9 September 1998
Source: http://www.usia.gov/current/news/latest/98090804.wlt.html?/products/washfile/newsitem.shtml

Jump to remarks on E-commerce and privacy.

USIS Washington File
_________________________________

08 September 1998

### TEXT: DALEY ASKS IRISH BUSINESS LEADERS TO FIGHT TRADE BARRIERS

    (Cites problems with EU in farm products, high-tech areas) (1420)

    Dublin -- Secretary of Commerce William M. Daley appealed to the
    Business Leaders of Ireland to weigh in "on European trade issues like
    never before."

    Speaking to the business leaders at a meeting September 4 in Dublin,
    Daley said that in his private meetings later in the day, he would
    express the trade concerns of the congressional delegation currently
    in Ireland representing high-tech business and the farm states in the
    United States.

    Citing an example of how a trade barrier was erected to keep U.S.
    farmers from selling their corn to Spain and Portugal this year, he
    urged the Irish businessmen to bend their efforts toward preventing
    such barriers to products that consumers want and to help make the
    approval process [within the European Union] faster and more
    transparent for everybody.

    Daley pointed out that the European Union's "privacy directive goes
    into effect in October, and it could bar millions of transactions
    between Europe and America. So, we are actively engaged in discussions
    to avoid problems. Again, we hope Ireland -- home to Gateway ... home
    to Dell, Intel, Digital, and many others -- will weigh in on this,
    too."

    Following is the text of his remarks:

    (Begin text)

    Remarks by U.S. Secretary of Commerce William M. Daley
    to Business Leaders of Ireland
    September 4, 1998
    Dublin, Ireland

    In the last few days, when I was with President Clinton in Moscow, one
    question we focused on was: Why are foreign companies shying away from
    investing in Russia? And in June, when I brought 16 American companies
    to Belfast, Derry, and the border counties, the question of investment
    also was asked -- over and over.

    Obviously, it was asked because it means jobs. It means growth. It
    means bringing in technology. And for Americans it means opening new
    markets and expanding sales that could lead to more jobs back home.

    In fact, from our trade mission in June, our companies found 30 sales
    leads that could be worth $40 million. Four companies are opening
    offices in Northern Ireland -- all of them small American
    entrepreneurs.

    But to be frank with you, the Fortune 500 companies are waiting for
    the peace process to work before they feel they can safely invest in
    the North.

    Obviously, it is different here in the Republic. There are about 500
    American companies here. They employ almost 70,000 workers -- a
    remarkable percent of the Irish work force.

    We obviously have a large stake in each other's economies. Our
    companies are citizens of both countries. We are affected by what you
    do. And you are affected by what we do.

    So the question we need to ask is not about investments. Rather, it
    is: How can we work together to make the trade rules fairer for all of
    these many investments?

    It is amazing to me that almost 90 percent of your economic output is
    exports. And the fact is, as a founding member of the European single
    currency, your economy will be entwined with your neighbors, as never
    before. So, it is very important, I think, that Ireland weighs in on
    European trade issues like never before.

    It is equally important for the American business community to work
    with the Irish leaders to weigh in on these issues. Back in the
    states, there are a number of avenues for businesses to have their
    opinions heard: through the Department of Commerce, the Trade Rep's
    (Office of the U.S. Trade Representative) Office, and, of course,
    their congressmen.

    Sometimes our members of Congress spend more time being lobbied than
    they spend on the floor debating bills. I am sure they would love it
    if American companies shared the wealth with government officials here
    in Ireland.

    In my private meetings today I will express some trade concerns of our
    businesses here. Also, I will express concerns of our congressional
    delegation. They represent farm states. They represent high-tech
    companies.

    Two issues, in particular, come to mind.

    First is the issue of farm products. In our country farmers routinely
    grow corn and other products that have been improved through
    bio-engineering. Companies like Monsanto, with operations here, have
    developed many of these products. Farmers like them because they keep
    the bugs away. We feel they are safe to eat. In fact, they now make up
    about 10 percent of our market.

    After several years in the approval process, some of these corn
    varieties were finally approved by the European Commission this
    spring. Our farmers had hoped to sell them in Spain and Portugal this
    year. But every member country also had to approve. And France,
    claiming national political concerns, delayed approval until August.
    So, France prevented our farmers from selling in Spain and Portugal
    this season. That cost us $100 million in lost exports. And you and I
    know who is benefiting.

    Currently, there are other varieties waiting to be approved. And there
    are growing concerns about how to label these bio-engineered products.
    We obviously want to do what is right for European consumers.
    But the point I want to make is: Let us not erect barriers to products
    that consumers want. These crops will be ever more important to
    farmers around the world. And they will be ever more important to
    companies with workers in America, in Ireland, and around the world.
    So, we hope that you weigh in on this issue, and help make the
    approval process faster and more transparent for everybody.

    The second issue is electronic commerce. As you know, the President
    will be at Gateway 2000 later today. Here is an American company that
    started with two workers in Iowa in 1985. It now does $6 billion in
    business, almost 20 percent of that outside the United States.
    When President Clinton took office five and a half years ago, there
    were 50 web sites on the Internet. Now, 65,000 pages are added --
    every hour. In fact, last week on Commerce's web site, right before
    hurricane Bonnie hit, a million people looked at our weather
    information -- in one hour.

    It is a new world out there -- for consumers, for educators, for
    government, for businesses. Large businesses are using the technology
    to fundamentally change the way they operate. What is most significant
    is that a small store can now sell its products around the world --
    just as a Fortune 500 company, with a massive distribution system,
    does today. That is a tremendously different world than when I went
    into business.

    Today at Gateway 2000, President Clinton will have an announcement on
    how we will promote the growth of electronic commerce in our two
    countries.

    But I have always felt the one issue that will make or break this is
    privacy. If consumers feel when they buy a book or trade a stock
    on-line that someone is keeping a personal profile on them, it will be
    the last time they purchase something on the Internet.

    We are working to enhance privacy protection within the United States.
    Our companies have stepped forward in the last few months. They want
    to tell the public what happens to the information they collect. They
    want to give the consumer a chance to say "no" to the collection of
    information. They want to stop collecting data from children without
    permission from parents. And our companies are willing to submit to
    third-party enforcement.

    But the European Union has a very different approach than us. Their
    privacy directive goes into effect in October, and it could bar
    millions of transactions between Europe and America. So, we are
    actively engaged in discussions to avoid problems. Again, we hope
    Ireland -- home to Gateway ... home to Dell, Intel, Digital, and many
    others -- will weigh in on this, too.

    Let me end by saying, your economy is healthy -- not like the very
    sick economies facing a quarter of the world's people today. But in
    this global economy, what we have seen is when there are problems in
    Russia or in Japan, when there are questions about China's economy, it
    affects what happens in America. In Latin America. In Europe.
    And I hope that a healthy Ireland seizes this chance to help other
    European countries work together.

    As the President said in Russia, "If you wish to be part of the
    international economy, there is no way out of playing by the rules of
    the international economy."

    Thank you very much.

    (End text)