    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [May 18, 1998]
    [Pages 804-806]
    [From the U.S. Government Publishing Office www.gpo.gov]

    United States/European Union Joint Statement on Transatlantic
    Partnership on Political Cooperation
    May 18, 1998

        1. Under the New Transatlantic Agenda, launched in December 1995,
    the United States and the European Union made a commitment to further
    strengthen and adapt our partnership to face new challenges at home and
    abroad. We recognized that our political and economic cooperation is a
    powerful force for peace, democracy and prosperity. We agreed to move to
    common action to achieve these ends. We agreed to move to common action
    to achieve those ends. We have since taken specific steps to strengthen
    respect for human rights, to promote non-proliferation, to fight
    terrorism, to address crises in troubled regions and much more. Our
    experience has shown that, working together, the United States and the
    European Union are more effective in pursuing shared goals. When
    differences have emerged between us, however, this has reduced the
    effectiveness of our response.
        2. In order to enhance our partnership, we undertake to intensify
    our consultations with a view to more effective cooperation in
    responding to behavior that is inimical to the goals agreed in the New
    Transatlantic Agenda or which threatens international stability and
    security, in which we have a shared interest. We have instructed senior
    officials to undertake early consultations when there is an evident risk
    of such behavior. To this end, we have agreed to principles that will
    guide us:
        (a) We will seek through exchanging information and analysis and
    through early consultations to pre-empt, prevent and, as needed, respond
    to such behavior. Our objective is to achieve compatible and mutually
    reinforcing policy responses, which are practical, timely and effective.
        (b) These responses should be carefully formulated as part of a
    coherent overall policy approach designed to change unacceptable
    behavior. They should also be in line with international commitments and
    responsibilities.
        (c) We will make full use of diplomatic and political action to
    achieve our objectives.
        (d) Economic sanctions are another possible response. Their use
    requires careful consideration. In general, they would be used only when
    diplomatic and political options have failed or when a problem is so
    serious as to require more far-reaching action.
        (e) In such circumstances, the United States and the European Union
    will make a maximum effort to ensure that they economic sanctions are
    multilateral. They are likely to have the strongest political and
    economic impact when applied as widely as possible throughout the
    international community. Multilateral actions also distribute the costs
    of sanctions on the imposing parties more evenly. Whenever possible,
    effective measures taken by the UN Security Council are the optimal
    approach.

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        (f) When multilateral economic sanctions are imposed, our objective
    will be to exert the greatest possible pressure on those responsible for
    the problem, while avoiding unnecessary hardship and minimizing the
    impact on other countries.
        (g) Where wider agreement on economic sanctions cannot be achieved,
    or in cases of great urgency, the United States and the European Union
    will consult on appropriate responses. In such circumstances either
    partner could decide to impose economic sanctions.
        (h) To ensure the resilience of our partnership in such
    circumstances:
        --a partner will not seek or propose, and will resist, the passage
            of new economic sanctions legislation based on foreign policy
            grounds which is designed to make economic operators of the
            other behave in manner similar to that required of its own
            economic operators;
        --that partner will target such sanctions directly and specifically
            against those responsible for the problem; and
        --the partner not imposing sanctions will take into account the
            interest of the other in formulating its own policy and continue
            to pursue, in its own way, those goals which are shared.
        (i) It is in the interest of both partners that policies of
    governmental bodies at other levels should be consonant with these
    principles and avoid sending conflicting messages to countries engaged
    in unacceptable behavior. Both partners will work to achieve this goal.
        3. The United States and the European Union will consult closely,
    including at senior levels, in applying these principles and resolving
    differences. Each side will also develop the necessary internal
    procedures to ensure effective implementation of the principles.

    Understanding on Conflicting Requirements

        The United States and the European Union, recalling the
    Understanding of April 11, 1997, which stated, inter alia, that they
    would ``work together to address and resolve through agreed principles,
    the issue of conflicting jurisdictions, including issues affecting
    investors of another party because of their investments in third
    countries,'' wish to confirm in this Understanding their intention to
    propose jointly in negotiation of the Multilateral Agreement on
    Investment the following article regarding conflicting requirements:
        ``1. In contemplating new legislation, action under existing
    legislation or other exercise of jurisdiction which may conflict with
    the legal requirements or established policies of another Contracting
    Party and lead to conflicting requirements being imposed on investors or
    their investments, the Contracting Parties concerned should:
           (a)  have regard to relevant principles of international law;
           (b)  endeavor to avoid or minimize such conflicts and the
                problems to which they give rise by following an approach of
                moderation and restraint, respecting and accommodating the
                interests of other Contracting Parties;
           (c)  take fully into account the sovereignty and legitimate
                economic, law enforcement and other interests of other
                Contracting Parties;
           (d)  bear in mind the importance of permitting the observance of
                contractual obligations and the possible adverse impact of
                measures having a retroactive effect.
        2. Contracting Parties should endeavor to promote co-operation as an
    alternative to unilateral action to avoid or minimize conflicting
    requirements and problems arising therefrom.
        3. Contracting Parties should on request consult one another in
    accordance with paragraph ____ of Article ____ (Consultations section of
    Dispute Settlement provision) and endeavor to arrive at mutually
    acceptable solutions to such problems, it being understood that such
    consultations would be facilitated by notification at the earliest stage
    practicable.
        4. If consultations under paragraph 3 do not result in a mutually
    satisfactory resolution of the claim, either of the Contracting Parties
    may bring the matter to the attention of the Parties Group. Pursuant to
    Article ____(The Parties Group), the Parties Group will consider the
    matter in light of the agreed principles in paragraph 1, with a view
    toward resolving the matter.
        5. The Parties Group may review, in accordance with Article ____
    (Review), the implementation and assess the effectiveness of this
    Article.''
        N.B.: It is understood that nothing in the MAI excludes this
    provision from MAI dispute settlement.

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    Note: This statement was made available by the Office of the Press
    Secretary on May 18 but was not issued as a White House press release.
    An original was not available for verification of the content of this
    statement.