victory for France, which fought hard for months to protect Europe’s so-called cultural exception, which is, in practice, a thicket of quotas and subsidies for audiovisual productions that promote locally and regionally produced content.
“We are satisfied because we have the exclusion from the mandate for everything that is to do with audiovisual,” Nicole Bricq, the French trade minister, told a news conference. The guarantee was “written in black and white” in the agreement, she said.
The European Union, which is plagued by low growth and high unemployment, broadly favors a trade pact with the United States to bolster the economy and generate new jobs. But the drawn-out negotiations in Luxembourg were a stark reminder of how the bloc’s members still are reluctant to set aside national priorities and to make collective decision-making a reality.
The main sticking point on Friday was France’s demand to exclude audiovisual services, including future digital services, from the talks.
Britain, along with countries including Spain and the Netherlands, was concerned that such an exclusion would prompt the United States to require protections of its own.
The exclusion of audiovisual material from a trade deal would especially disappoint American technology and media companies, including the online movie distributor Netflix, which want easier access to European markets.
The deal that emerged was a classic European accommodation allowing a flagship initiative — a trans-Atlantic trade pact — to move forward while leaving decisions on the thorniest questions, like how to manage digital services, for a later date.
The compromise leaves the European Commission with the option to make a proposal, once the talks with the United States are under way, to use audiovisual services as a bargaining chip so long as all 27 member states agree that the advantages are sufficiently attractive.
“There is no carve-out on audiovisual services,” Karel De Gucht, the European Union trade commissioner who will lead the negotiations with the United States, told a news conference.“We are ready to discuss it with our American counterparts and to listen to their views on this issue.”
In a sign of the bitterness that nearly led to the collapse of the talks on Friday, Ms. Bricq, of France, accused some member states of pandering to American demands to keep the audiovisual industries as a bargaining chip.
And, earlier in the day, in a thinly veiled reference to the European outcry over recent disclosures that the National Security Agency in the United States had gained access to online data from many of the biggest Internet companies, she added that “current events unhappily remind us” of American influence over the online world.
How much progress Europe and the United States can make is an open question. Tariffs are already low, and the main goal — harmonizing regulations — is likely to pose a huge challenge for negotiators.
There are also questions about their differences over regulations on a host of industries, including new technologies, car safety, pharmaceuticals and financial derivatives.
Article source: http://www.nytimes.com/2013/06/15/business/economy/european-trade-ministers-debate-terms-of-us-talks.html?partner=rss&emc=rss
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