[
All redactions have been done in accordance with Art. 4.1(a) third indent, unless marked otherwise]
Ref. Ares(2021)6035871 - 05/10/2021
Ref. Ares(2021)7716013 - 14/12/2021
EUROPEAN UNION
DELEGATION TO THE UNITED STATES OF AMERICA
The Head of Delegation
Washington, 1 October 2021
del-usa.002.dir(2021)6831361
E-NOTE DELUSW
Subject:
EU-U.S. Trade and Technology Council, Pittsburgh – 29 September 2021
The inaugural meeting of the EU-U.S. Trade & Technology Council (TTC) took place in
Pittsburgh, Pennsylvania on 29 September 2021 under the leadership of Executive Vice-
President M. Vestager, Executive Vice-President V. Dombrovskis, U.S. Secretary of State T.
Blinken, U.S. Secretary of Commerce G. Raimondo and U.S. Trade Representative K. Tai.
Less than four months after this new political platform was agreed at the EU-U.S. Summit, the
TTC showed a broader sense of direction as well as a strong commitment from both sides to
address the strategic challenges that exist at the nexus of trade, technology and national
security
Ten working
groups prepared the meeting that resulted in a joint statement in areas ranging from technology
standards to trade opportunities. Some of the working group leads debriefed the five principals
directly on the work that has started, while stakeholders showed a keen interest in the work of
the TTC and in being part of the conversation from the start.
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Detail
The TTC started with a
virtual stakeholder roundtable with business, labor representatives
and civil society at large. In their opening remarks, the principals agreed on the importance of
a transparent and inclusive involvement of stakeholders in the TTC work, terming it “mission
critical.” EVP Vestager noted that “we can set the TTC on a political direction, but it will
depend upon business and consumers’ ambition to ensure that it can make a real difference to
our citizens’ lives.” Secretary Blinken and EVP Dombrovskis shared the view that the EU and
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the U.S. are best placed to maintain leadership by setting high standards based on shared values,
while warning that other actors are interested to overtake this leadership.
Twelve stakeholders from the EU and the U.S. presented their views to the principals on (1)
how the TTC can advance shared values and receive popular support, (2) how the TTC can
respond to economic and national security challenges and (3) how the TTC can support
complementary approaches to new and emerging technologies. While all participants
expressed overwhelming support for the TTC, several European stakeholders drew parallels to
the TTIP negotiations, cautioning that those failed because of a lack of transparency and a lack
of (early) consultation with all stakeholders.
Business representatives raised the need for more transatlantic standards, in order to address
unfair barriers, as well as the need for a safer internet as more than two thirds of all companies
crucially rely on the internet. Topics put forth included supply chain concerns, critical
materials, resilience, semiconductors, cybersecurity, AI, and the future of 5G.
Digital Europe invited the TTC to focus on three wide areas: (1) developing and promoting standards on AI,
cybersecurity and safe internet; (2) emphasising development of digital skills; and (3) securing
resilient supply chains with initiatives such as the U.S./EU Chip Acts.
BusinessEurope called for joint EU-U.S. action and referred to its joint message with the
U.S.
Chamber, focused on: (1) resolving existing bilateral trade tensions, such as Section 232
tariffs, (2) ensuring future conflicts are avoided, and (3) developing forward-looking
cooperation, stressing the importance that TTC takes forward the work done under the trilateral
process and rally like-minded partners to update multilateral rules addressing non-market
practices. BusinessEurope also saw the TTC as a platform that could help to address security
of supply chains, while avoiding duplications and promoting complementarity of policy
responses on both sides of the Atlantic.
The U.S.-based
Information Technology Industry Council called for the development of
pro-innovative policies based on transparency and risk based assessment, which will support
global leadership of EU and U.S. tech companies. In terms of short-term priorities, TTC should
focus on regulatory and procurement policies based on voluntary business-led standards in
areas such as AI or cybersecurity, avoid non-tariff trade barriers, and avoid pursuing unilateral
reactions against non-market practices.
Orgalim encouraged the TTC to focus on removing
non-tariff barriers, which increase costs by up to 18%. This should be done by development of
common rules and promotion of use of international standards, and by ensuring mutual
recognition.
Labor representatives urged for a digital transition that benefits all worker and their families,
to address supply chain concerns, and worker’s issues caused by non-market economies. This
time workers need to benefit from the new form of globalisation.
AFL-CIO welcomed the
TTC as an opportunity to work together to eliminate forced labor and tackle the supply chain
shortages. Its representative emphasised the need for the work to benefit the worker while
promoting democratic values, growth and protection of environment, and highlighted the need
for civil society to be involved – “we need to be heard and it needs to be acted upon.”
ETUC echoed the remarks of AFL-CIO calling for real and immediate involvement of unions to
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ensure benefits for the workers. It supported also the EVP Vestager’s call to pursue renewed
globalisation that avoids workers being on the losing side of trade.
Civil society, citizens and consumer organisations advocated for transatlantic policies
addressing their concerns with the major tech platforms, with AI and the risks associated with
big data, privacy, security and data driven decision-making. Other topics proposed to the TTC
included online safety of products & services and harmful online practices. The
Center for
Democracy and Technology urged ministers to articulate a vision committed to the rule of
law and shared values. Its representative highlighted the importance of the work on regulation
of platforms and data governance. The EU and the U.S. must work together against
authoritarian regulatory approaches.
BEUC appreciated that consumers are being involved in
the dialogue from the beginning. From a consumer perspective, the TTC could be a platform
to increase consumer product safety, address harmful practices based on data exploitation, and
ensure that AI does not become a threat to consumers. An expert from a think tank formulated
the challenge by saying “we need to promote convergence on trade and tech policies across the
Atlantic; where this is not possible, we must manage the divergences effectively and
efficiently.”
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The TTC concluded with a
fourth roundtable on workforce policies, in which principals
discussed with workforce and education policy leaders and CEOs to obtain their views on how
best to address the talent shortage and mismatch of skills, in the short- and long-term. Facing
similar challenges on both sides of the Atlantic, what can the EU and U.S. learn from each
other? Topics discuss included apprenticeships, innovative hiring and talent support practices,
higher education, cost for training and education, and how best to prepare the young generation
for a job market where the nature of work and skills continue evolving.
The principals held a private dinner which helped to deepen some of the discussions that took
place throughout the day. In the margins of the TTC, the principals visited the subsequent day
AI company ARGO that develops software for driverless vehicles for Volkswagen and Ford.
No press conference was held. The EU published the TTC statement
here. The US published
it
here.
Reporting coordinated by [Art. 4.1(b)]
and [Art. 4.1(b)]
Signed
Stavros Lambrinidis
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