18 May EU-US Summit

Date: 21/05/1998

THE European Union and the United States announced they had agreed on wide-ranging rules to discourage their companies from investing in expropriated property after a summit meeting attended by UK Premier Tony Blair, US President Bill Clinton and European Commission President Jacques Santer in London. The deal promises to end months of tension between Washington and Brussels over the US' Helms-Burton law which bans foreign investment in Cuba under these circumstances. A 'registry of claims' will be set up for those who contend that their property has been expropriated.

CLINTON announced after the summit that EU and US governments would deny all forms of commercial assistance for transactions in expropriated property, “including loans, grants, subsidies, fiscal advantages guarantees and political risk insurance”. Blair added: “We have avoided a showdown over sanctions, with which we don't agree, and we have done it in a way which at least provides the chance of a solution to the problem in future.”

THE Commission president said, however, that more work was needed on the accord. “There are obviously still some further steps which need to be taken before the deal can be completed and implemented, but I am hopeful these talks can be concluded as soon as possible,” said Santer. “The deal today means European companies can conduct their business without the threat of US sanctions hanging over their heads. It is a deal which is good for the EU, which shows it can act together, united, on important foreign policy issues.”

THE two blocs agreed to combat terrorism more cohesively and to take steps to prevent Iran from acquiring weapons of mass destruction. Washington agreed to exempt French company Total's 1.8-billion-ecu gas deal with Iran from the penalties laid down under the Iran-Libya Sanctions Act (ILSA). “We will continue to work with our European allies to broaden our non-proliferation and counter-terrorism cooperation even further,” said US Secretary of State Madeleine Albright. “In light of their essential cooperation, and as long as this heightened level of cooperation is maintained, we would expect that a review of our national interests in future ILSA cases ... would result in like decisions with regard to waivers for EU companies.”

EUROPE and the US launched a new bilateral 'Transatlantic Economic Partnership' to replace the New Transatlantic Market-place proposals drawn up by the Commission but rejected by the French, and agreed to promote multilateral trade liberalisation within the World Trade Organisation. “We will work to dismantle trade barriers, both bilateral and multilateral, in areas such as manufacturing, services and agriculture - about a dozen in all,” said Clinton after the meeting. Other sectors to be discussed include electronic commerce, intellectual property rights, investment, government procurement and competition. The move was acclaimed by Santer, who said: “Today's agreement will add to the prosperity of both the US and the EU and more generally of the world. It gives us better prospects for future jobs.”

IT WAS also welcomed by US Trade Representative Charlene Barschefsky, who said: “This initiative gives us the opportunity to accelerate our export growth substantially.” She added the deal should improve the “efficiency and effectiveness of regulatory procedures”, and stressed the partnership would “include a broad participation among business, labour, consumers and environmental interests”.