Vulcan Insight | Fourth Trade and Technology Council takes place in Sweden

On 31 May, the Trade and Technology Council (TTC) held its fourth Ministerial meeting in Luleå, Sweden. During the meeting, the importance of the TTC’s role in the transatlantic agreement was emphasised and both the United States (U.S.) and the European Union (EU) expressed their joint leadership in upholding the rule-based international order. Among other themes, the TTC covered a range of important topics, such as trade, technology, semiconductors, and climate change. Final statements included working on sustainable trade initiatives, critical mineral agreements, and clean energy incentives to foster a greener future.

Regarding the debates surrounding technology, Artificial Intelligence (AI) has shown great promise. Nonetheless, the U.S and EU maintain their commitment to a “risk based approach,” thereby aiming for cooperative approaches to promote AI innovation in a responsible manner that would “respect rights and safety ensures that AI provides benefit in line with our shared democratic values.” Additionally, the U.S. and the EU have made progress in implementing the Joint “Roadmap on Evaluation and measurement tools for Trustworthy AI and Risk management”. This achievement is marked by the establishment of three specialized expert groups dedicated to address the following areas: 1) AI terminology and taxonomy; 2) Cooperation on standards and tools for trustworthy AI and risk management; 3) Monitoring and measuring existing and emerging AI risks. Future measures regarding AI include the continued cooperation in multilateral discussions, such as G7 and the OECD. Founding members will also remain actively involved in the Global Partnership in favour of AI.

In the context of semiconductors, EU Commissioner for Trade, Valdis Dombrovskis, and the U.S Secretary of State, Anthony Blinken, agreed to “commit to working more closely to achieve a greater coordination of sustainable trade goals, electric vehicle standards, cooperation on government and subsidies for semiconductors and joint work on green energy technologies.” Furthermore, the U.S and EU share the notion of building irrepressible semiconductor supply chains. Operational steps and assessments of the semiconductor value chain have been outlined under the early warning mechanism and both parties have initiated formal exchanges of information on public support provided in their respective jurisdictions. Moreover, both parties of the TTC believe that semiconductor investments are mutually beneficial. Lastly, measures explored additional ways to collaborate notably how the U.S and E.U aim to cooperate on finding alternative methods and resources in semiconductor manufacturing, furthered by a new implementation of a stronger semiconductor supply chain.

With the intention of promoting investments in clean energy economies and industrial bases, the EU and U.S. launched the clean energy incentive dialogue as part of the TTC earlier this year, on 10 March, specifically “to ensure our respective incentive programs are mutually reinforcing.” The TTC is equally taking precautions with the aim of avoiding any trade or investment disruptions, further maintaining that the TTC’s cooperation will be transparent and coordinated, reflecting their commitment to mutual benefit rather than zero-sum competition. The Clean Energy Incentives Dialogue will address systemic issues related to incentive programme design and effects as well as facilitating information-sharing on non-market policies and practices of third parties, thereby enabling joint action and coordinated advocacy in multilateral and other forums.

A fifth TTC meeting date has not been announced yet. However, co-chairs intend to meet in the U.S. again before the end of 2023 to review and advance their joint work.

Compliments of Vulcan Consulting – a member of the EACCNY.