Tagged: WTO

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

Statement on WTO Failure to Adopt Protocol for Trade Facilitation Agreement

August 1, 2014 – The Honourable Ed Fast, Minister of International Trade, today issued the following statement:

“On behalf of hard-working Canadians, businesses and stakeholders that will not benefit from the economic growth, jobs and opportunities generated by the successful implementation of the WTO Trade Facilitation Agreement (TFA), I wish to express Canada’s disappointment on the failure to reach an agreement. We believe this result is a loss for all WTO members.

“In December 2013, at the World Trade Organization’s Ninth Ministerial Conference in Bali, I welcomed the promising package—of which the consensus on implementing the TFA was an important part—and the progress made to re-establish the WTO as an organization that advances trade liberalization around the world.

“According to the OECD, full implementation of the TFA would reduce trade costs by up to 15 percent, directly benefiting Canadian small and medium-sized enterprises (SMEs), for whom border red tape and delays can be particularly burdensome. Studies suggest that implementation of the TFA could boost world trade by over $1 trillion, the world economy could grow by $960 billion and 21 million jobs could be created.

“Canada remains committed to the WTO and to continuing to find ways to make it work better. Trade and investment represent the twin engines of growth for the global economy. The Government of Canada understands that there is no better job creator than freer and more open trade.

“We will continue to provide leadership on trade liberalization and to implement Canada’s ambitious pro-trade plan under our Global Markets Action Plan. Our government is committed to delivering the tools and support that businesses, especially SMEs, need to succeed abroad. Over the past few years, our government has signed or brought into force free trade agreements with nine countries, concluded negotiations on a free trade agreement with South Korea, and reached a historic agreement-in-principle with the 28 member states of the European Union, the largest and most lucrative market in the world.”

– 30 –

For further information, media representatives may contact:

Shannon Gutoskie
Press Secretary
Office of the Honourable Ed Fast
Minister of International Trade
613-992-7332

Media Relations Office
Foreign Affairs, Trade and Development Canada
343-203-7700
media@international.gc.ca
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First general discussion on EU trade policy with the new Committee on International Trade (INTA)

European Commission

[Check Against Delivery]

Karel De Gucht

European Commissioner for Trade

First general discussion on EU trade policy with the new Committee on International Trade (INTA)

European Parliament

Brussels, 22 July 2014

Mr Chairman, Honourable Members,

Thank you for inviting me to the first full meeting of this Committee.

I am happy to see that the Committee has grown larger – which I think is a fair reflection of the importance, and even the respect, it has gained over the last few years. I am also happy to see quite a few familiar faces, but also many new faces – offering us an excellent mix of experience and new insights.

I sincerely hope that I will continue to work together with you in the same spirit of intense and constructive cooperation as with your predecessors in this Committee. You can count on me to remain as committed and transparent to this Committee as I was in previous years. My successor will need to have a very large shoe size if you consider what we have achieved during the last legislature. Indeed, our joint work with the Parliament and this very active Committee has in recent years contributed greatly to the conduct, legitimacy and accountability of the EU’s trade policy.

This Committee has been very active on the legislative front, adopting legislation that adapted our trade policy instruments to the Lisbon Agreement, as well as to the new global trade environment. This includes two important regulations related to investment policy, the review of the Generalised System of Preferences and the Enforcement regulation. I note with satisfaction that the compromises found between the Parliament and the Council fully respected the spirit of our initial proposals. This being said, there are still a few legislative procedures pending, and I will come to that in a minute.

We also managed to ratify and provisionally apply free-trade Agreements, such as with Korea, Colombia, Peru and Central America, offering EU business new opportunities in growing markets. All in all, more than 20 trade agreements, large and small, were submitted to Parliament’s consent during this term. Practically all passed with very comfortable majorities. This shows that there is a broad agreement on the key principles of European trade policy enshrined in our Treaties: open markets – both at home and abroad, a broad concept of the trade barriers we need to address, and a need to ensure we can compete on fair terms.

This is why the agreements that I just mentioned are new generation agreements, covering areas that bring additional value to the European economy – for example, services, public procurement, geographical indications, and a greater promotion of the recognition of EU standards.

These agreements are now being implemented, and are starting to bear fruit. The EU-South Korea Free Trade Agreement entered into force in July 2011. We see today the benefits of this agreement with a more than 20% increase in our exports during both the first and second year of implementation. A considerable part of your work will also consist of monitoring the implementation of these agreements as well as those that you will be called upon to approve in the next few years.

This Committee has indeed witnessed the finalisation of quite a few agreements that are now ready, or about to become ready for consent: the DCFTAs with Ukraine, Georgia and Moldova, which are now signed, our deal with West Africa, which will soon be ready for signature, and the political agreements with Canada and Singapore, where we hope to finalise the outstanding technical issues soon. Only last week, we concluded negotiations on an Economic Partnership Agreement with Southern African countries and with Ecuador on its accession to the agreement we already have with Colombia and Peru. One agreement I would still like to conclude over summer is with the East African Community. However, this shall not be done at the cost of our obligation under the treaty to safeguard human rights through EU trade agreements.

One last point on EPAs, before the end of the month, the Commission hopes to present a solution to Council and Parliament to help preserve preferences beyond 1 October for Ghana, Côte d’Ivoire, Botswana, Namibia, Swaziland, Fiji and, if the conditions are right, Cameroon too, in the light of recent positive developments. I cannot pre-empt a College decision by saying more but would of course appreciate the support of this Committee at the right time.

In the meantime, we have more than 15 active bilateral negotiations underway, including with the US, Japan, Mercosur, Morocco and Vietnam, which you will be called to monitor in the following months and years.

If you really insist, I could say something on TTIP. We had a very long debate in plenary only last week. And I would of course be ready to take your questions on the most talked-of negotiations in town. Chief negotiator Ignacio Garcia Bercero was with you this morning to report on last week’s negotiations.

I will only add to what you have heard a point I made last week. I am a strong believer in public debate and on my watch we have had plenty with this Committee and your colleagues in plenary. I am also conscious of my responsibility to present facts and substance, and not false truths about a negotiation that is not even concluded. We are not what our detractors make us out to be. The Commission negotiates on the basis of existing EU legislation and hears a very broad range of views on an almost-daily basis. We know where our responsibilities lie.

I will only have a few months left to work together with you under the mandate. And I hope that we can use this time to move forward on a number of pending issues that I consider important.

First of all, there are two legislative proposals that the Commission made in March 2012 and April 2013 respectively, the International Procurement Instrument and the Modernisation of Trade Defence Instruments. Parliament has considerably advanced but the Council is still examining them. The current Italian Presidency is very dedicated to move these files forward. I very much hope that this Parliament will resume work as left off in April, so that you could be in a position, when Council is ready, to swiftly move to negotiations and find fair compromises together.

A brief word too about a recent proposal on conflict minerals, which I am deeply interested in, for I have seen the human tragedies caused by trade in conflict minerals in Africa. The proposal is based on a carefully-thought approach to promote responsible sourcing from conflict-affected areas without disrupting legitimate trade without which communities have no viable economic livelihoods other than recruitment in armed groups. So I welcome the fact that Parliament is now in a position to start examining this important piece of legislation and I hope that the balance we sought can be preserved.

Finally, we have also proposed in June to extend autonomous trade preferences for Western Balkan countries for another five years. I hope work can start soon on this file, even if preferences granted to Bosnia and Herzegovina may be suspended as of 1 January 2016, unless they fully treat Croatian exports as EU exports.

As regards pending negotiations, we are moving step-by-step towards conclusion with Canada. Following the political break-through of last October, our negotiators have worked very hard to finalise all remaining technical issues and to transpose the elements of the break-through into legal text. In some instances this has proven more difficult than we thought, but I am confident that the end is now in sight. As soon as the negotiators have completed their job, you will receive the consolidated text of all chapters. However, it is clear that this is one of the most ambitious agreements we have concluded so far going well beyond what Canada conceded to the US in the context of NAFTA. This is no mean achievement.

The FTA with Singapore is the EU’s first agreement with a Southeast Asian economy, laying down state-of-the-art rules on the full range of trade issues. Negotiations in the investment protection chapter started later and are being finalised as we speak, to be included as an integral part of the FTA for signature.

In March, we have launched negotiations on an investment protection agreement with Myanmar/Burma. No Member State has concluded one with this country, so this agreement will give EU investors much needed guarantees for their investments. We will push for the inclusion of provisions on sustainable development, covering social and environmental issues of relevance in an investment context, and to promote Corporate Social Responsibility and responsible business conduct. In addition, negotiations with China will also continue.

Before concluding, I would like to say a few words about the multilateral trading system, which despite the many other efforts underway, remains the cornerstone of the EU’s trade policy. In December last year, Members of the World Trade Organization reached a historic agreement on several issues from the Doha Development Agenda, including a brand-new Trade Facilitation Agreement, and opening the door to further work on the DDA. We are also advancing on a number of closely related initiatives. Negotiations to liberalise trade in environmental goods and services were formally launched this month, and we are moving towards concluding the review of the Information Technology Agreement, to liberalise trade in several products not covered before. Lastly, work is also advancing on the Trade in Services Agreement (TiSA) to create a better playing field in trade in services, despite the challenge of how to dock such a large plurilateral agreement within the WTO system.

Asia & Europe: an enduring and deepening economic relationship

European Commission

[Check Against Delivery]

Karel De Gucht

European Commissioner for Trade

Asia & Europe: an enduring and deepening economic relationship

Asia Europe Meeting (ASEM): A partnership for the 21st Century

Friends of Europe Conference

Brussels, 8 July 2014

Ladies and gentlemen,

The dramatic economic and political changes taking place in Asia require Europeans to think hard about the future of our relationship with the countries to our East.

But in doing so we must remember that this is not a new relationship – but one with a long and deep history.

After all, the famous early trade routes between Europe and Asia not only brought prosperity to individual merchants, they fundamentally changed the character of life in Europe – bringing variety and innovation – from the decimal system to the fireworks. Trade was also, we must acknowledge, the main driver of the regrettable past of European colonialism in the region.

History reminds us too that while the current economic rise of so many Asian countries is certainly shifting the global economic centre of gravity to Europe’s east; it is, in reality, only returning to a more central position. And this is the mathematical consequence of lifting hundreds of millions of people out of poverty.

All this is to say that Europe and Asia are not strangers, but rather old partners renewing and deepening their ties, for the benefit of people at both ends of our vast land mass, and on the islands all around it.

This is why the Asia Europe Meeting is so important. It provides the Heads of State and Government of 51 Asian and European countries a forum both to build on our existing relationship and to deepen our ties.

The success of that endeavour is essential for the economic future of the European Union.

There are two forces by which international trade and investment boost growth:

Imports work on the supply side of the economy – making companies more competitive by giving them access to the world’s best inputs at the world’s best prices.

Exports work by responding to demand – giving us access to the world market.

The phenomenon of global value chains that produce goods in many steps, across many countries boosts both of these effects even more.

For these forces to help build a sustainable recovery in Europe, links with Asia are essential.

On the supply side, let me explain this with an example. Imports from China are essential to the competitiveness of many industries in Europe. Why? Because the parts and components that we get from the Chinese are used in European factories to make European finished products. The result is that more than a million jobs in Europe depend directly on imports from China.

On the demand side, we need to look at the bigger picture. The economic advancement of so much of the world’s population is creating massive new markets for European products. Economists project that over the next 20 years more than 60% of the world’s growth is going to happen in Asia. And by the way – that projection already assumes a gradual slowdown in growth in many countries there.

The conclusion: Europe has to be connected to Asia if it wants to be part of global growth. It’s that simple.

The good news is that we are already doing very well.

The EU is one of the largest trading partners of all Asian countries. And in 2012 we were either the first, second or third most important trading partner for ten of ASEM’s Asian members. By way of comparison, the United States has this kind of relationship with just two of those countries, as the second most important trading partner, after the EU, of Japan and China.

Moreover, the European Union’s deep relationship with China in particular plugs us into wider regional value chains, as does our status as the second largest partner for Singapore – the gateway to ASEAN.

For ASEAN as a whole, trade with the European Union represents some 13% of their total. This puts us in third place behind China and Japan. This is the result of geography and regional value chains. But we again outperform the US, who comes fourth.

And on top of all of this the EU is also a major investor in Asia, where we sent more than 20% of all our investment flows in 2012. And around 13% of all investment flows into the EU came from the region the same year.

That’s a lot of figures. But I don’t say all of this just to give an economic lecture.

I say it because too often in Europe we focus on our weaknesses. We sometimes forget that the Single Market and makes us a trade and investment powerhouse. We need to remember it when we design our policies.

What then should our policies be?

If we are doing so well can we just sit back and relax? Clearly not.

It is essential that we build the bridges that will allow our relationship to continue to flourish. In doing so we must use our resources wisely, focusing on what we can do to get pragmatic results.

Our first area of action is on the bilateral front:

Since 2011 we have been seeing the benefits of our ground-breaking free trade agreement with South Korea – with Europe’s exports to Korea up 24%. We now meet regularly in the framework of the agreement to make sure it is fully implemented.

We have also finished negotiations with Singapore, which is just the first of several negotiations with ASEAN countries. Talks are now underway with Malaysia, Vietnam and Thailand. And it is my goal that these agreements serve as building blocks for an eventual broader deal with ASEAN as a whole.

We are also in negotiations with India. They have been ongoing now for some time. But that is because we are determined to achieve a high quality result. And the EU looks forward to working with the new Indian government to achieve that.

Furthermore, we are negotiating a free trade agreement with Japan – the region’s second largest economy and one of the EU’s most important trading partners. One year into this highly ambitious negotiation we have already made significant progress on key areas like non-tariff barriers. We will continue to work hard to bring it to an ambitious conclusion.

Our relationship with China, given its size and role in the region, is naturally both close and complex. We are now well into a negotiation to improve both access and protection for investments in both directions.

If we take all of these agreements collectively, they will open markets for either trade, investment or both with 95% of the Asian economy. That will be an enormous step forward for EU-Asia economic relations.

It is true that these agreements do take time. But that is because they are of a very high standard. We could have concluded many of them long ago if we wanted low ambition deals that don’t bring about real market opening.

Even so, these bilateral discussions are only part of our relationship with the countries of Asia.

We are also determined to work hard together in the multilateral context.

Last year’s agreement on trade facilitation and other issues at the World Trade Organisation’s ministerial conference in Bali has shown there is life in the multilateral trading system. Now Europe and Asia are together making sure that this agreement is fully implemented.

The European Union is also working with China, Japan, South Korea and Singapore, along with 9 other partners for a new agreement to liberalise trade in green goods.

But our most important task, of course, is to work with Director General Azevedo to find a way through the logjam at the core of the Doha Round. The European Union wants a meaningful outcome that reflects today’s realities and will help spur global economic growth.

In our view that means working towards concluding the DDA in the shortest timeframe possible, by the next ministerial conference if we can. To achieve that, we will need to simplify our overall approach. All Members will also need to adjust their expectations and focus on their key interests. Only that will allow us to get a balanced outcome across the main parts of the negotiations.

Of course that is really only the beginning. No matter how successful our efforts are, a completed Doha Round will still leave major gaps in the multilateral rulebook:

We will still have to answer key questions like how to deal with the interaction of trade policy and regulation for example. There is also the vexed issue of what rules state-owned enterprises should follow when they compete in the open market.

And, over the medium term, the World Trade Organization will have to be the forum by which Europe, Asia and our other partners work out global answers to these trade questions.

Ladies and gentlemen,

The shift in the global economic balance of power means that the first trade and investment priority for Europe is to find ways to deepen the already significant bilateral ties between Europe and Asia. I would argue that we are well on our way to achieving that. What we need now are discipline and diligence.

But the bilateral relationship is really only part of the equation. The larger issue is how we are going to jointly help set the rules for the global economy of the 21st Century. As I have suggested that will ultimately need to happen in the World Trade Organisation, using our bilateral deals as something of a stepping stone.

Some may argue that this is not possible, that on these longer term issues Europe and Asia are too far apart. But I do not agree, I believe that as a group of trading nations we all have a shared interest in open markets. And the need for an international economic rule of law follows directly from this.

That, then, is not a European value, but a global one. So I have every confidence that by working together we will be able to succeed.

Thank you very much for your attention.

EU launches negotiations on environmental trade agreement

European Commission

Press release

Brussels, 9 July 2014

EU launches negotiations on environmental trade agreement

Today the EU, together with 13 other WTO members (Australia, Canada, China, Costa Rica, Chinese Taipei, Hong Kong (China), Japan, Korea, New Zealand, Norway, Switzerland, Singapore and the US) have formally opened plurilateral negotiations in the WTO on liberalization of trade in so-called ’green goods’.

At the first stage, the members of this initiative will aim to eliminate tariffs or customs duties on a broad list of green goods that help clean the air and water, help manage waste, are energy efficient, control air pollution, and help generate renewable energy like solar, wind, or hydroelectric. At the second stage, the negotiations could also address non-tariff barriers and environmental services. The EU is particularly interested to reduce barriers to trade in services ancillary to goods exported. E.g. to produce wind energy, it is not enough just to buy the wind turbine: companies also need to have access to the maintenance and engineering services necessary to keep it running smoothly in the world of global value chains.

EU Trade Commissioner Karel De Gucht welcomed the opening of the negotiations: “This initiative is a win-win for the economy and the environment. It is an excellent example of how trade policy can have a positive impact on green growth, green jobs, sustainable development, and climate change. Looking beyond the obvious benefits for the planet, green trade means green growth for our companies – the world leaders in environmental technologies – and green jobs for EU citizens.”

The green goods negotiations have started as planned after few months of preparations since the launch of the Green Goods Initiative in January this year. The group of WTO Members will engage now in intensive negotiations meeting regularly in Geneva and discussing the substance of the agreement, i.a. product coverage and the approach on non-tariff barriers to trade and services. The joint statement issued on this occasions highlights the need for “the timely conclusion of the agreement” given the urgency of environmental challenges, including climate change. This initiative is expected to provide impetus to the DDA negotiations.

Background

The EU has been a long-standing advocate for removing tariff and non-tariff barriers to trade in environmental goods and services in the WTO as well as in its bilateral and regional free trade agreement (FTA) negotiations.

On 24 January 2014 the EU, together with 13 other WTO members (Australia, Canada, China, Costa Rica, Chinese Taipei, Hong Kong (China), Japan, Korea, New Zealand, Norway, Switzerland, Singapore and the US) pledged to launch negotiations to liberalise global trade in environmental goods – the so called “green goods initiative”. Collectively, the group account for around 86% of the world trade in green goods.

The EU has technologically advanced and world-class companies providing environmental goods and services. There has been considerable job creation in the green sector, i.e. an increase from 3 to 4.2 million in full-time equivalents between 2002 and 2011 across the EU. Employment in the sector grew by 20% even during the recession years (2007 to 2011). In terms of trade, the EU is a world leader both in terms of export and import of environmental goods, and is followed by China and other APEC members.

Joint Statement regarding the launch of the environmental goods agreements negotiations

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.

U.S.-China Relations

Introduction

Chairman Menendez, Ranking Member Corker, Members of the Committee, thank you for the opportunity to testify today on U.S.-China relations. It is also a great honor to be participating in today’s hearing with one of our nation’s most accomplished diplomats, Ambassador Stapleton Roy – a friend, former colleague, and one of the foremost experts on U.S.-China relations. Ambassador Roy’s contributions to the U.S.-China relationship have been invaluable, and I look forward to hearing his insights.

I would also like to take this opportunity to thank you, Mr. Chairman, for your leadership and to acknowledge this Committee’s contributions to the rich bipartisan tradition of engaging China. I have found it extremely valuable to work closely with the Committee’s Members, and in particular with the Asia Sub-committee, in advancing U.S. interests vis-à-vis China and the Asia-Pacific region as a whole.

Overall Bilateral Relations

This year marks the 35th anniversary of the establishment of official diplomatic relations between the United States and China. We have made remarkable progress since the era of back-channel messaging and secret trips. The scope of today’s U.S.-China relationship was unimaginable when President Nixon made his historic visit in 1972 to China.

Yet there is still enormous potential for progress in the U.S.-China relationship. Progress that will yield benefits to the citizens of both countries, our neighbors, and the world. To realize this progress and these benefits, we seek to ensure that the relationship is not defined by strategic rivalry, but by fair and healthy competition, by practical cooperation on priority issues, and by constructive management of our differences and disagreements. Where interests overlap, we will seek to expand cooperation with China. These areas include economic prosperity, a denuclearized Korean Peninsula, peaceful resolution of the Iranian nuclear issue, and a reduction in the emission of greenhouse gases. Where they diverge – and we have significant and well-known areas of disagreement – we will work to ensure that our differences are constructively managed.

Mr. Chairman, there are those who argue that cold war-like rivalry is inevitable and that the United States and China are condemned to a zero-sum struggle for supremacy, if not conflict. I reject such mechanistic thinking. As anyone who has served in government can tell you, this deterministic analysis overlooks the role of leaders who have the ability to set policy and to shape relationships. It gives short shrift to the fact that our two economies are becoming increasingly intertwined, which increases each side’s stake in the success of the other. It undervalues the fact that leaders in Washington and Beijing are fully cognizant of the risk of unintended strategic rivalry between an emerging power and an established power and have agreed to take deliberate actions to prevent such an outcome. And it ignores the reality of the past 35 years – that, in spite of our differences, U.S.-China relations have steadily grown deeper and stronger – and in doing so, we have built a very resilient relationship.

We view China’s economic growth as complementary to the region’s prosperity, and China’s expanded role in the region can be complementary to the sustained U.S. strategic engagement in the Asia-Pacific. We and our partners in the region want China’s rise to contribute to the stability and continued development of the region. As President Obama and Secretary Kerry have made very clear, we do not seek to contain China; to the contrary, we welcome the emergence of a stable, peaceful, and prosperous China. We believe all countries, and particularly emerging powers like China, should recognize the self-benefit of upholding basic rules and norms on which the international system is built; these are rules and norms which China has participated in formulating and shaping, and they are rules and norms that it continues to benefit from. In this context, we are encouraging China to exercise restraint in dealing with its neighbors and show respect for universal values and international law both at home and abroad.

A key element of our approach to the Asia-Pacific region, often called the rebalance, is strengthening America’s alliances and partnerships in the region. This contributes directly to the stable security environment that has underpinned the region’s – and China’s – dramatic economic growth and development.

A second element is working to build up regional institutions in order to uphold the international rules-based system and create platforms for the countries and leaders to work on priority strategic, economic, and other issues. These institutions help develop habits of cooperation and promote respect for the interests of all parties.

A third key element has been expanding and deepening our relationships with important emerging countries such as China, including through regular and high-level dialogue.

In just two weeks, our countries will hold the sixth round of the U.S.-China Strategic and Economic Dialogue – the “S&ED” – in Beijing. This annual dialogue is unique in its level and scope. It is led on the U.S. side by Secretaries Kerry and Lew and brings a number of Cabinet-level and other senior U.S. government officials together with their Chinese counterparts to work on the major issues facing us. The breadth of the agenda in the two tracks – strategic and economic – reflects the breadth of modern U.S.-China relations. The S&ED is an important vehicle for making progress in the pursuit of a cooperative and constructive relationship; for building a “new model” that disproves the thesis that the United States and China are somehow destined for strategic rivalry and confrontation.

The S&ED is an important forum for the United States and China to take stock of and set goals for the bilateral relationship, to review regional and international developments and explain our respective policies, to coordinate and seek practical areas of cooperation on important issues of mutual interest, and to constructively manage areas of difference through candid, high-level discussions.

Let me preview of some of the topics for upcoming discussions at this year’s S&ED:

  • We will exchange views and explore prospects for progress on regional challenges, including Sudan, Afghanistan, Iran, North Korea, Ukraine, Iraq, and maritime disputes in the South and East China Seas;
  • The world’s two largest economies will work on strengthening the global economic recovery;
  • The world’s two biggest energy consumers and carbon emitters will work on combating climate change, and expand cooperation on clean energy;
  • We will discuss global challenges ranging from cyber security to counterterrorism to wildlife trafficking, and the United States will raise our concerns over human rights;
  • Secretary Kerry will co-chair the annual U.S.-China High-Level Consultation on People-to-People Exchange, which supports exchange programs that build the foundation for mutual understanding and trust;
  • And Deputy Secretary of State Bill Burns and his Chinese counterpart will hold the U.S.-China Strategic Security Dialogue (SSD), our highest-ranking joint civilian-military exchange with China, where we will conduct frank discussions on some of the most sensitive strategic issues in the relationship.

The S&ED and our numerous other dialogues and official exchanges with the Chinese each year reflect the importance we attach to managing this relationship. This level and pace of engagement show the commitment of both sides to producing tangible benefits for our two peoples, the Asia-Pacific region, and the global community.

The United States and China have a vital stake in each other’s success. That is why we maintain an intensive schedule of engagement; President Obama and President Xi met in Sunnylands, California, a year ago and have met twice more since then. The President plans to visit Beijing in November when China hosts APEC. Secretary Kerry, as well as numerous Cabinet and sub-Cabinet officials, have visited China already in 2014 and have met with Chinese counterparts in the United States or at international fora.

We work with China in virtually all important international arenas, including the UN, the G20, the East Asia Summit, and APEC where we are cooperating closely on regulatory transparency, supply chain efficiencies, promoting clean and renewable energy, cross-border education, and combatting corruption and bribery. Our relationship touches on nearly every regional and global issue, and, as such, requires sustained, high-level attention. Moreover, few of these issues can be effectively addressed if China and the United States do not cooperate.

Economic Relations

Economic issues play a central role in the U.S.-China relationship. China’s economic success has added to our growth and increased the purchasing power of consumers in the United States. Our two-way trade has almost quadrupled since China joined the WTO in late 2001. While the long-standing imbalance in that trade remains troubling, China is now one of the fastest growing U.S. export markets. In fact, U.S. exports to China grew by more than 90 percent between 2007 and 2013. In our bilateral engagements, we are encouraging economic reforms within China to ensure not only that its economic behavior is sustainable on its own terms, but that it contributes to strong, sustainable and balanced growth of the global economy. This includes re-orienting its economy away from a development model reliant on exports and credit-fueled investment in real estate and infrastructure to one that increases consumer spending and contributes to global demand. Central to this goal has been urging China to move toward a market-determined exchange rate. We are also addressing sources of friction in our bilateral relationship by pressing China to change a range of discriminatory policies and practices that harm U.S. companies and workers and that undermine incentives to innovate. These include subsidies that tilt the competitive playing field in favor of Chinese national champions, policies that pressure companies to hand over intellectual property as a condition for access to the Chinese market, and export credits that unfairly advantage Chinese companies in third markets. U.S. businesses have investments totaling over $50 billion. And from 2012 to 2013, Chinese direct investment flows into the United States more than doubled, according to private sector figures, and now contribute to thousands of jobs here. Our ongoing bilateral investment treaty negotiations hold the potential for even more mutually beneficial economic ties.

Even as we increase trade and investment, we will continue insisting on tangible progress in other economic areas that matter to the United States. These include:

  • China continuing to move toward a market-determined exchange rate;
  • negotiating a Bilateral Investment Treaty;
  • increasing access to Chinese markets for U.S. businesses;
  • developing a more transparent regulatory regime;
  • ending industrial policies that favor state-owned enterprises and national champions and seek to disadvantage foreign companies and their products;
  • ending forced technology transfer; and
  • addressing U.S. concerns over the theft of intellectual property and trade secrets, including government-sponsored, cyber-enabled theft for the purpose of giving Chinese companies a competitive advantage.

We will also continue to encourage greater Chinese integration into the rules-based international economic and trading system, in order to create a level playing field

for domestic and foreign companies operating in its and other markets. Over the last few months, China’s leaders have announced plans for sweeping reforms that, if realized, could go a long way in moving China’s economy toward market principles. We are encouraged that these announced reforms would potentially give the market a greater role in the economy, and we are keenly interested to see such reforms put into practice. I believe we can do much to work with China as it transitions to a consumption-driven, market-oriented growth model that would benefit both our economies.

Military-to-Military Relations

On the military side of the U.S.-China relationship, we are committed to building a sustained and substantive military-to-military relationship that focuses on identifying concrete, practical areas of cooperation and reducing risk. This includes not only deepening the use of institutionalized dialogue mechanisms, including senior defense participation at the SSD and S&ED, but also inviting the Chinese to join regional cooperative exercises and expanding talks with the Chinese military about operational safety in the region. For the first time this year, China will participate in RIMPAC June 26-August 1 in Hawaii.

We also aim to continue high-level exchanges between our militaries. Recent exchanges have included visits to China by Secretary Hagel in April and General Odierno in February, and a visit to the United States by Chief of the General Staff General Fang Fenghui in May.

At the same time, we will continue to carefully monitor China’s military developments and encourage China to exhibit greater transparency with respect to its military spending and modernization. This will help countries better understand the motivations of the People’s Liberation Army. We continue to encourage China to use its military capabilities in a manner conducive to the maintenance of peace and stability in the Asia-Pacific region.

Global and Regional Issues

As the largest energy consumers, greenhouse gas emitters, and renewable energy producers, the United States and China share common interests, challenges and responsibilities. These are issues that relate directly to our economic and national security. Cooperation on climate change, energy, and environmental protection is more critical than ever and is an important area of focus in the U.S.-China bilateral relationship.

Through broad dialogues such as the Ten-Year Framework for Energy and Environment Cooperation and the S&ED, over the last year we have been able to produce new and expanded commitments to cooperation on climate change, energy, and the environment. During Secretary Kerry’s February trip to Beijing, he announced implementation plans for each of the five initiatives under the Climate Change Working Group as well as a new enhanced policy dialogue on domestic and international policies to address climate change that will be held on the margins of the upcoming S&ED.

China is a vital partner on some of the world’s most pressing proliferation challenges, including the DPRK and Iran. The United States and China agree on the importance and urgency of achieving a denuclearized, stable, and prosperous Korean Peninsula. While differences remain between us on some of the tactics, we coordinate closely and consult intensively on how to advance these shared goals. The result has been a tightened web of sanctions targeting North Korea’s nuclear, ballistic missile, and proliferation efforts. China has also strengthened its own sanctions enforcement, which we welcome, though it could do more to prevent North Korea from engaging in proliferation activities. Indeed, North Korea remains in flagrant violation of the UN Security Council resolutions that the United States and China approved and support. So we are urging China to make greater use of its unique leverage with the DPRK to produce concrete signs that the DPRK leader has come to the realization that his only viable path forward is denuclearization.

On Iran, the United States and China share the goal of preventing Iran from acquiring a nuclear weapon and are working together within the P5+1 negotiations with Iran toward that goal. Through our frequent and high-level engagement, we will continue to press China to honor its commitments, in particular those related to its imports of Iranian oil and enforcement of UN sanctions, in furtherance of reaching a comprehensive and long-term solution to the Iran nuclear issue.

Managing Differences

In the Asia-Pacific region, Beijing’s neighbors are understandably alarmed by China’s increasingly coercive efforts to assert and enforce its claims in the South China and East China Seas. A pattern of unilateral Chinese actions in sensitive and disputed areas is raising tensions and damaging China’s international standing. Moreover, some of China’s actions are directed at U.S. treaty allies. The United States has important interests at stake in these seas: freedom of navigation and overflight, unimpeded lawful commerce, respect for international law, and the peaceful management of disputes. We apply the same principles to the behavior of all claimants involved, not only to China. China – as a strong and rising power – should hold itself to a high standard of behavior; to willfully disregard diplomatic and other peaceful ways of dealing with disagreements and disputes in favor of economic or physical coercion is destabilizing and dangerous.

The United States does not take sides on the sovereignty questions underlying the territorial disputes in the South and East China Seas, but we have an interest in the behavior of states in their management or resolution of these disputes. We want countries, including China, to manage or settle claims through peaceful, diplomatic means. For example, the Philippines and Indonesia have just done so in connection with their EEZ boundary. Disputes can also be addressed through third-party dispute resolution processes. Where parties’ rights under treaties may be affected, some treaties provide for third-party dispute settlement, as is the case of the Law of the Sea Convention, an avenue pursued by the Philippines in an arbitration with China currently being considered by an Arbitral Tribunal constituted under that treaty. The United States and the international community oppose the use or the threat of force to try to advance a claim, and view such actions as having no effect in strengthening the legitimacy of China’s claims. These issues should be decided on the basis of the merits of China’s and other claimants’ legal claims and adherence to international law and norms, not the strength of their militaries and law enforcement ships or the size of their economies.

Another area where we believe China’s actions run counter to important universal principles is the worsening human rights situation in China. Just this month, China conducted a harsh crackdown on commemorations of the 25th anniversary of Tiananmen Square. China’s actions included the detention, harassment and arrests of journalists, lawyers, and activists. Top U.S. officials raise our concerns with Chinese leaders on a regular basis, and, as we have in every previous round, Secretary Kerry plans to raise human rights at this year’s S&ED. We express concern about the Chinese government’s censorship of the media and Internet. We push for the release of all political prisoners, including but not limited to prominent figures like Liu Xiaobo. We urge China to address the policies in Tibetan areas that threaten the distinct religious, cultural, and linguistic identity of the Tibetan people. Instability and violence are on the increase in the Xinjiang Uighur Autonomous Region. As we unequivocally condemn the acts of terrorism and violence, we also urge China to take steps to reduce tensions and reform counterproductive policies that stoke discontent and restrict peaceful expression and religious freedom.

Conclusion

Clearly, a wide-ranging and complex relationship such as ours with China comes with challenges. Some degree of friction is inevitable. But an essential tool for managing and resolving differences is open and extensive communications between our two countries – at senior and working levels of government, military to military, through local governments and organizations, between our business communities, and at the grassroots level.

We are now reflecting on the considerable progress attained in 35 years of bilateral relations. One key lesson is that to ensure that our relationship grows and matures, we need to build up the links among our two peoples. People-to-people exchanges are essential to enhancing mutual understanding and furthering U.S. strategic and economic goals. To that end, the United States in 2013 received 1.8 million Chinese visitors who collectively spent $9.8 billion on goods and services in our economy. Our State Department personnel work hard to facilitate growing Chinese demand for international travel by maintaining average visa wait-times under five days over the past two years.

Education also plays an important role fostering mutual understanding. In 2013, we had 235,000 students from China studying in the United States, more than from any other country, and the United States aspires to increase the number of American students studying in China and learning Mandarin through the 100,000 Strong Initiative. In March, PRC First Lady Peng Liyuan welcomed First Lady Michelle Obama to China where together they met with U.S. and Chinese students and faculty and promoted the value of study abroad and educational exchange.

We are also working with groups like the Sister Cities International and the U.S.-China Governors Forum. These programs help by encouraging and supporting cities and states to deepen their cultural or commercial ties with Chinese counterparts. In the last year alone, we have supported numerous visits of governors and state delegations and helped them to find opportunities to deepen their involvement and links to China.

The Department works closely with the United States Chamber of Commerce, AmCham China, the U.S.-China Business Council, and other business groups to support key priorities for U.S. companies doing business in China and to promote – greater Chinese investment in the United States. In partnership and consultation with those organizations, we have encouraged the Chinese government to eliminate investment restrictions, strengthen IPR protection, increase regulatory transparency, and establish a level playing field for all companies in China.

In conclusion, let me paraphrase what President Obama said earlier this year when he met with Chinese President Xi at the Nuclear Security Summit in The Hague. The U.S.-China relationship has made great strides over these past several decades, and both sides are committed to building a new model of relations between our countries defined by expanded cooperation and constructive management of differences.

Mr. Chairman, I thank you for the opportunity to appear before you today to discuss U.S.-China relations. I look forward to answering any questions you and others from the Committee may have.

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. 

The Brussels G7 Summit Declaration

Brussels, Belgium – 5 June 2014

1. We, the Leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission, met in Brussels on 4 and 5 June 2014. This Group came together because of shared beliefs and shared responsibilities. We are profoundly committed to the values of freedom and democracy, and their universality and to fostering peace and security. We believe in open economies, open societies and open governments, including respect for human rights and the rule of law, as the basis for lasting growth and stability. For nearly forty years, we have shown through our actions that collective will can be a powerful catalyst for progress. Our efforts to address major global challenges have also been guided by a commitment to transparency, accountability and partnership with other concerned members of the international community. We remain bound together as a group by these values and this vision. Guided by these shared values and principles, we will continue to work together to meet the challenges of our times. We thank the European Union for hosting this Summit and welcome Germany’s Presidency.

Global Economy

2. Supporting growth and jobs remains our top priority. The global economy has strengthened since we met at Lough Erne, downside risks remain which will need to be managed carefully. Advanced economies are recovering, but continued and sustained growth is needed to bring down unemployment, particularly among young people and the long-term unemployed.

3. We will take further steps to support strong, sustainable and balanced growth, with a common goal of increasing the resilience of our economies. We will present ambitious and comprehensive growth strategies at the G20 Summit in Brisbane, to include action across a broad front including in the areas of investment, small and medium enterprises, employment and participation of women, and trade and innovation, in addition to macroeconomic policies. We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path.

4. We agreed that 2014 will be the year in which we focus on substantially completing key aspects of the core financial reforms that we undertook in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer. We remain committed to the agreed G20 roadmap for work on relevant shadow banking activities with clear deadlines and actions to progress rapidly towards strengthened and comprehensive oversight and regulation appropriate to the systemic risks posed. We will remain vigilant in the face of global risk and vulnerabilities. And we remain committed to tackling tax avoidance including through the G20/Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Action Plan as set out in the agreed timetable, and tax evasion, where we look forward to the rapid implementation of the new single global standard for automatic exchange of tax information. We call on all jurisdictions to take similar action.

5. Trade and investment are key engines for jobs and growth. We reaffirm our commitment to keep our markets open and to fight all forms of protectionism including through standstill and rollback. We are committed to strengthening the rules-based multilateral trading system. We will protect and promote investment and maintain a level playing field for all investors. International standards for public export finance are crucial for avoiding or reducing distortions in global trade. Since we met at Lough Erne, we have made substantial progress on major trade negotiations: Canada-EU; Japan-EU; Canada-Japan; EU-US; the Trans-Pacific Partnership; and the Trade in Services Agreement. We aim to finalise them as soon as possible. We are committed to liberalising trade in environmental goods and services, including through an Environmental Goods agreement. We will work to conclude an expanded Information Technology Agreement as soon as possible. These agreements and initiatives can help support and will be consistent with the multilateral trading system and act as building blocks for future multilateral deals. We welcome the successful outcomes of the 9th World Trade Organisation (WTO) Ministerial Conference. We will prioritise full and swift implementation of the Bali Package, in particular the Trade Facilitation Agreement. We will continue to provide, within our current Aid for Trade commitments, substantial support and capacity building to help implement this agreement, in particular to the benefit of the Least Developed Countries. We fully support efforts in the WTO to secure swift agreement to a balanced work programme for completing the Doha Round.

Energy

6. The use of energy supplies as a means of political coercion or as a threat to security is unacceptable. The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure. Under the Rome G7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system. This work will be based on the core principles agreed by our Ministers of Energy on May 5-6 2014, in Rome:

  • Development of flexible, transparent and competitive energy markets, including gas markets.
  • Diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply.
  • Reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security.
  • Enhancing energy efficiency in demand and supply, and demand response management.
  • Promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation.
  • Improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks.
  • Putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

7. Based on these principles we will take the following immediate actions:

  • We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level.
  • Working with international organisations such as the International Energy Agency (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency.
  • We will conduct assessments of our energy security resilience and enhance our joint efforts, including on critical infrastructure, transit routes, supply chains and transport.
  • We will ask the IEA, in close cooperation with the European Commission, to present by the end of 2014 options for individual and collective actions of the G7 in the field of gas security.

8. We will also:

  • Promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and
  • Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue.

9. We ask our Energy Ministers to take forward this Rome G7 Energy Initiative and report back to us in 2015.

Climate Change

10. Urgent and concrete action is needed to address climate change, as set out in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report. We therefore remain committed to low-carbon economies with a view to doing our part to limit effectively the increase in global temperature below 2°C above pre-industrial levels. We affirm our strong determination to adopt in 2015 a global agreement – a new protocol, another legal instrument or an agreed outcome with legal force under the convention applicable to all parties – that is ambitious, inclusive and reflects changing global circumstances. We will communicate our intended nationally determined contributions well in advance of the 21st session of the Conference of the Parties (COP21) in Paris (by the first quarter of 2015 by those Parties ready to do so) and call on others to follow our lead. We welcome the Climate Summit of the United Nations Secretary General in September and his invitation to all Parties to prepare for ambitious contributions and to deliver concrete action to reduce emissions and strengthen resilience. We look forward to a successful Summit.

11. We reaffirm our support for the Copenhagen Accord commitments to mobilise USD 100 billion per year by 2020 from a wide variety of sources, both public and private, to address the climate mitigation and adaptation needs of developing countries in the context of their meaningful and transparent mitigation actions. We welcome the adoption of the Green Climate Fund’s operating rules and the decision to commence its initial resource mobilisation in the coming months. We remain committed to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change. We will strengthen efforts to improve measurement, reporting, verification and accounting of emissions and improve the reporting of international climate finance flows, consistent with agreed decisions of the United Nations Framework Convention on Climate Change. We will work together and with others to phase down the production and consumption of hydrofluorocarbons (HFC) under the Montreal Protocol. We will also continue to take action to promote the rapid deployment of climate-friendly and safe alternatives in motor vehicle air-conditioning and we will promote public procurement of climate-friendly HFC alternatives.

Development

12. The pursuit of sustainable and inclusive development and greater prosperity in all countries remains a foundational commitment that unites our people and our countries. We continue to implement the commitments we have made at previous Summits. To be accountable we will provide a report in 2015 on progress toward their attainment.

13. We commit to work with all partners to agree an ambitious and universal post-2015 agenda, anchored in a single set of clear and measurable goals. That agenda should complete unfinished business of the Millennium Development Goals. It should be centred on people and focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social dimensions of sustainable development, including climate change. It should also promote peace and security, democratic governance, the rule of law, gender equality and human rights for all. We are committed to build a global partnership with shared responsibility and mutual accountability to ensure its implementation. We await the synthesis report of the United Nations Secretary General in the second half of 2014. We welcome the African Union’s common position.

14. We will continue to promote inclusive and resilient growth in Africa, working with governments and citizens in Africa to enhance governance and transparency, improve infrastructure, notably in the energy sector, eliminate trade barriers, facilitate trade and investment, and strengthen the responsible and sustainable management of natural resources and the revenues they generate. We welcome the active role of the African Union and the New Partnership for Africa’s Development in the process of reforming the Africa Partnership Forum.

15. Security and development are the prerequisite of a lasting peace in regions affected by the scourge of war, terrorism, organized crime, corruption, instability and poverty, notably the Sahel region, Somalia, Nigeria, South Sudan and Central African Republic. We welcome efforts by African partners and the African Union, supported by the international community, aimed at building their capacities to respond to crises and support stabilisation.

16. We confirm our strong commitment to the Deauville Partnership and our support to Arab countries in transition in their efforts to improve governance and stimulate inclusive growth and job creation, particularly for their youth and women. Our Foreign and Finance Ministers will meet in the margins of United Nations General Assembly, and the International Monetary Fund/World Bank Annual Meetings, to take forward the Partnership.

17. We remain committed to work towards common global standards that raise extractives transparency, which ensure disclosure of companies’ payments to all governments. We welcome the progress made among G7 members to implement quickly such standards. These global standards should continue to move towards project-level reporting. Those governments that are signing up to the Extractive Industries Transparency Initiative standard will voluntarily report their revenues. We confirm our commitment to implement fully the extractive partnerships launched in 2013.

18. We today announce a new initiative on Strengthening Assistance for Complex Contract Negotiations (CONNEX) to provide developing country partners with extended and concrete expertise for negotiating complex commercial contracts, focusing initially on the extractives sector, and working with existing fora and facilities to avoid duplication, to be launched in New York in June and to deliver improvements by our next meeting, including as a first step a central resource hub that brings together information and guidance.

19. We will continue to work to tackle tax evasion and illicit flows of finance, including by supporting developing countries to strengthen their tax base and help create stable and sustainable states. We renew our commitment to deny safe haven to the proceeds of corruption, and to the recovery and return of stolen assets. We remain committed to prevent the misuse of companies and other legal arrangements such as trusts to hide financial flows stemming from corruption, tax evasion, money laundering, and other crimes, ensuring that beneficial ownership information is available in a timely fashion to financial intelligence units, tax collection and law enforcement agencies, for example through central registries or other appropriate mechanisms, leading by example in implementing the Financial Action Task Force and other relevant international standards and our national action plans in line with the principles we agreed at Lough Erne. Greater transparency in this area will help developing countries.

20. Recent events illustrate that corruption undermines trust in governments and limits economic growth. We will build on existing efforts, including in the G20, to take additional steps to prevent this. We continue our engagement to and support of United Nations Office on Drugs and Crime and the World Bank’s Stolen Asset Recovery Initiative. We welcome the outcomes of the Ukraine Forum on Asset Recovery and look forward to the third Arab Forum on Asset Recovery. The G7 remains committed to working with governments and global financial centres to follow up on asset recovery efforts.

21. We remain committed to the Muskoka Initiative on maternal, newborn and child health, and welcome the call made at the Saving Every Woman, Every Child Summit in Toronto to accelerate progress on this global priority. In addition we are committed to ensuring sexual and reproductive health and reproductive rights, and ending child, early and forced marriage and female genital mutilation and other harmful practices. The health and well-being of women and children are improved through ensuring universal access to affordable, quality, essential health services, strengthening health, education and child protection systems and improving nutrition and access to immunisation. We recognise the impact of the GAVI Alliance (Global Alliance for Vaccines and Immunisation) and welcome its efforts to expand access to vaccines to an additional 300 million children during 2016-2020. We welcome Germany’s offer to host the second replenishment in early 2015, reaffirm our commitment, and call on other public and private donors to contribute to the replenishment of the GAVI Alliance. We reaffirm our commitment to an AIDS free generation and to the Global Fund to fight AIDS, Tuberculosis and Malaria to reduce the burden of these three major infectious diseases on eligible countries and regions.

22. To address the threat posed by infectious diseases, we support the Global Health Security Agenda and commit to working with partner countries to strengthen compliance with the World Health Organisation’s (WHO) International Health Regulations and enhance health security around the world. We commit to working across sectors to prevent, detect and respond to infectious diseases, whether naturally occurring, accidental, or the result of a deliberate act by a state or non-state actor. That includes building global capacity so that we are better prepared for threats such as the recent Ebola outbreak in West Africa and working together, in close cooperation with WHO, to develop a Global Action Plan on antimicrobial resistance.

23. We continue to strongly support comprehensive approaches to achieve global food security and nutrition. We look forward to the second International Conference on Nutrition in November 2014 and the Expo Milan 2015, which will provide a platform for the global post-2015 debate on sustainability and food and nutrition security. We continue to support the New Alliance for Food Security and Nutrition under strong African leadership and the successful completion of principles for responsible agricultural investment by the Committee on World Food Security. These will better enable smallholder farmers, especially women, to benefit from sustainable rural development. We continue to support the consistent implementation of the Voluntary Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests, including by building on the land partnerships we launched in 2013 and the Global Agriculture and Food Security Programme.

Ukraine

24. We welcome the successful conduct under difficult circumstances of the election in Ukraine on 25 May. The strong voter turnout underlined the determination of Ukraine’s citizens to determine the future of their country. We welcome Petro Poroshenko as the President-elect of Ukraine and commend him for reaching out to all the people of Ukraine.

25. In the face of unacceptable interference in Ukraine’s sovereign affairs by the Russian Federation, we stand by the Ukrainian government and people. We call upon the illegal armed groups to disarm. We encourage the Ukrainian authorities to maintain a measured approach in pursuing operations to restore law and order. We fully support the substantial contribution made by the Organisation for Security Cooperation in Europe (OSCE) to the de-escalation of the crisis through the Special Monitoring Mission and other OSCE instruments. We commend the willingness of the Ukrainian authorities to continue the national dialogue in an inclusive manner. We welcome the “Memorandum of Peace and Unity” adopted by the Verkhovna Rada on 20 May and express the wish that it can be implemented rapidly. We also encourage the Ukrainian parliament and the Government of Ukraine to continue to pursue constitutional reform in order to provide a framework for deepening and strengthening democracy and accommodating the rights and aspirations of all people in all regions of Ukraine.

26. The G7 are committed to continuing to work with Ukraine to support its economic development, sovereignty and territorial integrity. We encourage the fulfilment of Ukraine’s commitment to pursue the difficult reforms that will be crucial to support economic stability and unlock private sector-led growth. We welcome the decision of the International Monetary Fund (IMF) to approve a $17 billion programme for Ukraine, which will anchor other bilateral and multilateral assistance and loans, including around $18 billion foreseen to date from G7 partners. We welcome the swift disbursement of macro-economic support for Ukraine. We support an international donor coordination mechanism to ensure effective delivery of economic assistance and we welcome the EU’s intention to hold a high-level coordination meeting in Brussels. We welcome ongoing efforts to diversify Ukraine’s sources of gas, including through recent steps in the EU towards enabling reverse gas flow capacities and look forward to the successful conclusion of the talks, facilitated by the European Commission, on gas transit and supply from the Russian Federation to Ukraine.

27. We are united in condemning the Russian Federation’s continuing violation of the sovereignty and territorial integrity of Ukraine. Russia’s illegal annexation of Crimea, and actions to de-stabilise eastern Ukraine are unacceptable and must stop. These actions violate fundamental principles of international law and should be a concern for all nations. We urge the Russian Federation to recognise the results of the election, complete the withdrawal of its military forces on the border with Ukraine, stop the flow of weapons and militants across the border and to exercise its influence among armed separatists to lay down their weapons and renounce violence. We call on the Russian Federation to meet the commitments it made in the Geneva Joint Statement and cooperate with the government of Ukraine as it implements its plans for promoting peace, unity and reform.

28. We confirm the decision by G7 countries to impose sanctions on individuals and entities who have actively supported or implemented the violation of Ukraine’s sovereignty and territorial integrity and who are threatening the peace, security and stability of Ukraine. We are implementing a strict policy of non-recognition with respect to Crimea/Sevastopol, in line with UN General Assembly Resolution 68/262. We stand ready to intensify targeted sanctions and to implement significant additional restrictive measures to impose further costs on Russia should events so require.

29. The projects funded by the donor community to convert the Chernobyl site into a stable and environmentally safe condition have reached an advanced stage of completion. While recognizing the complexity of these first of a kind projects, we call upon all concerned parties to make an additional effort to bring them to a satisfactory conclusion and call upon project parties to keep costs under control. This remains a high priority for us.

Syria

30. We strongly condemn the Assad regime’s brutality which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. We denounce the 3 June sham presidential election: there is no future for Assad in Syria. We again endorse the Geneva Communiqué, which calls for a transitional governing body exercising full executive powers and agreed by mutual consent, based on a vision for a united, inclusive and democratic Syria. We strongly condemn the violations of international humanitarian law and human rights and indiscriminate artillery shelling and aerial bombardment by the Syrian regime. There is evidence that extremist groups have also perpetrated grave human rights abuses. All those responsible for such abuses must be held to account. We welcome the commitment of the National Coalition and Free Syrian Army to uphold international law. We deplore Russia and China’s decision to veto the UN Security Council (UNSC) Resolution draft authorising referral to the International Criminal Court and demanding accountability for the serious and ongoing crimes committed in Syria.

31. We are committed to supporting the neighbouring countries bearing the burden of Syrian refugee inflows and deplore the failure to implement UNSC Resolution 2139 on humanitarian assistance. We urge all parties to the conflict to allow access to aid for all those in need, by the most direct routes, including across borders and conflict lines, and support further urgent action by the UNSC to that end. In our funding we decide to give particular support to humanitarian actors that can reach those most in need, including across borders. We call for the international community to meet the enormous funding needs of the UN appeals for Syria and its neighbours. We resolve to intensify our efforts to address the threat arising from foreign fighters travelling to Syria. We are deeply concerned by allegations of repeated chemical agent use and call on all parties in Syria to cooperate fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) fact-finding mission. We call on Syria to comply with its obligations under UNSC Resolution 2118, decisions of the Executive Council of the OPCW and the Chemical Weapons Convention to ensure the swift removal of its remaining chemical stockpile for destruction, and to destroy its production facilities immediately and answer all questions regarding its declaration to the OPCW.

Libya

32. We reaffirm our support for a free, prosperous and democratic Libya which will play its role in promoting regional stability. We express serious concern at the recent violence and urge all Libyans to engage with the political process through peaceful and inclusive means, underpinned by respect for the rule of law. We urge continued and coordinated engagement by the international community to support the Libyan transition and efforts to promote political dialogue, in coordination with the UN and with the UN Support Mission in Libya fulfilling its mandate in that respect. We ask all in the international community to respect fully Libyan’s sovereignty and the principle of non-intervention in its affairs. In this framework, we commend the proposal of the High National Electoral Commission, endorsed by the General National Congress, to convene the elections on June 25. We emphasise the importance of these elections in restarting the political process and appreciate the vital work of the Constitution Drafting Assembly.

Mali and Central African Republic

33. We welcome the ceasefire signed on May 23 by the Malian Government and armed groups in the North of Mali, thanks to efforts by the African Union, through its Presidency, and the UN. We reaffirm our strong commitment to a political solution and to an inclusive dialogue process that must start without delay, as prescribed by the Ouagadougou agreement and UNSC decisions. We fully support the United Nation’s Multidimensional Integrated Stabilisation Mission in Mali efforts in stabilising the country and, with the commitment of neighbouring countries, including Algeria, Mauritania and the Economic Community of West African States, in working for a durable settlement respectful of the unity, territorial integrity and national sovereignty of Mali.

34. We commend the role played on the ground in the Central African Republic by the AU-led International Support Mission to the Central African Republic, together with the forces sent by France and the European Union, to support the transition and encourage the Transitional Authorities to take urgent concrete steps toward holding free, fair, transparent and inclusive elections. We fully support the UN efforts in the areas of security, reconciliation, preparation of the elections, and humanitarian assistance.

Iran

35. We reaffirm our strong commitment to a diplomatic resolution of the Iranian nuclear issue and welcome the efforts by the E3+3, led by High Representative Ashton, and Iran to negotiate a comprehensive solution that provides confidence in the exclusively peaceful nature of Iran’s nuclear programme. We underline the importance of the continuing effective implementation by the E3+3 and Iran of the Joint Plan of Action. We call on Iran to cooperate fully with the International Atomic Energy Agency on verification of Iran’s nuclear activities and to resolve all outstanding issues, including, critically, those relating to possible military dimensions. We strongly urge Iran to fully respect its human rights obligations. We call on Iran to play a more constructive role in supporting regional security, in particular in Syria, and to reject all acts of terrorism and terrorist groups.

North Korea

36. We strongly condemn North Korea’s continued development of its nuclear and ballistic missile programmes. We urge North Korea to abandon all nuclear weapons and existing nuclear and ballistic missile programmes and to comply fully with its obligations under relevant UNSC resolutions and commitments under the September 2005 Joint Statement of the Six-Party Talks. We call on the international community to implement fully UN sanctions. We reiterate our grave concerns over the ongoing systematic, widespread and gross human rights violations in North Korea documented in the report of the UN Commission of Inquiry, and urge North Korea to take immediate steps to address these violations, including on the abductions issue, and cooperate fully with all relevant UN bodies. We continue to work to advance accountability for North Korea’s serious human rights violations.

Middle East Peace Process

37. We fully support the United States’ efforts to secure a negotiated two-state solution. We regret that greater progress has not been made by the parties and urge them to find the common ground and political strength needed to resume the process. A negotiated two-state solution remains the only way to resolve the conflict. We call on both sides to exercise maximum restraint and to avoid any unilateral action which may further undermine peace efforts and affect the viability of a two-state solution.

Afghanistan

38. We renew our long-term commitment to a democratic, sovereign, and unified Afghanistan and our enduring partnership with the Government of Afghanistan based on the principles of mutual respect and mutual accountability. The first round of presidential elections and the provincial council elections marked a historic achievement, especially for the more than 2.5 million women who voted, and we look forward to the completion of the electoral process. We continue to assist the Government of Afghanistan to strengthen their institutions of governance, reduce corruption, combat terrorism, support economic growth, and counter narcotics. We continue to actively support an inclusive Afghan-led and Afghan-owned process of reconciliation.

Maritime Navigation and Aviation

39. We reaffirm the importance of maintaining a maritime order based upon the universally-agreed principles of international law. We remain committed to international cooperation to combat piracy and other maritime crime, consistent with international law and internationally recognised principles of jurisdiction in international waters. We are deeply concerned by tensions in the East and South China Sea. We oppose any unilateral attempt by any party to assert its territorial or maritime claims through the use of intimidation, coercion or force. We call on all parties to clarify and pursue their territorial and maritime claims in accordance with international law. We support the rights of claimants to seek peaceful resolution of disputes in accordance with international law, including through legal dispute settlement mechanisms. We also support confidence-building measures. We underscore the importance of the freedom of navigation and overflight and also the effective management of civil air traffic based on international law and International Civil Aviation Organization standards and practices.

Other issues

40. We reaffirm our commitment to the protection and promotion of all human rights and fundamental freedoms, including religious freedom, for all persons. We recognise the need to show unprecedented resolve to promote gender equality, to end all forms of discrimination and violence against women and girls, to end child, early and forced marriage and to promote full participation and empowerment of all women and girls. We look forward to the Global Summit to End Sexual Violence in Conflict taking place in London later this month.

41. We reiterate our condemnation of terrorism and our commitment to cooperate in all relevant fora to prevent and respond to terrorism effectively, and in a comprehensive manner, while respecting human rights and the rule of law. We condemn the kidnapping of hundreds of schoolgirls by Boko Haram as an unconscionable crime and intend do everything possible to support the Nigerian government to return these young women to their homes and to bring the perpetrators to justice.

42. We confirm that non-proliferation/disarmament issues remain a top priority and welcome the G7 Non-proliferation Directors Group statement issued today.

The Brussels G-7 Summit Declaration

The White House

Office of the Press Secretary

For Immediate Release

June 05, 2014

Brussels, Belgium
June 5, 2014

1.       We, the Leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission, met in Brussels on 4 and 5 June 2014. This Group came together because of shared beliefs and shared responsibilities. We are profoundly committed to the values of freedom and democracy, and their universality and to fostering peace and security. We believe in open economies, open societies and open governments, including respect for human rights and the rule of law, as the basis for lasting growth and stability.  For nearly forty years, we have shown through our actions that collective will can be a powerful catalyst for progress. Our efforts to address major global challenges have also been guided by a commitment to transparency, accountability and partnership with other concerned members of the international community. We remain bound together as a group by these values and this vision. Guided by these shared values and principles, we will continue to work together to meet the challenges of our times. We thank the European Union for hosting this Summit and welcome Germany’s Presidency.

Global Economy

2.       Supporting growth and jobs remains our top priority. The global economy has strengthened since we met at Lough Erne, downside risks remain which will need to be managed carefully. Advanced economies are recovering, but continued and sustained growth is needed to bring down unemployment, particularly among young people and the long-term unemployed.

3.       We will take further steps to support strong, sustainable and balanced growth, with a common goal of increasing the resilience of our economies. We will present ambitious and comprehensive growth strategies at the G-20 Summit in Brisbane, to include action across a broad front including in the areas of investment, small and medium enterprises, employment and participation of women, and trade and innovation, in addition to macroeconomic policies. We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path.

4.       We agreed that 2014 will be the year in which we focus on substantially completing key aspects of the core financial reforms that we undertook in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer. We remain committed to the agreed G-20 roadmap for work on relevant shadow banking activities with clear deadlines and actions to progress rapidly towards strengthened and comprehensive oversight and regulation appropriate to the systemic risks posed. We will remain vigilant in the face of global risk and vulnerabilities. And we remain committed to tackling tax avoidance including through the G-20/Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Action Plan as set out in the agreed timetable, and tax evasion, where we look forward to the rapid implementation of the new single global standard for automatic exchange of tax information. We call on all jurisdictions to take similar action.

5.       Trade and investment are key engines for jobs and growth. We reaffirm our commitment to keep our markets open and to fight all forms of protectionism including through standstill and rollback. We are committed to strengthening the rules-based multilateral trading system. We will protect and promote investment and maintain a level playing field for all investors. International standards for public export finance are crucial for avoiding or reducing distortions in global trade. Since we met at Lough Erne, we have made substantial progress on major trade negotiations: Canada-EU; Japan-EU; Canada-Japan; EU-US; the Trans-Pacific Partnership; and the Trade in Services Agreement. We aim to finalise them as soon as possible. We are committed to liberalising trade in environmental goods and services, including through an Environmental Goods agreement. We will work to conclude an expanded Information Technology Agreement as soon as possible. These agreements and initiatives can help support and will be consistent with the multilateral trading system and act as building blocks for future multilateral deals. We welcome the successful outcomes of the 9th World Trade Organisation (WTO) Ministerial Conference.  We will prioritise full and swift implementation of the Bali Package, in particular the Trade Facilitation Agreement. We will continue to provide, within our current Aid for Trade commitments, substantial support and capacity building to help implement this agreement, in particular to the benefit of the Least Developed Countries. We fully support efforts in the WTO to secure swift agreement to a balanced work programme for completing the Doha Round.

Energy

6.       The use of energy supplies as a means of political coercion or as a threat to security is unacceptable. The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure. Under the Rome G-7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system.  This work will be based on the core principles agreed by our Ministers of Energy on May 5-6 2014, in Rome:

  • Development of flexible, transparent and competitive energy markets, including gas markets.
  • Diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply.
  • Reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security.
  • Enhancing energy efficiency in demand and supply, and demand response management.
  • Promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation.
  • Improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks.
  • Putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

7.       Based on these principles we will take the following immediate actions:

  • We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level.
  • Working with international organisations such as the International Energy Agency  (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency.
  • We will conduct assessments of our energy security resilience and enhance our joint efforts, including on critical infrastructure, transit routes, supply chains and transport.
  • We will ask the IEA, in close cooperation with the European Commission, to present by the end of 2014 options for individual and collective actions of the G-7 in the field of gas security.

8.       We will also:

  • Promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and
  • Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue.

9.       We ask our Energy Ministers to take forward this Rome G-7 Energy Initiative and report back to us in 2015.

Climate Change

10.      Urgent and concrete action is needed to address climate change, as set out in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report. We therefore remain committed to low-carbon economies with a view to doing our part to limit effectively the increase in global temperature below 2°C above pre-industrial levels. We affirm our strong determination to adopt in 2015 a global agreement – a new protocol, another legal instrument or an agreed outcome with legal force under the convention applicable to all parties – that is ambitious, inclusive and reflects changing global circumstances. We will communicate our intended nationally determined contributions well in advance of the 21st session of the Conference of the Parties (COP21) in Paris (by the first quarter of 2015 by those Parties ready to do so) and call on others to follow our lead. We welcome the Climate Summit of the United Nations Secretary General in September and his invitation to all Parties to prepare for ambitious contributions and to deliver concrete action to reduce emissions and strengthen resilience. We look forward to a successful Summit.

11.      We reaffirm our support for the Copenhagen Accord commitments to mobilise USD 100 billion per year by 2020 from a wide variety of sources, both public and private, to address the climate mitigation and adaptation needs of developing countries in the context of their meaningful and transparent mitigation actions. We welcome the adoption of the Green Climate Fund’s operating rules and the decision to commence its initial resource mobilisation in the coming months.  We remain committed to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change. We will strengthen efforts to improve measurement, reporting, verification and accounting of emissions and improve the reporting of international climate finance flows, consistent with agreed decisions of the United Nations Framework Convention on Climate Change.  We will work together and with others to phase down the production and consumption of hydrofluorocarbons (HFC) under the Montreal Protocol. We will also continue to take action to promote the rapid deployment of climate-friendly and safe alternatives in motor vehicle air-conditioning and we will promote public procurement of climate-friendly HFC alternatives.

Development

12.      The pursuit of sustainable and inclusive development and greater prosperity in all countries remains a foundational commitment that unites our people and our countries. We continue to implement the commitments we have made at previous Summits. To be accountable we will provide a report in 2015 on progress toward their attainment.

13.      We commit to work with all partners to agree an ambitious and universal post-2015 agenda, anchored in a single set of clear and measurable goals. That agenda should complete unfinished business of the Millennium Development Goals. It should be centred on people and focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social dimensions of sustainable development, including climate change. It should also promote peace and security, democratic governance, the rule of law, gender equality and human rights for all. We are committed to build a global partnership with shared responsibility and mutual accountability to ensure its implementation. We await the synthesis report of the United Nations Secretary General in the second half of 2014. We welcome the African Union’s common position.

14.      We will continue to promote inclusive and resilient growth in Africa, working with governments and citizens in Africa to enhance governance and transparency, improve infrastructure, notably in the energy sector, eliminate trade barriers, facilitate trade and investment, and strengthen the responsible and sustainable management of natural resources and the revenues they generate. We welcome the active role of the African Union and the New Partnership for Africa’s Development in the process of reforming the Africa Partnership Forum.

15.      Security and development are the prerequisite of a lasting peace in regions affected by the scourge of war, terrorism, organized crime, corruption, instability and poverty, notably the Sahel region, Somalia, Nigeria, South Sudan and Central African Republic. We welcome efforts by African partners and the African Union, supported by the international community, aimed at building their capacities to respond to crises and support stabilisation.

16.      We confirm our strong commitment to the Deauville Partnership and our support to Arab countries in transition in their efforts to improve governance and stimulate inclusive growth and job creation, particularly for their youth and women. Our Foreign and Finance Ministers will meet in the margins of United Nations General Assembly, and the International Monetary Fund/World Bank Annual Meetings, to take forward the Partnership.

17.      We remain committed to work towards common global standards that raise extractives transparency, which ensure disclosure of companies’ payments to all governments.  We welcome the progress made among G-7 members to implement quickly such standards. These global standards should continue to move towards project-level reporting. Those governments that are signing up to the Extractive Industries Transparency Initiative standard will voluntarily report their revenues. We confirm our commitment to implement fully the extractive partnerships launched in 2013.

18.      We today announce a new initiative on Strengthening Assistance for Complex Contract Negotiations (CONNEX) to provide developing country partners with extended and concrete expertise for negotiating complex commercial contracts, focusing initially on the extractives sector, and working with existing fora and facilities to avoid duplication, to be launched in New York in June and to deliver improvements by our next meeting, including as a first step a central resource hub that brings together information and guidance.

19.      We will continue to work to tackle tax evasion and illicit flows of finance, including by supporting developing countries to strengthen their tax base and help create stable and sustainable states. We renew our commitment to deny safe haven to the proceeds of corruption, and to the recovery and return of stolen assets. We remain committed to prevent the misuse of companies and other legal arrangements such as trusts to hide financial flows stemming from corruption, tax evasion, money laundering, and other crimes, ensuring that beneficial ownership information is available in a timely fashion to financial intelligence units, tax collection and law enforcement agencies, for example through central registries or other appropriate mechanisms, leading by example in implementing the Financial Action Task Force and other relevant international standards and our national action plans in line with the principles we agreed at Lough Erne. Greater transparency in this area will help developing countries.

20.      Recent events illustrate that corruption undermines trust in governments and limits economic growth. We will build on existing efforts, including in the G-20, to take additional steps to prevent this. We continue our engagement to and support of United Nations Office on Drugs and Crime and the World Bank’s Stolen Asset Recovery Initiative. We welcome the outcomes of the Ukraine Forum on Asset Recovery and look forward to the third Arab Forum on Asset Recovery. The G-7 remains committed to working with governments and global financial centres to follow up on asset recovery efforts.

21.      We remain committed to the Muskoka Initiative on maternal, newborn and child health, and welcome the call made at the Saving Every Woman, Every Child Summit in Toronto to accelerate progress on this global priority. In addition we are committed to ensuring sexual and reproductive health and reproductive rights, and ending child, early and forced marriage and female genital mutilation and other harmful practices. The health and well-being of women and children are improved through ensuring universal access to affordable, quality, essential health services, strengthening health, education and child protection systems and improving nutrition and access to immunisation. We recognise the impact of the GAVI Alliance (Global Alliance for Vaccines and Immunisation) and welcome its efforts to expand access to vaccines to an additional 300 million children during 2016-2020. We welcome Germany’s offer to host the second replenishment in early 2015, reaffirm our commitment, and call on other public and private donors to contribute to the replenishment of the GAVI Alliance. We reaffirm our commitment to an AIDS free generation and to the Global Fund to fight AIDS, Tuberculosis and Malaria to reduce the burden of these three major infectious diseases on eligible countries and regions.

22.      To address the threat posed by infectious diseases, we support the Global Health Security Agenda and commit to working with partner countries to strengthen compliance with the World Health Organisation’s (WHO) International Health Regulations and enhance health security around the world.  We commit to working across sectors to prevent, detect and respond to infectious diseases, whether naturally occurring, accidental, or the result of a deliberate act by a state or non-state actor. That includes building global capacity so that we are better prepared for threats such as the recent Ebola outbreak in West Africa and working together, in close cooperation with WHO, to develop a Global Action Plan on antimicrobial resistance.

23.      We continue to strongly support comprehensive approaches to achieve global food security and nutrition. We look forward to the second International Conference on Nutrition in November 2014 and the Expo Milan 2015, which will provide a platform for the global post-2015 debate on sustainability and food and nutrition security. We continue to support the New Alliance for Food Security and Nutrition under strong African leadership and the successful completion of principles for responsible agricultural investment by the Committee on World Food Security. These will better enable smallholder farmers, especially women, to benefit from sustainable rural development. We continue to support the consistent implementation of the Voluntary Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests, including by building on the land partnerships we launched in 2013 and the Global Agriculture and Food Security Programme.

Ukraine

24.   We welcome the successful conduct under difficult circumstances of the election in Ukraine on 25 May. The strong voter turnout underlined the determination of Ukraine’s citizens to determine the future of their country.  We welcome Petro Poroshenko as the President-elect of Ukraine and commend him for reaching out to all the people of Ukraine.

25.   In the face of unacceptable interference in Ukraine’s sovereign affairs by the Russian Federation, we stand by the Ukrainian government and people. We call upon the illegal armed groups to disarm. We encourage the Ukrainian authorities to maintain a measured approach in pursuing operations to restore law and order. We fully support the substantial contribution made by the Organisation for Security and Cooperation in Europe (OSCE) to the de-escalation of the crisis through the Special Monitoring Mission and other OSCE instruments. We commend the willingness of the Ukrainian authorities to continue the national dialogue in an inclusive manner. We welcome the “Memorandum of Peace and Unity” adopted by the Verkhovna Rada on 20 May and express the wish that it can be implemented rapidly.  We also encourage the Ukrainian parliament and the Government of Ukraine to continue to pursue constitutional reform in order to provide a framework for deepening and strengthening democracy and accommodating the rights and aspirations of all people in all regions of Ukraine.

26.   The G-7 are committed to continuing to work with Ukraine to support its economic development, sovereignty and territorial integrity. We encourage the fulfilment of Ukraine’s commitment to pursue the difficult reforms that will be crucial to support economic stability and unlock private sector-led growth. We welcome the decision of the International Monetary Fund (IMF) to approve a $17 billion programme for Ukraine, which will anchor other bilateral and multilateral assistance and loans, including around $18 billion foreseen to date from G-7 partners.  We welcome the swift disbursement of macro-economic support for Ukraine. We support an international donor coordination mechanism to ensure effective delivery of economic assistance and we welcome the EU’s intention to hold a high-level coordination meeting in Brussels. We welcome ongoing efforts to diversify Ukraine’s sources of gas, including through recent steps in the EU towards enabling reverse gas flow capacities and look forward to the successful conclusion of the talks, facilitated by the European Commission, on gas transit and supply from the Russian Federation to Ukraine.

27.   We are united in condemning the Russian Federation’s continuing violation of the sovereignty and territorial integrity of Ukraine.  Russia’s illegal annexation of Crimea, and actions to de-stabilise eastern Ukraine are unacceptable and must stop. These actions violate fundamental principles of international law and should be a concern for all nations.  We urge the Russian Federation to recognise the results of the election, complete the withdrawal of its military forces on the border with Ukraine, stop the flow of weapons and militants across the border and to exercise its influence among armed separatists to lay down their weapons and renounce violence. We call on the Russian Federation to meet the commitments it made in the Geneva Joint Statement and cooperate with the government of Ukraine as it implements its plans for promoting peace, unity and reform.

28.   We confirm the decision by G-7 countries to impose sanctions on individuals and entities who have actively supported or implemented the violation of Ukraine’s sovereignty and territorial integrity and who are threatening the peace, security and stability of Ukraine. We are implementing a strict policy of non-recognition with respect to Crimea/Sevastopol, in line with UN General Assembly Resolution 68/262. We stand ready to intensify targeted sanctions and to implement significant additional restrictive measures to impose further costs on Russia should events so require.

29.   The projects funded by the donor community to convert the Chernobyl site into a stable and environmentally safe condition have reached an advanced stage of completion. While recognizing the complexity of these first of a kind projects, we call upon all concerned parties to make an additional effort to bring them to a satisfactory conclusion and call upon project parties to keep costs under control. This remains a high priority for us.

Syria

30.   We strongly condemn the Assad regime’s brutality which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. We denounce the 3 June sham presidential election: there is no future for Assad in Syria. We again endorse the Geneva Communiqué, which calls for a transitional governing body exercising full executive powers and agreed by mutual consent, based on a vision for a united, inclusive and democratic Syria.  We strongly condemn the violations of international humanitarian law and human rights and indiscriminate artillery shelling and aerial bombardment by the Syrian regime. There is evidence that extremist groups have also perpetrated grave human rights abuses. All those responsible for such abuses must be held to account. We welcome the commitment of the National Coalition and Free Syrian Army to uphold international law.  We deplore Russia and China’s decision to veto the UN Security Council (UNSC) Resolution draft authorising referral to the International Criminal Court and demanding accountability for the serious and ongoing crimes committed in Syria.

31.   We are committed to supporting the neighbouring countries bearing the burden of Syrian refugee inflows and deplore the failure to implement UNSC Resolution 2139 on humanitarian assistance. We urge all parties to the conflict to allow access to aid for all those in need, by the most direct routes, including across borders and conflict lines, and support further urgent action by the UNSC to that end. In our funding we decide to give particular support to humanitarian actors that can reach those most in need, including across borders. We call for the international community to meet the enormous funding needs of the UN appeals for Syria and its neighbours. We resolve to intensify our efforts to address the threat arising from foreign fighters travelling to Syria. We are deeply concerned by allegations of repeated chemical agent use and call on all parties in Syria to cooperate fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) fact-finding mission. We call on Syria to comply with its obligations under UNSC Resolution 2118, decisions of the Executive Council of the OPCW and the Chemical Weapons Convention to ensure the swift removal of its remaining chemical stockpile for destruction, and to destroy its production facilities immediately and answer all questions regarding its declaration to the OPCW.

Libya

32.   We reaffirm our support for a free, prosperous and democratic Libya which will play its role in promoting regional stability.  We express serious concern at the recent violence and urge all Libyans to engage with the political process through peaceful and inclusive means, underpinned by respect for the rule of law.  We urge continued and coordinated engagement by the international community to support the Libyan transition and efforts to promote political dialogue, in coordination with the UN and with the UN Support Mission in Libya fulfilling its mandate in that respect.   We ask all in the international community to respect fully Libyan’s sovereignty and the principle of non-intervention in its affairs. In this framework, we commend the proposal of the High National Electoral Commission, endorsed by the General National Congress, to convene the elections on June 25. We emphasise the importance of these elections in restarting the political process and appreciate the vital work of the Constitution Drafting Assembly.

Mali and Central African Republic

33.   We welcome the ceasefire signed on May 23 by the Malian Government and armed groups in the North of Mali, thanks to efforts by the African Union, through its Presidency, and the UN. We reaffirm our strong commitment to a political solution and to an inclusive dialogue process that must start without delay, as prescribed by the Ouagadougou agreement and UNSC decisions. We fully support the United Nation’s Multidimensional Integrated Stabilisation Mission in Mali efforts in stabilising the country and, with the commitment of neighbouring countries, including Algeria, Mauritania and the Economic Community of West African States, in working for a durable settlement respectful of the unity, territorial integrity and national sovereignty of Mali.

34.   We commend the role played on the ground in the Central African Republic by the AU-led International Support Mission to the Central African Republic, together with the forces sent by France and the European Union, to support the transition and encourage the Transitional Authorities to take urgent concrete steps toward holding free, fair, transparent and inclusive elections. We fully support the UN efforts in the areas of security, reconciliation, preparation of the elections, and humanitarian assistance.

Iran

35.   We reaffirm our strong commitment to a diplomatic resolution of the Iranian nuclear issue and welcome the efforts by the E3+3, led by High Representative Ashton, and Iran to negotiate a comprehensive solution that provides confidence in the exclusively peaceful nature of Iran’s nuclear programme. We underline the importance of the continuing effective implementation by the E3+3 and Iran of the Joint Plan of Action. We call on Iran to cooperate fully with the International Atomic Energy Agency on verification of Iran’s nuclear activities and to resolve all outstanding issues, including, critically, those relating to possible military dimensions.   We strongly urge Iran to fully respect its human rights obligations. We call on Iran to play a more constructive role in supporting regional security, in particular in Syria, and to reject all acts of terrorism and terrorist groups.

North Korea

36.   We strongly condemn North Korea’s continued development of its nuclear and ballistic missile programmes.  We urge North Korea to abandon all nuclear weapons and existing nuclear and ballistic missile programmes and to comply fully with its obligations under relevant UNSC resolutions and commitments under the September 2005 Joint Statement of the Six-Party Talks. We call on the international community to implement fully UN sanctions. We reiterate our grave concerns over the ongoing systematic, widespread and gross human rights violations in North Korea documented in the report of the UN Commission of Inquiry, and urge North Korea to take immediate steps to address these violations, including on the abductions issue, and cooperate fully with all relevant UN bodies. We continue to work to advance accountability for North Korea’s serious human rights violations.

Middle East Peace Process

37.   We fully support the United States’ efforts to secure a negotiated two-state solution.  We regret that greater progress has not been made by the parties and urge them to find the common ground and political strength needed to resume the process. A negotiated two-state solution remains the only way to resolve the conflict. We call on both sides to exercise maximum restraint and to avoid any unilateral action which may further undermine peace efforts and affect the viability of a two-state solution.

Afghanistan

38.   We renew our long-term commitment to a democratic, sovereign, and unified Afghanistan and our enduring partnership with the Government of Afghanistan based on the principles of mutual respect and mutual accountability. The first round of presidential elections and the provincial council elections marked a historic achievement, especially for the more than 2.5 million women who voted, and we look forward to the completion of the electoral process. We continue to assist the Government of Afghanistan to strengthen their institutions of governance, reduce corruption, combat terrorism, support economic growth, and counter narcotics.  We continue to actively support an inclusive Afghan-led and Afghan-owned process of reconciliation.

Maritime Navigation and Aviation

39. We reaffirm the importance of maintaining a maritime order based upon the universally-agreed principles of international law. We remain committed to international cooperation to combat piracy and other maritime crime, consistent with international law and internationally recognised principles of jurisdiction in international waters. We are deeply concerned by tensions in the East and South China Sea. We oppose any unilateral attempt by any party to assert its territorial or maritime claims through the use of intimidation, coercion or force. We call on all parties to clarify and pursue their territorial and maritime claims in accordance with international law. We support the rights of claimants to seek peaceful resolution of disputes in accordance with international law, including through legal dispute settlement mechanisms.  We also support confidence-building measures. We underscore the importance of the freedom of navigation and overflight and also the effective management of civil air traffic based on international law and International Civil Aviation Organization standards and practices.

Other Issues

40.   We reaffirm our commitment to the protection and promotion of all human rights and fundamental freedoms, including religious freedom, for all persons. We recognise the need to show unprecedented resolve to promote gender equality, to end all forms of discrimination and violence against women and girls, to end child, early and forced marriage and to promote full participation and empowerment of all women and girls. We look forward to the Global Summit to End Sexual Violence in Conflict taking place in London later this month.

41.   We reiterate our condemnation of terrorism and our commitment to cooperate in all relevant fora to prevent and respond to terrorism effectively, and in a comprehensive manner, while respecting human rights and the rule of law. We condemn the kidnapping of hundreds of schoolgirls by Boko Haram as an unconscionable crime and intend do everything possible to support the Nigerian government to return these young women to their homes and to bring the perpetrators to justice.

42.   We confirm that non-proliferation/disarmament issues remain a top priority and welcome the G-7 Non-proliferation Directors Group statement issued today.

Conclusion

43.    We look forward to meeting under the Presidency of Germany in 2015.