News / Europe

Kerry: Emerging Economies Pose Challenges for US, EU

U.S. Secretary of State John Kerry, right, walks to a meeting with France's Foreign Minister Laurent Fabius at the Quai d' Orsay in Paris, Mar. 27, 2013.U.S. Secretary of State John Kerry, right, walks to a meeting with France's Foreign Minister Laurent Fabius at the Quai d' Orsay in Paris, Mar. 27, 2013.
x
U.S. Secretary of State John Kerry, right, walks to a meeting with France's Foreign Minister Laurent Fabius at the Quai d' Orsay in Paris, Mar. 27, 2013.
U.S. Secretary of State John Kerry, right, walks to a meeting with France's Foreign Minister Laurent Fabius at the Quai d' Orsay in Paris, Mar. 27, 2013.
Meeting with business leaders in Paris, U.S. Secretary of State John Kerry discussed challenges emerging economies present to more industrialized nations.  The Obama administration is negotiating a Transatlantic Trade and Investment Partnership with the European Union.

Together, the United States and European Union are the world's-largest economic entity, a position Secretary Kerry says is under threat.

"We both have mature economies and we are operating in a new world of voracious appetites in the marketplace with people playing by different rules and some playing by no rules at all," he said.

According to Kerry, that presents corporate leaders with enormous challenges.

"They range from countries that are near failing, for reasons that we should talk about, to failed states to old orders that are under siege from people who have a different vision," he explained, "but where that vision is sometimes being captured by cultural and religious and extreme and other forms of governance, which complicate the marketplace."

Kerry added that in that vastly changing economic landscape, emerging economies find dangerous advantages.

"As the Indias and Chinas and Brazils and South Koreas and Mexicos and others come on line economically, playing to the advantages of a lack of environmental rules or a lack of standards in the production of goods or a lack of labor standards and other things that are part of what civilized and developed communities have created for themselves, that as you see them come online obviously the competition for whatever widget it is you produce or sell is much more intense," Kerry said.

That means many businesses go where they can produce goods at the least cost with the least interference, undercutting more-established trade.

"How do we get over an old way of looking at this so that we are not all engaged in a race to the bottom, that we are not looking for the lowest common denominator of how you do business, but we are perhaps influencing other people to rise to the highest common denominator?" Kerry asked.

He says President Obama's push for a Transatlantic Trade and Investment Partnership with the European Union is part of getting the economic "rules of the road" right.

"This trade agreement, if we move rapidly, can have a profound impact on the rest of the world," Kerry noted.

The trade deal seeks to strengthen market-based disciplines for state-owned enterprises and promote the global competitiveness of small- and medium-sized businesses by reducing non-tariff barriers that impede the flow of goods and services.  It is designed to cut the cost of differences in regulation and standards by promoting greater compatibility, transparency, and cooperation.

Secretary Kerry's stop in Paris included talks with French Foreign Minister Laurent Fabius on the war in Syria, the fight against extremists in Mali and the rebel-takeover in the Central African Republic.

It follows meetings in Kabul with Afghan President Hamid Karzai and talks in Baghdad with Prime Minister Nouri al-Maliki.  Secretary Kerry also followed-up on President Obama's trip to the Middle East in separate meetings with Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas.

You May Like

Video Obama Announces Plan to Send 3,000 Troops to Liberia in Ebola Fight

At US Centers for Disease Control and Prevention, Obama details troop deployment and other pieces of US plan More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

This forum has been closed.
Comment Sorting
Comments
     
by: TomCat88 from: New York
March 27, 2013 2:44 PM
Well, Mr. Kerry defines the problems with the emerging economies perfectly. But at the same time it has been Europe and North America that has ostensibly been the enabler of "bad behaviour" in these countries. We will applaud when Europe and North America stops rewarding these countries for their bad behaviour. The first step, Mr. Kerry, is pretty obvious. My question to you is: Does the Obama administration have the political will to do anything? For the past 4.5 years, the answer has been no.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid