AMBASSADOR Robert Holmes Tuttle
Speeches, Remarks & Events
12 October 2006
Address to the BritishAmerican Business Council
Birmingham
(as prepared for delivery)
Thank you, David.
You know, I think this invitation to speak to the BritishAmerican Business Council was on my desk even before I arrived in London 15 months ago.
I am sure it is that kind of attention to detail that earned David his reputation as a keen follower of transatlantic trends, as well as a leader in transatlantic business.
Thank you - and the BritishAmerican Business Council – for all your hard work to give me the opportunity to speak here this evening – and thank you Quentin Poole, and Wragge and Company for hosting this event.
I have been traveling a great deal since we arrived, but as David said, this is my first visit to Birmingham – these trips just get better and better!
I am very happy to be here, in a region to which modern culture owes a debt of gratitude as the heart of the Industrial Revolution.
And Birmingham, "The City of a Thousand Trades," where the combination of location, natural resources, and a skilled and dedicated workforce has for centuries given this city an edge in not only the national, but the international marketplace.
From knives and nails, to swords and guns – who would have thought that today it would be home to not only the automotive and aerospace industries – but information technology, medical technology – and even nanotechnology.
In my view, Birmingham has been a success because it has always been one of the best examples of a city that has understood the challenges of globalization – and met those challenges head-on.
Many think of globalization as a modern phenomenon. But it seems to me that the developments that made it possible – many devised or built right here, such as, the steam engine, gas lights – and my personal favorite – Britain's first car – must have been at least as revolutionary to the people who lived in those times, as the computer is to us, if not more so.
Globalization is a process by which we have compressed the world around us. We have increased our interconnections, and overcome what used to be the barriers of time and space, through innovation and technology.
Your ancestors made the world smaller with trains and transatlantic cables. Today we use broadband and Blackberries. But globalization is a shift in thinking that happens when everywhere in the world is an instant away – nowhere, is suddenly no longer too far from anywhere.
We haven't quite managed to be in two places at once, but we have certainly begun to master doing more than one thing at a time!
Of course, all this change has had a massive impact on business, as people seek to take advantage of new products and services. But globalization also has a major impact on the social fabric of society.
Birmingham is a success because not only was it at the forefront of the innovations that changed the face of manufacturing forever, but it was also at the forefront of the social reforms that ensured the Industrial Revolution had a human dimension as well as an economic one.
Today, President Bush understands the importance of both economic and social progress.
He has been clear and consistent about the issues that define government's responsibility in the face of this modern era of globalization.
Put briefly, he believes that our security, and the security of the world, depends on the expansion of freedom and democracy. But more importantly, that the cornerstone of these liberties is economic progress for everyone.
The President has focused on these issues because he understands that in this globalized world, what we have called “foreign policy” is no longer what we do “over there.” Nor is domestic policy something that affects only those at home.
Every government must deal with the reality that foreign policy and domestic policy are two sides of the same coin.
So while the President acknowledges that his democracy agenda may contain idealistic elements, he equally knows that isolationism is a doomed strategy.
And nowhere is that objective more clearly expressed than in his economic agenda.
The relationship between the United Kingdom and the United States is probably the best developed example of that approach.
Last year, total trade between the United States and UK came to over 165 billion dollars, and investment reached a combined total of 606 billion dollars.
Of that total trade, 90 billion dollars was for goods alone, with the West Midlands accounting for almost 8 billion dollars.
That is an increase over 2005 – in both imports and exports – of about 500 million dollars. Making the United States both one of the largest investors and one of the largest trading partners for this region.
There are 700 American-owned companies employing over 100,000 people in the West Midlands. But we are only one part of the global mix of companies based here.
There are a staggering 2,300 foreign companies who call this city home, and combined, we foreigners employ a quarter of a million people.
You are obviously a very welcoming place!
And we are able to keep coming back because the American economy continues to look strong.
The U.S. economy added over 5 million new jobs in the last three years, had 32 consecutive months of job growth, and, better still, we currently enjoy a falling unemployment rate. And while second-quarter growth was not as eye-popping as the first, it still exceeds that of just about all of our developed trading partners.
So, on all the key economic indicators, the United States is doing well – GDP up, inflation under control, productivity up, foreign investment up, and demand on the increase.
Those statistics are important because the U.S. economy continues to be an engine that not only supports America, but like Birmingham, it has responsibilities beyond its own boundaries. We need the United States and the United Kingdom, these two “workhorses of prosperity,” to continue to pull their weight. And so, we need to ensure that we give them the right conditions in which to thrive.
That means that for all the transatlantic sharing and exchange, issues remain that we need to address:
The first is what I will call a tendency to look at the isolated black clouds on the horizon rather than at the silver lining. That seems particularly true in one industry that has been very important in the Midlands – defense.
There are a couple things that are not covered in the press. For example: BAE Systems is the fifth largest supplier to the U.S. Defense Department.
Or, of the 5,000 requests from the UK to the United States for technology transfer, only four were denied.
You might also be interested in some success stories on the Joint Strike Fighter. For example:
UK companies have already earned contracts valued over Britain's eventual 2 billion dollar investment, and when the plane goes into full production, additional contracts will be worth many times that amount.
Over 100 companies from all over the UK are subcontracting on the project, so in terms of those crucial jobs, the original estimate of 8,500 jobs looks to be on track.
Our defense relationship is a relationship that works, and one that we intend to develop and grow into the future.
A second issue is about understanding the detail of an issue before commenting on it. Here I would list extradition.
I am very pleased to be able to report that not only did the Senate Foreign Relations Committee support the treaty unanimously, but after a lot of hard work by the Embassy in London, and by the White House, and Whitehall, particularly by Baroness Scotland, who made such an impression on Capitol Hill, that just before the Senate adjourned two Saturdays ago, they unanimously ratified the treaty.
There has been a lot of misinformation about this issue, both here and in the United States, so it is worth reminding ourselves what happened:
Far from creating an imbalance, the 2003 Extradition Treaty modernized the extradition arrangements between the United States and the United Kingdom. After the Treaty was signed, Parliament passed the Extradition Act of 2003, which corrected an imbalance in our extradition arrangements.
What the parliamentary act did, was to effectively create the environment in which the standard of proof for extradition – in both jurisdictions – would be the equivalent of "probable cause."
It is my sincere hope that not only will these arrangements balance the process, but that they will also ensure that justice is better served on both sides of the Atlantic.
Finally, and directly related to the challenges of globalization, are the continuing issues around the Doha trade negotiations.
In October of last year, the United States made a bold proposal for reforming global agricultural trade to move the negotiations forward. The President offered substantial reductions in trade-distorting support measures and tariffs and the complete elimination of export subsidies.
As you know, the European Union, India, Brazil, and others were unable to match our offer. I think it is revealing that our trading partners accused the United States of being "unrealistic" and "overly-ambitious" in our expectations of their response to President Bush's proposal. We are unabashedly seeking more and freer trade, an outcome that would benefit everyone – particularly consumers and developing countries.
The United States was very disappointed when the talks were suspended last July, and since then, our team has been working non-stop, undertaking no less than 35 bilateral meetings all over the world – with more on the schedule – trying to find a way forward, because, realistically, we need to make some headway on Doha before the end of this year.
I say that because the United States will start to come up against the expiration of the President's trade promotion authority, which happens in July 2007, and run the risk of losing all the ground we have worked so hard to gain.
So, we continue to look for leadership from the EU and others, and to work hard, because the United States remains committed to open markets and free trade.
In this globalized world, we know that developed and developing countries need Doha. Although agriculture is crucial to these development negotiations, in places like the West Midlands, the other issues stalled by this process, such as non-agricultural market access and services, are, in many ways, even more important to your economic future.
Even at this late date, Doha still represents the best opportunity we have to increase global trade and investment, and facilitate economic prosperity for those who need it most.
Globalization may be making the world a smaller place for some, but Birmingham has long been a global city operating in the international marketplace, making its fortune by reaching out to places and partners in other countries, such as your sister city of Chicago – a city I know well.
And from my brief visit here, I can see that you both have the same unique ability to welcome people from all over the world to share in your vision of a city that is hardworking and prosperous – but inclusive and progressive.
From your industrial roots to your modern cosmopolitan face, I know the relationship, not only between Chicago and Birmingham – but the United States and Birmingham – will continue to go from strength to strength.
Thank you.
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Speeches, Remarks & Events