Trans-Atlantic tech cooperation: a plea for Brussels and Washington to work together

In times of war and geopolitical tensions, collaboration between the EU and the US on tech policy is more needed than ever. But despite several attempts to find a common line and more integrated technology trade, both sides struggle to come up with a coherent solution to their policy disputes.

How we got there

During Obama’s second term, the EU and the US tried to agree on a comprehensive free trade agreement (also known as TTIP), which failed partially due to the resistance of activists in Germany and Belgium, partially due to a broader European skepticism, partially due to changed political motivations after Donald Trump was elected in 2016. Many policymakers and trade experts concluded that TTIP aimed for too many achievements in one deal, and less comprehensive, more sector-focused trade initiatives might have a higher success rate of making it across the finishing line. 

Part of this more-realistic approach to particular areas of trade came with the establishment of the EU-US Trade and Technology Council (TTC) in 2021. The TTC aims to coordinate EU and US policy around leadership in emerging technologies, technology security, export controls, sanctions, disinformation, accountability of platforms, or G7-coordination on AI policy positions.

What's the result

While the efforts to reignite a (less comprehensive) trade collaboration between both sides are laudable, the policies passed in Brussels in the first four years of the TTC's existence show a different picture. Just to mention a few, the Digital Markets Act, Digital Service Act, and the recent EU AI Act, are just a few examples of large regulatory packages the EU passed during the (so far) short existence of the TTC.

A report from the Center for European Policy Analysis points out:

“The two sides are sparring over clean technology subsidies and moving at different speeds on tech regulation. Europe pursues a “digital sovereignty” agenda that discriminates against leading US tech companies. The US invests in a new industrial policy, offering billions of subsidies to bring home high-tech manufacturing.”  

Some so-called minimalists have even pointed out that the TTC mainly serves as a red telephone to keep US-EU tech dialogue somewhat open. 

The Starks and Lannisters fight while the real threat is North of the Wall

We Europeans need to acknowledge that the US is leading in tech and, instead of continuing unproductive protectionist practices, should focus on niche areas where the EU can still excel. 

Europe still runs a massive trade surplus with the US and that should be enough reason to allow US vendors and platforms easy market access to the EU. Embracing one Tech Union (in spirit, at least) might also reduce anti-trade sentiments from the Republicans in Washington who often (and sometimes rightfully) point out how Brussels treats US companies. At the same time, Washington would do well to stop cracking down on its tech companies with one antitrust measure after another, as these seem to just reconfirm the tech hawks in Brussels that they are doing the right thing.

While the rhetoric on both sides of the Atlantic is sometimes beyond strong, and protectionism is championed more than it has been for decades, the calmer and more reasonable voices need to be heard: If the US and (especially) the EU want to have a credible chance at not being taken over by Chinese tech, they need to bury their one-sided ambitions for Tech Sovereignty and start to actually work together.