VZCZCXRO6392
RR RUEHAG RUEHROV RUEHSL RUEHSR
DE RUEHLO #2465 3061610
ZNY CCCCC ZZH
R 021610Z NOV 09
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC 3860
RUCPDOC/DEPT OF COMMERCE WASHDC
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
C O N F I D E N T I A L LONDON 002465
NOFORN
SIPDIS
STATE PASS USTR FOR DAWN SHACKLEFORD
COMMERCE FOR MAC/PAUL DACHER
E.O. 12958: DECL: 11/02/2019
TAGS: ECON ETRD UK EU
SUBJECT: FUTURE U.S.-UK AND U.S.-EU TRADE COOPERATION TO CENTER ON INNOVATION, COMPETITIVENESS
Classified By: Economic Minister Counselor Richard Albright for reasons 1.4 (b) and (d)
1. (SBU) Europe, International Trade and Development Director at the UK Department for Business, Innovation and Skills
(BIS) Claire Durkin discussed with EMIN and Econoff October 29, 2009, UK desire for a swift conclusion to the Doha Round
(DDA) of trade negotiations, trade priorities with the EU, potential trade priorities under a Conservative government as
well as Ms. Durkin's recent trip to Washington D.C.
2. (SBU) EMIN noted U.S. concerns about insufficient market access commitments by key emerging market countries in
contrast to the EU's apparent satisfaction with the Doha Development Agenda deal on the table. Durkin commented that the
EU had failed to rationalize its negotiating position vis-a-vis the developing world. It would need to differentiate
between the emerging developing economies such as China, India and Brazil, the least developed countries (LDCs) and
other developing countries to obtain optimal results for Europe and for world trade from the DDA. Durkin believes both
U.S. and UK efforts to help LDCs, be it with preference programs like Generalized System for Preferences (GSP) and Aid
for Trade, or with larger development programs like the North-South corridor project in Zambia, go largely unrecognized.
This in turn does not translate into LDC good will and a willingness to compromise at the DDA negotiating table. She
suggested that the U.S. and UK work closely in the run up to the WTO Ministerial Conference in Geneva, November 30
through December 2, 2009, to deliver similar messages regarding our commitment to work with LDCs and towards a
successful conclusion to the DDA. Instead of treating LDCs and emerging market economies as one bloc, she suggested we
work together to peel off the LDCs and increase pressure on the emerging market countries to improve their offers.
3. (SBU) Competitiveness and innovation will be key issues in future U.S.-UK engagement in the Transatlantic Economic
Council (TEC) as well as other forums according to Durkin. She listed investment, standards rationalization,
intellectual property rights, capital market reform and financial market innovation and regulation as the top priorities
in the bilateral as well as the U.S.-EU relationship, underscoring the need for both Europe and the United States to
innovate to grow their economies.
4. (C) Asked about trade priorities of a future Conservative government, Durkin stated her belief that despite their
"arms-length" approach to Europe, the Conservatives could not turn away from the EU without losing, or at least greatly
undermining, UK influence and interests. Campaign rhetoric aside, she expects they will be unwilling to let that happen.
Prepared for any election outcome, Durkin intends to propose that Conservative engagement with the EU on trade center
around the implementation and refinement of the EU's Services Directive, aimed at breaking down barriers to services
trade between EU member states. Services are critical to the UK economy, and she believes a Conservative government
would want to engage with the EU to achieve greater liberalization in this area.
5. (SBU) Durkin was pleased with constructive meetings at State and USTR during her October 13 trip to Washington. She
is looking for ways her department could engage more regularly with the Department of Commerce. The Embassy continues to
work closely with BIS on a variety of trade, regulatory and business issues. Visit London's Classified Website:
XXXXXXXXXXXX
LeBaron