Stronger transatlantic co-operation will speed uptake of new technologies
Trade between the US and the EU is frequently hampered by differing regulatory regimes and a lack of commonly accepted standards. The formation of the Transatlantic Economic Council goes a long way towards addressing these issues, and paves the way for a more fertile international market for emerging technologies such as RFID, eHealth and e-accessibility.
It’s the largest and most vibrant market in the world, responsible for some 3.75 trillion dollars of traded goods and services each year. Yet business between the United States and the European Union still falls billions of dollars short of its full potential. This is due in large part to unnecessary divergence in regulations and standards; businesses on both sides of the Atlantic spend considerable amounts of time and money ensuring their products comply with two separate regulatory regimes: that of the US and that of the EU.
Securing the approval of two sets of regulators or standards bodies – whose criteria are often not even all that different – not only costs money and administrative time, but also delays the launch of new products on to the market. In sectors such as healthcare and pharmaceuticals, it can mean that people suffer needlessly as vital new treatments and medicines are held up by red tape.
The ideal solution would be for both economic areas to come to an agreement on regulatory standards, either by creating a single standard applicable to both regions, or by agreeing that compliance with either the US or the EU regime is acceptable in both markets.
A major step towards achieving this goal was taken in April 2007, when the Presidents of the European Council, the European Commission and the United States of America formally established the Transatlantic Economic Initiative, which will be driven by the newly created Transatlantic Economic Council, a body dedicated to increasing economic competitiveness and improving human lives by removing unnecessary barriers to inter-continental trade. The TEC met for the first time in November 2007.
While similar initiatives have been attempted before, to little avail, the signatures of Angela Merkel, Jose Manuel Barroso and George W. Bush on the TEC foundation statement indicate unprecedentedly high levels of political commitment to creating a ‘frictionless’ transatlantic market, and may prove to be the defining factor in its long-term viability.
A better business environment for new technologies
As a company with a significant presence and a large market in the European Union, Oracle wholeheartedly welcomes the establishment of the TEC. In particular, Oracle believes that the TEC has a vital role to play in speeding international development and uptake of emerging technologies such as radio-frequency identification (RFID), electronic health records (EHRs) and accessibility technologies that help disabled people to participate fully in 21st century society.
All three areas have been identified as priority projects that require close international co-operation in order to establish global standards; promote the benefits of the technologies; address consumer concerns over areas such as security, and facilitate the development and commercialisation of secure, standards-based products and services.
As a provider of the software infrastructure that is widely used to underpin commercial and public-sector applications of RFID, eHealth and e-accessibility, Oracle knows at first hand how much needs to be done to ensure a fertile international business environment for these new and frequently mould-breaking technologies.
Without the support of the TEC, there is a real danger that differing standards could continue to emerge in different countries, making it difficult for developers to create products that can be used in multiple national markets. This would not only hamper international trade, but would also seriously limit beneficial applications of new technologies. RFID, for example, is ideally suited to ensuring the security of goods moving through complex international supply chains. Without global standards on frequencies, devices and products, the effort and expense required to monitor goods in transit could outweigh the benefits arising from the heightened security and efficiency enabled by the RFID system.
A high degree of international co-ordination is also required in order to ensure common standards and cross-border interoperability between the electronic healthcare record (EHR) initiatives underway in many countries today. High levels of geographical mobility within and between the EU and the US make it desirable for a person to be able to take their electronic medical record with them wherever they go, to ensure consistent and appropriate treatment wherever and whenever they need it. Similarly, with many countries embarking on initiatives to foster e-accessibility for disabled people, the establishment of a single, common standards framework, rather than multiple national and international standards, would enable accessible products and services to be developed and brought to market faster.
Oracle welcomes the ‘priority’ status allocated to these key areas by the new TEC, and supports the calls from consumers, business and numerous elected representatives for even closer dialogue and co-operation between the US and EU on these matters.
