THE TTALK QUOTES 

On Global Trade & Investment
Published By:
The Global Business Dialogue, Inc.
Washington, DC   Tel: 202-463-5074
 
No. 23 of 2019
FRIDAY, MARCH 29, 2019

Click HERE for Tuesday's China quote from The Hon. Jim Talent  
A WELCOME FOR PRESIDENT XI
     
"The challenge is to show that in practice cooperation is more fruitful than conflict.  We have more to gain from opening up than from closing up."  

President Emmanuel Macron 
March 26, 2019 
CONTEXT
This was a big week for EU-China relations.  On Tuesday, March 26, President Xi wrapped up a six-day, three-country visit to Europe.  His first stop was Italy, which has signed on as a participant in China's Belt and Road Initiative (BRI).   One result is that China will be investing in port projects in Trieste, Genoa, and Palermo.  President Xi's next stop was Monaco.  As China Global Television explained in its preview of the trip, "Monaco Telecom has created a partnership with Chinese tech giant Huawei, to help bring the micro-state into the 5G era."

But it was the macro-relationship between China and the European Union that was on display at the Élysée Palace in Paris on Tuesday afternoon.  At the press conference there, President Xi shared the stage with three European leaders: President Macron of France, Chancellor Merkel of Germany, and Jean-Claude Juncker, the President of the European Commission.  President Macron hosted the event, and today's featured quote is from his opening remarks, in which he emphasized the importance of strengthening multilateralism.  Here, to start, is an expanded version of today's quote:

We must accelerate the work undertaken between China and the EU to modernize the World Trade Organization, based on cooperation, transparency, and to reduce regulations, and to -. We discussed this at great length. The challenge is to show that in practice cooperation is more fruitful than conflict.  We have more to gain from opening up than from closing up.  Here too, the partnership between Europe and China will be and must be exemplary, producing tangible results at the next China-EU Summit meeting, notably the Global Agreement on Geographical Indications and Investment.

As President Macron explained, his comments were a summary of the then-just concluded private meeting among the four leaders.  It seems to have been a meeting largely about multilateralism, and, in President Macron's words, "Our visions of multilateralism are very constructive."  He went on to highlight what he saw as four points of convergence.

The first was the need for "powerful multilateralism in terms of international peace and security.  Here he noted "the real cooperation between the EU and China ... to preserve the 2015 agreement on Iranian power."

The second was multilateralism with respect to climate change.  In this section, the French president discussed not only the Paris Accord but a new bilateral agreement between China and France, as well as the Kigali Amendment to the Montreal protocol, which deals with cutting the production and consumption of hydrofluorocarbons (HFCs).

The third area of convergence President Macron discussed dealt with commerce and trade.  It was in this portion that Mr. Macron said, "We will be working on a joint agenda for modernizing commercial or trade multilateralism."  It was also in this segment that he said, "Our common will is to avoid the fracturing of the World Trade Organization."  And it was from this portion of his remarks that we drew today's featured quote.

The fourth area of convergence he described dealt, among other things, with development assistance, and in it he included some positive comments on the Belt and Road Initiative.

We are not going to try to summarize the other speeches.  Suffice it to say that there was a fair amount of overlap.
COMMENT
President Macron talked about things which should be watched closely and others that need to be better understood.  The Global Agreement on Geographical Indications he mentioned meets both of those tests.  We would like to have a better feel for just what such an agreement will contain, and, like others, we shall try to follow developments in next month's EU-China Summit - April 9 in Brussels - for clues as to its status.  

Our understanding is that China and the EU have been discussing Geographical Indications for some time, and that those in the United States who might be affected by any new understanding are on record with their concerns.  In August of 2017, for example, the Virginia based Consortium for Common Food Names put out a press release on the EU-China negotiations. In it, they argued that common names like "feta", "asiago" and "gorgonzola" should not be included.  The larger point, however, is that much of the EU's initiative on GIs has more to do with "closing up," i.e., restricting market access, than it does with "opening up."

***

More broadly, though Mr. Macron chose to emphasize the importance of multilateralism, his comments raised questions about diplomacy and alliances as well.  From ambassador to chargé d'affaires, from démarche to aide-mémoire, the language of diplomacy is French.  And in the language of diplomacy the message is often between the lines.  President Macron made no specific reference to the United States, and yet USA was between the lines throughout - in the section on trade, on Iran, and on climate change.  If the crime of understated melodrama exits, we confess to committing it here with this observation.  After listening to President Macron we are having difficulty answering this question: Considering the United States and China, which country is, for France, the close ally and which the transactional partner?
SOURCES & LINKS
A Press Conference takes you to the YouTube video of the Press Conference at the Élysée Palace on March 26, with President Macron of France, President Xi of China, Chancellor Merkel of Germany, and Jean-Claude Juncker, the President of the European Commission.  This was the source for today's featured quote.  We would note that the YouTube video - and the GBD transcript of Mr. Macron's remarks on it are from the simultaneous translation provided, and there is always something lost in translation.

In Advance of the Trip is a link to the China Global Television broadcast that aired just prior to President Xi's trip to Europe.

GIs and Common Food Names is the press release from the Consortium for Common Food Names referenced in the Comment Section above.  

A Win in Italy is a report on the Xi visit to Italy from the Council on Foreign Relations.

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R. K. Morris, Editor
Joanne Thornton, Associate Editor