Another "Wikileak" [5]of a confidential NSA intercept, and yet another crucial insight into the vision not only behind the Obama administration's desperate push for the Trans Pacific Partnership, but the strategic thinking - if one may call it so - when it comes to the entire US approach to global trade and commerce. Which may well explain why global trade has been imploding in recent years, masked first by just US QE and then by QE from all "developed" central banks.
The synopsis:
Intercepted communication between French Minister-Counselor for Economic and Financial Affiars Jean-Francois Boittin and EU Trade Section head Hiddo Houben, reveals Boittin's discontent with U.S. approach towards a WTO pact. Additionally Houben stated that the TPP (being an American initiative) seems devised as a confrontation with China.
EU Officials Perceive Lack of U.S. Leadership on Trade Issues, Skeptical of Pacific Initiative (TS//SI//OC/NF)
(TS//SI//OC/NF) Washington-based EU trade officials ascertained in late July that the U.S. administration is severely lacking in leadership when it comes to trade matters, as shown by the absence of a clear consensus on the future course of the WTO Doha Development Agenda (DDA). French Minister-Counselor for Economic and Financial Affairs Jean-Francois Boittin expressed astonishment at the level of "narcissism" and wasteful contemplation currently on display in Washington, while describing the idea of scrapping the DDA in favor of another plan--which some U.S. officials are seen to favor--as stupefying. The Frenchman further asserted that once a country makes deep cuts in its trade barriers, as the U.S. has done, it no longer has incentives to offer nor, as a consequence, a strong position from which to negotiate with emerging nations. Boittin's interlocutor, EU Trade Section head Hiddo Houben, after noting the leadership void in the Office of the U.S. Trade Representative, declared that with regard to the disagreement within his host government on DDA, a political decision must be made about what direction is to be followed. On another subject, Houben insisted that the Trans-Pacific Partnership (TPP), which is a U.S. initiative, appears to be designed to force future negotiations with China. Washington, he pointed out, is negotiating with every nation that borders China, asking for commitments that exceed those countries' administrative capacities, so as to "confront" Beijing. If, however, the TPP agreement takes 10 years to negotiate, the world-and China-will have changed so much that that country likely will have become disinterested in the process, according to Houben. When that happens, the U.S. will have no alternative but to return to the WTO. Finally, he assessed that this focus on Asia is added proof that Washington has no real negotiating agenda vis-a-vis emerging nations, including China and Brazil, or an actual, proactive WTO plan of action.
Unconventional
EU diplomatic
Z-3/OO/531614-11, 011622Z
Source: Wikileaks [6] [6]
