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European Union-1.doc
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Research and Technological Development (r&td)

A real "European area of research" is beginning to take shape on the European continent, fueled in large part by the accomplishments of the Research and Technological Development (R&TD) framework programs that have been in place since the early 1980s. Formally designated by the Maastricht Treaty as the EU's main R&TD instrument, the framework programs set out the Union's principal scientific and technological objectives. These programs aim to promote cooperation among partners in different countries by funding transnational work and promoting coordination among scientific and technological facilities.

Proposals for the $16.1 billion Sixth Framework Program (2003-2006) constitute part of the European Research Area initiative and represent a deliberate break with past programs in

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terms of ambition, scope, and implementing instruments. The idea is to achieve greater focus on questions of European importance and a better integration of research efforts based on an enhanced partnership among European researchers. This latest program also provides for independent research in the nuclear field as well as comparable efforts to be undertaken by the Joint Research Center (JRC).

The Joint Research Center, the EU's scientific and technical research laboratory, is an integral part of the European Commission. It provides the scientific advice and technical know-how to support EU policies. Yet another of the framework programs supports the JRC's efforts in the areas of food safety and health, environment and sustainable development, technology foresight, metrology, combating fraud, monitoring/prediction of natural disasters, and data security.

The Fifth Framework Program (1998 to 2002) concentrated on research in four main areas:

quality of life and living resources; the information society; competitive and sustainable growth; and preserving the ecosystem. The Fifth Framework Program was also open to the EU membership candidates.

The original Community's involvement in R&TD was once confined to coal, steel, and nuclear energy. The Single European Act of 1986 provided specific legal powers in this field that has become crucial to the Union's industrial competitiveness. The Union participates in EUREKA, a Europe-wide venture aimed at developing new high-tech products in response to market demand.

The EU also cooperates with its European neighbors, as well as with the United States and Japan, on a variety of other R&TD projects. The EU-US Agreement on Science and Technology Cooperation was signed in December 1997. An implementation agreement covering scientific co-operation between the US and the EU in the field of environmental research was forged in 2001.

Telecommunications

A liberalized telecommunications environment is essential for Europe's economic growth and transition to the information society. The European Union fully liberalized telecommunications, voice telephony, and infrastructure on January 1,1998, and played a key role in the conclusion of the WTO basic telecommunications agreement, which took effect in February 1998. Since the EU's liberalization process began, there has been tremendous growth in new technologies and services, including mobile phones, the Internet, and electronic commerce.

Several key indicators demonstrate impressive progress: one-third of the EU population is now using the Internet (33 percent). The gap with the US remains, but it is narrowing. Mobile phone use in Europe is growing at an even faster rate. Sixty-three percent) of the EU population now use mobile phones, compared to 41 percent in the US.

Trade

EU member states agree to share sovereignty with the Union in matters of external trade. On trade, the European Commission negotiates on behalf of the Union under a mandate agreed to by the member states. When agreement is reached, the Council of Ministers and the European Parliament must give their approval. The European Commission and the Council of the European Union adjust the common customs tariff, guide export policy, and decide on trade protection measures where necessary. The EU has played a leading role within the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO).

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