Speech by President of the Republic Tarja Halonen at the Anniversary Celebrations of the American Chamber of Commerce in Finland, 22 March 2007

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I am delighted to be here and to speak about the present and future of relations between the European Union and the United States. This is an important partnership that is once again beginning to gain the attention it deserves. Its importance to Europeans, to Americans and even to the rest of the world, too, is clearly understood.

Democracy, respect for human rights, the rule of law and the market economy form the basis of our respective societies on both sides of the ocean. These shared values form a solid basis for a close interactive relationship.

Transatlantic cooperation is needed for at least two reasons: to improve the well-being of both parties and to resolve international political problems and global challenges. There is plenty of work to be done, ranging from regional conflicts to the proliferation of weapons of mass destruction, from fighting terrorism to promoting human rights, and from climate change to energy security. The EU and the United States are two most prosperous and largest economies in the world. We share responsibility for promoting freedom, prosperity and well-being in the world.

But despite shared values and goals, it is not always easy to work together. It is good to remember that there are 27 independent member states in the EU. That is why internal functioning of the Union can be a bit slow and sometimes also difficult to understand. On the other hand the American system can also be a little bit difficult for Europeans to understand.

There have always been sensitive points in transatlantic cooperation, most recently differences of opinion between the EU and the United States have been regarding the response to international security threats. My feeling is that, in relations between Europe and America, problems have more often been caused by difficulties in understanding the means or manner of responding than by difficulties in understanding the goals involved.

Recently, the EU and the United States have started growing significantly closer and have enhanced their cooperation. The EU and the United States have demonstrated that they can discuss difficult matters and seek solutions regardless of any differences of opinion. I would like to give a few examples of this.

In addition to the annual summit and meetings of foreign ministers, the EU and the United States have also initiated high-level contacts in several other fields. The justice and home affairs ministers have been meeting regularly since 2004. Both parties see counter-terrorism as a priority. At the same time, a lot of the friction between the EU and the United States has to do with new security rules related to counter-terrorism. Therefore it was important that during Finland’s EU-presidency we managed to sign an agreement on the disclosure of passenger data. This enabled air traffic between the EU and the United States to continue without any disruptions. It is a pleasure to note that today the EU council accepted the “Open Sky”-agreement, thus making transatlantic air travel easier.

What is particularly gratifying and important is that cooperation on climate change is progressing. Finland chaired a high-level meeting last year where the EU and the United States — for the first time in four years — sat down to talk about issues related to climate change, clean energy and sustainable development.

Climate change is exactly the kind of serious threat and global challenge the EU and the United States should be able to join forces to overcome. The Helsinki meeting was an important step. I am very happy that both parties are committed to continuing the dialogue. This cooperation will encourage others to join and is crucial in achieving real global commitment.

In addition to this, working relations across the Atlantic have improved in several areas but ultimately, transatlantic cooperation is not just about our two sides. It is often the key to achieving wider cooperation. Thus, our cooperation is really about how we relate to global responsibility.

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Colorful headlines easily give the wrong impression. It is true that there are sometimes very tense trade negotiations and even outright trade disputes between the EU and the United States. However, these trade disputes, significant as they may be, only involve a tiny fraction of the trade between us. Indeed, transatlantic economic cooperation can with justification be called the backbone of the relationship between the EU and the United States. The economy has often proved to be the strongest link even when political issues have caused problems.

The EU is the most important trade and investment partner for the United States, and vice versa. Our mutual trade accounts for about 40 percent of all world trade. Some 14 million people are estimated to earn their living as a result of transatlantic trade and investments. There is a notable degree of mutual dependency in these trade and investment relationships, and this has been increasing in recent years. Despite the rise of Asia, the volume of American investments in Europe is still many times greater.

Being the world’s largest trading partners, the dynamics of the economies of the EU and the United States have an impact on the world economy as a whole. The EU and the United States are key players in the Doha round of negotiations. Although they cannot resolve the negotiations between themselves only, a successful result calls for strong leadership on both sides of the Atlantic.

Although the flow of trade and investments between the EU and the United States is already the biggest in the world, closer cooperation would yield even more benefits. The OECD has estimated that the mutual opening of commodity and service markets could increase the gross national product by 3.5 percent in the EU and 3 percent in the United States.

It is highly gratifying that Germany has made the transatlantic economic relationship one of the spearhead topics of its EU Presidency. But what would their concept of “New transatlantic economic partnership” and the realization of the economic initiative between the EU and the United States mean in practice?

The end result would not be a free trade zone in the traditional sense. We could instead describe it as a trading arrangement for the new millennium. The economic initiative is a long-term multiannual program which aims to dismantle the remaining obstacles to transatlantic trade and to ensure that no new obstacles arise.

Imagine a situation where the EU and the United States have deregulated air traffic, removed restrictions on public procurement, unified their accounting standards and harmonized a great deal of other regulations and standards. Furthermore, in that future picture travel between the United States and EU Member States would be visa-free, and business men could shuttle across the Atlantic with ease, having ‘trusted passenger’ status that gains them fast-track border controls. This is not utopia; experts consider it a realistic scenario. What is certain is that attaining such targets requires a great deal of work and a strong commitment!

In these efforts, we need commitment from national leadership and close contacts between officials. Above all, we need the will of national legislators, the European Parliament and the American Congress, to commit to attaining the goals that have been set. Information generated by European and American interest groups in the business world and elsewhere regarding obstacles to trade and other problems on the transatlantic market is vital to enable us to focus our resources appropriately.

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I have spoken at some length about relations between the EU and the United States. I should like to conclude with a few words on relations between Finland and the United States. The United States remains Finland’s most important trade and investment partner outside Europe, and trade between our two countries has recently begun to grow again. The Finnish ministers of trade and industry and of finance recently met their opposite numbers in Washington DC, and both parties seem genuinely interested in the potential of economic cooperation.

We share an interest in new technology and innovations. We Finns are increasingly interested in business innovation, at which Americans seem to be much better than we Europeans. Recently, the United States and Finland have also engaged in closer cooperation on energy issues. Americans are very interested in Finland’s nuclear power expertise and in the second-generation biofuel technology projects running in Finland.

Bilateral relations between Finland and the United States and our mutual interest have the greatest potential in a variety of specialist fields. In addition to commercial and economic matters, there is interesting potential for cooperation in health care, education, and the northern and Arctic dimensions. Environmental expertise is a strong new area in Finland. These are only a few of the most recent developments.

In a modern world, closer bilateral relations depend on close contacts in all areas of society. Cooperation in education and student exchange enhances mutual understanding and awareness of other cultures and institutions.

Although we Finns like to think that Finland is an interesting partner in and of itself, I believe that Finland is also a reliable partner in projects aimed at third countries. For example, Finland has excellent relations with all of its neighbors. Finland is also the only euro zone country among the Nordic countries, and this can make European cooperation easier in many ways.

In conclusion, I would like to thank the American Chamber of Commerce in Finland for its valuable efforts in developing relations between Finland and the United States. I would also like to congratulate you on your anniversary and wish you the best of success in your important work! I hope you all will have an enjoyable evening.