Transatlantic Tech Council: Successes and Shortcomings

Introduction to the U.S.-EU Trade and Technology Council (TTC)

The

is an important platform that facilitates ongoing coordination and dialogue between officials in Brussels and Washington. This council has played a crucial role in enabling swift and decisive responses to global events, such as Russia's invasion of Ukraine. Importantly, the TTC has also helped make progress on new digital and technology issues where clear rules have not yet been established, allowing for more flexibility in finding common approaches between the U.S. and the EU.

The TTC's Role and Achievements

The TTC has been instrumental in institutionalizing dialogue between various U.S. and EU entities, including

and

AI oversight offices

Government agencies or departments responsible for monitoring and regulating the development and use of artificial intelligence technologies.

 

. It has promoted important standard-setting initiatives related to emerging technologies like

6G

The next generation of wireless communication technology that is expected to provide faster speeds and improved capabilities compared to current 5G networks.

 

, AI, and

quantum computing

A new type of computing that uses the principles of quantum mechanics to perform calculations and solve problems in ways that are not possible with traditional computers.

 

. Additionally, the TTC has helped coordinate efforts in international standard-setting bodies and, in some cases, contributed to reducing disputes or mitigating trade tensions between the U.S. and the EU.

Limitations and Shortcomings of the TTC

Despite its successes, the TTC has fallen short of expectations in addressing or resolving bilateral tensions between Washington and Brussels regarding trade and technology matters. The TTC format, while conducive to dialogue and coordination, has not been effective as a problem-solving mechanism for trade issues. This is evidenced by the failure to reach agreement on a new green steel club or finalize a critical minerals agreement.

The TTC's performance has been mixed, with inconsistent working group structures, unrealistic expectations for short-term deliverables, and limited opportunities for industry input and participation. The lack of progress on trade within the TTC is less about the effectiveness of the format and more about the changing politics surrounding trade in Washington, as well as the EU's inability to present an attractive trade agenda that the U.S. is willing to engage with.

The Future of the TTC

The future of the U.S.-EU Trade and Technology Council (TTC) remains uncertain and will largely depend on the outcomes of the 2024 elections on both sides of the Atlantic. If a second Biden administration takes office, the TTC would likely be maintained in some form, potentially with streamlined operations. Conversely, a second Trump administration would almost certainly lead to more volatile

and could undermine the TTC altogether.

In the interim period between the recent European Parliament elections and the upcoming U.S. presidential elections, the TTC format will continue, albeit with a significantly reduced level of activity.

Recommendations for Enhancing the TTC's Effectiveness

To enhance the effectiveness of the U.S.-EU Trade and Technology Council (TTC) going forward, the report recommends several key actions:

1. Conduct a joint U.S.-EU evaluation of the TTC format to identify its successful and unsuccessful aspects, and prepare recommendations for improvement.

2. Elevate the TTC to serve as the central platform for transatlantic economic coordination, by reassessing the proliferation of

   TTC-adjacent dialogues
   These are discussions and meetings that happen alongside or in connection with the main U.S.-EU Trade and Technology Council (TTC) forum, but are not part of the official TTC structure.

    
   and task forces to ensure alignment.

3. Streamline the TTC's working group structure by reducing or consolidating the number of groups to focus on promising or strategically important areas, while moving discussions on less productive areas outside the TTC format.

4. Transition to an annual TTC ministerial meeting, supplemented by occasional informal check-ins, to allow working groups more time to address technical issues and prepare substantial policy deliverables.

5. Establish a small

   TTC secretariat
   A small administrative team that would be responsible for organizing the TTC's activities, facilitating communication between participants, and ensuring continuity in the TTC's work over time.

    
   to institutionalize progress, facilitate external stakeholder engagement, and ensure continuity.

6. Explore avenues to engage legislators in a dedicated

   TTC legislative forum
   A dedicated space within the TTC framework where lawmakers and legislators from the U.S. and EU can engage and coordinate on issues related to trade and technology policies.

    
   , to add more structure and legitimacy to the format and promote better U.S.-EU
   regulatory coherence
   The alignment and consistency of rules, regulations, and policies between the U.S. and EU, which can help facilitate smoother trade and economic cooperation.

    
   .

7. Leverage the TTC's potential as a "

   docking station
   A way for the TTC to collaborate with other like-minded partners, such as the UK or Japan, to develop common standards and approaches that can then be extended to include other aligned countries.

    
   " for collaboration with other like-minded partners, such as the UK and Japan, to advance common standards that can later be extended to include other aligned third countries.

8. Use the TTC to promote greater alignment of U.S. and EU approaches in addressing China's

   non-market policies
   Economic policies and practices used by countries, like China, that do not follow typical market-based principles and can distort international trade and competition.

    
   and
   industrial overcapacity
   When a country, again like China, produces more of a certain product or material than the global market can reasonably consume, leading to an oversupply that can disrupt international trade.

    
   , potentially involving tariffs against Beijing in sectors such as EVs and green technology.

By implementing these recommendations, the TTC can be strengthened and become a more effective platform for transatlantic economic coordination and cooperation on critical technology and trade issues.