[Weekly Compilation of Presidential Documents Volume 34, Number 51 (Monday, December 21, 1998)]
[Pages 2503-2504]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
United States-European Union Statement on Cooperation in the Global 
Economy

December 18, 1998

    The U.S. and the EU are engines for global economic growth. We share 
a common vision of a market-based global economy and particular 
responsibilities for promoting stability, continued growth and 
prosperity. We must lead the way in keeping markets open. A rules-based 
international trade system and a strengthened international financial 
system are necessary to ensure transparency and predictability and to 
maintain public confidence in the benefits of open economies. We are 
concerned about the serious social and economic impact of the financial 
crisis on many countries, and we will work together with them in the 
face of their major economic difficulties.
    We are committed to promoting open markets through further broad-
based liberalization, including through strengthening the multilateral 
trading system, and through the Transatlantic Economic Partnership (TEP) 
on which we agreed in London in May. We have drawn up, and started to 
implement, a Joint Action Plan to pursue this Partnership. It will 
contribute to further market opening and strengthening of links between 
the U.S. and EU economies in ways that support and point the way for 
further multilateral liberalization, while benefiting our peoples. The 
TEP initiative will enable us to launch bilateral negotiations for the 
further reduction of trade barriers. We have now set in train a regular 
and comprehensive dialogue between us on multilateral trade issues and 
future World Trade Organization (WTO) negotiations. We attach high 
importance to the full respect of multilateral rules. We are determined 
to resolve trade disputes between us.
    The Mutual Recognition Agreement, which entered into force December 
1, is an example of how the U.S. and EU are striving to remove 
transatlantic barriers. The agreement covers six sectors and will save 
our private sectors as much as $1 billion annually. In reducing trade 
barriers, we re-affirm our commitment to preserving high levels of 
health, safety, consumer and environmental protection. We strongly 
support the current bilateral discussions aimed at achieving high 
standards of data privacy protection and avoiding transatlantic 
interruptions in exchanges of personal data. While continuing current 
efforts to avoid such interruptions, we would like to conclude the 
discussions successfully as soon as possible.
    We intend to enhance our economic dialogue and cooperation, both 
bilaterally and in the context of international institutions and fora, 
to ensure that we act in a coherent and constructive manner.
    We agree on the need to strengthen the international financial 
system and national financial sectors in order to capture the full 
benefits of international capital flows and global markets, minimize 
disruption and better protect the poorest and most vulnerable. It is 
important that all in the global economy play their part to promote 
sustainable growth

[[Page 2504]]

and financial stability, by pursuing economic policies aimed at 
strengthening their national economy and enhancing their economic 
performance. We reiterate the importance of implementing the October 30 
recommendations of G7 Leaders and G7 Finance Ministers and Central Bank 
Governors and look forward to additional proposals that they will 
develop, in consultation with other key countries, prior to the Cologne 
Summit.
    We welcome the impending introduction of the Euro on January 1, 
1999, which will be an event of historic significance. We look forward 
to a successful European Economic and Monetary Union that contributes to 
growth and to stability in the international monetary system.
    We reaffirm our commitment to development cooperation, which has 
among its main objectives the fight against poverty, the creation of 
conditions favorable to economic growth and sustainable development, and 
the participation of the most vulnerable in this process. The prompt and 
generous U.S. and EU responses to the devastation caused by Hurricane 
Mitch in Central America are an example of our commitment. We will seek 
to ensure good coordination of international donor assistance to respond 
effectively to crises.
    We call upon developing countries and economies in transition to 
continue the liberalization of trade and to develop clear, stable, and 
open regimes for investment. We urge the crisis-affected countries to 
promote sustainable recovery by pursuing full and proper economic 
restructuring. We support IMF conditionality as a means to promote sound 
macroeconomic policies. We welcome the fact that several governments 
have acted swiftly to minimize the negative impact of the crisis. We 
stress the importance of good governance and the respect for human 
rights, including core labor standards, efficient and transparent 
institutions, and more effective investment in education, training, and 
research. We will seek to ensure and support fuller participation of the 
developing countries in the WTO and in future multilateral trade 
negotiations, with a view to better integrating them into the world 
economic system. In particular, we will seek to improve the trading 
opportunities for the least developed countries. We will each continue 
to support regional integration efforts.
    Senior officials will report to the next U.S.-EU Summit on the 
practical implementation of this cooperation on the global economy.

Note: An original was not available for verification of the content of 
this joint statement.