ACCESSION NUMBER:00000
FILE ID:95110404.WWE
DATE:11/04/95
TITLE:04-11-95  EU, NATO ENLARGEMENT "ESSENTIAL" TO CENTRAL EUROPE STABILITY

TEXT:
(Overall U.S.-EU trade relations good, some problems) (550)
By David Pitts
USIA Staff Writer

Airlie, Virginia -- "EU enlargement proceeding along with NATO
enlargement is essential to stability in Central Europe," Earl Wayne,
U.S. deputy chief of mission to the European Union, said November 2.

Speaking at a two-day conference on U.S.-EU issues, titled
"Transatlantic Ties and Tensions," Wayne said "these enlargement
processes are not aimed at anybody." He specifically mentioned Russia
in this regard and stressed the importance of continuing dialogue
between that nation and the United States and the EU.

Most of Wayne's remarks concerned trade relations between the United
States and the EU. He described the overall relationship as "very
balanced," pointing out that the United States "has about 40 percent
of its investment in the EU and the EU has about 50 percent of its
investment in the United States." He also said that "about 2.8 million
Europeans are employed by U.S. firms in the EU and about 2.7 million
Americans are employed by European affiliates in the U.S." There is no
sizable imbalance in the level of trade, he added.

However, Wayne he said that differences on trade issues remain. He
cited:

-- Bananas. This dispute dates back to 1992 when the EU "took steps
which, in our view, were not consistent with GATT" that resulted in a
restriction of U.S. exports of the fruit. "A WTO (World Trade
Organization) process has now been started," he explained.

-- Aviation. The United States supports "a multilateral open skies
regime," he noted. He said the United States has signed agreements
with six EU members, but the European Commission has challenged them.
"We are willing to negotiate," he added.

-- EU enlargement. The expansion of the EU has resulted in a rise in
some tariffs against U.S. products, he explained. "We are seeking
compensation for those tariffs that went up," he said.

-- Audio-visual products. This issue was not "resolved during the
Uruguay Round" of trade negotiations, he noted. "We hope this is an
area we can move forward on," he said.

-- Telecommunications. He said that the EU "is moving toward
liberalization in 1998. We are very supportive of the approach the EU
has taken on this," he remarked, stressing that the United States
believes in an open telecommunications market.

-- Ecolabels. Certain products in the EU "could get a 'green' seal of
approval" if current proposals materialize, he explained. "Our concern
is that this does not become a new trade barrier; we are hopeful that
there can be a solution so that U.S. firms are not disadvantaged," he
said.

Wayne stressed, however, that these trade problems "are small,"
particularly when viewed in the context of the overall trade
relationship between the United States and the EU.

Hugh Paemen, the European Commission's ambassador to the United
States, agreed the U.S.-EU trade relationship is fundamentally sound.
Relations "are excellent," he remarked. "We have worked together well
not only in the Uruguay Round, but in other areas," he added.

Paemen noted that the Madrid summit will be preceded by the
Transatlantic Business Dialogue in Seville. "We hope to learn from the
views of U.S. and EU business leaders as we prepare for Madrid," he
said.
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