Can the EU trust the US again under President Joe Biden? Europeans are faced with uncomfortable questions about high-level trade and technology talks. The economy, meanwhile, demands pragmatism and speed.
The EU wants to seek closer transatlantic economic cooperation in spite of the severe disappointment with the recent US actions on security issues.
According to information from the EU Council of Ministers, on Wednesday all 27 member states agreed to a declaration for the first meeting of a new European-American trade and technology council. The meeting is to begin in the late afternoon European time in the US metropolis of Pittsburgh and give the go-ahead for better cooperation.
Of the initial anticipation for the top meeting, however, hardly anything was felt in the end. The reason is the European horror that Washington has negotiated a new security pact for the Indo-Pacific region with the UK and Australia behind the back of the EU in recent months. In particular, the government in Paris is furious because the alliance called Aukus also canceled a 56 billion euro submarine contract between Australia and France.
Given the anger, France even questioned whether the Pittsburgh meeting should even go as planned. The country only approved the text for the final declaration on Wednesday after making corrections.
So an agreement was overturned to meet next spring for the next meeting of the council. In addition, France forced to change a positively worded sentence on mutual dependencies in the production of semiconductors. It wanted to make it clear that after the recent breach of trust, the EU should strive for significantly greater independence from its partner on the other side of the Atlantic.
The current supply bottlenecks for semiconductors are one of the main topics on the agenda of the meeting, along with cooperation in the field of artificial intelligence. According to the text for the final declaration, the delivery bottlenecks are to be eliminated through closer cooperation, among other things. Specifically, it is also about reducing the current dependency on products from Asia and especially from China. The shortage of semiconductors has recently resulted in numerous car manufacturers not being able to produce as desired.
The Trade and Technology Council was founded in June at an EU-US summit by EU Commission President Ursula von der Leyen and US President Joe Biden – also to resolve conflicts that had arisen during the term of office of Biden’s predecessor Donald Trump permit. For example, closer cooperation on technology standards and closer coordination in the action against unfair trade practices by countries such as China is planned. For companies from Germany and many other EU countries, the US market is still one of the most important worldwide.
German business representatives therefore appealed to those involved to make the talks a success. “For German companies, the reduction of trade disputes, the prevention of new conflicts and a positive transatlantic trade agenda are of great importance,” warned the President of the German Chamber of Commerce and Industry, Peter Adrian.
The Association of German Mechanical and Plant Engineering said that the Trade and Technology Council represented a “historic opportunity” to finally tackle important issues in transatlantic economic relations together again. This also includes the abolition of the US steel and aluminum tariffs imposed by Biden’s predecessor Trump and the restoration of a functioning dispute settlement mechanism at the World Trade Organization (WTO).
The President of the Association of the Automotive Industry, Hildegard Müller, also called on the USA to be fair. “Current proposals that would allow the promotion of electromobility only for vehicles manufactured in the USA contradict the spirit of free trade and hinder the ramp-up of this important future technology,” she commented. BDI President Siegfried Russwurm spoke out in favor of integrating German business into the work of the Council. The four central associations are ready to make their contribution to strengthening transatlantic economic relations.
For the United States, Foreign Minister Antony Blinken, Trade Minister Gina Raimondo and Trade Representative Katherine Tai are expected to attend the first meeting of the Council. EU Vice-President Margrethe Vestager and her colleague Valdis Dombrovskis have traveled to the USA for the EU. Both had recently promoted the talks intensively with the 27 EU member states. Strategic alliances are about shaping common approaches and also overcoming difficulties, they explained after the decision to reject the French request to postpone the meeting.
At the same time, Dombrovskis admitted that after the disappointment with the handling of the new defense alliance Aukus there was now some repair work to be done.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
