Guardians of the Global System: What the Transatlantic Economic Partnership Should Give the World ? and Why it Might Not Deliver

8/8/2019 Guardians of the Global System: What the Transatlantic Economic Partnership Should Give the World ? and Why it

1/26

BRUSSELS FORUM PAPER SER IES

Guardians of theGlobal System

What the transatlantic economicpartnership should give the world

and why it might not deliver

Richard Salt

Transatlantic Fellow

The German Marshall Fund of the United States


2/26

2008 Te German Marshall Fund o the United States. All rights reserved.

No part o this publication may be reproduced or transmitted in any orm or by any means without permission

in writing rom the German Marshall Fund o the United States (GMF). Please direct inquiries to:

Te German Marshall Fund o the United States

1744 R Street, NW

Washington, DC 20009

1 202 745 3950

F 1 202 265 1662

E [email protected]

Tis publication can be downloaded or ree at http://www.gmus.org/publications/index.cm. Limited print

copies are also available. o request a copy, send an e-mail to [email protected].

GMF Paper Series

Te GMF Paper Series presents research on a variety o transatlantic topics by sta, ellows, and partners o theGerman Marshall Fund o the United States. Te views expressed here are those o the author and do not neces-

sarily represent the view o GMF. Comments rom readers are welcome; reply to the mailing address above or by

e-mail to [email protected].

About GMF

Te German Marshall Fund o the United States (GMF) is a non-partisan American public policy and grant-

making institution dedicated to promoting greater cooperation and understanding between the United States

and Europe.

GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders

to discuss the most pressing transatlantic themes, and by examining ways in which transatlantic cooperation can

address a variety o global policy challenges. In addition, GMF supports a number o initiatives to strengthendemocracies.

Founded in 1972 through a gi rom Germany as a permanent memorial to Marshall Plan assistance, GMF

maintains a strong presence on both sides o the Atlantic. In addition to its headquarters in Washington, DC,

GMF has seven oces in Europe: Berlin, Bratislava, Paris, Brussels, Belgrade, Ankara, and Bucharest.

About Brussels Forum

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pants include heads o state, senior ocials rom the European Union institutions and the member states, U.S.

Cabinet ocials, Congressional representatives, Parliamentarians, academics, and media. For more inormation,

please visit www.brusselsorum.org.


3/26

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Guardians of the Global System

What the transatlantic economic partnership should give

the worldand why it might not deliver

Brussels Forum Paper Series

March 2008

R S

T Fw

T G M F U S


4/26

Guardians of the Global System 3

The European

Union and the

United States

must acknowledg

that they are

guardians of the

global system.

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The German Marshall Fund of the United States4

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Maximizing the

benefits of a

global economy,

and minimizing

its costs, requires

more and more

international

cooperation.


8/26


Even if states

wish to cooperat

to provide global

public goods,

the international

system makes

such cooperation

difficult.

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9/26


Strong and

effective

governance

changes the

context in

which states

calculate their

self-interest

and provides

the means for

collective action.

But it is too often

under-provided.

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The Need for Economic Governance

3


10/26


At the same

time as the need

for governance

is growing, its

supply is faltering

perhaps even

declining.

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11/26


The United States

and the European

Union are the

worlds only

genuine economic

superpowers.

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A Transatlantic Responsibility

4


12/26


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In terms of

supplying global

public goods, the

United States an

the European

Union do not

get a free ride.

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Source: IMF World Economic Outlook.

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13/26


Agreement

between the

United States

and Europe will

not always be

sufficientbut

more often than

not it will be

necessary.

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14/26

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15/26


The foundation

for future

transatlantic

economic

cooperation is

weaker than

often assumed.

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Why the Transatlantic Economic

Relationship Requires a Strategic Purpose5


16/26

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A new transatlantic bargain?

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17/26


Above all, the

United States

must listen to,

and compromise

with, the European

Union, a near-

indispensible

partner.

Meanwhile, the

European Union

must accept that

its economic

power comes with

responsibility

and become more

outward-looking.

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18/26


Transatlantic

cooperation

should be put

at the service

of the global

economyto bu

the next era of

global economic

governance.

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19/26


Political will for

genuinely close

cooperation

seems to be

lacking. But strong

political leadership

is required at the

highest levels of

government.

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Prospects for a Cooperative

Partnership6


20/26


The European

Union and the

United States

must not

underestimate

the importance

of deep persona

contacts in

building a

foundation

for strategic

cooperation.

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21/26


A domestic

coalition of

support will not

be built without

leadershipand

a persuasive case

to which people

can relate.

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22/26


If the United

States and

European

Union act as

guardians of the

international

economic system

it will help secure

greater legitimac

for their wider

influence.

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Adopting a Mission

7


23/26

Cumsan hendio

con vullaorem

zzrilit laorting

el do exer si tin

ulputem iure

velendrer sequat.

Ummy nissis eum

dolummy nullaor

amconsecte

exercilisl ut

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A, A, J P-F, A S N, V(6), G Gv: A Ag

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