EU-US plan sherpas for economic relations

The EU and the US would each appoint a senior-level official to manage transatlantic economic relations, according to plans being drawn up for the EU-US summit on 30 April.

To propel the process of regulatory convergence, the two sides would each have a ‘sherpa’ - possibly of cabinet or commissioner level - to follow up on agreements made at the summit.

The sherpas would act as "focal points", implementing regulatory agreements and producing annual reports for leaders on both sides of the Atlantic.

According to proposals put forward by the German presidency of the EU, to be discussed by foreign ministers on Monday (23 April) in Luxembourg, the sherpas would also work to "guide the process between annual EU-US summits" and bring stakeholders and legislatures together.

Business representatives welcomed the proposal. According to Eoin O’Malley, an adviser to BusinessEurope, the employers’ federation, it could help improve implementation.

"We have welcomed previous attempts [at regulatory convergence] but there has been a lack of delivery in terms of concrete results. The opportunity presented by the new political momentum in this process must be seized to ensure results for business," he said.

At the summit, the EU and the US will present an agreement entitled ‘Strengthening the transatlantic economy’, which includes measures to boost co-operation on regulatory convergence, energy, intellectual property rights, investment, financial markets and innovation.

European firms are lobbying the summit to make the agreement binding to ensure its implementation.

But diplomats said that time was running out to reach a binding deal before the summit.

"It will be signed but it will not be legally binding," said one EU diplomat, "[If it were] we would have to jump through hoops, we would need a Commission proposal and we would have to consult Parliament, which may cause problems. It is easier this way."

Negotiators hope that appointing two senior officials will be enough to convince firms that the deal will be honoured.

It is not yet clear which two officials will be tasked with implementing the deal. The German presidency has suggested that a commissioner should hold the post on the part of the EU and a cabinet-level official in the US.

At a cabinet level, Rob Portman is the likely US candidate. He is currently head of the Office of Management and Budget and was formerly US trade representative.

But sources indicate that lower-level officials might be favoured.

For the EU, officials say that Alexander Italianer, one of the Commission’s two deputy secretary-generals could be chosen, so preventing a battle for influence between the Commission’s directorates-general for trade, external relations, enterprise and internal market.

On the US side, the head of international economic relations at the National Security Council, David McCormick, who is leading preparations for the summit, could take the post. But that may also fuel internal divisions.

Officials have noted that preparations for the summit have been hampered because the National Security Council has taken the lead over the State Department, which has more inside knowledge of how the EU works.

The EU and the US would each appoint a senior-level official to manage transatlantic economic relations, according to plans being drawn up for the EU-US summit on 30 April.