The European Union and the United States are joining forces to detect possible shortages of semiconductors (chips) earlier. In this way, they want to make their economies more resilient to supply chain disruptions.
In Paris on Monday, the European Commission met for the second time with the US administration in the framework of the Trade and Technology Council (TCC), which was established in June 2021 during the visit of US President Joe Biden to Brussels. This forum offers the EU and the US the opportunity to discuss how the Western market economies can be at the forefront in the turmoil of world trade and maintain democratic values during lightning-fast technological evolution.
At the summit in the French capital, it was agreed that the US and the EU want to make their supply chains more resilient to disruptions – ranging from raw materials to semiconductors. As for those chips, an early warning system will be put in place to signal impending shortages. Brussels and Washington also agreed not to offer chipmakers any anti-competitive state aid.
For European Commissioner for Internal Market Thierry Breton, the meeting demonstrated that the EU and the US are serious about defending their common interests and values. “This is an important moment for the TTC as the transatlantic dialogue is turned into concrete results.” In addition to Breton, EU Vice-Presidents Valdis Dombrovskis and Margrethe Vestager also took part in the consultations. In addition, foreign Minister Antony Blinken, trade minister Gina Raimondo and trade envoy Katherine Tai attended the US meeting.
The two sides also agreed to jointly set global standards for new technologies of strategic importance, such as artificial intelligence (AI), recycling and the Internet of Things. European Parliament member Geert Bourgeois (N-VA) calls this a decision “of great geopolitical importance”.