Lamy And Zoellick's Harmonious Co-Operation To Be Tested

by Mike Godfrey, Tax-News.com, New York

04 September 2002

Remember Leon Brittan and Charlene Barshefsky? During the Clinton years they were the US and EU top trade negotiators, and they seemed to delight in creating problems between the two superpower trading blocs - in fact, that was the period that saw the origination of the long-running spat over the US's Foreign Sales Corporation legislation which gives tax breaks worth up to US$6bn a year to exporters.

In its Observer column today, the Financial Times reflects on how things have changed, so that trade relations today are conducted in a more mature and calm spirit, and hands the credit for this to Pascal Lamy, EU Trade Commissioner and Robert Zoellick, his Washington counterpart.

They got to know each other during their time as Group of Seven "sherpas" a decade ago, and maintain a close personal relationship through frequent phone calls and meetings. Lamy is a French socialist and Zoellick a disciple of free-market economist Friedrich Hayek, but the FT says they have a surprising amount in common, both being workaholics and keen marathon runners.

If the new Congress lurches to the left, they are going to face their most serious challenge yet this autumn. The FT points out that they have dealt with major disputes so far by 'kicking them into the long grass' - but the FSC dispute is now going to have to be resolved, and if that has to happen in a situation of open warfare between the White House and Congress, it will be hard to avoid some blood on the floor.

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