TTC to Bolster Information Sharing on Export Licensing, FDI Screening
The U.S.-EU Trade and Technology Council agreed to several export control and investment screening initiatives during the TTC’s second meeting in Paris this week, including measures to better harmonize export licensing decisions and share information on screening practices (see 2205130071). The U.S. and the EU said these measures will help both sides continue their “unprecedented cooperation on export controls” against Russia and urged the working groups to “implement concrete actions” before the next ministerial meeting.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Those concrete actions include a new mechanism to “exchange relevant information” on export restrictions and a “convergence on methodologies and reporting on investment screening to improve accountability,” the U.S. and the EU said in a May 16 joint statement. “We are committed to deeply enhancing our cooperation and to supporting information exchange on dual-use technologies and export controls,” the two sides said.
The export control working group plans to work more closely with third countries on export restrictions, the statement said, using the collaboration of the U.S. and the EU on Russia and Belarus as a blueprint. The two sides also will “evaluate technical assistance requests” from third countries to better promote “effective export control implementation” by other nations.
The group also hopes to improve how both the U.S. and the EU assess export license applications. The governments need a “better understanding of the administrative process to grant licenses for re-export of certain goods originating in our respective territories, in order to identify possible improvements on the basis of reciprocity,” the statement said.
They will also share information on “risk assessment and licensing good practices,” including for the EU’s dual-use export control licensing regime (see 2109240025 and 2112090010) and the ongoing export control and human rights initiative announced by the U.S. and other close allies in December (see 2112100044). The group specifically plans to evaluate “licensing good practices” for certain “key” technology sectors by the next TTC meeting, including semiconductors.
“The unprecedented level of cooperation we have achieved on Russia and Belarus is indicative of the shared values and security objectives and serves as a reference for common approaches in other areas of export controls,” the two sides said.
The investment screening working group also hopes to increase information sharing, including on “overall foreign direct investment trends,” including from “certain countries of origin,” such as Russia. The TTC will also look to improve information sharing on “transaction structures of interest.” The group has already exchanged information on best screening practices, the statement said, specifically surrounding “sensitive technologies and sensitive data issues,” and has conducted specific case studies.
The U.S. and the EU plan to continue sharing screening information through “practical exercises” and case studies and will develop a “holistic view of the security risks related to specific sensitive technologies and the policy tools addressing them,” such as export restrictions and foreign direct investment screening.
The TTC also resulted in several other trade initiatives. The Secure Supply Chains working group said it's committed to "redoubling and refocusing efforts" to address supply chain vulnerabilities for rare earth minerals and semiconductors. This includes a new "early warning mechanism" for semiconductors, which will start as a two-month pilot between U.S. government agencies and the European Commission to help officials identify chip trade issues. Meetings will be held once every two weeks, with ad-hoc meetings in the case of "unexpected scenarios." The U.S. and the EU may recommend making the mechanism permanent at the end of the pilot.