Transatlantic Cooperation: A Progress Report from the TTC

Since the Russian invasion in Ukraine has enabled essential transatlantic solidarity in many areas (e.g. sanctions), the important role of the Trade and Technology Council (TTC) between the EU and the US has also come further to the spotlight as an important forum for cooperation between the EU and the US. Although there is consensus on supporting Ukraine and sanctioning Russia, some disagreements between the EU and the US persist on other topics. These include questions on industrial and trade policy.

The goal: addressing key global issues in a coordinated manner

As the world's largest trade and investment area, the US and the EU want to advance projects that are consistent with their shared values and promote a rules-based economy. At the second TTC meeting in spring 2022, both sides agreed on the goal of "coordinate approaches to key global technology, economic and trade issues". So far however, the TTC has not fully lived up to this objective.

Big issues, but only little progress

The third meeting of the TTC was held at the University of Maryland on 5^th December 2022. US Secretary of State Antony Blinken, US Secretary of Commerce Gina Raimondo and US Trade Representative Katherine Tai joined the European Commission Executive-Vice Presidents Margrethe Vestager and Valdis Dombrovskis to discuss current progresses and to further advance concrete actions for transatlantic cooperation.

In addition to classic trade and technology issues, the new geopolitical situation - Russia's invasion of Ukraine and the increasingly assertive appearance of autocratic states - was also a dominant topic/issue at this meeting. In addition, the TTC partners initiated new cooperation in the field of digital connectivity: together with government representatives from Kenya and Jamaica, they discussed how third countries can be better involved in promoting secure digital infrastructure in the future.

Where are problems and where is progress?

Overall, whilst the third TTC meeting delivered some progress, it still lacks concrete results in too many areas. The commitments on sustainable trade and common standards, as well as the progress on mutual recognition of conformity assessments, are positive signals.

Whilst the work on common standards for alternative propulsion technologies are welcome, it should be noted that these should further go beyond charging infrastructure for electric cars and include areas such as carbon-neutral fuels.

The announced early-warning system for shortages in the semiconductor supply chain should be developed in close cooperation with the industry. The Joint Statement of the EU Commission and the US government mentions the "urgent need to identify and address vulnerabilities in the supply chain", but - in contrast to the statements from the previous TTC meeting - no longer addresses securing access to critical minerals.

At the same time, the Inflation Reduction Act (IRA) makes cooperation in the TTC format more difficult. Prior to the start of the new year, the IRA - with which US President Joe Biden wants to counteract high inflation and promote climate protection in the US - caused several reactions in Brussels, some of which were fierce. The BDI therefore continues to consider it important to involve external stakeholders even more closely in the coordination process to ensure the sustainable success of the TTC format.

What will happen in the TTC under the Swedish EU Presidency?

Sweden holds the EU Council Presidency in the first half of 2023. Accordingly, the fourth TTC meeting will therefore take place in Sweden in spring (May or June). The importance of transatlantic trade relations is also anchored in the Swedish Presidency programme: "The Swedish Presidency will work to ensure that the EU continues to build open, strong and sustainable trade links with the rest of the world, and that it enters into modern bilateral and regional free trade agreements. (…) The Presidency will also prioritise trade relations with the United States, including in the Trade and Technology Council.”

The fifth meeting will then probably take place in the second half of 2023 in the US. This alternating travelling across the Atlantic is now well established and will shape the TTC’s structure as a discussion forum between the EU and the US in the medium term.

Transatlantic Business Initiative closely accompanies the TTC process

The German business community wants to contribute to a successful new phase in transatlantic relations. To this end, the BDI, together with the Association of German Chambers of Industry and Commerce (DIHK), the Federation of German Wholesale, Foreign Trade and Services (BGA) and the Association of German Banks (BdB), founded the Transatlantic Business Initiative (TBI) in June 2021. The initiative is committed to strengthen economic relations between Germany, the US and Canada and aims to act as a point of contact for economic policy issues for the Federal Government, the governments of the US, Canada and the EU institutions. The TBI contributes to the expertise in the areas of trade and investment policy, energy and climate policy, digital and data economy as well as corporate finance.

In preparation for the third TTC meeting in December 2022, the TBI had compiled its most important demands and subsequently written a detailed assessment.