Winning the regulatory race

One American official says flatly that the EU is "winning" the regulatory race, adding: "And there is a sense that that is their precise intent." He cites a speech by the trade commissioner, Peter Mandelson, claiming that the export of "our rules and standards around the world" was one source of European power. Noting that EU regulations are often written with the help of European incumbents, the official also claims that precaution can cloak "plain old-fashioned protectionism in disguise".

Europe had no idea the rest of the world was going to copy its standards, retorts a Eurocrat sweetly. "It's a very pleasant side-effect, but we set out to create the legislation we thought that Europe needed." At all events, America's strategy has changed. Frontal attempts to block new EU regulations are giving way to efforts to persuade Brussels to adopt a more American approach to cost-benefit analysis. That would placate students of rigour, who accuse some European governments of ignoring scientific data and pandering to consumer panic (as shown by European campaigns against "Frankenstein foods").

But rigour can quickly look like rigidity when it involves resisting competition. There is a genuine competition to set global regulatory standards, as Europe and America have discovered. There are also rising protectionist pressures. Perhaps zealous EU regulators may be what jumpy consumers need if they are to keep faith with free trade and globalisation. Viewed in such a light, even Microsoft's champions might hope that this week's verdict will help global competition in future.

See also:

EU-U.S. Summit Signals New Threats To Natural Health Therapies
(April 2007) - The European Union and the United States recently announced the signing of a Framework for Advancing Transatlantic Economic Integration at a summit in Washington. Describing the agreement as “a statement of the importance of trade”, President Bush, speaking at the post-summit press conference, claimed that it was “a commitment to eliminating barriers to trade” and “a recognition that the closer that the United States and the EU become, the better off our people become.”