Tagged: IntellectualProperty

The road to 5G

Speech by Commissioner Oettinger at the Mobile World Congress

Good morning Ladies and Gentlemen

It is a great pleasure to be with you on the occasion of this plenary panel on “the road to 5G”. It is my first time at Mobile World Congress and I am really impressed by what is on display here. Just one thing: I thought the show was about phones, not about cars!

This is precisely the point: everything is turning digital, from cars to cities to services to machines. The digital economy is simply becoming THE economy.

And the future network infrastructure, 5G, will become THE infrastructure. Everybody and everything will use 5G. Anywhere, at any time, and on the move, always best connected with almost zero delay and a perceived limitless capacity. Today, we can celebrate that Europe is back in front to continue the journey towards this bright 5G future.

5G

So let’s start with it. This afternoon, the 5G-Public Private Partnership, which was launched here in Barcelona last year, will present our 5G vision, and I can already tell you that it is very exciting.

The digitisation of our economy and society is accelerating. It is unstoppable. With the Internet of Things, we see a new era of connectivity where billions of devices exchange data and instil intelligence in our everyday life. From watches to shoes. From fridges to heating. From hospitals to factories. Any industry will need to adjust to this new reality. But this requires a new generation of communication networks.

5G is expected to be the connectivity infrastructure that will foster this industrial and societal transformation. It is not “only” about more of the same: more capacity, more content, more speed. This is needed, but not good enough. It is about a network infrastructure that is as easy and pervasive as the air we breathe, one that can be used for all sorts of different and personalised usages.

A second key aspect is related to innovation. 5G should become an innovation platform. And with softwarisation and network virtualisation, open networks platforms will lower market entry barriers for service developers, and stimulate a market of third party providers. The same as with cloud computing. Today, we have millions of apps that work on different smart phones platforms. Tomorrow with 5G, the network itself could become a development platform!

5G represents an opportunity for the telecom sector to reinvent itself. With 5G, telecom operators should be able to provide specialised network services to a series of new industry partners: from the automotive, to rail, health or energy sectors. To guarantee that connected cars will be able to react in less than 1 millisecond and avoid collisions. Or that tele-medicine will save lives and not be stuck in traffic. This is why we need the right kind of rules for Net Neutrality. To guarantee an open Internet. But also to allow such specialised services to flourish.

In a nutshell, the advanced 5G infrastructure is expected to become the nervous system of the Digital Society and Digital Economy.

The EU industry has a major role to play in the context of global 5G. It has a strong influence on the competitiveness and innovation of other sectors. Beyond economic matters, it is also about security and technological sovereignty for Europe.

What has been done

These reasons led us to launch a 5G Public Private Partnership. With 700 million euro eamarked under the Horizon 2020 Research and innovation programme to get 5G up and running, while industry partners have committed to leverage the EU funding by up to five times. In one year of existence, this partnership has delivered very convincing results.

First, research is under way. The EU is pioneering 5G research with a set of projects already reaching completion. You can see some dedicated demonstrations here today, at the EC booth and on the corporate stands of key industrial players who participate in these research projects. I invite you to visit projects like METIS, or 5G NOW, to quote but a few.

More is under way, as we will soon award the research grants for 125 million euro to 20 projects to deliver the key building blocks for 5G. They cover novel network architectures, new radio technologies, new service platforms, and innovative utilisation of spectrum. They will place European actors in very good position to contribute towards the future standardisation and spectrum milestones ahead of 5G.

Second, we have progressed on the international front. The European Commission and the Republic of Korea signed a joint declaration on 5G. It is our intention to sign similar agreements with other key regions of the world, notably Japan, China, and the US. We target a single global 5G standard and global spectrum harmonisation. This will maximise global interoperability, and economies of scale.

Last but not least: the 5G vision will be delivered this afternoon. It is a global vision made in Europe and we hope that the whole world will embrace it.

So, what lies ahead?

5G is becoming a concerted global effort in which Europe is playing a leading role. Early 5G deployment is targeted beyond 2020. By then, we need to collectively address a number of challenges beyond research:

– First, we must identify new spectrum for high-performance 5G wireless broadband with a global footprint.

Spectrum – as the essential resource for the wireless connectivity of which 5G will be the main driver – stands at the centre of the digital transformation and is crucial for the completion of the Digital Single Market.

Early identification of a “5G spectrum bands” will contribute to Europe becoming a global hub for 5G development and investments. In the past, European position may have been fragmented, but we cannot afford it in the 5G race. We must build together a European approach in the international spectrum debates with other global actors. The International Telecommunication Union‘s World Radio Conference 2015 is a key milestone, to prepare for the in depth debates that should take place at the next conference in 2019.

But there can be no successful 5G deployment in Europe without enhanced coordination of spectrum assignments between Member States. A call for spectrum reform that European leaders set out in October 2013.

The Commission “Connected Continent” package was a first step in this direction. I welcome the progress in Council, now focussing on net neutrality and roaming. However I will continue to work with them and the European Parliament to achieve a political compromise on some other elements of the package that are vital to a wirelessly connected society and economy.

It contains important measures to facilitate small cell deployment and Wi-Fi which are at the heart of 5G success. Removing administrative barriers for their rapid deployment is the forward-looking policy of today to enable 5G tomorrow.

– Second, the development of standards. 5G standardisation is expected to start in 2016. Research results need to be leveraged early enough so that industrial actors can have very clear positions to defend it in standardisation fora. From the public side, we need to make sure that European and citizens’ interests are safeguarded, notably in terms of global interoperability and openness. Also reforms of the standardisation process, notably on intellectual property, must not discourage investments in research;

– Finally, the 5G full potential can only be realised if close partnership with “vertical” industries are implemented. We need to learn how to more systematically work across industrial siloes and to create cross sector added value. Also adjusting regulations, as they are not always compatible across different sectors. Connected cars are a typical example for which I have already launched an exploratory initiative.

The more immediate future

5G is about tomorrow, yet we need to solve a number of obstacles already today:

4G deployments. 5G will not supersede 4G but build on it. Being a 5G lead adopter requires to be a 4G leader. But Europe is still lagging behind on 4G deployments. There are however encouraging signs, and planned industrial investments on 4G are ramping up. Even more encouraging, Western Europe is leading deployment on latest Long-Term Evolution (LTE) generation, LTE Advanced, with about 50% of networks deployed in Europe. But Europe must do more.

The Juncker package of 315 billion euro is a huge opportunity in that respect. Investment in digital infrastructures is clearly part of this Commission priorities. We are taking steps towards adoption of the Commission proposal on European Fund for Strategic Investments as swiftly as possible so that new investments can start flowing later this year. We have also worked with Member States to define a pipeline of possible projects. Member States have already identified almost five hundred proposals for ICT and broadband projects representing a total investment sum of 151.7 billion euro in the next 3 years. The interest is there, and I encourage the sector actors to support the relevant Member States proposals;

Access and connectivity are core issues for the Digital Single Market strategy announced by President Juncker. In May the Commission will present this Strategy, feeding into the June European Council. But for me, it is clear that a Telecom Single Market is a cornerstone to the Digital Single Market.

To conclude:

With 5G, Europe has a great opportunity to reinvent its telecom industrial landscape. But 5G is much more complex than earlier generations, and it requires committed partnerships not only with the traditional telecom actors but more generally with the vertical usage sectors. It also requires new ecosystems of software developers. 5G is also a bold opportunity to spearhead the digital industrial transformation of Europe, and to support the Digital Single Market.

We are now at the cross road of exciting developments. I expect that the EU industry at large will set the path towards an ambitious 5G technology development and deployment roadmap. And the Commission is providing undivided support to the roll-out of these promising new technologies, at single market and global scale.

Thank you for your attention

 

Press Briefing by Press Secretary Josh Earnest, Deputy National Security Advisor for Strategic Communications Ben Rhodes and U.S. Trade Representative Michael Froman

The White House

Office of the Press Secretary

For Immediate Release

November 11, 2014

Intercontinental Hotel
Beijing, China

10:56 A.M. CST

MR. EARNEST:  Good morning, everybody.  It’s nice to see you all.  You don’t look nearly as bleary-eyed as I expected.  I’m joined today by Ben Rhodes, the President’s Deputy National Security Advisor, and Ambassador Mike Froman, who is the United States Trade Representative.

Ambassador Froman has, as you would expect, primarily focused on the aspects of the President’s trip that’s focused on the economy and strengthening the American economy and expanding economic opportunity for Americans back home.  That is, as you would expect, a core component of the President’s agenda while he out here so Mike has got a couple of things to talk to you about.

Then we’ll turn it over to Ben, who will do a review of some of the other aspects of the agenda that the President has been discussing in the context of these APEC meetings but also what we’ll be focused on in the context of the President’s bilateral meetings with President Xi that will begin later on this evening.

And then after that, the three of us will be up here to take questions you have on any topic.  We’ll do this for 45 minutes or so.  All right, Ambassador Froman, would you like to start us off?

AMBASSADOR FROMAN:  Well, thanks, Josh, and I’d like to start with an announcement on an important breakthrough we had in our negotiations with China on the Information Technology Agreement, or ITA, and that’s news that the President just shared with his other APEC leaders at the leaders summit.

Last night, we reached a breakthrough in our ongoing efforts to expand the Information Technology Agreement.  This is a WTO agreement that eliminates tariffs on high-tech products among 54 economies, including the U.S. and China.  And to give you some idea of the importance of this agreement, the last time the WTO agreed to eliminate tariffs on IT products was in 1996 when most of the GPS technology, much of the medical equipment software, high-tech gadgetry that we rely on in our daily lives didn’t even exist.  In fact, since that time, global trade in these types of high-tech products have reached $4 trillion annually.  And despite the explosion of trade, the coverage of the ITA of products has never been expanded.

And so that’s why for the last two years, we’ve been working to –- very intensively –- with our global partners to expand the Information Technology Agreement.  But unfortunately, during the summer of 2013, those talks broke down due to disagreements over the scope of coverage -– what list of products would be covered by the agreement, with most countries, led by the U.S., working to achieve an ambitious outcome.

Since that time, the United States and China have been working to close our differences but without a breakthrough sufficient to resume the plurilateral negotiations in Geneva.  And that finally changed here last night with an agreement between the U.S. and China that we expect will pave the way for the resumption of ITA negotiations in Geneva and their swift conclusion.  And that will be the first major tariff-cutting agreement in the WTO in 17 years.  At a time when there have been a lot of FTAs and other regional arrangements, the WTO hasn’t actually cut tariffs in 17 years and the ITA presents the first opportunity to do that.

This is encouraging news for the U.S.-China relationship.  It shows how the U.S. and China work together to both advance our bilateral economic agenda but also to support the multilateral trading system.  And it also underscores the importance of institutions like APEC — regional organizations — APEC actually gave birth to the ITA back in 1996.  It’s always been a key part of the ITA –- APEC leaders have always called for swift conclusion of the ITA so this is another indication of the utility of forums like this.

Industry estimates have concluded that successfully concluding the ITA would eliminate tariffs on roughly $1 trillion of global sales of IT products.  It would contribute to global GDP $190 billion and would support up to 60,000 additional U.S. jobs in technology and manufacturing.  And by also boosting productivity around the world and particularly in developing countries.

So we’re going to take what’s been achieved here in Beijing back to the Geneva and work with our WTO partners.  And while we don’t take anything for granted, we’re hopeful that we’ll be able to work quickly to bring ITA to a successful conclusion, and that will help support good-paying jobs in the United States, where we lead the world in creating and selling made-in-America high-tech products that the world is hungry to buy.

Let me conclude just about — a word perhaps about TPP, which has obviously been another area of major focus while we’re here.  As you all know, President Obama convened the TPP leaders yesterday.  They had a very productive conversation.  It was a good opportunity to take stock of where we were in the negotiations, to provide political impetus and guidance in terms of resolving the remaining issues.  All the leaders made clear in that joint statement that we’ve narrowed many of the gaps.

There’s still work to be done, but the end of these important negotiations is coming into focus, and that’s awfully important to the United States from a number of perspectives — it’s with 40 percent of the global economy covered by TPP, some of the fastest-growing markets in the world successfully concluding TPP will help support jobs, promote growth, strengthen the middle class in the United States.  It’s a key part of our rebalancing strategy, it underscores how the U.S. is embedded in this region and how the economic wellbeing of this region is integrally related to the wellbeing of the economy in the United States.

And with that, I’ll turn it over to Ben.

MR. RHODES:  Great, I’ll just give a brief preview of the President’s upcoming meetings here in China, and then we can take your questions on Mike’s issues or any other issues in foreign or domestic policy.

With respect to the bilateral visit here to China, the two issues that we’ve highlighted over the course of the last two days I think are the key priorities that we were able to get down and closed out around this bilateral visit:  That is the visa announcement that was made yesterday, and then the bilateral understanding on ITA that was reached today.

I think what speaks to the significance and dynamism of the U.S. economic — U.S.-China economic relationship.  Today at APEC that is clearly going to be broadened out into a discussion in regional issues related to trade and economic cooperation, as well as a number of other areas.

But as you know, tonight the President will have a dinner with President Xi Jinping of China to kick off the state visit portion of our time here in Beijing.  And then tomorrow, the two leaders will have bilateral meetings, as well.

In addition to discussing and marking the progress that’s been made on these bilateral economic issues, they’ll also discuss a range of other bilateral and global issues that are of mutual interest to the United States and China.

Specifically I’d expect there to be a discussion around our cooperation on clean energy and climate change as our two countries prepare for the ongoing international climate negotiations heading into next year.

We’ll have a discussion of a number of regional security issues, among them our shared commitment to denuclearization on the Korean Peninsula, as well as the security environment in the broader Asia Pacific region, including our interest in maritime security and the situation in the South and East China Sea.  We’ll discuss our military-to-military relationship and what we can do to develop greater dialogue and cooperation and confidence-building measures working together.

There will certainly be a discussion of the ongoing talk in Iran with Iran over its nuclear program.  And Secretary Kerry will be joining the President from Oman, where he’s been in a trilateral dialogue with the Foreign Minister of Iran and Cathy Ashton from the European Union.

Cybersecurity, of course, will be an important focus for the President given some of our concerns related to cybersecurity and the theft of intellectual property.  Afghanistan is an area where we are looking to cooperate with China.  We very much welcomed President Ghani visit here to Beijing earlier in the year and believe that China can be a partner in promoting development and stability in Afghanistan going forward.

Global issues like Ebola and ISIL will certainly be a part of the discussion.  And we’ve worked with China to enlist them in the effort to fight the outbreak of Ebola in West Africa.  And then, of course, as is always the case when we meet with China we’ll have a discussion around areas where we have differences — not just cybersecurity, but issues related to human rights and universal values.

So there will be a very broad agenda.  I think we’ve already had very good progress on our leader economic priorities heading into the visit with the ITA and visa understandings that were reached.  I think that shows an ability to identify areas of practical cooperation with China even as we’re, of course, going to have differences on a range of other political, economic and security issues.

And so tomorrow we’ll have those believe meetings.  And then the President will be hosted at a lunch here.  He’ll have a chance to meet with a range of Chinese officials before leaving for the EAS and ASEAN summits in Naypyidaw.

So with that, we’ll move to questions.

MR. EARNEST:  Let’s get started.  Julie, do you want to take us up?

Q       I have one two for Mike and one for Ben also.  Mike, can you say exactly what the U.S. and China agreed to that led to the breakthrough?  And, Ben, with the Obama and Xi bilat starting, the President has invested a lot of personal time in trying to build a relationship with Xi.  At the same time, China continues to be provocative on cyber and maritime issues.  How do you see their personal relationship at this point?  And how does that affect their conversations over the next two days?

AMBASSADOR FROMAN:  Sure, so the ITA is basically a list of tariff lines that are to be covered by tariff elimination.  And we now have agreed to more than 200 tariff lines representing about a trillion dollars of trade to be covered by the ITA.  And some of the — for the last six months we’ve been focused not just on the quantity of the lines, but the quality of the lines.  And the lines that have the greatest potential, for example, for U.S. exports, where the U.S. plays a leading role, areas of expected future growth.  So things like high-end semiconductors where there are tariffs up to 25 percent currently.  We already export over $2 billion of high-tech, high-end semiconductors even with 25 percent tariffs.  Eliminating those tariffs will obviously expand that trade significantly.  It’s an area where we have a comparative advantage, and where we can support a lot of good well-paying American jobs.

Same thing on medical equipment, MRIs, CAT scans.  We export more than $2 billion of those products a year, and they face high tariffs around the region — 8 percent in some places, as well as tariffs elsewhere.  This will eliminate those tariffs and allow us to expand our exports.

Same is true on some of the high-tech instruments that have become components in advanced manufacturing that we’re very much involved in.  So those were some of the issues that we had a breakthrough on that will allow the negotiations now to move forward in Geneva.

MR. RHODES:  Sure, Julie, on your second question, the President has invested a good deal of time and energy in his relationship with President Xi.  I think if you look at the breadth of the agenda, it’s clearly, as Secretary Kerry said, the most consequential bilateral relationship in the world.  And what they were able to do at Sunnylands is cover this whole spectrum of issues.  And, in fact, actually the ITA came up at Sunnylands so this was an area of focus on our trade agenda.

And I think what the President was able to do is convey in that meeting his thinking on all these issues, both strategically and at a tactical level, and he was able to hear the same from President Xi.  Again, Xi Jinping has clearly established himself as a strong and assertive leader here in China.  And the way we look at the relationship is there, at any given time, are going to be areas where we can identify ways to make progress and then there are going to be areas where we’re going to have differences.

And I think we’ve been opportunistic in saying, okay, where do we have an agreement that we can drive the relationship forward on something like visas or ITA.  But on, frankly, the global security issues like Iran and North Korea, the Chinese have been constructive partners.  In the Iran negotiations, they have played a constructive role in being unified with the P5-plus-1, in pressing Iran to take this opportunity to demonstrate that their program is peaceful.  In North Korea, they’ve taken a very strong line to support the notion that denuclearization has to be the goal of any discussions with North Korea.

When we look at the global issues, we’ve encouraged China to play a more assertive role on things like Ebola.  We want them to be stepping up to the plate and kicking in more resources so we welcome the desire from China that is clearly on display here at this summit to play a role in the international community commensurate to its economic and political standing, and its standing as the world’s most populous nation.

At the same time, we’re going to be very clear when we believe that China’s actions are actually pushing outside the boundaries of what we believe to be the necessary international norms that govern the relations between nations and the ways in which we resolve disputes.  And so when we see things on cyber security where we have Chinese actions that disadvantage U.S. businesses or steal intellectual property, we’re going to be very candid about that.

On maritime security, what we’ve said is we’re not a claimant, but there cannot be a situation where a bigger nation is simply allowed to bully smaller nations.  There has to be a means of resolving disputes through international law and international cooperation through discussion between China, for instance, and ASEAN countries on the South China Sea, dialogue between China and Japan on issues related to the Senkakus.  And to that end, actually, we welcomed the meeting yesterday between President Xi and Prime Minister Abe as an opportunity to reduce the tensions between those two countries.

So I think the benefit of the personal relationship is that they know where they’re coming from.  There’s no mystery in our position on these issues, there’s no mystery on the Chinese position.  What we need to do is find when there’s an opening, we take it, and we run through that opening, we work together.  And when there’s a difference, we’re just going to keep raising it repeatedly with China, raising it in international forums like this and try to find ways to encourage China to work within an international system that ultimately is going to be the best way of delivering stability, prosperity, security to this part of the world and also dealing with global challenges.

Q       One for Ambassador Froman and one for Ben.  Ambassador, what are the remaining sticking points when it comes to TPP?  And you say the end of negotiations are coming into focus –- what specifically does that mean?  Do you have a timeline in your head for when there might be an actual deal?  And, Ben, can you talk a little bit about what, if any, specific asks President Obama will have on Ebola and ISIS when he meets with President XI?

MR. EARNEST:  Okay, so just to repeat –- I’ll try to repeat the questions just so everybody can hear them.  So the question about TPP –- final sticking points and timeline for completion, and then any requests that President Obama will make related to ISIS -– ISIL and Ebola.  So, Mike, do you want to go first?

AMBASSADOR FROMAN:  Well, with TPP, it’s a two-track negotiation.  There’s market access and then there are the rules.  In market access, we’ve made very significant progress with most countries, including Japan, on agriculture and on autos we’ve made progress.  We’re not done yet, there are still outstanding issues, but we have made quite good progress there in recent weeks.

On the rules issues, we’re working to close out issues and narrow differences on the remaining.  I’d say areas that there are still issues we need to work through include intellectual property rights, state-owned enterprises, the environment –- those are three examples of areas where we’re paying particular attention to, to try and further narrow the differences and find appropriate landing zones.

In terms of the end coming into focus, these negotiations are an ongoing reiterative process.  And at every stage, we close out issues, we narrow differences, we try and find landing zones, and then we try and build consensus around them.  And I think it’s becoming clearer and clearer what the final landing zones might look like, but we still have some work to do, both to define them and then build support for them.

Q       But can you put any type of timeline —

AMBASSADOR FROMAN:  We’re going to complete it as soon as we achieve the ambitious, comprehensive high standards we set out for ourselves and we’re all working very hard to do that.  There’s a lot of momentum, all the countries are very focused on doing that, but we want to make sure that we get it right.

MR. RHODES:  Kristen, I think on Ebola we’ve encouraged the Chinese and they have made commitments, both financial commitments in the provision of health care workers and support for health care infrastructure in West Africa.  So I think we’ve welcomed those commitments.  We are always encouraging nations to consider ways to do more, but also to galvanize international action — as we head into the G20, for instance.  So I think at the G20 this will be a topic among the countries in Brisbane.  And China obviously has a key role to play there.  So I don’t want to suggest that it’s kind of the lead item on the agenda but I think given the focus that we have on Ebola right now, we want to make sure we’re understanding what the Chinese contributions are, and then how we can work together on a collaborative basis heading into the G20 to get the international community to continue to step up and provide resources.

On ISIL, with respect to China, we obviously wouldn’t anticipate them playing a role in the military coalition.  I think all the countries here in the Asia Pacific region share the concern about foreign fighters going to and from Iraq and Syria, so we can have a discussion around those issues.  I think regionally, too, of course we’ve made clear that any lasting solution is going to have to deal with the political situation inside of Syria.  So it’s an opportunity to exchange views about how to bring about the type of transition that could ultimately end the civil war in Syria.

So I think more likely that they’re going to spend a lot of their time on some of the other issues that I mentioned –- Iran, North Korea, cyber, mil-mil relations, Asia Pacific –- but we want to make sure China is invested on the global agenda that we’re focused on and I think Ebola and ISIL clearly plays into that, particularly on the Ebola front where they can kick in significant resources.

And Ebola is an area where what we said to the Chinese is, there’s both the commitments you can kick in here on Ebola with respect to money and health care workers and infrastructure but also how we’re thinking about infectious disease going forward, and how we have the Global Health Security Initiative where nations are anticipating what’s going to be needed if there are additional outbreaks of different diseases.  And we’ve seen airborne diseases here in the Asia Pacific region.  So I think we want to make sure that when we talk about China playing a bigger role ono the world stage, it’s exactly those types of issues where they can bring resources and expertise to bear in fighting not just Ebola but future infectious disease.

Q       Ambassador Froman, please.  What about the TISA, the Trade in Services Agreement?  There was hope that maybe some steps ahead could have been done also on that subject within the WTO.  Also do you think that you could every close quickly the TPP without a TPA?  And thirdly, what about the development bank for investment in infrastructure that China is building up?  Is the U.S. now open to have it and maybe to participate in it?

MR. EARNEST:  I’ll just repeat the questions.  The Trade in Services Agreement in the context of the broader trade negotiations.  A question about TPA and — what was the last one?  The development bank.

AMBASSADOR FROMAN:  Well, we’ve had quite good progress over the course of this year on the Trade In Services Agreement negotiations.  Several rounds and countries putting on the table offers.  And we have a robust work program going into next year as well.  So there is a lot of work being done on that.  But I would just put in the context of today’s announcement.  I think that the ITA announcement is a significant step in terms of showing the vitality of these plurilateral agreements where countries – likeminded countries can come together and make progress in trade liberalization, whether it’s in Geneva, the WTO, or elsewhere.  So ITA, we took a major step forward today.  TISA is well on its way, the Trade In Services Agreement.  And we have a very good work program ahead.  And earlier this year, we launched the Environmental Goods Agreement negotiation, which also includes China and we hope to work well with China and the other parties in the Environmental Goods Agreement to make progress on that in the coming year or so as well.

On TPP and TPA, our view has always been that the President has made clear that of course he would like to get a Trade Promotion Authority, he’d like to finish TPP consistent with it being an ambitious, comprehensive, high-standard agreement as soon as possible.  And we are working in parallel tracks on that, that ultimately the only guarantee that a trade agreement earns the support of Congress is that we bring back a good agreement.  And our focus is on bringing back an agreement that meets those standards.

On the infrastructure front, obviously the U.S. is very active in the G20 and a variety of other forums, including here at APEC, in talking about the importance of infrastructure and financing for infrastructure.  We have been a strong supporter of the World Bank and the Asian Development Bank.  And we think it’s important that whatever mechanisms are put in place, they live up to the high standards of the multilateral development banks in terms of procurement practices, environmental practices; that they have the very highest standards that exist for international lending.

Q       For Ben.  Ben, before you left on the trip, I think you met with NGOs that were doing work on human rights and democracy in Burma.  What message were they giving to you?  And how do you respond to them when they say, as they maybe have to journalists, it’s not a bump in the road on the reforms when you have the violence going on in some parts of the country.  I think the violence — you have to do more to stand up to — how did you talk to them about that?  And also, how do you carry that message forward in Burma?  What notes will you strike so that the United States doesn’t look like they’re maybe lecturing but rather trying to encourage further —

MR. EARNEST:  Just to repeat the question for everybody else in the room.  Question about how you respond to concerns that have been raised by human rights advocates about the slow pace of progress in Burma, and how does that impact the message that you’ll deliver to Burmese officials when the President is there later this week.

Q       (Inaudible.)

MR. RHODES:  Well, David, I did meet with a number of NGOs, human rights advocates, a number of Burmese separately from that as well who are engaged in civil society there.  I also talked to a lot of the congressional staff that is focused on these issues, given Congress’s interest.  And I think our message is – let me just step back here.  On the one hand, what we’ve seen in the last five years in Burma is transformational.  The opening of a country that had been completely closed off for decades, the opening of some political space, the release of Aung San Suu Kyi, the release of political prisoners, and the initiation, really, of a kind of politics in Burma that just didn’t exist several years ago.  But it’s a country with enormous challenges and enormous needs.  It has a lot to do.

And you don’t complete those types of transitions quickly or easily.  This is going to take years to work through all the different issues that have to be addressed inside of Burma.  However, I think we need to be practical about the timelines associated with those transitions.  When we look at, for instance, Indonesia, the President met with the newly elected President of Indonesia yesterday.  It took many years for them to work through elections and constitutional reforms and dealing with different ethnic groups in the country.  So we’re taking a view here in Burma that this is enormous opportunity for the people inside the country, enormous opportunity for democratization.  However, I think that we are concerned about areas where we do not see progress and where we see significant challenges.  And I think there are really three broad categories that we’re going to be focused on heading into this visit.  One is the ongoing process of political reform in the country.

And, again, what I said to the people I met with is that we share the same objective here –- we share the objective of there being a credible election next year in the parliamentary elections in which the Burmese people can choose their leadership but we also share the objective of supporting the process of constitutional reform inside of Burma.  One election isn’t going to fix all the problems.  There needs to be constitutional reform that enables there to be a fuller transition from military to civilian rule, that enables Burma to choose their own leaders.  And the President will definitely be discussing the progress in planning for those elections but also the progress on, and the need for constitutional reform.  And that’s something that he’ll talk to Thein Sein and Aung San Suu Kyi about.

Secondly, there is the issue in Rakhine State.  And here I think is we’ve seen the most troubling difficulties with the humanitarian situation deteriorating in Rakhine State.  A very specific issue having to do with the treatment of the Rohingya population there.  And there, too, I think we share the same objective of the human rights community.  We want to see better humanitarian access to the Rohingya, to help alleviate the humanitarian situation.  We would like to see a long-term plan, an action plan that does not rely on camps but rather allows people to settle in communities and pursue development within the country.  And we would like to see a process where the Rohingya can become citizens of Burma without having to self-identify as something other than who they are, which is citizens of –- prospective citizens of Burma.

So We’ve been working very hard in the country, working with other countries to try to bring a focus on the situation in Rakhine State, and it will certainly be front and center in the President’s discussions.

Then the third area is the ethnic insurgencies and the ceasefires that have been reached.  Here, I think the government has made a good deal of progress.  They have reached individual ceasefires with many of the different ethnic group.  The Kachin is one that we’ve been particularly focused on of late.  But they’re working to translate that into a nationwide ceasefire that can lead into a process of reconciliation that addresses the underlying issues of ethnic political participation, of economic development in the ethnic areas, and the role of the military as well.

And we believe that there’s a real opportunity here for the government to move forward with this plan.  But again, it has to be one that doesn’t just put a lid on things, but addresses the underlying challenges and works towards the type of federal union that I think has been contemplated in many of the discussions with the ethnic groups.

So we’re coming at a time where a lot of these are in flux.  But the fact of the matter is they can be dealt with through politics — and that’s new in Burma.  That doesn’t mean it’s perfect, but it means that people are going to get around the table; there’s going to be a process for reviewing the constitutional amendments.  There’s going to be elections.  There are going to be talks ongoing with the ethnic groups.  And so we want this opening to continue to move forward.  We want the trajectory to continue to be one of progress.

And the United States can best — I think to sum up my message, the United States can best move that forward by engagement.  If we disengage, frankly I think that there’s a vacuum that could potentially be filled by bad actors.  But when we’re at the table, when we’re pressing these issues, we’re bringing more attention to the situation in Rakhine State.  We are working to bring the parties together in the political process.  We can help facilitate and support through development assistance the implementation of the nationwide ceasefire.

So I covered a lot of ground there, but the bottom line here is I think that we share the same objectives with the advocacy community here.  We are pursuing those objectives through engagement, and we’re clear-eyed about where there’s been progress and where there needs to be more.  And we believe we can best move that along by the President raising this with Thein Sein, with Aung San Suu Kyi.  But you’ll notice he’s also meeting with civil society, he’s meeting with young people.  We’re sending the message that we’re engaging very broadly in this country because we care deeply about its future and we see a real opportunity, but that opportunity can only be seized if they continue moving in the right direction and don’t let some of the recent very significant challenges through the reform off course.

MR. EARNEST:  Carol.

Q       I have one for each of you actually.  On the ITA, can you explain what the difference this one is going to make to the tech industry given that — and how it will impact consumers, and if China got any concessions in this breakthrough?  And then, Ben, you mentioned that Obama and Xi are going to talk about military-to-military cooperation.  Can you guys talk on those building measures?  And have you guys reached agreements on notifying each other about military activities and on a code of conduct for encounters in sea and air?

Josh, on the net neutrality announcement, can you talk about why you guys did that now and what you’re trying to accomplish, and what sort of pushback can you expect from the new Congress?  And whether or not the President has talked to Comcast about it?

MR. EARNEST:  Mike, I’ll let you go first.  Do you want to repeat the question for — I think I lost track by the end.

AMBASSADOR FROMAN:  The benefits of ITA.

Q       Right.  (Off mic) and how it’s going to affect consumers.

AMBASSADOR FROMAN:  Well, in these tariff reduction agreements, it obviously benefits both the producers who can now sell more of their product, but also the consumers — because they’ll see access to products more easily.  And when you’re talking about medical devices, for example — medical equipment, like MRIs and CAT scans, and a whole variety of implantable devices — that means better health care for people all over the world.

The tariffs range as high as 25 percent for some of the next generation semi-conductors; 30 percent for loud speakers; 30 percent for certain software media; 30 percent for video game consoles.  So some of the tariffs are in the 5 to 8 percent range, some are in the 25 to 30 percent range.  And right now the trade in these cover lines is about $1 trillion, and we’d expect it to grow significantly for the benefit of consumers and the benefits of producers, including a lot of products made in the United States.  We export over a billion dollars of these products right now, even with these barriers in place, and that will help support more jobs in the United States.

Q       (Inaudible)

AMBASSADOR FROMAN:  In trade negotiations there’s always issues of how the obligations are phased in over time, and that will be part of what’s discussed in Geneva.

MR. RHODES:  Sure, on the specific nature of the confidence-building measures with the Chinese and mil-mil ties.  I don’t want to get ahead of the discussions, but we’ve certainly been focused on both just simply the lines of communication with China, but also how to address some of the challenges we’ve seen recently, for instance, with respect to circumstances where we certainly came a little too close for comfort between the United States and Chinese military assets.  And so we’re looking at what practical things can be done to build confidence and have more transparency.  So we’ll keep you updated on that.  I don’t want to get ahead of the leaders.

But the bottom-line principle is, first of all, it’s incredibly important that we avoid inadvertent escalation and that we don’t find ourselves having an accidental circumstance lead into something that could precipitate conflict.  So there’s enormous value in that type of dialogue.

And the second point I think is it’s good for the region if the United States and China are able to have greater transparency between our militaries.  I think that will ultimately promote stability.  And we’ve encouraged that type of transparency across the region — whether it’s an ASEAN code of conduct or whether it’s the type of dialogue that President Xi and Prime Minister Abe had yesterday.  This is something that we’ve been encouraging all of our partners to do — to be more transparent, to build confidence, develop practical means to avoid an inadvertent escalation.

So it will be an important topic of their meeting, and we’ll keep you updated on it.

Q       So just the two things that —

MR. RHODES:  I mean, there are those and then there’s just the broader nature of our military-to-military relationship and how we interact, how we have exchanges.  So I think we’ll have more to say on this, but I don’t want to get ahead of the leaders.

MR. EARNEST:  And then before we move on to — just on the net neutrality question that you raised earlier, Carol — I know that there are members of Congress on both sides of this issue who have made their views known.  The White House has been in touch with the business community on a variety of issues, as we always are.  And I know that this is something that, again, on both sides of this issue they are very strongly held views.

The position that the President articulated in the statement that was released today is consistent with the President’s previously expressed strongly held views about the important of an open Internet; that the Internet has been the source of innovation, that it’s been good for the economy, in particular in the United States.  And putting in place a regulatory regime that does not allow some of those companies to sort of extend some preferential treatment to some content is an important way that we can protect the freedom and openness that’s associated with the Internet that will ensure that it continues to be a space that’s open to innovation and progress.

But again, this is something that has been — has engendered strongly held views on both sides, so I would anticipate this will continue to be a pretty robust debate in the political sphere back home in the United States.

I will say that in terms of the timing of this announcement, it is not related to this specific trip; that there are some regulatory decisions that are due.  And the President felt like this was an appropriate time to, again, reiterate his views about the important principle that’s at stake here.

Ed.

Q       Ben, I had a question about Putin in terms of — I know it was just a brief conversation so far.  But can you say anything that happened there?  But also more importantly moving forward what you hope to accomplish, what message you hope to send to Putin because we’ve heard again and again that sanctions are working against Russia.  And certainly we’ve seen the ruble in the last couple days — there’s been an economic impact.  But the administration put out a statement a day or two ago saying that heavy artillery and tanks are being sent to the front line basically by Russia.  And that’s your own assessment.  So doesn’t that suggest that the sanctions are not stopping them from this heavy influence inside Ukraine?

MR. EARNEST:  The question is about the exchange between the President — President Obama and President Putin yesterday and the impact of sanctions on influencing Russia’s actions in Ukraine.  Ben, you want to take that.

MR. RHODES:  Sure.  Well, first of all, their interaction, as I think we said last night, it was very brief.  The leaders greeted each other as the President greeted many leaders.  They did not have the substantive exchange that they do today on the margins of APEC, where I think there’s a lot more time.  We’ll certainly let you know.

But, Ed, I think — first on the message and then on the situation in Ukraine specifically, on Ukraine, we continue to be deeply troubled by Russia’s activities.  And I guess to take your question head-on, the sanctions are clearly succeeding and having an impact on the Russian economy.  There’s no question that if you look at every metric from the status of the ruble, to their projections for growth, that the Russian economic picture is grim and getting grimmer because of the sanctions.

The sanctions have yet to sufficiently affect Russia’s calculus as it relates to Ukraine.  That’s why we continue to impose them.  That’s why we continue to be very clear about where we need to see better Russian action, specifically, as you said, we’ve seen the continued provision of support to the separatists, including heavy weapons that are in complete violation of the spirit of the Minsk agreement.  And what our message is to Russia is there’s an agreement that you reached with the government in Kyiv, and you just abide by that agreement.  The separatists must abide by that agreement.  And escalating the situation by providing these types of weapons into Ukraine is clearly not in service of that process.

And what Russia will find is, if they continue to do that, it’s a recipe for isolation from a broad swath of the international community.  It’s a recipe for the type of economic disruption they’ve seen from the sanctions going forward.

So our message is one of resolve in insisting upon the sovereignty and territorial integrity of Ukraine.  It’s a message that there is a road map here through the Minsk agreement that should be followed.  And the President will certainly I think express that view publicly and privately in the coming days and weeks.

I think more broadly with Russia, I think at the same time we’ve had differences with them on Ukraine, we’re working to pursue an Iran agreement.  We’re working in a range of areas where we can make progress together.  But clearly what we’ve seen is a troubling focus from President Putin on the situation in Ukraine that is going to demand a response from the international community going forward, just as it has the last several months.  And the United States is going to be committed to leading that response.

MR. EARNEST:  Mark.

Q       Thank you.  Just a question for Mike and then a question either for Mike or Ben — if more appropriate.

On the trade talks, Mike, I’m paraphrasing, but you said earlier the best way to get Congress to pass a TPP deal is to bring them a very good agreement.  And some trade analysts say that that sort of has it backwards, that you sort of need to get the TPA authority first because that allows you to obtain concessions from trading partners.

I’m wondering sort of whether you think you can get those concessions without the President having TPA, and whether foreign leaders have pressed the President in the wake of the elections to try to get that authority from Congress.

And then secondly on cyber, the working group that Secretary Kerry set up on the cybersecurity issues obviously stopped working after the charges were brought against the Chinese military officers for hacking.  Will President Obama in his talks with President Xi encourage him, ask him to resume the dialogue of that working group?

MR. EARNEST:  So just to restate the two issues on the microphone, the second question was about the cybersecurity working group and the relationship between the U.S. and China and how the President will raise that with President Xi when they discuss it tomorrow.

And then the first question was related to does the Ambassador feel as if he can reach a good agreement with other countries without having TPA authority first, right?  Okay.

Ambassador Froman.

AMBASSADOR FROMAN:  Well, our approach has always been to pursue both in parallel and to make clear that ultimately, again, as I said the only guarantee that agreement gets the support of Congress is that it is a good agreement and meets that ambitious, comprehensive, high-standard outcome that we have sought to achieve.

I think — we have an ongoing discussion with our trading partners.  They follow our political system very closely, and we have made clear — and I think they understand — that every country has its domestic processes to go through on trade agreements.  And we’re responsible for ours, and they’re responsible for theirs.  And as the President has made clear that he wants to work with leaders in Congress, Republican and Democratic leaders in Congress, to advance the trade agenda, that has allowed our negotiations to continue.  So we’re continuing to work in parallel to close out the TPP negotiations consistent with the high standard that we’ve set for ourselves.  And we’re continuing to work with Congress to achieve trade promotion authority with as broad bipartisan support as possible.

MR. EARNEST:  Ben, do you want to do the cyber?

MR. RHODES:  Yes, Mark, it’s certainly the case that after those charges were brought we did see a chill in the cyber dialogue.  I think the fact that we pursued those cases demonstrates that we’re not going to simply stand idly by.  If we see activity that we don’t like, that we can call out, we’re going to do that.

At the same time, though, we do believe that it’s better if there’s a mechanism for a dialogue where we can raise concerns directly with one another.  So I think President Obama will highlight the importance of having a means to have a cyber-dialogue so that our governments can share information.  We can be direct about areas of concern.  We can try to find ways to build confidence in that space, as well.

So it is something where we’ve been very firm in our position.  We did see a Chinese reaction to those charges.  Again, we’re going to continue to call out behavior as we see it.  But I think the message in the bilat today, and has it has been going forward, is better for us to have a means to have a dialogue, just as we do on a whole host of other issues through the Strategic and Economic Dialogue, so that we can be more transparent.

MR. EARNEST:  Major.

Q       Ben, on Ukraine, I’m just trying to get a sense, if the President wants to use this venue for the G-20 as an opportunity to engage Putin directly and say, what’s happening in Ukraine right now?  Which seems to be an escalation after several months of relative calm, to protest in a very specific way, and to convey that message to him directly.

Secondarily, can you in any way shape or form provide any clarity on the status al-Baghdadi?

MR. EARNEST:  So just to repeat the two questions.  The first is does the President plan to raise directly with President Putin the concerns that the United States has about their actions on Ukraine either while we’re here at APEC or in the context of the G-20 meetings.

And then an update on the latest assessment about the strike against ISIL that may have had impact on al-Baghdadi.

Ben, do you want to —

MR. RHODES:  Well, Major, I think our position on Ukraine is well known, and it’s manifested in our sanctions and our policy.  So I don’t think we’re necessarily looking to focus to make this a — to go out of our way to try to make the focus of these multilateral Ukraine in the way that we did when we were in Europe, when it was obviously a more natural venue.

That said, I think if the President has the opportunity to talk President Putin, I know he’ll be expressing the need to highlight and get back to the Minsk agreement and express concern over these latest reports.

I also know that other leaders share those concerns, as well.  And yesterday, for instance, with Prime Minister Abbott, we discussed the situation in Ukraine.  He’s obviously very focused on the MH17 investigation and the need for there to be justice for Australian families.  So it’s not simply the United States.  You have a number of leaders — Chancellor Merkel, Prime Minister Abbott, a number of other European leaders — Prime Minister Cameron — who share our concerns.

And so this is not just simply a U.S. view.  I think it’s probably held among many of our friends and allies.  And so I can’t predict exactly what will happen except to say that I know where different nations stand, and I know that that’s what they’ve been saying to the Russians.

Q       Is it fair to interpret, Ben, then that you don’t consider what’s happening right now to be particularly alarming?

MR. RHODES:  We do consider it to be particularly alarming.  That’s why we’ve spoken out about it.  I guess what I’m saying is our position is very clear on this, and the pathway out of this is very clear.  It’s to get back to the Minsk agreement.  And the pattern of imposing consequences on Russia when we see an escalation is also established, as well.

So again, I could anticipate knowing how these meetings go that as the President has an opportunity to engage with leaders like Chancellor Merkel, for instance, on the margins of the G-20, this will certainly come up.  And again, I was just highlighting that President Putin knows full well where we stand.  And we’ve made that clear through not just our words, but our policies, our sanctions.  And that’s go to continue to be our approach here.

On Baghdadi, we cannot confirm his status at this point.  As you know, we did take a strike that successfully hit a number of ISIL vehicles that we assessed was associated with ISIL leadership.  We obviously take time to do due diligence to get an understanding of what the impact was.

The message I think is very clear, though, which is that we’re not going to allow for a safe haven for ISIL and its leadership and its fighters in Iraq or Syria.  And they had for months.  They were able to operate freely.  And I think what they’re finding now — whether it’s outside of Kobani, whether it’s in Anbar province, whether it’s in northern Iraq, whether it was that strike outside of Mosul — that if they move, we’re going to hit them.

Q       Just to clarify — you’re saying you don’t —

MR. RHODES:  I don’t have an update on his status.  No.

MR. EARNEST:  Josh.

Q       Two for Ben.  The first one on Indonesia and the second one in China.  At the meetings yesterday, were there any — meeting yesterday between the President and President Widodo, was there any discussion of Hambali, the terrorist suspect that’s been locked up at Guantanamo for more than 10 years.  I think President Bush at one point promised to return him to Indonesia for trial.  Regardless of whether it came up, what’s going to happen to that individual?  Is there any plan to do anything with him or just keep him at Guantanamo indefinitely?

And then on the Chinese front, given the concerns about press freedom in China, can you explain the President’s decision to do a written interview with the Xinhua Agency, since the Chinese leaders have been criticized in the past for insisting on sort of canned interviews with American news outlets?

MR. EARNEST:  The two questions.  Did the President discuss with the Indonesian leader the status of an Indonesian terror suspect that’s being held at Guantanamo?  And the decision-making behind the President’s decision to do a written interview with Xinhua.

Ben, do you want to take those?

MR. RHODES:  Yes.  Well, on the first question, it did not come up in the discussion.  Counterterrorism did, ISIL did.  We discussed ways to share information.  And we have a good relationship with Indonesia on information sharing related to counterterrorism.  And so those issues were addressed.

But on his specific status, I’ll have to check, Josh, on exactly what the status of his case is.  As you know, we’ve reviewed each one and have a very rigorous process to determine who is cleared for transfer, who is not.  So we can get back to you on that.

On the second question, look, it’s very — when we go on trips, this is something we do everywhere.  As you know from covering us, we tend to do written interviews with outlets when we arrive in a country.

Our view is on the one hand, we need to engage.  And the more the President’s voice can be heard in a country the better because people understand where we come from.  So we do engage Chinese media.  We engage CCTV in the Briefing Room every day.  We engage Xinhua.

At the same time, we’ll raise issues of press freedom.  And the President has raised it directly with President Xi in their believe meetings.  We’ve raised our concerns about the status of some U.S. media organizations and the treatment — the adjudication of their visas.  We’ve raised, again, our concern on having more free access to information here — not just as it relates to the news media, but as it relates to Internet.

So these are things that we will consistently raise, but again, I think better for the President’s voice to get out and to be heard in a country.  We use those interviews as important venues to address different issues.  But in no way does that diminish the fact that we have concerns about the press freedom here in China, just as we do in a range of other countries that we’ve visited who have — who are on a spectrum of how they treat the press.

MR. EARNEST:  Mr. Acosta.

Q       Yes, just to follow up on that with Ben.  What does the President see as his legacy with China?  Is it more engaging with China, but not changing China’s behavior?  Because I was struck by something the President said yesterday with Prime Minister Abbott that press freedoms he likes, that those are U.S. values.  But he does not expect China to have those traditions, to follow those traditions.  Why not?  Why not publicly with Xi push the Chinese to adopt a more American value system on press freedoms and human rights?

MR. EARNEST:  To repeat the question again.  Jim’s question is about who aggressively the President pushes the Chinese on some of the human rights concerns that the President himself has spoken about pretty publicly.

Q       And how that fits into his legacy?

MR. EARNEST:  Yes, and how that fits into his legacy, with that relationship.

MR. RHODES:  Yes, so I’ll start with the human rights piece.  Jim, the President doesn’t just see these as American values.  There are certain things that are universal values.  They’re embedded in the Universal Declaration of Human Rights at the United Nations.  And they should be able to take root in any society.  When you talk about freedom of speech, freedom of association, again, America has championed those values, but we believe that they are universal.

I think what the President is speaking about is the fact that China is at a different stage of development.  Obviously, it has different traditions.  But we do raise these issues.  And we do believe that certain things are universal, the right to, again, speak your mind, access information, to freedom of assembly.  And so it’s something that we’re going to press.  It’s something that comes up in every meeting.  It’s something that we raise publicly, as well.  And at the end of the day, again, I think the people of China are going to determine the future of their country.  But we want to make sure that just as we want China to live up to the rules of the road, we want them to live up to the rules of the road on universal values.

In a place like Hong Kong, that involves respect for freedom of assembly.  It also involves the people of Hong Kong being able to select their own leaders, as was agreed to, to choose their own leadership, again, which was the one county, two systems notion.

In terms of the President’s legacy, I think there’s — what did we get done with China.  On a bilateral basis to, again, improve the American economy, to save the global economy — and coordinated action with China was critical to that — to take the steps we’ve taken on this trip that will promote U.S. exports, promote more tourism and investment in the United States.  All that will have a positive economic impact for America and the American people.

Then I think, however, we want to look at where do we enlist China in regional and global efforts.  Because, again, we want them to play a bigger role.  We want them to be a part of international climate negotiations because you can’t deal with climate change unless China is coming to the table in a serious way.

We want them to be a part of settling disputes and resolving disputes around maritime security in the region.  We want them to be part of pursuing an agreement with Iran over its nuclear program.  So China kind of fits into the type of international order we’re trying to build in which nations are invested in solving problems.

And that very much speaks to rebalance, the signature Asia Pacific policy of the President’s.  We want to see this region more prosperous, more cooperative; again, a place of robust American engagement in ways that support our economy; support the security of our allies and the civility of the region; support the values we care about in a place like Burma where we have an ongoing transition.  And that mitigates the risk of conflict that could derail the extraordinary progress we see here.

So again, when we look at his legacy, it’s going to be where do we move the ball forward bilaterally in ways that benefit the American people?  How do we embed China, working with them, in an international system that can solve problems like climate change and maritime security?  And how is this region a more stable, prosperous and secure place which has robust American engagement.  They’re critical to all those things.  And human rights in our view is a part of the international norms that we uphold.

So just as we care about maritime security and cybersecurity, we care about universal values.  And that’s going to be a part of how we judge the status of the relationship.

Q       You mentioned Iran a couple of times.  If I could just follow up on that.  November 24th is coming up very quickly.  Do you foresee a scenario where that deadline might be put back a little bit?  And you’ve seen Netanyahu’s comments, where he seems to be pretty upset about Khamenei tweeting about the (inaudible) and what do you make of that?

MR. EARNEST:  Can you repeat the question?

MR. RHODES:  Yes, so the question.  Was the states of the Iran negotiations heading to the 24th and the Israeli Prime Minister’s comments on the Supreme Leader’s tweet.

On the first question, what we’ve been focused on is driving towards what progress can we make towards an agreement for the 24th.  We have not focused on discussions with Iran on extending those discussions because we want to keep the focus on closing gaps.

Secretary Kerry was meeting into the night in Oman.  He’s currently on a plane, set to arrive in Beijing.  He will give the President an update on where things stand and what progress he made, so President Obama will hear directly from him about the status of the talks.

And then there are negotiations scheduled in Vienna where we’ll see where we can get by the 24th, and we’ll keep people posted on where things stand.

With respect to the — first of all, the sentiments expressed by the Supreme Leader’s office in that tweet.  They’re obviously outrageous.  It’s the type of rhetoric we’ve seen from the Iranian leadership for years.  We completely reject it, of course.

The fact of the matter is what we’ve always said is even as we pursue this effort around diplomacy on the Iranian nuclear program, that’s about addressing a security concern of the United States and Israel and the international community.  If we can prevent Iran from obtaining a nuclear weapon, that’s in all of our interests.

At the same time, it doesn’t lessen our concern over other Iranian behaviors, including the virulent anti-Israeli rhetoric that has been a part of their political tradition.  So we’ll continue to speak out against that.

With respect to the agreement itself, though, what we would say is, again, if we can verifiably discern that Iran is not building a nuclear weapon, that it’s program is for peaceful purposes, that’s a good thing.  That’s far better than an outcome where Iran is back to trying to accumulate more stockpile, enriching at a higher percent and getting more breakout capacity.  So we’ve already frozen their nuclear — the progress of their nuclear program.  We’ve rolled back the stockpile just during these negotiations.

If we can get a comprehensive agreement, we would say that would be in the interest of American national security and also the security of our friends and allies.

MR. EARNEST:  We’re nearing the one-hour mark here, so we’ll just do two more.  Ching-Yi and then Jim Avila, I’ll let you wrap up.  Go ahead.

Q       Thank you, thank you, Josh.  First question is to Ambassador Froman.  According to interview with Xinhua, President Obama say our summit will also be an opportunity to make progress toward ambitious bilateral investment treaty.  So what kind of progress?  What kind of breakthrough that we can expect about the VIT?

And also the second question is to Ben.  Other than ITA and the visa, what else deliverables that the U.S. is looking forward to reaching this time.  Thank you.

MR. EARNEST:  Repeat the question so everybody can hear.  Ambassador Froman, an update on progress related to the VIT negotiations.  And, Ben, what other deliverables do you anticipate out of the meetings between President Obama and President Xi.

Ambassador Froman?

AMBASSADOR FROMAN:  Well, as you may recall it was about a year and a half ago that China agreed to negotiate a bilateral investment treaty on the basis of what we call a negative list, which is to open up their economy but for specific carve-outs that they negotiate with us.  And that was a major step forward, as were some of the other provisions that we agreed to then.

Since that time we’ve had very good discussions in the bilateral investment treaty channel.  We’ve had a series of rounds to walk through our model of it and to talk about how it would be applied in the case of China.  We have further work to do.  Next year, early next year, China has agreed to give us their first version of their negative list.  And it will be very important if we’re to achieve early progress in these negotiations that that list be as short and as focused, as narrowly tailored as possible.  And we’re encouraging our Chinese counterparts, including while we’re here for this visit and around this summit to focus on making that list as narrow and as short as possible so that we can proceed with negotiations and make progress next year.

MR. RHODES:  I, of course, will let the leaders speak to the specific deliverables.  I think we certainly focused on the visa issue and ITA in these first couple of days because of the economic theme of APEC and the venue of the CEO forum.  So again, I think the President’s meeting will certainly address economic issues.  But I think we’ll also d

Para uma União da Inovação mais forte, coesa e aberta – Working for a Strong, Cohesive and Open Innovation Union

Comissão europeia

[Só faz fé o texto proferido]

José Manuel Durão Barroso

Presidente da Comissão Europeia

Para uma União da Inovação mais forte, coesa e aberta – Working for a Strong, Cohesive and Open Innovation Union

O futuro da Europa é a ciência

Lisboa, 6 outubro 2014

Sua Excelência o Senhor Presidente da República,

Senhora Secretária de Estado,

Senhora Presidente do Conselho de Administração da Fundação Champalimaud, cara Dra. Leonor Beleza,

Senhora Comissária, Dear Máire Geoghegan-Quinn,

Senhor Comissário indigitado, meu caro Eng. Carlos Moedas,

Minhas Senhoras e meus Senhores,

Ilustres convidados,

Caros amigos,

Tenho muito prazer em estar aqui hoje convosco para vos falar do papel da ciência no futuro da Europa. Gostaria de começar por agradecer à Senhora Presidente da Fundação Champalimaud, Dra. Leonor Beleza, por nos acolher nesta impressionante sede de uma instituição que em relativamente pouco tempo já ganhou reconhecimento nacional e internacional pelo seu trabalho ao serviço da ciência. Quero de modo muito especial agradecer ao Senhor Presidente da República pela honra que nos dá ao ter dito sim quando o convidei para presidir à abertura desta conferência.

De fato, não poderíamos ter escolhido um sítio melhor do que Lisboa para realizar a conferência. A sensibilidade para a descoberta e para a abertura a novos horizontes faz parte do ADN de Portugal!

E as novas gerações têm honrado esse legado, como foi brilhantemente demonstrado pelos jovens João Pedro Estácio Gaspar Gonçalves de Araújo, Mariana de Pinho Garcia e Matilde Gonçalves Moreira da Silva, que há menos de duas semanas foram reconhecidos entre os melhores jovens cientistas da Europa por ocasião do 26.º Concurso da União Europeia para Jovens Cientistas realizado em Varsóvia.

E também não teria sido possível escolher melhor sítio que a Fundação Champalimaud, que não só é um centro de excelência em investigação sobre a saúde, como também uma instituição muito empenhada em divulgar a educação científica junto do público em Portugal. A atitude dos cidadãos em relação à ciência é, sem dúvida, um aspeto crucial que importa ter em consideração. O progresso científico deve ser devidamente explicado para poder ser bem recebido, em vez de ser encarado, com muitas vezes acontece, com injustiçadas dúvidas ou até perniciosas resistências.

Esta conferência não poderia ocorrer em melhor altura, pois é precisamente nesta semana que se procede a entrega dos Prémios Nobel, que se iniciou esta manhã com o Prémio Nobel da Medicina de 2014 – cujos vencedores, como já foi dito, foram John O’Keefe, May-Britt Moser e Edvard Moser, que felicito muito sinceramente. E é com grande orgulho que o faço, pois estes últimos dois neurocientistas, apesar de trabalharem na Noruega, foram ambos bolseiros do Conselho Europeu de Investigação (ERC).

Quero também agradecer muito a presença entre nós do Prémio Nobel da Física, Serge Haroche, que participará logo a seguir numa das mesas redondas, e a todos os outros eminentes cientistas, empresários e membros da sociedade civil que quiseram juntar-se a nós nestes dois dias de importantes reflexões.

A Comissão Europeia tem vindo a colocar a ciência, a investigação e a inovação no centro da agenda europeia. Para construir uma Europa forte, unida e aberta neste domínio, a Comissão tem desempenhado um importante papel procurando soluções para os problemas, estabelecendo pontes e promovendo os nossos princípios fundamentais.

A ciência, a investigação e a inovação são áreas a que tenho dedicado especial atenção desde o início do meu mandato de dez anos como Presidente da Comissão Europeia. Os alicerces foram criados ao longo dos anos: desde a criação do Instituto Europeu de Inovação e Tecnologia (EIT) e do altamente reputado Conselho Europeu de Investigação – European Research Council -, à participação da Europa em grandes projetos científicos como por exemplo – um dos maiores em curso no mundo – o Reator Termonuclear Experimental Internacional (ITER), cujos progressos constatei pessoalmente durante a visita que efetuei em julho a Cadarache, em França, na sede do projeto.

A razão pela qual dedico uma atenção especial a este setor está relacionada com a grande esperança na ciência, na grande confiança que tenho nas capacidades da mente humana e numa sociedade criativa para solucionar os seus problemas. O mundo está a mudar drasticamente, a uma velocidade nunca vista. Acredito que muitas das soluções, na Europa e fora dela, virão de novos estudos científicos e das novas tecnologias. Gostaria de ver a Europa a liderar esse esforço a nível global, o que será determinante para o futuro bem-estar e a prosperidade das nossas sociedades e para a influência europeia a nível global.

A verdade é que foi possível, mesmo em momentos de grandes dificuldades financeiras, colocar a investigação no centro da estratégia para o crescimento e para o emprego – a Estratégia Europa 2020: com o objetivo de criar condições favoráveis à inovação; promover o dinamismo da União da Inovação; lutar por um maior investimento na inovação, na tecnologia e no papel da ciência.

Gostaria de aproveitar esta oportunidade para enaltecer o trabalho incansável e muito competente da Comissária para a Investigação, a Inovação e a Ciência, Máire Geoghegan-Quinn, em prol da obtenção de resultados concretos num setor com tão grandes ambições. Muito a ela se deve, nomeadamente na luta de persuasão de alguns Governos no sentido de nos apoiarem em relação a um orçamento mais ambicioso para a investigação.

Acredito igualmente – e tive experiência direta disso durante estes anos – na importância da competência científica independente e consistente. De facto, a Comissão Europeia é muitas vezes chamada a tomar decisões que são extremamente complexas do ponto de vista técnico e que têm profundas repercussões do ponto de vista social, e até, muitas vezes, implicações de um ponto de vista ético. E penso que essas decisões devem ser sustentadas numa abordagem científica.

Foi por essa razão que decidi criar o cargo de conselheiro científico principal do Presidente da Comissão Europeia, exercido pela Professora Anne Glover, e também criamos o Conselho Consultivo para a Ciência e Tecnologia (STAC), que nos aconselha e apoia nos domínios da ciência e da tecnologia.

Dado que o progresso da ciência levanta por vezes questões éticas, a Comissão Europeia é também aconselhada pelo Grupo Europeu de Ética para as Ciências e as Novas Tecnologias, um organismo independente, pluralista e pluridisciplinar, cujo papel se encontra já bem consolidado.

Dado que há muito a fazer quando se aceita a ideia de que a mudança é uma oportunidade de melhorar; e que as novas formas de pensar e os novos dados podem obrigar-nos a abandonar visões por vezes antiquadas do mundo e a aceitar algo de novo, dei também o meu pleno apoio a várias iniciativas prospetivas no âmbito da Comissão Europeia, desde o projeto ESPAS (European Strategy and Policy Analysis System) à criação de uma rede interna em matéria de prospetiva, que cobre também o domínio científico.

Penso que estes exercícios prospetivos são realmente necessários pois, embora a incerteza faça sempre parte da decisão política, a falta de antecipação política adequada pode e deve ser evitada. Os decisores políticos precisam de dispor de alternativas de políticas públicas bem informadas que lhes permitam tomar decisões claras e estratégicas a médio e longo prazo.

Por isso solicitei, portanto, ao meu Conselho Consultivo para a Ciência e Tecnologia (STAC) que se debruçasse sobre estas questões e que elaborasse um relatório sob o lema «O futuro da Europa é a ciência». É precisamente disso que se trata: identificar os desafios e as oportunidades que a ciência, a tecnologia e a inovação colocam à Europa e formular uma série de recomendações em três domínios diferentes, todos eles de importância primordial para os cidadãos europeus: o futuro da sua saúde, o futuro do trabalho e o futuro do ambiente.

Queria aproveitar esta oportunidade para agradecer publicamente aos membros do STAC. Sempre trabalhámos juntos, de uma forma aberta e construtiva. Sempre valorizei o seu aconselhamento e congratulo-me com o relatório que é hoje mesmo publicado na ocasião da realização da conferência.

Gostaria agora de vos explicar sucintamente o que significa uma Europa forte, unida e aberta do ponto de vista da Comissão Europeia no que se refere à ciência e à investigação.

Excellencies,

Ladies and gentlemen,

Contradicting what I call an intellectual glamour of pessimism about Europe, which unfortunately happens to be rather fashionable in some circles, we have to recognize that, when it comes to research and innovation, Europe is strong. Much stronger than what sometimes is publicly acknowledged. Europe is one of the leaders in science in the world!

We are not short of world-class researchers and innovators with the skills and ideas to drive Europe forward. And today’s audience is a perfect illustration of this. We have twice the number of science and technology graduates than in the United States; with 7% of the world’s population, we still produce roughly a third not only of the world’s GDP, but also of patents and high impact scientific publications; and despite the crisis almost all our Member States have improved their innovation performance; and we have been able to halve the innovation gap that we still have with the United States and Japan. While in science we are, in many areas, the number one in the world, in innovation we are not always in the first places.

But we cannot afford to rest on these laurels. We live in a world where scientific and technological progress is accelerating at an unprecedented pace, and where South Korea is moving further ahead, with China quickly catching us up. So we need to capitalize on our strengths and to address also some of our weaknesses.

From a European Commission’s perspective, this basically means to act as a problem-solver in an environment of scarce resources and under very challenging circumstances. This is what we have been doing over these last years.

The best illustration of this is certainly the new research programme Horizon 2020. This is a large framework programme with wide-ranging objectives from supporting excellence in science – with the European Research Council now chaired by Professor Bourguignon – to developing industrial leadership and addressing key societal challenges, allowing us to focus on the big priorities relevant to our citizens.

That said, as we are all aware, money is the crux of the matter. But despite very difficult financial conditions, we have managed to get our Member States closer to our objectives for research, with an increase of 30% through the new Horizon 2020 programme – around € 80 billion for the next seven years – which makes it today one of the most important scientific funding programmes in the world.

I have to say, to be honest with our Member States, that while in some areas they were very negative when we discussed the Multiannual Financial Programme for the next seven years regarding some expenditure, when it came to science there was, generally speaking, very good opening from our Member States considering the ambitious proposals of the Commission. And this is certainly a very important progress, compared to the situation in the past.

And because entrepreneurs, researchers, innovators cannot afford to have their energy and time drained with red tape, with Horizon 2020 red tape was sensibly reduced. All phases of the innovation cycle are now funded under a single platform.

More private investment has also been secured to address major societal challenges. Public-private partnerships are one of the key elements of Horizon 2020. The private sector has committed to invest nearly € 10 billion in Joint Technology Initiatives stimulating innovation in areas such as medicines, transport and bio-based industries. Together with EU and Member States funding, this amounts to a € 22 billion boost for growth and jobs in Europe over the next 7 years.

Another example of the European Commission acting as a problem-solver is the Risk Sharing Finance Facility that we have set up jointly with the European Investment Bank.

As you know, one of the major obstacles to getting innovation to the market is the insufficient availability of finance for new and innovative projects, particularly for SMEs. The principle of this Risk Sharing Finance Facility is that for every billion euro of European budget money, the European Investment Bank has mobilised € 12 billion in loans and over € 30 billion in final research and innovation investment. Concretely, this has led to additional resources of up to € 40 billion since 2007 for research and innovation activities, which would otherwise be left unfunded. Besides, a very substantial share of Horizon 2020 will be devoted to funding innovative SMEs which, no need to recall, form the backbone of the European economy.

And I am happy and even proud to add that after 30 years of negotiation, – because the Member States were not able to agree on a common position on that matter – we finally agreed a European-wide patent, even if there are two Member States that are outside the final agreement. This is a major step forward in our effort to deliver a more innovative-friendly business environment in Europe. We estimate that once fully implemented, this will reduce the cost by up to 80% for small and medium size business and individual researchers to register their creative ideas.

But clearly the European Commission’s actions are not enough. They are necessary but not sufficient. Our countries must also act as problem-solvers and our governments make an equal effort in research. Budgetary consolidation is certainly an essential prerequisite for sound growth and competitiveness. But investment in growth and jobs of the future are also vital. And if you want to invest in the future, you should think science, research and innovation!

Ladies and gentlemen,

A stronger Europe is also a more united Europe. And for Europe to be more united in the field of science, research and innovation, we have to address existing fragmentations, notably between academic and business worlds, between public and private sectors.

From a European Commission’s perspective this means to act as a bridge-builder and make the knowledge triangle work better in favour of new socio-economic benefits. This is what we have been doing over these last years, notably through the European Institute of Innovation and Technology (EIT) which I took the initiative to create during my first mandate and which was launched in 2008.

The EIT, and I recently visited the headquarters of the EIT in Budapest, precisely brings together the three strands of the knowledge triangle – higher education, research and innovation – and businesses, in new types of partnership, the so-called Knowledge and Innovation Communities (KICs) operating so far in three areas, but we are going to enlarge them: sustainable energy, climate change and ICT; and with a strong emphasis on entrepreneurship. Until 2020, the EIT will be expanded to new areas and five new KICs will be created, as well as its outreach capacity that will be strengthened.

By 2020, the EIT is expected to train 10.000 Master students, 10.000 PhDs and create 600 new companies, and achieve systematic impact in the way universities, research centres and companies cooperate for innovation.

The Marie Skłodowska-Curie actions are also another good example of how to bridge gaps between sectors. Horizon 2020 will allow for the funding of 65.000 researchers under the new Marie Skłodowska-Curie actions which will combine research excellence with training on entrepreneurial skills; and encourage researchers to engage with industries and other employers during their fellowship.

A more united Europe depends also on an increased mobility of researchers and on the development of pan-European infrastructures. This is, as you know, the objective of the European Research Area: to have a real single market for knowledge, research and innovation. Good progress has been made. Most of the conditions for achieving a European Research Area are in place at the European level. The completion of this objective therefore now largely depends on national reforms and on national implementation. Member States are expected to present “European Research Area (ERA) roadmaps” by mid-2015, outlining their next steps towards the implementation of a true European single market for research.

And as it is just impossible to speak of a more cohesive Europe without referring to cohesion policy, I would like to mention that, to maximise territorial and social cohesion, Smart Specialisation Strategies are being developed with the support of the European Regional development Fund as well as other relevant funds, in order to make the most of the innovation potential of each region and each country across Europe. This is what we call the “Staircase to Excellence”, allowing all Member States to attain the best level in science with the support of European funding.

Finally, a stronger Europe is also an open Europe. When I had the great honour to deliver, together with my colleague, the President of the European Council, the acceptance speech of the 2012 Nobel Peace Prize awarded to the European Union in Oslo, I made a point about science and culture being at the core of our European project, precisely as a way of going beyond borders. I think it is very interesting that the idea of the European Union was, to some extent, to overcome borders and divisions and in science we know something about that. As Louis Pasteur said: “La science n’a pas de patrie.”

From a European Commission’s perspective this means to hold true to our Union founding values and principles by reaching out not only to our countries, but to all countries in the world. For example 15.000 out of the 65.000 researchers to be funded under the Marie Skłodowska-Curie actions will be non-EU researchers.

We are also promoting a dynamic science diplomacy. Horizon 2020, for example, is fully open to participation from international partner countries as shown by the agreement we recently signed with Israel. And I am happy that we have now found a solution to associate Switzerland to the Horizon 2020 programme that is one of the most important science and research funding programmes in the world.

We are also developing major dialogues on science and innovation with other world regions, notably with Africa. For instance, a year ago, we have agreed to start working towards a long-term jointly funded and co-owned research and innovation partnership with Africa, with a first focus on food and nutrition security and sustainable agriculture.

Another example is the decision taken with the United States and Canada, in May 2013, to join forces on Atlantic Ocean research, to better understand this Ocean and to promote the sustainable management of its resources.

That said, openness is not a one-way street. It has to be reciprocated. Our ongoing negotiations of Free Trade Agreements (FTAs) contribute to the establishment of a level playing field with our international partners, with the aim of ensuring, in particular, equivalent protection of intellectual property rights. We are clearly aiming at promoting win-win situations, so as to foster international research and innovation opportunities.

Ladies and gentlemen,

We have been through the worst financial, economic and social crisis since the start of European integration. This has clearly put our European model to the test. This was the biggest stress test ever in terms of European integration. Under these challenging circumstances, it was not easy to struggle to keep Europe united and open to the world, and to prepare Europe to emerge stronger and better prepared for the demands of globalisation, prepared to deal with demographic, technological and environmental challenges. A Europe ready to face the future.

In this process, the European Commission has always considered science and innovation as key strategic priorities for promoting a competitive European economy, but also a vibrant European society. We have been fully committed to create a more science and innovation-friendly environment. Because indeed “the future of Europe is science.”

And the discussions you will have later today and tomorrow on foresight will be an opportunity to highlight how much science and innovation are key to deliver on the issues which matter most for every European: health, jobs and therefore the society they live in and the economy. And there is no alternative: we have to deliver on these issues – crucially on jobs – to regain the trust of our citizens.

The reforms driven by the European Commission, and of course with our Member States, over the past five years are a solid foundation for that. Still a lot remains to be done. Science and innovation have to remain more than ever strategic priorities. But one thing I can tell you very sincerely after these ten years in the European Commission is that the European Union has demonstrated its great resilience. All those that were betting on the implosion of the euro or on the implosion of the European Union, were wrong. And one of the things that tie us together is, and should continue to be, science and the commitment to an open society where these ideas and this creativity can be kept and can be developed.

Let me conclude in Portuguese,

A título mais pessoal, quero manifestar hoje a minha satisfação por saber que a enorme responsabilidade de conduzir a ciência no futuro incumbirá ao meu compatriota e amigo, o Comissário português indigitado, Carlos Moedas. Gostaria de agradecer a sua presença hoje e estou confiante de que desenvolverá profundos esforços a favor da ciência, da investigação e da inovação. Desejo-lhe o melhor para as suas futuras funções. Para o futuro de Portugal e para o futuro da ciência na Europa!

E a todos vós desejo muito êxito nas discussões acerca do futuro da Europa e da ciência.

Muito obrigado pela vossa atenção.

Remarks by the Vice President at the John F. Kennedy Forum

The White House

Office of the Vice President

For Immediate Release

October 03, 2014

Harvard Kennedy School
Boston, Massachusetts

6:37 P.M. EDT

THE VICE PRESIDENT:  Well, Dean, you did that introduction exactly like my sister wrote it sounds like.  (Laughter.)  Thank you.  That was very, very generous of you.

And as we used to say in the Senate, please excuse the point of personal privilege.  There are three reasons why I’ve won the races I’ve won and why I sustained winning, and they’re right here in this front row.  The first one is my sister, but also the guy who got me through the 1972 campaign is one of the best political strategists I have ever known, and a man who is — as Frank — is that you, Frank, back there?  Frank Fahrenkopf, the former chairman of the Republican Party.  We’ve known each other a long time, back to the days when we really liked one another, Republicans and Democrats.  (Laughter.)  We still do.  It’s great to see you, Frank.

But as Frank can tell you and anyone else can tell you that the one thing when you hire a political consultant that you most are concerned about — and I mean this sincerely — is will they reflect your values.  This guy that I’m about to introduce to you has more integrity in his little finger than most people have their whole body, but is the reason I overcame that deficit — John Marttila, a native Bostonian here. 

And the guy sitting next to him who has fought in Vietnam and came back to fight against the war in Vietnam and has become my friend.  And if you ever have to — that old joke, if you have to be in a foxhole, this is the guy you want with you, Professor Tommy Vallely (ph).  Tommy, it’s great to see you.  I didn’t expect to see you.

And it’s great to be here.  And I have one plea, don’t jump.  (Laughter.)  Don’t jump.  It’s good to be back.

I understand that Senator Markey may be here.  I hope for his sake he’s not and he’s out campaigning because — but I was told he might be, and Congressman Delahunt, two fine friends.  If they’re here I want to acknowledge them.

Folks, “all’s changed, changed utterly.  A terrible beauty has been born.”  Those are the words written by an Irish poet William Butler Yeats about the Easter Rising in 1916 in Ireland.  They were meant to describe the status of the circumstance in Ireland at that time.  But I would argue that in recent years, they better describe the world as we see it today because all has changed.  The world has changed.

There’s been an incredible diffusion of power within states and among states that has led to greater instability.  Emerging economies like India and China have grown stronger, and they seek a great force in the global order and global affairs. 

Other powers like Russia are using new asymmetrical forms of coercion to seek advantage like corruption and “little green men,” foreign agents, soldiers with a mission but no official uniform.  New barriers and practices are challenging the principles of an open, fair, economic competition.  And in a globalized world, threats as diverse as terrorism and pandemic disease cross borders at blinding speeds.  The sheer rapidity and magnitude, the interconnectedness of the major global challenges demand a response — a different response, a global response involving more players, more diverse players than ever before.

This has all led to a number of immediate crises that demand our attention from ISIL to Ebola to Ukraine — just to name a few that are on our front door — as someone said to me earlier this week, the wolves closest to the door.

Each one in its own way is symptomatic of the fundamental changes that are taking place in the world.  These changes have also led to larger challenges.  The international order that we painstakingly built after World War II and defended over the past several decades is literally fraying at the seams right now.

The project of this administration, our administration at this moment in the 21st century, the project that President Obama spoke about last week at the United Nations is to update that order, to deal with these new realities, but also accommodate and continue to reflect our enduring interests and our enduring values.

And we’re doing this in a number of ways.  First, by strengthening our core alliances; second, building relationships with emerging powers; third, defending and extending the international rules of the road that are most vital; and fourthly, confronting the causes of violent extremism.  But all of this rests on building a strong, vibrant economy here at home to be able to underpin our ability to do anything abroad.

So tonight I want to talk to you about our efforts and provide, as best I can, an honest accounting of what it’s going to take for America to succeed in the beginning of the 21st century.

The first thing we have to do is to further strengthen our alliances.  Many of the challenges we face today require a collective response.  That’s why we start from a foundation of the strong alliance we’ve had historically in Europe and in Asia, a feature of American strength unmatched by any other nation in history and built on a sacred commitment to defend one another, but also built on shared political and economic values.

One of the cornerstones of our foreign policy is the vision we share with our NATO allies of a Europe whole and free, where every nation can choose the path it wishes with no interference.  But that vision has been recently challenged.  We’ve seen aggression on Europe’s frontier.  And that’s why we’ve moved to mobilize our NATO allies to step up and provide significant security assistance to Ukraine. 

Each of the 28 NATO allies has now committed to providing security assistance to Ukraine, including over $115 million from the United States.  And as we respond to the crisis in Ukraine, we are determined that NATO itself emerge stronger from the crisis thrust on us by Russia.  With our allies, we are increasing deployments on land, sea and in the skies over Central and Eastern Europe.

And at the most recent NATO Summit in Wales, the Alliance agreed to create a Rapid Response Force to make sure that NATO is ready and can respond to any contingency.  And we’re increasing exercises and capacity building with non-NATO nations, countries in European — on Europe’s eastern frontier to ensure that they too can exercise their right to choose their own future, and that NATO’s door remains open.

But beyond mutual defense, we’re working closely with Europe on everything from trade to counterterrorism to climate change.  But we have to be honest about this and look it squarely in the eye, the transatlantic relationship does not sustain itself by itself.  It cannot be sustained by America alone.  It requires investment and sacrifice on both sides of the Atlantic, and that means ensuring that every NATO country meets its commitment to devote 2 percent of its GDP to defense; establishing once and for all a European energy strategy so that Russia can no longer use its natural resources to hold its neighbors hostage.  Reaching a final agreement on the so-called Transatlantic Trade and Investment Partnership, the new mechanism to try to strengthen the economic engines to sustain our mutual efforts in Europe and at home.

To the East, for six decades, America’s alliances in Asia have made possible the security and stability that has flowed from — that has allowed the economic miracle.  When I met not long ago and I met many, many hours with President Xi — I probably had dinner alone with him over 22, 23 hours over two five-day periods, talking about — I mentioned that America — I made clear that America is a Pacific power and we will remain a Pacific power.  And us in the area is the reason for the existence of a stability in Asia for the past 50 years.  That’s why it’s essential that we modernize our Pacific alliances, updating our posture and expanding our partnerships to meet the new challenges we face.

America today has more peacetime military engagements in the Asia Pacific than ever before.  By 2020, 60 percent of our naval assets and 60 percent of our air power will be stationed in the Pacific.  We’re supporting Japan’s efforts to interpret its constitution to allow it to play a larger security role.  We’ve signed enhanced defense cooperation agreements with the Philippines.  We’re strengthening our missile defense capabilities in the region to deter and defend against North Korea.  And three years ago, we had no forces in Australia; today, we have more than a thousand Marines rotationally deployed in Darwin.  And we have a growing partnership with Vietnam, in no small part — by the way — to the work of Tommy Vallely and his colleagues actively engaged in regional organizations like ASEAN.

We have an historic opportunity as well to build a new relationship with Burma if we get lucky.  But our Asian allies also have tough choices to make.  We cannot do this on our own.  It will relate to their willingness to work closely and more closely with one another.  As the President and I have done in meetings with the leaders of Japan and South Korea, we’re going to continue to promote trilateral cooperation among our allies and partners in the Pacific to make the most of those ties that will benefit the entire region if we succeed.

In the Middle East, our alliances are also crucial.  We will never waver from our steadfast support for Israel, and we’re working alongside a coalition of Arab partners and countries from around the world to confront ISIL. 

So even as we strengthen our traditional alliances, we’re building wider coalitions to bolster the world’s ability to respond to these emerging crises.

Take Ebola.  A horrific disease that is now a genuine global health emergency.  Our Centers for Disease Control, USAID and our military have taken charge of that world epidemic.  We are organizing the international response to this largest epidemic in history.  The President rallied the world at the United Nations last week, mobilizing countries from all around the world to act, and to act quickly.  We’re deploying over 3,000 American soldiers to West Africa to support regional civilian responses and advance the effort in fighting the disease of Ebola.

The second thing we have to do besides strengthening our alliances and cooperation, we have to effectively manage our relationships with emerging powers of the 21st century.  And that means putting in the effort to realize the potential of America’s friendship with emerging democratic partners like Brazil and President Dilma, President Peňa Nieto in Mexico, Prime Minister Modi in India, who just made a historic visit to the United States this week.

Each of these relationships has a significant potential to genuinely, genuinely promote shared interest and shared ideals.  But each one has to overcome domestic politics, bureaucratic inertia, and a significant legacy of mistrust over the last century.  But there is great potential here, but there is no guarantees.  There is no substitute for direct engagement and an unstinting effort to bridge the gap between where we are today and where we can and should be tomorrow.

The world in which emerging powers and responsible stakeholders promoting common security and prosperity has yet to arrive, but it’s within our grasp to see that happen.  That’s why we’ve embraced the G20 as a model for economic cooperation.  That’s why it’s also important that we fully support international institutions like the IMF, fund them and reform and modernize them to better serve all nations.

But managing our relationship with China is the single most essential part of the strategy at which we must succeed.  Even as we acknowledge that we will often be in competition, we seek deeper cooperation with China, not conflict. 

Nowhere is it written that there must be conflict between the United States and China.  There are no obvious, obvious impediments to building that relationship.  And we’re committed to building up that partnership where we can, but to push back where we must.  The President plans to visit China this fall as part of his second trip to Asia this year.  This is the kind of engagement that is necessary for us to come together and do consequential things.

At Sunnylands, when he met with President Xi last, they reached an historic agreement on the super pollutant known as HFCs, hydrofluorocarbons.  And our hope is that this year we can continue to expand our cooperation with China on climate and environment, but also be very direct about our differences.  That’s why in a five-hour meeting I had with President Xi this past December — after they had several days earlier announced unilaterally an air defense identification zone, contrary to international law — I sat with President Xi and I told him bluntly, Mr. President, understand one thing.  We do not recognize it, we do not honor it, and we’re flying a B-52 through it.  Understand. (Laughter.)  No, I’m serious.  I’m not asking you to do anything.  I’m not asking you to renege.  Just understand — we will pay no attention whatsoever to it.  It’s important.  It’s important that in emerging relationships there be absolute, frank, direct discussions.
 
That’s why we’ve made clear as well that freedom of navigation must be maintained in the South China Sea.  But that’s also why President Obama has been direct in public and private with China’s leaders on cyber theft.  And as the world watches Hong Kong’s young people take to the streets peacefully to demand respect for their own rights, we’ll also never stop standing up for the principles we believe in that are universal — democratic freedoms and human rights.

President Xi asked me, why do we focus on human rights so much?  I’m serious.  And I gave him a direct answer — which is almost unique to the United States; it doesn’t make us better or worse, but unique to the United States.  I said, Mr. President, even if a President of the United States did not want to raise human rights abuses with you to have a better relationship on the surface, it would be impossible for him or her to do that — for the vast majority of the American people came here to seek human rights and freedom.  It is stamped into our DNA.  It is impossible for us to remain silent.  Again, he took it on board — and it’s important to understand why we do it.  It is not a political tool.  It is who we are.
 
To build these robust relationships with emerging powers, we also have to demonstrate staying power — which is hard and costly — in places that will do the most to shape the world that our grandchildren are going to inherit.  That’s why our rebalance to the Asia-Pacific region depends in no small part on completing a trade initiative known as the Trans-Pacific Partnership.  And that’s the whole Pacific — from Peru all the way to Japan. 
It’s a partnership that will stitch together the economies of 12 Pacific nations, stretching from South America to Asia, united behind rising standards regarding labor, the environment, and fair completion.  Once completed, these trade agreements we are negotiating across the Atlantic and the Pacific will encompass nearly two-thirds of the global trade in the world, and can shape the character of the entire economic global economy.

The Trans-Pacific Partnership also has a profound strategic — not just economic — strategic element to it.  Because deeper economic ties cement our partnerships but, most of all, help small nations resist the blackmail and coercion of larger powers using new asymmetric weapons to try to achieve their ends in other countries.

And this brings me to the Western Hemisphere, a vital part of the Pacific equation, but where there’s another great opportunity.  The President asked me to oversee our hemispheric relations.  And for the first time in history, you can truly envision a Western Hemisphere that is secure, democratic and middle class, from northern Canada to southern Chile, and everywhere in between.  But we have to overcome centuries of distrust.  We can no longer look at the region in terms of what we can do for it.  The question is what can we do together in this hemisphere.  And the possibilities are endless.

On energy, North America is literally — not figuratively — the epicenter of energy in the world today.  There are more rigs, gas and oil rigs in the United States pumping today than every other nation in the world combined.  Combined.  North America will account — meaning Mexico, China and Canada — for two-thirds of the growth of global energy supply over the next 20 years.  By 2018, the United States will be a net exporter of natural gas, and most projections show North America will be totally energy independent by 2020, and the United States shortly thereafter.
 
Look at the hemisphere in terms of trade.  Forty percent of all our exports stay in this hemisphere — 40 percent.  We have $1.3 trillion in trade in a yearly basis just in North America, including $1.3 billion per day with Mexico alone.
 
On security, we partnered with Colombia and Mexico and others to combat the scourge of drug trafficking.  We’re helping Central American countries address the root causes of poverty and violence and migration.

But to realize the potential of our partnerships in the region, we have to be present, we have to build that trust — which is why I’ve made five trips to Latin America just in the last — and to South America as well — just in the last 18 months.
 
It’s why we have to pass immigration reform here in the United States.  It’s one thing to say we respect the rest of the Americas, the majority of which are Hispanic.  But it’s another thing to say I respect them and yet not respect the immigrant population that’s the Hispanic community of the United States.  It does not connect.

The single most significant thing we can do to fundamentally change the relationship in terms of trust and commitment is to pass immigration reform.  Those of you who travel to or are from Central and South America know of what I speak.  Because respecting immigrants from the Americas is part of how we show that we really have changed our view, that South and Central America is no longer our back yard; it is our front yard.  It is our partner.  The relationship is changing.  And when it changes fully the benefits for us are astounding.

The third thing we need to do — and are doing — is to defend and extend the international rules of the road and deal with asymmetrical threats that are emerging.  The international system today is under strain from actors pushing and sometimes pushing past the limits of longstanding important international norms like nonproliferation and territorial integrity.  That’s why we insisted that Syria remove its chemical weapons stockpile and the means to manufacture them.  So we assembled under great criticism a coalition with Russia and others to remove Syria’s chemical stockpile.  That’s why have made it clear to Iran that we will not allow them to acquire a nuclear weapon.  So we’ve put together the single most effective, international sanctions in history to isolate Iran, and to push them back to the negotiating table.

Elsewhere, actors are subverting the fundamental principle of territorial integrity through the use of new asymmetric tactics, the use of proxies to quietly test the limits and probe the weaknesses across boundaries and borders on land and sea; the use of corruption as a foreign policy tool, unlike any time in modern history, to manipulate outcomes in other countries in order undermine the integrity of their governmental institutions.  That’s exactly what’s happening in Ukraine today. 

Putin — President Putin was determined to deny Ukraine and the Ukrainian people the power to make their choices about the future — whether to look east or west or both.  Under the pretext of protecting Russian-speaking populations, he not only encouraged and supported separatists in Ukraine, but he armed them.  He sent in Russian personnel out of uniform to take on the Ukrainian military, those little, green men.

    And when that wasn’t enough, he had the audacity to send Russian troops and tanks and sophisticated, air-defense systems across the border.  But we rallied the world to check his ambitions and defend Ukrainian sovereignty.  We didn’t put boots on the ground. 

Putin sought to prevent a free and open election.  We rallied the world to help Ukraine hold quite possibly the freest election in its history.  Putin sought to destabilize Ukraine’s economy.  We provided a billion dollars directly from the United States and worked with the IMF on a $27 billion international rescue package to keep them from going under.

Putin sought to keep Ukraine weak through corruption.  We’re helping those leaders fight back corruption, which by the way is an issue that demands our leadership around the world, by helping them write new laws, set up a new judiciary and much more.  Putin sought to hollow out Ukraine’s military the last 10 years, and he was very successful.  But we rallied NATO and NATO countries to begin to build that military capability back up.  Putin sought to keep secret Russian support for separatists who shot down a civilian airliner.  We exposed it to the world, and in turn rallied the world.  And remember this all began because Putin sought to block Ukraine’s accession agreement with the European Union.  Well, guess what:  That agreement was signed and ratified several weeks ago.

Throughout we’ve given Putin a simple choice:  Respect Ukraine’s sovereignty or face increasing consequences.  That has allowed us to rally the world’s major developed countries to impose real cost on Russia.

It is true they did not want to do that.  But again, it was America’s leadership and the President of the United States insisting, oft times almost having to embarrass Europe to stand up and take economic hits to impose costs.  And the results have been massive capital flight from Russia, a virtual freeze on foreign direct investment, a ruble at an all-time low against the dollar, and the Russian economy teetering on the brink of recession.

We don’t want Russia to collapse.  We want Russia to succeed.  But Putin has to make a choice.  These asymmetrical advances on another country cannot be tolerated.  The international system will collapse if they are.

And to state the obvious, it’s not over yet.  And there are no guarantees of success.  But unlike — the Ukrainian people have stood up.  And we are helping them, leading and acting strategically. 

The fourth element of our strategy is countering violent extremism.  As you know, we’ve engaged in a relentless campaign against terrorists in Afghanistan, in the so-called FATA, in Pakistan, Somalia and elsewhere.  This campaign against violent extremism predates our administration, and it will outlive our administration.  But we’ve made real progress against al Qaeda’s core and its affiliates since 9/11.  But this threat of violent extremism is something we’re going to have to contend with for a long time. 

Today, we’re confronting the latest iteration of that danger, so-called ISIL; a group that combines al Qaeda’s ideology with territorial ambitions in Iraq and Syria and beyond, and the most blatant use of terrorist tactics the world has seen in a long, long time.  But we know how to deal with them.

Our comprehensive strategy to degrade and eventually defeat ISIL reflects the lessons we have learned post-9/11 age about how to use our power wisely.  And degrading them does not depend upon an unsustainable deployment of hundreds of thousands of boots on the ground.  It’s focused on building a coalition with concrete contributions from the countries in the region.  It recognizes outside military intervention alone will not be enough.  Ultimately, societies have to solve their own problems, which is why we’re pouring so much time and effort into supporting a Syrian opposition and Iraqi efforts to re-establish their democracy and defend their territory.  But this is going to require a lot of time and patience.

The truth is we will likely be dealing with these challenges of social upheaval not just in Iraq and Syria, but across the Middle East in the wake of the Arab Spring, which will take a generation or more to work itself out. 

We can’t solve each of these problems alone.  We can’t solve them ourselves.  But ultimately — and we can’t ultimately solve them with force, nor should we try.  But we can work to resolve these conflicts.  We can seek to empower the forces of moderation and pluralism and inclusive economic growth.  We can work with our partners to delegitimize ISIL in the Islamic world, and their perverse ideology. 

We can cut off the flow of terrorist finance and foreign fighters, as the President chaired the hearing in the United Nations Security Council on that issue just last week.  We can build the capacity of our partners from the Arab world to Afghanistan to solve their security problems in their own countries with our help and guidance.  The threat posed by violent extremists is real.  And I want to say here on the campus of Harvard University:  Our response must be deadly serious, but we should keep this in perspective.  The United States today faces threats that require attention.  But we face no existential threat to our way of life or our security.  Let me say it again:  We face no existential threat — none — to our way of life or our ultimate security.

You are twice as likely to be struck by lightning as you around to be affected by a terrorist event in the United States.

And while we face an adaptive, resilient enemy, let’s never forget that they’re no match for an even more resilient and adaptive group of people, the American people, who are so much tougher, smarter, realistic and gutsy than their political leadership gives them credit for.

We didn’t crumble after 9/11.  We didn’t falter after the Boston Marathon.  But we’re America.  Americans will never, ever stand down.  We endure.  We overcome.  We own the finish line.  So do not take out of proportion this threat to us.  None of you are being taught to dive under your desks in drills dealing with the possibility of a nuclear attack.  And I argue with all of my colleagues, including in the administration, the American people have already factored in the possibility that there will be another Boston Marathon someday.  But it will not, cannot — has no possibility of breaking our will, our resolve, and/or our ultimate security.

Which brings me to the fifth and final point, the strength of America’s economy.  Without a strong economic foundation, none of which I have spoken to is possible — none of it.  It all rests on America remaining the most vibrant and vital economy in the world. 

And America is back.  America remains the world’s leading economy.  I got elected when I was 29 years old, as was pointed out, and I was referred to in those days as a young idealist.  And I’m today — if you read about me among the many things that are often said, good and bad, I’m always referred to as the White House Optimist, as if somehow, as my grandpop would say, I fell off the turnip truck yesterday.  (Laughter.)

I’m optimistic because I know the history of the journey of this country.  And I have never been more optimistic about America’s future than I am today, and that is not hyperbole.  We are better positioned than any other nation in the world to remain the leading economy in the world in the 21st century. 

We have the world’s greatest research university.  We have the greatest energy resources in the world.  We have the most flexible venture-capitalist system, the most productive workers in the world.  That’s an objective assertion.  We have a legal system that adjudicates claims fairly, protects intellectual property.  Don’t take my word for it.  AT Kearney has been doing a survey for over the last I believe 30-some years.  They survey the 500 largest industrial outfits in the world.  They ask the same question:  Where is the best place in the world to invest?  This year, America not only remains the best place in the world to invest by a margin larger than any time in the record of the survey, but Boston Consulting Group right here, a first-rate outfit, surveys every year American corporations with manufacturing facilities in China and asks them what are they planning for next year.  This year, the response was 54 percent of those invested in China said they planned on coming home.

I don’t know how long I’ve been hearing about how China — and I want China to succeed, it’s in our interest they succeed economically — about how China is eating America’s lunch.  Folks, China has overwhelming problems.  China not only has an energy problem, they have no water.  No, no, not a joke — like California.  They have no water.  (Laughter.)  It is a gigantic and multi-trillion-dollar problem for them.  We should help them solve the problem. 

Ladies and gentlemen, raise your hand if you think our main competition is going to come from the EU in the next decade.  Put your hands up.  (Laughter.)  I’m not being facetious here now, I’m being deadly earnest.  We want — it is overwhelmingly our interest that the EU grow, and that China grows, because when they don’t grow, we don’t grow as fast.  But, ladies and gentlemen, relative terms, we are so well-positioned if we act rationally, if we invest in our people.

A recent study points out that American workers are three times as productive as workers in China.  It matters in terms of where people will invest their money, where jobs will be created.  And one of my — I was in and out of Kosovo and Bosnia and Herzegovina over twenty-some times.  As Maggie will remember, I was the voice that kept hectoring President Clinton to lift the arms embargo and take on Milosevic, which he did, to his great credit.

And one of my trips to Kosovo, I had a Kosovar driver, meaning he was Muslim, a Kosovar driver and who spoke a little English.  And I was going up to Fort Bondsteel, which is right outside of Pristina, a fort that was being built on a plateau.  And it was a rutted, muddy road, and we were — the tires were spinning to get up there, but there were all these cranes and bulldozers and all these incredible movement.  And my driver very proudly sort of looked down like this and looked out the window and he pointed at me and he said, Senator, America, America.  And we were literally at a gate – and, Tommy, you know, the old pike that came down across this rutted road in red and white striped.  And standing to the right of the gate, stopping us, were five American soldiers.  An African American woman, who was a master sergeant; a Chinese American — I forget the rank; an African American man; a woman colonel, and a Hispanic commanding officer.  And I tapped him on the soldier and I said, no, no, and I meant it so seriously — there’s America.  There’s America.  Until you figure out how to live together like we do, you will never, never, never make it. 

America’s strength ultimately lies in its people.  There’s nothing special about being American — none of you can define for me what an American is.  Can’t define it based on religion, ethnicity, race, culture.  The uniqueness of America is that we are a group of people who agreed on — whether we say it, whether we’re well-educated or not, whether we say it in terms of basic agreements but we really do believe without saying it, “We the People.”   “All men are created equal, endowed by their Creator.”  Sounds corny.  But that’s who we are.  That’s the essential strength and vibrancy of this country.

And that’s why it’s our obligation to lead.  It’s costly.  It takes sacrifice.  And sometimes it’s dangerous.  But we must lead — but lead in a more rational way, as I hope I’ve outlined for you, because we can.  We can deal with the present crisis, and it is within our power to make a better world.

You’re a lucky group of students.  I’m not being solicitous.  You’re lucky because you are about to take control at a time where one of those rare inflection points in the history of the world, in this country.  Remember from your physics class in high school, if you didn’t have to take it in college.  I remember my physics professor saying an inflection point is when you’re riding down the highway at 60 miles an hour and your hands are on the steering wheel, and you turn it abruptly 2, 5, 10 degrees one way or the other, and you can never get back on the path you were on.
 
We are at an inflection point.  The world is changing whether we like it or not, but we have our hands on the wheel.  The only time you get a chance to bend history a little bit are these moments of great change.  And if we’re wise, if we have courage and resolve, and with a little bit of luck we can all make the world a better place — for real.
 
God bless you all and may God protect our troops.  Thank you.  (Applause.)  

END
7:20 P.M. EDT

Daily News of 2014-07-31

MEX 14 / 31.07

DAILY NEWS

31 / 07 / 14

G-7 Leaders Statement on Ukraine

G-7 leaders joined yesterday in expressing their grave concern about Russia’s continued actions to undermine Ukraine’s sovereignty, territorial integrity and independence. “This week, we have all announced additional coordinated sanctions on Russia, including sanctions on specific companies operating in key sectors of the Russian economy. We believe it is essential to demonstrate to the Russian leadership that it must stop its support for the separatists in eastern Ukraine and tangibly participate in creating the necessary conditions for the political process.”, said G-7 leaders in a joint statement. “We remain convinced that there must be a political solution to the current conflict, which is causing rising numbers of civilian casualties. We call for a peaceful settlement of the crisis in Ukraine, and underline the need to implement President Poroshenko’s peace plan without any further delay.”

Read the full statement online .

June 2014: Euro area unemployment rate at 11.5%; EU28 at 10.2%

The euro area (EA18) seasonally-adjusted unemployment rate was 11.5% in June 2014, down from 11.6% in May 2014, and from 12.0% in June 2013. This is the lowest rate recorded since September 2012. The EU28 unemployment rate was 10.2% in June 2014, down from 10.3% in May 2014, and from 10.9% in June 2013. This is the lowest rate recorded since March 2012. These figures are published by Eurostat, the statistical office of the European Union.
Eurostat estimates that 25.005 million men and women in the EU28, of whom 18.412 million were in the euro area, were unemployed in June 2014. Compared with May 2014, the number of persons unemployed decreased by 198 000 in the EU28 and by 152 000 in the euro area. Compared with June 2013, unemployment fell by 1.537 million in the EU28 and by 783 000 in the euro area. European Commissioner for Employment, Social Affairs and Inclusion László Andor commented: “The unemployment figures for June 2014 confirm the first signs of economic recovery we have been seen in Europe over the past year. But while job destruction seems to have come to a halt, the reduction of unemployment has only been very modest so far. Our objective must be to create the right macroeconomic conditions for sustainable recovery and for Member States to implement structural reforms such as the Youth Guarantee to ensure that the recovery is job-rich. Only then will we see the creation of hundreds of thousands of jobs every month, and an end to these excessively high and unacceptable levels of unemployment.”

Other news

Bank transfers: Single Euro Payments Area to bring easier payments and transfers in euro area from 1 August

The Single Euro Payments Area (SEPA) creates a true European Single Market for retail payments in euro where and transfers, direct debits and payments between Member States are as easy and fast as the equivalent domestic transactions. It will become operational in all eurozone countries on 1st August 2014. It will also apply to euro-denominated transactions in non-eurozone countries from 30th October 2016. SEPA will greatly facilitate euro payments for citizens and businesses and increase competition between banks.

Commission adopts French programme to use €499 million from Fund for European Aid to the Most Deprived

The European Commission has approved today the French Operational Programme to use the new Fund for European Aid to the Most Deprived (FEAD). France, the first Member State to have its FEAD programme adopted, will receive 499 million euros in current prices in the period 2014-2020 to support the provision of food aid to those most in need in the country (complemented with €88 million from national resources). Commissioner for Employment, Social Affairs and Inclusion, László Andor, commented: “I welcome the swift adoption of the French operational programme. The Fund for European Aid to the Most Deprived will play a key role to help Europe’s most vulnerable citizens with food or other basic goods. In many Member States severe material deprivation is on the rise and many households cannot afford a meal. I am looking forward to approving the programmes of all the other Member States, so that the rest of the 3.8 billion euros available can be put to the best use in our fight against poverty”.

Protecting Intellectual Property Rights: Customs authorities detain nearly 36 million fake goods at EU borders in 2013

Customs authorities in the EU detained almost 36 million items suspected of violating intellectual property rights (IPR) in 2013, according to the Commission’s annual report on customs actions to enforce IPR. Although this is less than previous years, the value of the intercepted goods still represents more than € 760 million. Today’s report also gives statistics on the type, provenance and transport method of counterfeit products detained at the EU’s external borders. See also the Q&A: MEMO/14/501 .

EU develops new driverless car parking system – so you never waste another minute looking for a space

There are only a few minutes before your flight check-in closes, or before your train departs, but you now have to spend precious time hunting for a free space at the airport or station car park. Imagine leaving your vehicle at the main entrance and letting the car do the rest on its own. Researchers from Germany, Italy, the UK and Switzerland are working on this, and successful tests took place at Stuttgart airport earlier this year. €5.6 million of EU funding is invested in the system which will be available in the coming years. Vice President Neelie Kroes said:We need to think ahead and find smarter ways to move, to save time, money and our environment. Who wouldn’t want to save time parking their car?

Compromise found: Part of EU fleet can continue fishing in Mauritanian waters until end of 2014

EU vessels fishing shrimps and small pelagics in Mauritanian waters in the framework of the EU-Mauritania Fisheries Protocol will be able to continue to do so until 15 December 2014. This is part of the compromise which EU negotiators found last night in Nouakchott after the Mauritanian authorities had upheld the position that all EU vessels would have to leave Mauritanian waters as of 1 August 2014. According to the agreement found, Mauritania accepted EU fishing activities for a period of 24 months as part of the bilateral Fisheries Protocol, hence the shrimps and small pelagics fisheries which started in January 2013 can continue, whereas those EU vessels which had been fishing tuna and demersals since August 2012 during a transitional period will need to leave Mauritanian waters today. Furthermore, the EU and Mauritania agreed to continue the discussions for a renewed Fisheries Protocol so to allow the full EU fleet to resume their activities soon. More information

Flash estimate – July 2014: Euro area annual inflation down to 0.4%

Euro area annual inflation is expected to be 0.4% in July 2014, down from 0.5% in June, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in July (1.3%, stable compared with June), followed by non-energy industrial goods (0.0%, compared with -0.1% in June), food, alcohol & tobacco (-0.3%, compared with -0.2% in June) and energy (-1.0%, compared with 0.1% in June).

Aides d’État: la Commission conclut que la cristallerie belge Val Saint-Lambert a reçu des aides d’État incompatibles; autorise la vente de certains de ses actifs

La Commission européenne a conclu que certaines des mesures d’aide octroyées par la région wallonne à Val Saint-Lambert SA (VSL) ont conféré à l’entreprise un avantage indu sur ses concurrents, en violation des règles de l’UE en matière d’aides d’État. VSL doit à présent rembourser ce montant, majoré des intérêts, pour atténuer les distorsions de concurrence engendrées par l’octroi de ces aides incompatibles avec le marché intérieur européen.

Mergers: Commission approves acquisition of Pirelli’s steel tyre cord business by Bekaert

The European Commission has approved under the EU Merger Regulation the proposed acquisition of the steel tyre cord business of the Italian company Pirelli by its Belgian-based rival NV Bekaert SA. Steel tyre cord is used to reinforce radial tyres and has a major impact on their safety and performance. The Commission concluded that the acquisition would not raise competition concerns as the merged entity’s customers, which are large, multinational tyre companies, have countervailing buyer power which is further strengthened by over-capacity in the steel tyre cord market. In addition the Commission found that Bekaert will continue to face effective competition from a number of other strong competitors located outside the European Economic Area (EEA), in particular in Belarus, Korea and China. The transaction was examined under the normal merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.7230 .

Mergers: Commission clears acquisition of Uniqa Life by Uniqa Insurance Group.

The European Commission has approved under the EU Merger Regulation the acquisition of Uniqa Life of Italy by the Uniqa Insurance Group (Uniqa) of Austria. Uniqa Life is a life insurance company active only in Italy, while Uniqa is an Austrian-based insurance group offering products and services in all insurance sectors (life, non-life, re-insurance) in a number of European Economic Area (EEA) countries. The Commission concluded that the proposed acquisition would not raise competition concerns given the very low combined market shares resulting from the transaction. The transaction was examined under the simplified merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.7298 .

Mergers: Commission clears acquisition of GEA’s heat exchanger business by private equity company Triton

The European Commission has approved under the EU Merger Regulation the acquisition of sole control over the German heat exchanger business of GEA by the private equity company Triton of Jersey. Triton invests in medium-sized businesses in Northern Europe, in particular in Austria, Germany, Switzerland, and the five Nordic countries. GEA’s heat exchanger business manufactures a broad portfolio of heat exchangers serving different applications such as power, climate and environment or oil and gas. The Commission concluded that the transaction would not raise competition concerns, because the overlaps between the activities of Triton’s portfolio companies and GEA’s heat exchanger business are limited. The transaction was examined under the simplified merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.7306 .

Mergers: Commission approves acquisition of Doeflex by INEOS in plastic compounding sector

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Doeflex Compounding Limited (Doeflex) of the UK by INEOS AG (INEOS) of Switzerland. Doeflex is a PVC compounder with a single manufacturing facility located in Swindon, UK, controlled by two individuals. INEOS is a global manufacturer of petrochemicals, speciality chemicals and oil products. Among other activities, INEOS produces commodity S-PVC E-PVC, plasticizers and S-PVC compounds in the European Economic Area (EEA). The Commission examined the effects of the merger on competition in the area of S-PVC compounding and more specifically for the manufacture and sale of dry blended and gelled compounds in North Western Europe, Western Europe and the EEA. S-PVC compounds are intermediate products between S-PVC and end-products. They are obtained by blending additives such as plasticisers, heat stabilisers and pigments with S-PVC. S-PVC compounds are then further processed to produce end-products such as pipes, window and door frames, cables, etc. The Commission concluded that the transaction would not raise competition concerns because the merged entity would continue to face strong competition after the merger and customers would still have sufficient alternative suppliers in the market for S-PVC compounds and its sub-segments. The Commission found, in particular, that other strong players, such as Kem One, which recently acquired Solvay’s compounding business, and Begra will continue to compete with the merged entity in these markets. The Commission also found that in spite of the vertical links between INEOS’s upstream activities in S-PVC, E-PVC and plasticizers and its compounding business, the proposed transaction does not affect INEOS’s ability and incentives to shut out competitors from the S-PVC compounds market or customers from access to supplies because INEOS was already vertically integrated pre-transaction and the addition of Doeflex’s business has limited impact on the pre-existing situation because of its limited size. More information will be available on the competition website, in the Commission’s public case register under the case number M.7132 .

Mergers: Commission clears acquisition of Bull by Atos

The European Commission has approved under the EU Merger Regulation the acquisition of Bull S.A. by Atos S.E., both of France. Atos delivers IT services, including managed services, business process outsourcing, consulting & systems integration and cloud & enterprise software. Bull is active in the development of High Performance Computing (HPC) supercomputers and uprange servers, in the design, building and managing of data centres, HPC infrastructure and cloud computing solutions, in the consulting as well as integration and maintenance of critical business applications and in the design, consulting and integration of end-to-end security solutions. The Commission concluded that the proposed acquisition would not give rise to competition concerns, given the parties’ moderate combined market positions resulting from the proposed transaction and the presence of a number of strong players that are active on the respective markets. The transaction was examined under the simplified merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.7308 .  

Speeches: ASEAN and America: Partners for the Future

As Prepared for Delivery

Thank you, Phil. I’m glad to be in San Francisco, and with all of you here at the Commonwealth Club.

You’re here today because you understand the importance of Asia to America. This is especially evident in a Pacific Coast state like California. More than 5.5 million Asian-Pacific Americans live in California, and millions more Californians do business, study, or otherwise benefit from their ties with the region. California exported nearly $70 billion in goods to the region last year, more than any other state. And Asia matters to the entire United States – to our economy, to our security, to our families.

As a Pacific power and a trading nation, we can’t afford not to be in the Asia-Pacific. That’s why President Obama decided, before he even took office, to institute a long-term, strategic emphasis on the region. And I’m confident that strategy will extend far beyond his presidency, because we have strong bipartisan support for it – both parties understand the importance of Asia.

Now, there is a lot going on in Asia today, from the dramatic rise of China and the historic reforms in Burma, to the ongoing threat from North Korea’s pursuit of nuclear weapons, to the dangerous tensions in the South China Sea.

And while I know that as a topic, “strengthening regional institutions” probably ties for last place with “corporate tax policy” in its headline-grabbing power, it’s one of the most consequential undertakings in terms of American interests. And that’s what I’d like to discuss with you today — namely, the effort to shape a rules-based order that is stable, peaceful, open and free.

First let me say that the region I am responsible for–East Asia and the Pacific–is a diverse one. Northeast Asia, Oceania–which includes Australia, New Zealand, and the Pacific island states–and then Southeast Asia, are all quite different.

Northeast Asia is home to two of our important treaty allies – Japan and the Republic of Korea. We’ve modernized defense cooperation with both countries to address the very real threat posed by North Korea. And we’ve deepened economic engagement through free trade agreements such as the one reached with South Korea.

Northeast Asia is also home, of course, to China–with which we’ve dramatically increased our engagement.

I was with Secretary Kerry, Treasury Secretary Jack Lew, and other Cabinet officials earlier this month for the annual Strategic and Economic Dialogue covering nearly every area of our relationship with China, from concrete steps to combat climate change and wildlife trafficking, to preventing nuclear proliferation on the Korean Peninsula and in Iran, to facilitating business and investment between our two countries.

These exchanges show the conviction of both sides – as the world’s two largest economies, two of the strongest military powers, and the two largest carbon emitters – to cooperate on the world’s toughest problems whenever we can. And just as important, they show our shared commitment to tackle problem areas frankly and openly, instead of merely agreeing to disagree on issues like human rights or intellectual property protection.

Australia, New Zealand, and the Pacific island states are extremely important partners. We’ve upgraded our defense cooperation with our Australian treaty ally, and we’re working to create jobs and shared prosperity with both Australia and New Zealand through the TPP trade agreement.

We’re also working with the vulnerable island states to protect the environment. Last month, Secretary Kerry hosted the “Our Ocean” conference, a first-of-its-kind diplomatic effort rallying heads of state, scientists and advocates from the Pacific Island nations and beyond to protect this shared resource.

But in many respects, the dynamic center of the region is Southeast Asia, and the ten countries that make up ASEAN.

Let me first say a few words about each.

Our ally the Philippines is a stable democracy with strong economic growth. We completed an enhanced defense cooperation agreement during President Obama’s visit in April, which enables us to better address common security challenges and provide relief for disasters, such as Typhoon Haiyan. Our economies also continue to grow closer, with two way trade reaching $24 billion last year.

We have strong partners in Indonesia and Malaysia, both pluralistic and tolerant Muslim-majority nations with growing economies. Indonesia’s recent presidential election shows the strength of their democracy. And President Obama’s recent visit to Malaysia highlighted our growing economic, people-to-people, and security ties.

Singapore is an influential and effective economic, diplomatic and security partner. Brunei is a major energy producer that, while small, has been a valuable partner for us on crucial regional issues like renewable energy and free trade.

Vietnam, of course, has a complicated history with the U.S. But our relations are now flourishing. Trade is increasing dramatically as Vietnam’s economy grows. And we’re forging closer security ties, even as we encourage greater political openness and respect for human rights.

We cooperate with Laos and Cambodia on a range of development issues, and we also push them to adhere to global standards of human rights.

With our longtime treaty ally Thailand, despite the recent setback of a military coup, we remain committed to our enduring friendship.

Perhaps no other country shows the promise of this region better than Burma, which has made a turn of historic proportions towards democracy and reform.

But that turn is by no means complete. Burma faces many challenges, and the success of its reform process is by no means certain. Burma is working to negotiate a lasting peace to end the world’s longest running civil war. It is grappling now with the key issue of constitutional reform, of military versus civilian control over its government, and of who it deems eligible to serve as head of state.

It continues to face hard choices in determining how to resolve an ongoing humanitarian crisis in Rakhine State. On that issue, we have seen some positive movement in the past week, as the government announced its intent to welcome the return of assistance providers, like Doctors Without Borders, and put forth its strategy on how to bring access to livelihoods and security back to populations that have been living tenuously for many months because of ethno-religious violence and discrimination.

Secretary Kerry will be very focused on seeing how this process is proceeding, when he visits in early August. He, and then President Obama when he visits in November, will be keen to get a sense of Burma’s preparedness for its landmark elections next year. The world will be watching, and we will continue to stand with the government and people of Burma as they enter this testing period. So we will continue to press Burma’s leaders to protect and respect all of their peoples, and their human rights and fundamental freedoms. And we will continue to support that country’s transformation.

That’s the overview of Southeast Asia today. The region’s economic dynamism and strategic importance has made it a particular focus of this administration – the ‘rebalance within the rebalance,’ if you will.

These ten countries have many differences, but they are bound by the conviction that they can achieve more together than they can apart. But before we talk about where they’re headed, it’s important to know how they came together.

Today’s ASEAN began in 1967 when the Vietnam War was heating up, and the Cold War seemed never-ending. In this uncertain world, five Southeast Asian nations signed a Declaration that they would support each other as they sought to build prosperous, independent states.

Now, nearly half a century after its founding, ASEAN has doubled to 10 nations with more than 620 million people, and a GDP of $2.2 trillion.

As Southeast Asia has grown and developed, ASEAN’s relations with the U.S. have grown as well. Under our Trade and Investment Framework Agreement signed in 2006, we have deepened our economic ties.

Since President Obama decided in 2009 to sign the Treaty of Amity and Cooperation–a treaty that ASEAN has extended to key neighbors–we’ve deepened our political ties as well. This is shown by the President’s decision to participate annually in the East Asia Summit, as he will again this year in November. This commitment to enhanced engagement with ASEAN is a key feature of the rebalance.

And we’re strengthening our ties with ASEAN across the entire U.S. government. Take this past April, when Secretary Hagel, USAID Administrator Raj Shah, and U.S. Pacific Commander Admiral Sam Locklear hosted defense ministers from the ASEAN nations in Hawai’i. This was the first-ever ASEAN meeting here in the United States–a recognition that our security and prosperity are more intertwined than ever before.

For instance, California already sells over $11.6 billion worth of goods to ASEAN. Exports to ASEAN support more than 90,000 California jobs [in 2012]. And both of those numbers can grow a lot more. Your state also stands to gain from more tourists and students from the region.

And ASEAN matters to the entire United States. We had $206 billion worth of trade in goods last year. ASEAN is our fourth-largest export market and trading partner. With a diaspora reaching across America, the region contributes to our culture. And sitting astride vital trade routes, it is important to our security.

A stable Southeast Asia that meets the aspirations of its people–for economic growth, clean air and water, education, and a voice in how they’re governed–is in America’s national interest. And one of the best, most efficient ways for America to help the region meet its aspirations is by investing in ASEAN.

Strengthening regional institutions is a long-term strategy. We pursue it because it’s essential to building the foundations for progress–from ease of trade, travel and transport, to systems for resolving legal disputes, to the ability to act together on pressing issues like environmental protection. We all benefit from a rules-based system.

Strong institutions harness a powerful force. A force you see in both daily life and in international politics–peer pressure. In fact, ASEAN shows that the best way to create positive peer pressure in the long term is through strong institutions.

ASEAN is working towards forming a cohesive economic community by next year through lower barriers and increased trade volumes with each other. For the U.S. economy, this will mean easier and more efficient market access to all 10 ASEAN countries. And in the longer term, a more prosperous ASEAN will be able to buy more American exports–from farm products to manufactured goods, to services.

Even as ASEAN pursues its ambitious agenda of internal integration, it has taken on the challenge of bringing the entire Asia-Pacific region closer together. This fills an important gap – APEC is a forum for economic cooperation, but there was no forum in the region where countries could deal with political, security, and humanitarian issues.

So in 1997, ASEAN started meetings with Japan, South Korea, and China… then with Australia, India, and New Zealand… and four years ago with the United States and Russia, bringing the number of world leaders attending what is now known as the East Asia Summit to 18.

The growth of the East Asia Summit shows ASEAN’s measured advance on the international stage as the hub that connects the region.

Less visible than the leaders’ summit, but even larger, is the ASEAN Regional Forum, an annual gathering of foreign ministers and other senior officials representing 26 countries from Pakistan to the Pacific Rim, and the EU.

This is perhaps the region’s most important ministerial meeting of the year, and it takes place in a few weeks in Burma. Secretary Kerry and his counterparts will discuss political and security issues, and begin fleshing out the agenda for the East Asia Summit, or EAS, which President Obama plans to attend in November.

Why the emphasis on EAS? In Europe, we’ve seen for decades how a region can develop effective institutions tailored to their unique needs, such as NATO and the OSCE. Those organizations have helped tackle regional, political, security and humanitarian problems. We believe the EAS can become the premier forum for addressing pressing issues in the Asia-Pacific region. But it is relatively new, and members are still trying to shape it to increase its usefulness and effectiveness.

We joined EAS because, as an Asia-Pacific nation, we want to be at the table for a strategic discussion about how we build and shape the institution over time.

Let me give you a little preview of the issues that will be at the top of Secretary Kerry’s agenda. We expect to advance collaboration on issues ranging from non-proliferation to humanitarian assistance and disaster response.

Disaster response is incredibly important, since the Asia-Pacific is hit by 70 percent of all natural disasters, costing the region $68 billion annually over the past ten years.

We have worked closely with partners, including China, on improving regional responses to problems and accidents such as oil spills, for example. We are supporting the EAS declaration on Rapid Disaster Response, helping spread the lessons learned in the Philippines from the recent Super-typhoon Haiyan, and working to improve the capabilities of ASEAN’s Centre for Humanitarian Assistance and disaster relief.

We’ve also teamed up with regional partners to develop a strategic plan for exercises that will prepare us to better coordinate delivery of life-saving relief in future disasters. And we are preparing to host an ARF climate change adaptation workshop to help countries protect their people from this growing problem.

In addition to advancing these areas of collaboration, we will have frank discussions about pressing political and security challenges. In recent months, the main security challenge facing ASEAN has been tensions in the South China Sea.

This is, of course, most important to the countries with overlapping territorial and maritime claims there. Let me note up front that the U.S. is not a claimant and does not take a position on others’ claims to land features in the South China Sea. So the United States can be impartial. And we are impartial; we are not taking one claimant’s side against another.

However, peace and stability in the South China Sea is important to the international community, because the South China Sea is essential to the global economy. Up to 50 percent of the world’s oil tanker shipments, and over half of the world’s merchant tonnage, pass through the South China Sea. National interests like freedom of navigation, international law, the peaceful settlement of disputes, and unimpeded commerce are at stake.

Rival maritime and territorial claims have existed here for decades, as countries jostle over islands, shipping lanes, historically rich fisheries, and more recently, oil and gas reserves.

The claimants have, at various times, shown that cooperation in the South China Sea area is possible. They have jointly explored for and managed resources. The Philippines and Indonesia peacefully settled a 20-year maritime boundary dispute just outside the Sea earlier this year. China and Vietnam have settled similar issues in the past. And some claimants have jointly developed energy resources further away from disputed land features.

In 2002, the ASEAN nations and China signed a Declaration on Conduct in the South China Sea. The Declaration, among other things, said that the parties would resolve disputes peacefully and in accordance with international law, and would refrain from actions that would escalate disputes, such as setting up new outposts on unoccupied features. And they agreed to work toward a more detailed Code of Conduct.

But tensions have flared over the years as well, and this year, they are running high. No claimant is solely responsible for the state of tensions. However, big and powerful countries have a special responsibility to show restraint. China’s recent pattern of assertive, unilateral behavior has raised serious concerns about China’s expansive claims, and its willingness to adhere to international law and standards.

Tensions spiked recently when China sent a deepwater drilling rig and armed ships into an area near the Paracel Islands that Vietnam also claims. The resulting weeks-long confrontation resulted in damaged ships, including the sinking of a Vietnamese fishing vessel, and damaged relations, including anti-Chinese riots in Vietnam.

At the same time, public evidence indicates the claimants are upgrading outposts on small land features in the South China Sea. What worries me is that China’s projects are far outpacing similar upgrades that other claimants are making. This important, resource-rich area should not be heavily militarized.

And actions off the water can raise tensions as well.

All parties should be able to bring disputes for adjudication under international law if they conclude that regular diplomatic efforts will not succeed. The Philippines has done this in a dispute with China over the validity of its claim that a 1948 Nationalist Chinese map “proves” that China owns the land and water within a “9 dash line” in the South China Sea.

But instead of engaging constructively and arguing its case as the Tribunal has proposed, China has pressured the Philippines to drop its case, and attempted to isolate the Philippines diplomatically.

International law, not national power, should be the basis for pursuing maritime claims in the South China Sea.

The United States works to lower tensions and help the parties peacefully manage their disputes in several ways. We have told the claimants – including the Chinese – directly and at the highest levels, of our growing concern. And we’ve encouraged all sides to avoid provocations and make clear claims based on international law.

We’re working with ASEAN and the international community to promote regional structures and arrangements, like a meaningful Code of Conduct, to lower tensions and manage disputes.

Rules and guidelines work best when they’re agreed to by the parties, through institutions that build habits of cooperation.

The U.S. is also investing more than $156 million in the civilian maritime capabilities of allies and partners in the area over the next two years. This includes equipment, training, and infrastructure. And it augments our own security presence in the region, which has been enhanced by the rebalance.

These are steps the U.S. is taking. But the claimants are the ones who must manage and settle the disputes. They are the ones who must generate the peer pressure – who must hold themselves to high standards, and then set an example for each other.

For instance, China and ASEAN already committed under the 2002 Declaration on Conduct to avoid activities that “would complicate or escalate disputes and affect peace and stability.”

However, these problematic activities are not well defined. We are urging China and the other claimants to have a conversation about what activities are acceptable to each of them – both to help reduce tensions now, and manage differences in the long run.

We have called for claimant states to define and voluntarily freeze problematic activities. The exact elements of a freeze would be decided by consensus among the claimants, and would not prejudice the competing claims.

We’ve offered these ideas, in greater detail, both in public and in private. And we plan on advancing this important discussion at the upcoming ASEAN Regional Forum meeting in Burma.

Over time, strong institutions can influence the conduct of all their members, helping to avoid conflict and incentivize peaceful resolution of disputes. We see beneficial outcomes of positive peer pressure with environmental issues, in trade, and human rights. It doesn’t work every time, but it’s responsible for enormous progress.

The Asia-Pacific region has almost limitless potential, if it can avoid the pitfalls ahead. Strong institutions are key – not just to avoid and resolve disputes, but also to lower barriers to trade, and protect human rights and fundamental freedoms.

The U.S., as a resident Pacific power and participant in many of the region’s institutions, will do all we can to strengthen those institutions even further.

We do this through our alliances and our security partnerships–and through our growing business and people-to-people ties, in which California plays an incredibly large role. And together, the American people and our government will continue to help provide a foundation of peace and stability on which the region can grow.

Speech: Thriving in a global economy

European Commission

[Check Against Delivery]

Karel De Gucht

European Commissioner for Trade

Thriving in a global economy

Launch: “Spirits: A European Power House for Trade”

Brussels, 25 June 2014

Ladies and gentlemen,

The international success of the European spirits industry is based on tradition.

Consumers around the world look to European products because of our strong sense of the past. Time itself is a key ingredient in many of them.

But for all the importance of heritage, your industry is also an excellent example of how European companies can prosper today and adapt for the future; and in doing so create jobs and business opportunities for the people of the European Union.

The report we are launching today shows the lessons you can teach others about how to thrive in a global economy.

First, your target market is the world. We all know the advantages that come with the European Single Market. Having such a home is invaluable for any company. But it’s not enough.

Over the next twenty years 90% of the world’s growth is going to happen outside of the European Union’s borders.

So the more European companies are ready to meet that demand, the better off will be the 500 million citizens of the European Union.

Second, the report shows how you can compete on quality – and indeed how quality is becoming ever more important to your export success.

That shows us that European companies cannot rest on their laurels. A tradition only has value if it continues to produce high quality results. If not, it’s just a tourist attraction.

Producing high-value added goods is essential for a developed economy like ours – because high-value goods – incorporating skill and experience – allow for well-paying jobs for people with those skills and that experience. This is relevant across the board for the European economy.

Finally, the report shows the importance of intellectual property. We have to protect both your individual company trademarks and the more than 300 geographical indications linked to spirits – not just Scotch and Irish whiskies or Cognac but also Polish vodka, Orujo de Galicia and many others.

Why? Because intellectual property is how we monetise quality. It’s essential for the model of a European economy that specialises in the high value tasks of global value chains.

So the model of your industry is encouraging. It can show the way for others who are struggling to find their place.

And that is how Europe will gradually adapt to this changed world – company by company – understanding and preparing for the future.

But there is, I believe, an important role for government in all of this.

I see the role of government – and of the European Union’s trade policy in particular – as facilitating the connections that bring prosperity back to Europe.

That means making sure Europe has an open economy, so that companies that are part of global value chains can gain access to the best quality goods and services from around the world, at the best prices.

Even for an industry such as yours, for whom local production and local ingredients are so important, access to internationally traded goods and services does play a role, whether those are capital goods, transport, logistics or finance.

This access is essential for Europe’s broader competitiveness.

But as your report highlights, in an economy like ours it’s not just political decisions made in Europe that count.

Governments around the world make decisions that affect your ability to do business every day – like levying a discriminatory excise duty or using unfair methods to value goods at the border. And by getting in the way of your exports, they undermine your ability to bring growth back home to Europe.

The underlying goal of the European Union’s trade policy is to make sure that those decisions are made in a fair and balanced way.

How should we do it?

Our first priority must remain the World Trade Organisation.

The multilateral system has been through a difficult decade, and the issues at the core of the Doha Round are still not resolved.

But a system that allows us to deal with so many partners at the same time – that establishes uniform rules for almost the entire world economy and that is backed up by the world’s best international dispute settlement system must be preserved and expanded.

Last December in Bali, WTO Members showed they understand this. The deal on trade facilitation reached there will directly benefit the spirits industry – simplifying customs and border procedures across the world.

We now need to make sure that deal is implemented, and get to work on what remains to be done.

The second major task for EU trade policy is to complete our unprecedented agenda of bilateral free trade agreements.

The virtue of these negotiations is two-fold. On the one hand, they allow us to move ahead with opening markets with those countries who are willing, rather than be held back by those who are more reluctant.

This has allowed us to put in place deals with Korea, Columbia, Peru and Latin America. It is what has brought us close to achieving final deals with Canada and Singapore. And it is why we are engaged in major initiatives with the United States, Japan, India, Mercosur and several ASEAN countries.

The second reason free trade agreements are important is because they allow us to go deeper, tackling more of the issues that affect businesses.

Of course that includes India’s 150% tariff on spirits. But it also allows us to promote the enforcement of intellectual property rights in Latin America and tackle discriminatory technical labelling regulations all around the world.

The final pillar of our work is enforcement. And it is necessary because negotiations have no value if the agreements reached are not put into practice.

As your report highlights, our case against the Philippines’ discriminatory excise duties is one example of how the WTO’s dispute settlement system can be very effective. We are committed to using that system whenever it is necessary – just as we are committed to using our trade defence measures when those are required.

These legal tools are complemented by our Market Access Strategy, which uses all channels of trade diplomacy to help us focus governments’ minds on problems that need to be solved. This approach has allowed us to resolve issues around distribution in Vietnam and push for progress where difficulties have arisen in China and Russia.

Ladies and gentlemen,

All in all this is a comprehensive strategy to make sure Europe is well placed for another century of prosperity as the world changes around us.

We will be able to put this strategy into practice for as long as the European people understand that our economy as a whole benefits from being part of an open global system.

Most people do see that the rise of vast new economic powerhouses is also the rise of vast new markets for European goods and services.

But many of them also see that globalisation presents challenges for Europe, most of all the need to adapt to rapid changes and deal with new competitors.

As the European elections have confirmed, some – a minority but a significant one – wish to react to these challenges by shutting our doors. I do not believe that would be anything other than a disaster for the European Union. And I’m confident you agree with me.

That means it is very important that people understand how open markets help industries such as yours to be successful.

People need to know that shoppers in China and the United States are buying high-quality goods from all across Europe. And they need to know what that means for their local economies.

It is certainly the role of politicians to tell that story. I do it wherever I go.

But you as companies have the specific examples of how international trade helps real people at home.

And now more than ever, it’s essential for that story to be heard.

Thank you very much for your attention.

Remarks by National Security Advisor Susan E. Rice Keynote Address at the Center for a New American Security Annual Conference

The White House

Office of the Press Secretary

For Immediate Release

June 11, 2014

Remarks by National Security Advisor Susan E. Rice
“The Strength of American Leadership, the Power of Collective Action”

Keynote Address at the Center for a New American Security Annual Conference
Washington, DC

As Prepared for Delivery

Thank you so much Richard for that kind welcome.  And, to my good friends and former colleagues— Michele Flournoy and Kurt Campbell— I can’t help but note how well-rested you both look.  I’m only a little bitter.  Still, I want to thank you for your stellar service to our country both from inside government and now, again, as leading thinkers on national security.

CNAS, which you founded, does a remarkable job of preparing our next generation of national security leaders.  That work is critical, because our nation needs bright, dedicated young women and men who care deeply about our world.  We need a diverse pipeline of talent ready and eager to carry forward the mantle of American leadership.  So, thank you all. 

As President Obama told West Point’s graduating class two weeks ago, the question is not whether America will lead the world in the 21st century, but how America will lead.  No other nation can match the enduring foundations of our strength.  Our military has no peer.  Our formidable economy is growing.  We are more energy independent each year.  Our vibrant and diverse population is demographically strong and productive.  We attract hopeful immigrants from all over the world.  Our unrivaled global network of alliances and partnerships makes us the one nation to which the world turns when challenges arise.  So, American leadership is and will remain central to shaping a world that is freer, more secure, more just and more prosperous.

At West Point, President Obama outlined how America will lead in a world that is more complex and more interdependent than ever before.  As we move out of a period dominated by the wars in Iraq and Afghanistan, we will lead by drawing on every element of our national power.  That power starts with our unparalleled military might, used wisely and when necessary to defend America’s core interests – the security of our citizens, our economy, and our allies.  We will lead by strengthening effective partnerships to counter an evolving terrorist threat.  We will lead by rallying coalitions and marshaling the resources of our partners to address regional and global challenges.  And, we will lead by standing firm in defense of human dignity and equality, while steering the course of history toward greater justice and opportunity for all. 

Today, I’d like to focus on one pillar of that strategy—mobilizing coalitions.  Indeed, galvanizing the international community to address problems that no one nation can solve alone is the bread and butter of our global engagement.  And, in many ways, it’s both the hardest and the most important element of how America leads on the world stage.          

This concept is not new.  Collective action has long been the hallmark of effective American leadership.  The United Nations, NATO and our Asian alliances were all built on the foundation of American strength and American values.  American leadership established the Bretton Woods system and supported open markets, spurring a rapid rise in global living standards.  Nor is this approach the province of one political party.  It was President Reagan who negotiated the Montreal Protocol, hailed today as our most successful international environmental treaty.  President George H.W. Bush insisted on UN backing and assembled a broad coalition before sending American troops into the Gulf.  And, President Clinton led the campaign to enlarge NATO, opening Europe’s door to the very nations who, as Secretary Albright put it, “knocked the teeth out of totalitarianism in Europe.”  Our history is rich with successes won not as a lone nation, but as the leader of many. 

Now, our approach must meet the new demands of a complex and rapidly changing world.  The architecture that we built in the 20th century must be re-energized to deal with the challenges of the 21st.  With emerging powers, we must be able to collaborate where our interests converge but define our differences and defend our interests where they diverge. Our coalitions may be more fluid than in the past, but the basics haven’t changed.  When we spur collective action, we deliver outcomes that are more legitimate, more sustainable, and less costly.   

As global challenges arise, we turn first, always, to our traditional allies.  When Russia trampled long-established principles of sovereignty, territorial integrity, and international law with its illegal annexation of Crimea, the United States rallied the international community to isolate Russia and impose costs. With American leadership, the world condemned the seizure of Crimea through an overwhelming vote in the UN General Assembly.  We expelled Russia from the G8.  Last week, the G7 met for the first time in 17 years, and we continued to concert our approach to Ukraine and other pressing global challenges.  We’ve reinforced the unity of our NATO Alliance and bolstered our commitment to Article 5.  President Obama has pledged to invest an additional $1 billion to bolster the security of our Eastern European allies against threats or intimidation.  More U.S. Army and Air Force units are now deployed to Central and Eastern Europe, more American ships patrol the Black Sea, more American planes police the Baltic skies.  And, meanwhile, with the support of the international community, Ukrainians have the chance to write a new chapter in their history. 

By working in lockstep with the EU and other partners, we imposed sanctions that are biting the Russian economy.  The IMF, the World Bank and private sector estimates all suggest that $100-200 billion in capital will flow out of Russia this year, as investors move their money to more reliable markets.  Russia’s economy contracted in the first quarter, and the IMF has declared that the country is likely in recession.  Its credit now rates just above junk status.  Russia has lost standing, influence, and economic clout by the day.  With our closest partners—Europe, the G7 and other key allies —we continue to send a common message:  Russia must cease aggression against Ukraine, halt support for violent separatists in the East, seal the border, and recognize the newly elected Ukrainian government.  If Russia does not, it faces the very real prospect of greater pressure and significant additional sanctions.

The speed and unity of our response demonstrates the unique value of America’s leadership.  Unilateral sanctions would not have had the same bite as coordinated efforts with the EU.  American condemnations alone do not carry the same weight as the UN General Assembly.  Bilateral U.S. assistance to Ukraine could not match the roughly $15 billion IMF program.  And, for our Eastern allies, American security guarantees are most powerful when augmented by NATO’s security umbrella.  

The United States’ commitment to the security of our allies is sacrosanct and always backed by the full weight of our military might.  At the same time, we expect our partners to shoulder their share of the burden of our collective security.  Collective action doesn’t mean the United States puts skin in the game while others stand on the sidelines cheering.  Alliances are a two-way street, especially in hard times when alliances matter most. 

As we approach the NATO summit in Wales this September, we expect every ally to pull its full weight through increased investment in defense and upgrading our Alliance for the future.  Europe needs to take defense spending seriously and meet NATO’s benchmark—at least two percent of GDP—to keep our alliance strong and dynamic.  And, just as we reassure allies in the face of Russia’s actions, we must upgrade NATO’s ability to meet challenges to its south—including by reinforcing the President’s commitment to build the capacity of our counterterrorism partners. 

Likewise, our historic alliances in Asia continue to underwrite regional stability, as we move toward a more geographically distributed and operationally resilient defense posture.  In the face of North Korea’s increasing provocations, we’ve developed a tailored deterrence strategy and counter provocation plan with South Korea, and we are updating our defense cooperation guidelines with Japan for the first time in almost two decades.  We aim also to deepen trilateral security cooperation and interoperability, which President Obama made a central focus of his summit with the leaders of Japan and Korea in March and his trip to the region in April. 

Improved coordination is a necessity in the Middle East as well.  The 35,000 American service members stationed in the Gulf are a daily reminder of our commitment to the region and clear evidence that the United States remains ready to defend our core interests, whether it’s disrupting al-Qa’ida or preventing Iran from developing a nuclear weapon.  At the same time, we look to our partners, both individually and through the Gulf Cooperation Council, to cooperate on missile defense and develop other critical deterrence capabilities, including in the spheres of counter-piracy, maritime security, counterterrorism and counter-proliferation. 

America will always maintain our iron-clad commitment to the security of Israel, ensuring that Israel maintains its qualitative military edge and can protect its territory and people.  Equally, we consistently defend Israel’s legitimacy and security in the UN and other international fora.  In turn, we expect Israel to stand and be counted with the US and other partners on core matters of international law and principle, such as Ukraine.

Drawing on the strength of our alliances and the reach of our partnerships, the United States’ brings together countries in every region of the world to advance our shared security, expand global prosperity, and uphold our fundamental values.    

Let me start with our shared security.  To responsibly end our war in Afghanistan, President Obama first rallied our NATO allies and ISAF partners to contribute more troops to the coalition, surging resources and helping Afghan forces take charge of their nation’s security.  As we bring America’s combat mission to an end, we’ve enlisted our allies and partners to make enduring commitments to Afghanistan’s future—so that Afghan Security Forces continue to have the resources they need, and the Afghan people have our lasting support.

Partnership is also the cornerstone of our counter-terrorism strategy designed to meet a threat that is now more diffuse and decentralized.  Core al-Qa’ida is diminished, but its affiliates and off-shoots increasingly threaten the U.S. and our partners, as we are witnessing this week in Mosul.  The United States has been fast to provide necessary support for the people and government of Iraq under our Strategic Framework Agreement, and we are working together to roll back aggression and counter the threat that the Islamic State of Iraq and Levant poses to the people of the region.  Yet, as President Obama said at West Point, we must do more to strengthen our partners’ capacity to defeat the terrorist threat on their home turf by providing them the necessary training, equipment and support.  That is why the President is asking Congress for a new Counterterrorism Partnership Fund of up to $5 billion to assist nations on the frontlines of terrorism to fight al-Qa’ida, its affiliates, and groups that embrace its violent extremist ideology.   

To shrink terrorist safe-havens and end civil conflicts, which can be breeding grounds for transnational threats, we continue to lead the international community to strengthen the foundations of peace and security.  The U.S. is the largest supporter of UN peace operations, which both reduce the need to deploy our own armed forces and mitigate the risks that fragile and failed states pose.  When violence in South Sudan broke out in December, and the world’s youngest country reached the brink of all-out war, the United States led the Security Council to augment the UN mission in South Sudan and re-focus it on protecting civilians, while we recruited, trained and equipped additional peacekeepers.  Since December, nearly 2,000 more troops have surged into South Sudan, with approximately another 1,700 expected this month. 

In Syria, by contrast, we have seen the failure of the UN Security Council to act effectively, as Russia and China have four times used their vetoes to protect Assad.  With fighting escalating, terrorist groups associated with al-Qa’ida are gaining a greater foothold in Syria, the horrific humanitarian costs are mounting, and the stability of neighboring countries is threatened.  So, while Russia and Iran continue to prop up the regime, the United States is working with our partners through non-traditional channels to provide critical humanitarian assistance and, through the London-11 group, to ramp up our coordinated support for the moderate, vetted Syrian opposition— both political and military.      

Yet, even as we strongly oppose Russia on Syria and Ukraine, we continue to work together to eliminate Assad’s chemical weapons and to prevent Iran from obtaining a nuclear weapon.  We built an unprecedented sanctions regime to pressure Iran while keeping the door open to diplomacy.  As a consequence, working with the P5+1, we’ve halted Iran’s progress toward a nuclear weapon and rolled it back in key respects.  Now, we are testing whether we can reach a comprehensive solution that resolves peacefully the international community’s concerns about Iran’s nuclear program and bolsters our shared security.

In today’s world, the reality is: many transnational security challenges can only be addressed through collective action.  Take the threat of nuclear material in terrorist hands.  One unlocked door at any of the facilities worldwide that house weapons-usable material is a threat to everyone.  That’s why President Obama created the Nuclear Security Summit.  So far, 12 countries and 24 nuclear facilities have rid themselves of highly-enriched uranium and plutonium.  Dozens of nations have increased security at their nuclear storage sites, built counter-smuggling teams, or enhanced their nuclear security training.  Our nuclear security regime is stronger today, because we created a coalition to address the problem, and we’ll keep the momentum going when we host the fourth Nuclear Security Summit in 2016.

Consider, as well, infectious diseases like MERS, bird flu or Ebola, which present yet another type of threat to our security.  In 2012, 80 percent of countries failed to meet the World Health Organization’s deadline for preparedness against outbreaks.  The international community needed a shot in the arm.  So, the United States brought together partners from more than 30 countries and multiple international institutions to develop the Global Health Security Agenda, which we launched in February.  Our strategy, backed by concrete commitments, will move us towards a system that reports outbreaks in real time and ensures nations have the resources to contain localized problems before they become global pandemics.

As we confront the grave and growing threat of climate change, the United States is leading the world by example.  As National Security Advisor, part of my job is to focus on any threat that could breed conflict, migration, and natural disasters.  Climate change is just such a creeping national security crisis, and it is one of our top global priorities. 

Our new rule, announced last week, to reduce carbon pollution from power plants by 30 percent compared to 2005 levels is the most ambitious climate action ever taken in the U.S.  It’s the centerpiece of our broader climate action plan.  And, as we work toward the meeting in Paris next year to define a new global framework for tackling climate change, we’re challenging other major economies to step up too.  We’re working intensively with China, the world’s biggest emitter, to bend down their emissions curve as fast as possible.  We’ve built international coalitions to address short-lived climate pollutants like black carbon, HFCs and methane.  And, we’ve led in encouraging private investment in green infrastructure projects overseas, while reducing incentives for high-carbon energy investment.    

Our security also relies on defining and upholding rules that govern our shared spaces—rules that reject aggression, impede the ability of large nations to bully smaller ones, and establish ways to resolve conflicts peacefully.  A key element of our Asia Rebalance is collaborating with our partners to strengthen regional institutions and international norms.  That’s why we are working with ASEAN to advance a code of conduct for the South China Sea that would enhance maritime security, reinforce international law, and strengthen the regional rules of the road. 

Similarly, we are building partnerships to set standards of behavior to protect the open, reliable, and interoperable Internet, and to hold accountable those who engage in malicious cyber activity.  That’s why we’re working with our partners to expand international law enforcement cooperation and ensure that emerging norms, including the protection of intellectual property and civilian infrastructure, are respected in cyberspace.   For example, last week, working with 10 countries and numerous private sector partners, we successfully disrupted a “botnet” that had been used to steal hundreds of millions of dollars and filed criminal charges against its Russia-based administrator.  Last month, the Department of Justice indicted five Chinese military officials for hacking our nation’s corporate computers, making it clear there’s no room for government-sponsored theft in cyberspace for commercial gain.  We are working with our allies through efforts like the Freedom On-Line Coalition and the Internet Governance Forum to preserve the open Internet as driver for human rights and economic prosperity.

This brings me to the second key reason we mobilize collective action—to expand our shared prosperity.  In 2009, facing the biggest financial crisis since the Great Depression, President Obama led to establish the G20 as the premier forum for international economic cooperation.  We needed more voices at the table, writing the rules for the global economy and committing to dramatic measures to restore growth.  Our efforts included mobilizing more resources for the IMF and World Bank to support the most vulnerable countries.  And, thanks to a broad and concerted international effort, the global economy has turned the corner.

Last year, we played a key role in enabling the 157 members of the WTO to reach a landmark agreement that will modernize the entire international trading system.  In every region of the world, we’ve brought nations together to increase trade and develop high-standard agreements to further boost growth and job creation.  This is a key pillar of our rebalance to Asia, where we’re working with 12 economies, representing almost 40 percent of global GDP, to finalize an ambitious Trans-Pacific Partnership.  With the Trans-Atlantic Trade and Investment Partnership, we’re taking what is already the largest trading partnership in the world to a new level.  To increase trade both within Africa and between Africa and the United States, we will join with Congress to extend and update the African Growth and Opportunity Act before it expires next year. 

In regions brimming with economic potential, including Africa, Latin America and Southeast Asia, we’re supporting entrepreneurship and fostering private sector investment.  Our Power Africa initiative will double access to electricity across the continent through more than $15 billion in private sector commitments.  We’re assisting young people throughout Africa and South East Asia to develop their business and entrepreneurship skills, as well as their leadership. 

As we approach 2015, we’re pressing our partners to deliver on the Millennium Development Goals and to devise bold new goals that will guide the next phase of the fight against poverty.  Building on the extraordinary progress in many developing countries, our approach isn’t simply about pledging more money, it’s about bringing together resources and expertise from every sector to do more with what we have and to support models of economic growth that fuel new markets.  We’re building public-private partnerships, investing in academic breakthroughs, supporting non-profits that translate ideas into action, and creating stronger connections among them all.   

Take, for example, the progress we’ve made in agricultural development.  Back in 2009, at the G8 meeting in L’Aquila, President Obama made food security a global priority backed by billions of dollars in international commitments.  In 2012, the President launched the New Alliance for Food Security and Nutrition, which has now grown to ten African countries, more than 160 companies, and delivered more than $7 billion in responsible planned investments in African agriculture.  And through our Feed the Future partnerships, millions of smallholder farmers are planting better seeds, using better fertilizers, and seeing their incomes rise. 

Which leads me to the third key reason we mobilize collective action.  For, however much we might like to, we rarely can force nations to respect the rights of their citizens.  So we must catalyze the international community to uphold universal values, build broad coalitions to advance human rights, and impose costs on those who violate them.  

Human rights must be protected for everyone, especially traditionally marginalized communities such as ethnic or religious minorities, LGBT persons, migrant workers, and people with disabilities.  That’s why President Obama decided to join the UN Human Rights Council, so we could lead in reforming that flawed institution from within.  In fact, we have made it more effective.  Because of our efforts, the Council has spent far more time spotlighting abuses in Qadhafi’s Libya, Syria, Sudan, North Korea and Iran than demonizing Israel. 

At the same time, the Open Government Partnership initiated by President Obama in 2011, has grown from eight countries to 64, all working together to strengthen accountable and transparent governance.  Our Equal Futures Partnership unites two dozen countries in a commitment to take concrete steps to empower women in their societies both economically and politically.  And, as civil society comes under attack in more and more places, we’re bringing countries and peoples together to counter restrictions and strengthen protections for civil society.

Moreover, we’ve focused the global community on elevating that most basic aspect of human dignity—the health and well-being of the most vulnerable people.  We’re partnering with nations that invest in their health systems.  We’re working with NGOs to improve child and maternal health, end preventable diseases, and make progress towards a goal that was inconceivable just a decade ago—the world’s first AIDS-free generation. 

Across all these vital and far-reaching challenges, we continue to bring the resources of the United States and the reach of our partnerships to bear to forge a safer and more prosperous world.  Our goals are bold and won’t be realized overnight, but the essence of U.S. leadership, as always, remains our ambition, our determination, and our dauntless vision of the possible – the pursuit of a world free of nuclear weapons; a world where extreme poverty is no more; where people are free to choose their own leaders; and where no child’s potential is cut short by a circumstance of her birth. 

We’ve earned our unparalleled position in the world through decades of responsible leadership.  We affirm our exceptionalism by working tirelessly to strengthen the international system we helped build.  We affirm it daily with our painstaking efforts to marshal international support and rally nations behind our leadership.  We affirm it by taking strong action when we see rules and norms broken by those who try to game the system for their own gain.  As President Obama told those graduating cadets at West Point, “What makes us exceptional is not our ability to flout international norms and the rule of law; it’s our willingness to affirm them through our actions.” 

As we leave an era of American foreign policy dominated by war, we are in a much stronger position to shape a more just and secure peace.  In doing so, we will be vigilant against threats to our security, but we also recognize that we are stronger still when we mobilize the world on behalf of our common security and common humanity.  That is the proud tradition of American foreign policy, and that is what’s required to shape a new chapter of American leadership.

Thank you very much.