"European business is being increasingly affected by growing US national security restrictions," said the report, adding: "The EU recognises that there are security issues to be resolved relating to trade and investment, particularly in the aftermath of 9/11, but has long expressed concern about excessive use which could be interpreted to be a disguised form of protectionism."
The EU and the US together account for 37% of world trade and bilateral investment flows between the two economies are worth around €1,5 trillion.
Although it praises some improvements, such as the scrapping of a subsidy tax scheme for foreign subsidiaries of US companies and a change in anti-dumping rules that were incompatible with WTO principles, the Commission complains that European companies continue to face "steep regulatory barriers" when exporting to the US.
Targeted legislation includes the Patriot Act, the Bioterrorism Act and the Container Security Initiative, which the Commission says put severe burdens on transatlantic trade by adding to costs and delays for EU exporters.
US limitations on foreign investment are also denounced, in particular rules that restrict foreign ownership of US airlines. Washington's refusal to loosen these rules has blocked negotiations on an 'open skies' deal that would remove restrictions on transatlantic flights (EurActiv 7/12/06).
"Such barriers are not just damaging to EU companies, but have a substantial negative impact on the US economy and consumers as well," states the report.
German Chancellor Angela Merkel has vowed to make ironing out the differences in European and American laws and standards a top priority, calling for the creation of a transatlantic single market.
