Comments by Denmark on the EU public consultation on the EU-US High-Level

Working Group on Jobs and Growth

Denmark welcomes the establishment of the EU-US High-Level Working Group (the WorkingGroup) on Jobs and Growth under the umbrella of the Transatlantic Economic Council at thelatest EU-US Summit on 28 November 2011. Trade and investment relations with the US areof strategic importance to the EU and to Denmark and will continue being a cornerstone in ourtrading profile.With the objective to strengthen jobs and growth on both sides of the Atlantic combined withthe impasse in the DDA negotiations in the WTO, the effort to explore all possibilities forfurther intensifying transatlantic economic relations is both timely and relevant. Evidently, anambitious and comprehensive agreement will lead to the biggest economic gain for bothparties. At the same time, achieving results in the short run is important for growth and jobs. Anegotiating approach should therefore be ambitious and realistic, allowing for concrete resultsto unfold.We would also like to stress that any new agreement between the EU and US of a morecomprehensive nature should not put into question the overall priority attached tostrengthening the multilateral trading system.We look forward to receiving the recommendations from the Working Group on how to moveforward.

Specific Danish priorities in upcoming trade negotiations with the US

Below please find enclosed Danish comments on the content presently being dealt with by thefive sub-groups of the Working Group. The list is not exhaustive, and the Danish Governmentreserves the right to make further comments in the future. However, Denmark has interestswithin all the areas covered by the sub-groups.

1. Conventional market barriers within industrial goods and agriculture

The US is our fifth biggest export market in

goods

and the largest non-EU market. Alreadyunder the existing trade conditions, the possible economic potential in the trade with goodsbetween Denmark and the US is considerable. We see a full elimination of existing tariff as thebest way to increase competition and thereby productivity.The relevant EU-US

rules of origin

should be as simple, predictable, and legally certain aspossible.

2. Services and investment, incl. market access and rules

The US is the biggest Danish export market in

services.

Presently around 14 per cent ofDanish exports in services are directed towards the US. The economic gain from aliberalization of the service sector is also considered significant. We recommend inclusion ofservices in order to ensure national treatment and full market access in all services modes.To this end, we also support closer cooperation in the field of

mutual recognition of

professional qualifications.

Today different U.S. states have separate recognition systems andrules, and there is a lack of a central professional recognition authority. This is a major obstaclefor European companies and individuals operating in the US, as well as for the transatlanticcooperation between authorities. The dialogue should therefore lead to a simplification of therules regarding free movement of professionals within regulated professions in U.S. and the EUand a more harmonized approach to the recognition of professional qualifications within theUS.In general, we consider

investment relations

with the US less problematic. We welcome thework of the TEC on investment and find that we should continue to identify areas of commoninterest towards third countries.

3. Regulation and standardisation (NTBs)

We support efforts on both sides to reduce

non-tariff barriers (NTBs),

with due respect ofthe specificities of the political system on both sides. NTBs such as product and servicesstandards and certification requirements have for many years created significant barriers totrade between Europe and the US. Given the genuinely high level of integration of the US andEuropean markets, a potential way of increasing trade lies in regulatory cooperation aimed atmutual recognition, regulatory convergence and/or the adoption of international standards.The lack of

recognition of international standards

developed by ISO and IEC in the USposes a significant TBT for European companies. Frequently, standards developed by privateand national organisations are recognised and required on the US market, even though similarproduct and services standards have been developed and agreed upon by internationalstandardisation organisations such as The International Standardisation Organization (ISO) andThe International Electro-technical Commission (IEC). As a consequence; when ISO and IECstandards are not recognised in the US, European companies have a competitive disadvantageas these international agreed upon standards are accepted and (most often) required in Europe.The US market is one of the major markets for Danish shipping.

Maritime transport

is oftenreferred to as the backbone of globalization, facilitating trade by the movement of cargo fromone part of the world to another. The dialogue should make sure that the efficiency of the

Cooperation on

efficient customs and port handling of goods

also entails great potentials.Concrete steps to achieve mutual recognition of trusted shipper programs as well asharmonizing safety and customs standards across the Atlantic would be of key importance toefficient and increased commerce between the EU and the US.Specifically with regard to food, agriculture, and fishery products, there are significantchallenges for developing transatlantic trade that relate to technical barriers and differingstandards

(SPS).

Any effort to enhance cooperation and trade in this domain should build onand re-affirm the mutual commitment to maintaining a strong dialogue and development ofequivalence in standards and inspection requirements.

Welfare technology

is an important sector for the EU. However, exports of pharmaceuticals,medical equipment and technology to the US are associated with very costly approvals by theFood and Drug Administration. We suggest addressing this issue in the dialogue.Large potential for increased growth in trade of consumer products across the Atlantic arenaturally connected to

e-commerce.

However, major obstacles for cross border e-commercebetween the EU and the US still exist. Consumers today are experiencing a range of problems,e.g. in regards to the geographical segmentation of the retail market for digital commodities(movies, music, etc.), tariffs and burdensome customs procedures on retail goods purchasedonline, lack of common standards and lack of clarity in regards to consumer protection. Thedialogue should therefore explore possibilities for removing obstacles for e-commerce betweenthe EU and the US.Special challenges lies in the field of

telecommunication and roaming,

as both EU- and US-citizens experience problems with high roaming charges when travelling between the tworegions. The problem has in recent years been addressed internally in the EU where a newregulation will enter into force by July 2012, and in a recent Council Recommendation of theOECD, both EU member states and the US have agreed to take the necessary steps to ensureeffective competition, consumer awareness and protection, and a fair price level in internationalmobile roaming services. The dialogue should address this issue and explore how closercooperation between the EU and the US could lead to lower charges for international roamingthus benefiting all travellers in the regions, regardless of the purpose of their travel beingbusiness or leisure.

4. Public Procurement and IPR

We would welcome a further opening up of the

public procurement

market in the US. Thisshould also address the “Buy American Act” and the US procedures for foreign companiesregistering for public tenders in the Central Contractor Register (CCR) in order to bid on publiccontracts.Many European companies still experience differences between the EU and US

IPR

regulation,which is an obstacle for export to the US. The potential for further harmonization of the IPRregulations across the Atlantic should therefore be explored.

5. Other areas, including customs procedures and sustainable development.

We would welcome that an alignment of

customs operations,

the way that customs clearanceprocedures function both for goods as well as for passenger, are included in negotiations inorder for the companies to streamline operations and requirements to suppliers.The Danish government strongly believes in the

liberalization of trade in environmental

goods and services.

We should aim to include this area in future cooperation as well asaddressing it in multilateral fora like the WTO.Given the priority that Denmark attaches to

sustainable development

in general, we proposethat labour standards as well as CSR will be addressed.