Next TTC Meeting Should Lead to ‘Concrete Outcomes’ in Export Controls, Supply Chains, AmCham EU Says
The U.S. and EU should use the upcoming Trade and Technology Council meeting to further harmonize their export controls and strengthen cooperation in semiconductor supply chains, the American Chamber of Commerce to the EU (AmCham EU) said in May 10 recommendations. While government officials have said the two sides have already surpassed some of the TTC’s short-term goals (see 2204130045), the chamber said it can still make progress outlining “clear deliverables” and better defining the scope of the council’s working groups.
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AmCham urged the U.S. and the EU to provide more clarity on "tangible" outcomes they hope to achieve, which will help “stakeholders to provide constructive input and for the TTC to deliver concrete outcomes in a timely” fashion. “While both short-term and long-term areas or work are important,” the chamber said, “delivering on a few concrete outcomes first will help demonstrate the relevance of the TTC for citizens and business of all sizes.”
The group specifically said the two sides should improve efforts to align the “transatlantic export control regime,” particularly surrounding sensitive emerging technologies. AmCham mentioned quantum technologies, artificial intelligence and semiconductors but also said the governments should better collaborate on transfers of intangible technologies and software. This would “reduce barriers between EU and U.S. exporters and also ensure that exports of sensitive emerging technologies outside the EU or U.S. are consistently controlled,” it said.
The U.S. and the EU should also use the council as another forum to pursue multilateral controls at the Wassenaar Arrangement, AmCham said. Since almost every EU member state is a Wassenaar member, the council “creates a unique opportunity for alignment and advocacy at the Wassenaar level.”
AmCham also hopes to see more progress at strengthening cooperation in semiconductor supply chains. This will “ensure a level playing field for transatlantic investment” and boost research, development and manufacturing. The two sides should use the meeting to outline “joint commitments and clear objectives” to better secure supplies of chips and expand design and production and research capacities.
The two sides should also be careful not to overlook efforts to address “unfair” trade practices by other countries. “Any future relationship with third-country partners must adhere to the fundamental principles and values of commitment to free trade, fair competition and the rule of law,” AmCham said. It also advocated for “strong cooperation” to defend the multilateral rules-based trading system and to modernize the World Trade Organization. The U.S. and the EU should specifically focus on “revitalizing” the WTO’s negotiating function, strengthening the role of the secretariat and reforming its dispute settlement mechanism.
The U.S. and the EU also can use the TTC to lead the world in defining global standards of emerging technologies, including on AI and additive manufacturing, AmCham said. “Growing activism of other countries in standard-setting bodies only makes this priority more urgent,” the group said, adding that the importance of standards bodies should be “clearly reflected in the objectives of the relevant working group.” Industry groups have pushed Commerce to expand an exemption to allow U.S. companies to participate in standards-setting bodies that have members designated on the Entity List, because the U.S. risks ceding further ground to other countries, including China (see 2006160035, 2112170037 and 2109150036).