The economies of the US and the EU are highly integrated. The US and EU remain each other’s most important trade and investment partners. Together, they accounted for 42 per cent of the world’s gross domestic product (GDP) and approximately 40 per cent of global trade in goods and services in 2021. The US–EU economic relationship is significant for the rest of the world given their role in the global economy and international economic architecture. Moreover, transatlantic convergence or divergence has global implications for the setting of international rules and standards – especially regarding emerging technologies and the digital economy.
The US and the EU have previously engaged each other on trade and technology matters in various bilateral, minilateral/plurilateral and multilateral initiatives and forums. The most recent, and now main, platform for bilateral cooperation on transatlantic issues and coordination on global challenges is the US–EU Trade and Technology Council (TTC), launched in 2021.
The most recent, and now main, platform for bilateral cooperation on transatlantic issues and coordination on global challenges is the US–EU Trade and Technology Council, launched in 2021.
However, the world has changed dramatically since then. US–EU cooperation has taken on renewed significance amid the war in Ukraine and the links between economics and national security have become clearer. These developments have crystallized competition between the West and China, exposed over-reliance on certain markets for specific products (e.g. Chinese critical raw materials or Russian oil and gas), and highlighted supply-chain resilience issues.
This paper assesses the TTC’s work and outlines how it differs from other efforts in the past. It offers insights into how the TTC is likely to develop both in the short and long term, as well as the issues and tasks at the top of its agenda. After exploring where the TTC fits alongside other trade- and tech-focused governance structures, the paper offers recommendations for how the US and EU can better link their bilateral cooperation efforts to other forums and strengthen collaboration with like-minded partners, such as Canada and the UK.
