EU and US launch platform for transatlantic cooperation on trade and technology

The Council will play a critical role in setting global standards for new technologies and defining transatlantic approaches to global challenges such as climate change and WTO reform. Having been in the works for many years, this is a key moment for the EU-US relations.

How will the Trade and Technology Council work?

The Council will meet periodically at the political level to steer the cooperation. From the EU side, it will be co-chaired by European Commission Vice-President and Competition Commissioner Vestager; and Vice-President and Trade Commissioner Dombrovskis. On the US side, it will be chaired by Secretary of State, Antony Blinken; Secretary of Commerce, Gina Raimondo; and Trade Representative, Katherine Tai. At the technical level, work will be conducted via ten working groups, chaired by relevant U.S. agencies and European Commission services. The working groups are as follows:

• Technology Standards: finding common approaches in emerging technology standards such as AI.
  
  
• Climate and Clean Technology: identifying measures to support technology development, transatlantic trade, and investment in climate neutral technologies.
  
  
• Secure Supply Chains: advancing supply chain resilience and security of supply in key sectors for the green and digital transition, such as for semiconductors.
  
  
• Information and Communication Technology and Services (ICTS) Security and Competitiveness: ensuring security and interoperability across the ICT supply chain, including critical areas such as data centres and cloud infrastructure.
  
  
• Data Governance and Technology Platforms: seeking cooperation on approaches towards data governance and technology platform governance as well as exchanging platform policies that focus on disinformation and other harmful content.
  
  
• Misuse of Technology Threatening Security and Human Rights: combating unlawful surveillance on digital platforms as well as addressing foreign information manipulation.
  
  
• Exports Controls: engagement in consultations on regulatory developments on risk assessments and enforcement approaches on sensitive dual-use technologies.
  
  
• Investment Screening: exchanging information on investment trends impacting security.
  
  
• Promoting SMEs Access to and Use of Digital Tools: launching outreach activities to understand the barriers to digital empowerment faced by SMEs and developing recommendations to accelerate uptake of digital technologies.
  
  
• Global Trade Challenges: focusing on challenges such as non-market economic practises and avoiding unnecessary technical barriers in products and services of emerging technology.

What are the outcomes from the meeting in Pittsburgh?

The first meeting of the EU-US Trade and Technology Council (TTC) took place on 29^th September in Pittsburgh. Following the meeting, leaders adopted a statement agreeing to focus on investment screening, global trade challenges, AI stewardship, and agreed to a follow up meeting in Spring 2022, in France. The statement restates the importance of establishing a close dialogue with stakeholders including business throughout the process and foresees the organisation of joint events with stakeholders.

Both sides also managed to advance further in certain areas such as Artificial Intelligence or Export Controls, where there are dedicated annexes:

• On export controls, the EU and US have agreed to keep each other informed of possible changes in their legal frameworks and to cooperate on a number of areas such as capacity building in third countries.
  
  
• On AI, the statement stresses the proportionality principle/risk-based approach to be followed in any regulatory initiatives. The EU and US have also agreed to concretely work on measurement and evaluation tools for AI and assessment of the technical requirements for trustworthy AI, including accuracy and bias mitigation.
  
  
• On supply chains, both sides will look at short term bottlenecks as well as more structural issues.
  
  
• When it comes to semiconductors, there is a common objective to identify supply and demand gaps and vulnerabilities, strengthening the domestic ecosystems but also signalling the importance of avoiding a subsidy race.
  
  
• Finally, in tackling global trade challenges, both sides have prioritised cooperation to address forced technology transfers, market-distortive industrial subsidies and discriminatory treatment of foreign companies.

Although both sides have attempted to address areas of shared interest, there are specific differences as well. For example, there was no progress on lifting the steel and aluminium tariffs nor on developing a long-term strategy for semiconductors development. Both sides, however, continue to hold serious dialogues on resolving the tariff dispute, due to the challenges that supply chain delays pose to the transatlantic economy.

What happens now?

Both sides will now continue to work via the working groups, at the technical detail. A number of stakeholder events are also foreseen, with the first on export controls taking place on 27 October. An event on investment screening is also foreseen at a later stage.

A first draft of the joint statement had included that a second meeting would take place in France, in Spring 2022. However, it is understood that France had requested this be removed from the final draft, due in part to the fallout from the announcement of the AUKUS defence pact, as well as broader concerns over protecting EU autonomy. This is particularly seen in language on a semiconductor supply chain partnership which was watered down, to avoid stating that the EU and US were mutually dependant. With France taking over the rotating presidency of the Council of the EU in January, and likely to drive a more protectionist trade agenda, we may see divisions between Member States emerging, between a protection of the EU’s autonomy, and a more open, free trade agenda.

Business engagement with the TTC

CBI is working with BusinessEurope, as well as the US Chamber of Commerce, to ensure regular stakeholder engagement with the TTC. As set out in BusinessEurope’s letter to European Commission Vice-President Dombrovskis, ensuring the active involvement of the European and US business communities in relevant TTC discussions will be critical. Further business involvement is particularly needed in the areas of collaborative frameworks that foster market-driven standardisation, such as in sustainable finance, and on supply chain security and production capacity of raw materials, such as semiconductors. BusinessEurope participated in a stakeholder meeting with the five TTC Co-chairs on the EU and US side, where they were able to highlight key messages from business. With BusinessEurope, we will now shape a more detailed input across the range of topics, ensuring the voice of CBI members is represented.

What does this mean and how can you get involved?

The TTC will play a critical role on the global stage, in setting standards for new and emerging industries, determining regulatory cooperation, and promoting joint approaches to global challenges. It will be important that discussions within the TTC work in partnership with and feed into other international fora to ensure coordinated approaches. Finally, with a potential strengthening of ties between the EU and the US, the exact role that the UK will play in setting the transatlantic agenda is still emerging.  As the UK works to develop its strategic position on the world stage, the need for an active business voice in shaping UK foreign policy will become all the more important.

CBI will shape BusinessEurope’s input into the TTC throughout the process.  If you want to get involved or discuss the initiative in more detail, please contact Emily Ritchey.