Issue Insight

July 2004

Congress seeks extension for Visa Waiver Programme

Washington

On 14 June, the House of Representatives approved and sent a bill to the Senate that extends from October 2004 to October 2005 the deadline for adoption of biometric identifiers in passports issued by the US and 27 other nations participating in the Visa Waiver Programme, including the UK.

BritishAmerican Business had urged the US Congress to take this action, after a survey of our 800 member companies in the US and UK confirmed that these new restrictions would cause them great inconvenience and damage the conduct of business.

BritishAmerican Business now looks forward to the bill's adoption by the House and the Senate, and the consequent postponement of these restrictions.

For US Congress ruling: LINK

For BritishAmerican Business action: LINK

EU-US Summit held 25-26 June
Brussels/Washington

In Ireland, from 25-26 June, leaders of the 25 Member States of the European Union (EU) met with President Bush to discuss the transatlantic relationship and other key issues. During the Summit, they agreed a joint declaration for strengthening their economic partnership, including working for a successful outcome of the Doha Round of the World Trade Organisation (WTO). They also launched a comprehensive review to maximise investment and reduce barriers to trade across the Atlantic, and issued a joint declaration on Iraq. LINK

EU Constitution agreed

Brussels

At the European Council, 17-18 June, the Irish Presidency secured agreement on a Treaty establishing a Constitution for Europe. The document creates a European Foreign Minister, simplifies the voting system, gives more power to the European Parliament, and limits areas where one country can veto EU decisions. Britain won the right to veto EU decisions on taxation, defence and social security. LINK - PDF

European Parliamentary Elections

Brussels

On 10 June, approximately 155 million of some 350 million eligible voters in the 25 Member States cast their ballots in the European Parliamentary Elections, making it one of the biggest democratic exercises in the world. The Parliament will have 732 Members for a 5-year term, including 78 MEPs for the UK. The new Parliament sits for the first time on 20 July in Strasbourg. LINK

New President proposed for European Commission

Brussels

On 29 June, Portuguese Prime Minister Jose Manuel Durao Barroso was unanimously nominated as the new President of the European Parliament. This nomination has to be approved by European Parliament on 22 July. LINK

US Supreme Court ruling on Antitrust Laws
Washington

The US Supreme Court has ruled that foreign buyers cannot sue an international business in US courts over price fixing unless they can demonstrate that the company’s actions in the US directly harmed them. LINK

BritishAmerican Business Action:

►14 June: Chairman Sensenbrenner of the US Judiciary Committee approved an extension of the Visa Waiver Programme by one year. BritishAmerican Business had previously surveyed its members and issued findings to the Chairman in support of this extension. LINK - PDF

►30 June: BritishAmerican Business issued a ‘Business Manifesto’ in association with AmCham EU, AmCham Ireland and AmCham Austria, in support of their governments’ Multiannual Strategic Programme. LINK

US House approves Foreign Sales Corporation (FSC) legislation

Washington

The US House of Representatives passed legislation that would make major changes to US tax law and repeal export tax breaks that were ruled illegal by the WTO. The vote, on 17 June, came one month after the Senate passed a similar bill. However, both bills include many special-interest tax breaks, from $30bn in tax reductions on foreign corporate profits to breaks for timber companies, oil and gas distributors and movie studios. The EU continues to raise tariffs on American exports for each month that the US retains the old tax break. A final version must now be approved by Congress and signed by the President. LINK

TransAtlantic Business Dialogue (TABD) launches report at EU-US Summit

Brussels/Washington

At the EU-US Summit in Ireland, the TABD submitted a Report on establishing a barrier-free transatlantic market. Issues covered in the Report ranged from Intellectual Property Rights (IPR) and counterfeiting, International Accounting Standards (IAS) and the Doha Round of the WTO.

The TABD - a key interlocutor with government on the transatlantic economic relationship - was renewed earlier this year under fresh leadership and with a 30-strong ‘business advisory board’ consisting of CEOs from companies across a range of business sectors in the EU and the US, including some BritishAmerican Business members. LINK

EU states may block International Accounting Standard’s Board (IASB) Rule

Brussels

Four EU Member States objected to an IASB ruling on 14 June that would force European banks to disclose the market value of their investments in derivatives securities, called IAS 39. The European Commission has already endorsed the main part of the IASB’s recommendations, but unless the proposals on derivatives also become EU law, then it will damage negotiations for US authorities to accept the new European standards as an alternative to US General Accepted Accounting Practice (GAAP). LINK - PDF

US data request agreed

Brussels/Washington

The EU and US signed an agreement on 28 May allowing US Customs and Border Protection (CBP) to collect air passenger data on those flying on European airlines to or from the US. Under the agreement, Washington is allowed to collect 34 types of data, including name, address, phone number, credit card details and names of their travelling companions. The US will store the data for three and a half years, or longer, if necessary, and can pass the data on to third countries, but must inform Brussels if this happens. LINK

Upcoming BritishAmerican Business Policy Events

►7 July: Breakfast briefing with Dutch Ambassador as part of the IHT EU Presidency Briefing Series.

►29 September: East-West Trade Forum presents: "Capital flows and risks in the emerging markets", sponsored by Citigroup and The Risk Advisory Group.