ad_1]
Washington and Brussels later this month will ship senior delegations of financial and commerce ministers to the first meeting of a brand new U.S.-EU Commerce and Expertise Council, dubbed the “TTC.” Their objective, because the identify suggests, is to foster high-level cooperation on commerce and expertise problems with mutual curiosity. Given the long-simmering tensions between the 2 governments on issues similar to digital taxation, cross-border information flows, antitrust, and extra, such an effort is overdue.
Whether or not america and European Union reach utilizing the TTC to rebuild the transatlantic relationship holds broad implications, as a result of the choice — strained engagement between main buying and selling companions — would contribute to the worldwide fragmentation of the digital economic system. And worse, it will be a strategic reward to China, as a result of it will characterize a deadly dissolution of a key alliance wanted to restrict China’s expertise mercantilism and counter its digital authoritarianism.
Ahead-looking policymakers on each side of the Atlantic want to acknowledge this and redouble their efforts to construct a greater, stronger, and deeper digital-trading relationship.
However to try this, U.S. and EU negotiators might want to meet within the center on some vital points. The White Home shouldn’t outline success as rising cooperation for its personal sake — significantly if the value of comity is embracing the EU’s precautionary strategy to regulating competitors and technological innovation. The administration’s emissaries ought to as a substitute deal with advancing key U.S. economic interests in ways in which additionally preserve cordial relations with Europe.
For instance, regardless of how desperately the Biden administration’s commerce negotiators might hope to revive harmonious transatlantic relations after watching in dismay as they deteriorated through the Trump administration, america can’t conform to a digital providers tax or acquiesce to discriminatory regulation of web platforms, because the European Fee seeks to do with its proposed Digital Markets Act. Both of these would skewer America’s main expertise corporations (and kill U.S. jobs) and essentially alter longstanding regulatory ideas on the expense of innovation and progress. In contrast, the administration and Congress may, and will, meet the EU someplace within the center on information safety — not by emulating its heavy-handed Common Information Safety Regulation, however by passing a nationwide privateness legislation that establishes a standard set of protections throughout state strains whereas enhancing transparency and enforcement. That might hopefully persuade the EU to help strong cross-border information flows, whereas on the similar time defending America’s pro-innovation regulatory system.
Probably the most obvious variations between america and the European Union on digital economic system points stem from the truth that expertise coverage within the EU is motivated largely by social coverage considerations — from information privateness rights to the potential for algorithmic bias — and it views the right function of presidency as one in all regulating and restraining digital corporations and applied sciences to make sure they trigger no hurt. In distinction, america has lengthy acted on the view that authorities is the one that ought to do no hurt — and, the place it will possibly, it ought to help technological innovation. As such, the Biden group ought to be certain that talks cowl foster the expansion of applied sciences similar to quantum computing and synthetic intelligence. Apart from, social considerations similar to privateness, bias, and different associated points are greatest addressed on the nationwide or regional stage, not in bilateral or multilateral commerce talks.
The chance is that the EU delegation will press america to undertake their precautionary strategy to regulating information privateness, AI, and web platforms, and that the Biden administration will accede, partially as a result of many Democrats lengthy to emulate European financial and social coverage.
The EU may do that partially as a result of it genuinely believes the world can be higher off below its regulatory system, but in addition as a result of it is aware of that until main rivals undertake its stifling regulatory system, its personal tech corporations will stay at a aggressive drawback.
Lastly, whereas China gained’t be within the room when U.S. and EU officers meet, it ought to be close to the highest of everybody’s minds. China’s innovation mercantilist insurance policies — from pressured expertise transfers to large manufacturing subsidies — have harmed each the U.S. and EU economies, and its digital authoritarianism is a risk to freedom.
It’s within the mutual greatest curiosity of america and EU to push again.
However whereas the EU has typically provided supportive rhetoric, many European policymakers are cautious of rocking the boat with China for worry of shedding market entry and risking diplomatic aggression in return. The U.S. delegation ought to press their EU colleagues to collectively decide to a minimum of some concrete actions, similar to shared Chinese language funding screening.
Given the rising risk China poses — and the countervailing advantages that will come from resolving digital coverage disputes between america and the EU — the U.S.-EU Commerce and Expertise Council has important potential. However the events might want to begin by agreeing on the precept that advancing digital innovation is in everybody’s greatest curiosity.
Robert D. Atkinson (@RobAtkinsonITIF) is president of the Info Expertise and Innovation Basis (ITIF), a number one assume tank for science and expertise coverage.
