REGIONAL ECONOMIC BLOCS SHOULD COMPLEMENT, NOT FRAGMENT, MULTILATERAL TRADING RELATIONSHIPS, ACCORDING TO THE HONORABLE EWAN FOUERE, EC AMBASSADOR ON SPECIAL ASSIGNMENT IN BRUSSELS.
SPEAKING AT A LUNCHEON LAST WEEK IN ATLANTA, AMBASSADOR FOUERE SAID THAT EUROPEAN INVESTMENT IN MEXICO, ARGENTINA AND CHILE HAD DOUBLED OVER THE PAST FIVE YEARS, AND WARNED THAT SUCH INVESTMENTS MIGHT BE JEOPARDIZED IN A FRAGMENTED TRADING SYSTEM.
HE ALSO POINTED TO STRAINS WHICH HAVE DEVELOPED IN THE ECONOMIC RELATIONS BETWEEN EUROPE AND THE U.S., SUCH AS THOSE OVER REGULATIONS AFFECTING FINANCIAL SERVICES COMPANIES. IF REGULATIONS APPROVED UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT FORBID RECIPROCAL ARRANGEMENTS FOR EUROPEAN FINANCIAL INSTITUTIONS THEN THE REGIONAL REGULATIONS SHOULD BE SUPERSEDED BY MULTILATERAL AGREEMENTS, HE SAID.
IF THERE IS NO CONCLUSION TO THE URUGUAY ROUND (WHICH SEEKS TO ESTABLISH MULTILATERAL REGULATIONS) AND REGIONAL ARRANGEMENTS DO NOT TREAT EUROPEAN INSTITUTIONS FAIRLY THEN WE ARE LOOKING AT A PROTECTIONIST SYSTEM WHICH WOULD BE CONTRARY TO THE SPIRIT OF A MULTILATERAL SYSTEM, HE SAID. I AM CERTAIN THAT MEXICO WOULD NOT WANT TO RESTRICT THE BENEFITS OF PROVIDING BANKING SERVICES THERE ONLY TO U.S. OR NORTH AMERICAN INSTITUTIONS…IT CERTAINLY DOESN’T WANT TO LOSE THE FOREIGN INVESTMENT THAT IT HAS HAD.
THE LUNCHEON WAS SPONSORED BY THE GERMAN AMERICAN CHAMBER OF COMMERCE IN COOPERATION WITH THE BELGIAN AMERICAN CHAMBER, CONSULATE OF GREECE, FRENCH AMERICAN CHAMBER, ITALIAN TRADE COMMISSION, NETHERLANDS CHAMBER AND THE TRADE COMMISSIONER OF DENMARK. IT WAS HELD AT THE J. W. MARRIOTT HOTEL AT LENOX.