In an interview with BNS, the diplomat says the US hopes that free trade talks between the European Union and the United States would start at the beginning of the Lithuanian EU Presidency.
The US ambassador, who presented her letters of credence in February, also says she supports Lithuania's efforts to bring the EU's post-Soviet eastern neighbors, whose leaders will be invited to an EU summit in Vilnius later this year, closer to the West.
In the first in-depth interview with the Lithuanian media, McCarthy also underlined that US-Russian relations are "not about spheres of influence."
- What priorities do you set for your term in the position as the US ambassador?
- In being assigned here to a member of the EU and NATO, our focus is very much to work with a mature democracy, that is Lithuania, on a number of global issues. This is in line with our partnership with Europe, which is not just focused on immediate transatlantic and only that, but also focused on how we partner and work on the outside. And that covers the gamut from challenges that we see in the security side, new economic powers throughout there, security challenges, challenges in the Middle East. So it covers that broad area.
Specifically, obviously, in the beginning it's the EU Presidency and everything that is expected in Lithuania. We are looking for some elements that would move forward under that presidency as well.
- Under the presidency, Lithuania will have to deal with EU-US free trade talks. What do you expect from them?
- In general, what we would hope to see, once each side has it's negotiating mandate, are expressions of support for the process. The details will obviously come over time as they negotiate. Because it is the first attempt in years to further deepen the relationship and going into areas as defined by the mandates given, that may take some time to negotiate. So the bottom line, it would be and expression of support for the process because it deepens our integration across the Atlantic.
- What effect would free trade between the US and the EU bring to the economy and jobs?
- It would further trade, absolutely, by looking at non-tariff barriers, by looking at areas that are not as easily traded. Again, I am staying away from specifics because we don't know the mandates given by each side. It would help boost trade on both sides of the Atlantic, and, therefore, create jobs. We, like Europe, face a challenge of slow growth and insufficient jobs.
- Do you expect the talks to start during the Lithuanian Presidency?
- The date is still not set because we are in the process of consulting with our Congress for a specific 90-day period. The EU has it's own internal schedule. We expect that this will be concluded by about June, and so, therefore, it is likely – though we can't say for certain yet – that about the time of the beginning of the presidency is when the discussions or some contact would begin.
- Your predecessor Anne Derse said in her last interview with BNS that during her term, there was "a good start in helping Lithuania to get on the radar screens of many many more American companies". Do you anticipate further expansion of economic ties and American investments in Lithuania?
- I would expect that, the following would take place under the umbrella of Lithuania's own economic situation, for companies will be looking to either Lithuania or looking to the region - many of our companies operate regionally - in the light of how well it is doing in terms of the cost of labor, taxes, and so forth. Again, this is more focused on investment. Certainly, in the region there are opportunities for US companies. Though the size of the Lithuanian market is not large, as I said, many operate regionally, they work two-three countries, and perhaps even including Poland. So what we would do is support those initiatives coming from individual companies in all areas and really accompany them. That's part of our new mandate as well, which is to support US companies in their efforts not just in the country, but regionally.
- What advantages does Lithuania offer for investors?
- It is clear that it is a member of the EU and, having a highly educated workforce that is well prepared, that has language skills, that it is a very attractive market. Each company obviously makes it's independent decisions. And we certainly do see companies asking us more about the country and the region. So I think the EU Presidency will help in that respect, to reinforce that if you base yourself here, or you are nearby and you work here, you have access to the entire EU market.
- Recently, there has been a heated debate about Lithuania's energy strategy. What is the American interest in participating in crucial energy projects, like developing nuclear energy or shale gas exploration?
- At the outset, I need to be very specific and clarify that our interest in energy security is strategic interest. Globally, we are looking at shifting patterns of demand with the rise of demand, for example, in Asia, and we are seeing exploration in various forms in different countries of different sources of energy such as taking place here in Lithuania. In the perspective of supporting the EU in it's work in energy and Third directive and in support of this country's and the region's search for having a broader base of energy sources, we are encouraging Lithuania to look at all sources and make the decision which, I gather they will be making fairly soon, as to which ones they would focus on. And then from there with our companies that may come in or be here engage in these processes to support their efforts to be successful here.
So I think you need to look at it in terms of a larger perspective of where we are coming from, and then we move to the opportunities for our companies.
- Your colleague, Lithuanian ambassador to Washington DC Žygimantas Pavilionis, has recently said he expected US-EU free trade talks to open doors for American LNG exports, as American gas is currently only exported to countries where they have free trade deals. Do you think this could happen?
- There is a discussion and consultation process taking place right now on precisely the area that my colleague mentioned, which is the export on gas. It will be a national decision, it will be a political decision. And then you move into the regulatory aspects of being able to do this with areas of countries with which we have free trade agreements. It is not clear at this moment what the mandate will be for the discussions in general. But certainly, as you look through the stages, it could lead to that. First we, however, have to have a decision on allowing the exports which is a domestic decision.
- Shale gas has led to huge changes in the American energy sector. Does the US have experience to share with Lithuania in this area? What lessons can Lithuania learn from experience of your country?
- Certainly, we will be more than happy to share. We know that the issue of exploration in the United States was discussed, there have been concerns, there have been consultations with the (affected) communities. And yes, we've learned from the process and we've already begun ... to share that experience and we certainly would be willing to share even further in that field, absolutely.
- I would like to move to another focus of Lithuanian EU Presidency, which is closer ties with the EU Eastern Partnership countries. Do you see a chance of bringing those six post-Soviet countries closer to the West?
- We have followed and clearly supported further integration of those countries into the European fold. It obviously remains to be seen on each individual one, based on their discussions with the EU, as to how fast that happens. We are certainly supporting the aim and really commending the Government of Lithuania and the president for moving forward on the initiative to hold the summit, to hold the business summit also before that which is very good. So I think we are both operating on the basis of the same objective which is to see their further integration into the West.
- All eyes will be on Ukraine during the summit. Do you agree with analysts who say that 2013 is a crucial year for Ukraine after years of balancing between Russia and the West?
- I am obviously not sitting in Kiev, my colleague is, the former ambassador to Lithuania no less (John F. Tefft). I think that there is a sense that it is a very important time that the country is poised to make some critical decisions and that the moment is right to make them.
- The US 'reset' policy with Russia has been a sensitive issue here in Lithuania. Is this policy still viable?
- I think that we need to look at our relationship with Russia and I welcome the opportunity to clarify this. We have a very broad and practical relationship with Russia. We work with Russia on a number of dossiers that are global. And we also have established mechanisms with Russia, specifically in the presidential commission. They cover these and other issues. It is not an issue of a term but it is an issue of recognizing that for years we work with them on very concrete issues.
Sometimes there are differences of views, there is a continuous back and forth, there are continuous meetings, either in Washington or another forum, where we talk about critical issues such as what is happening in Syria, what is happening in North Korea, also the dossier of Iran looms large. So it's a very practical pragmatic relationship.
- But some in Lithuania argue that this 'reset' policy led to bad tendencies in Eastern Europe. Former prime minister, current opposition leader Andrius Kubilius, has said that in 'the recent four years, the presence of America has declined in Eastern Europe, while the Russian has increased.' Do you agree?
- In our relationship with Russia, it is not about spheres of influence, it is about working practically and pragmatically to tackle the global challenges. I repeat - it is not about the spheres of influence, that is not part of our dialogue. I can't comment on how Eastern Europe feels about it but that is not part of our dialogue.
- Do you see a chance of the US and Russia, NATO and Russia agreeing on missile defense any time soon?
- You're speaking to a US ambassador in Lithuania, not a US ambassador to NATO who is a good colleague of mine. Therefore, I wouldn't want to run the risk of going into the area that I am less familiar with. But I know that there is a dialogue between NATO and Russia, there have been attempts to have a more fruitful discussion and have exchanges.
I think you have to look at the broader relationship between NATO and Russia which is still a work in progress.
