EU-US economic cooperation will strengthen

Significance

The TCC's significance has increased following Russia’s invasion of Ukraine. The council's overarching aim is to deepen transatlantic cooperation in areas related to trade and technology, with the aim of countering authoritarian countries such as China and Russia. In the economic realm, the TCC promises to strengthen EU-US cooperation on export controls.

Impacts

• Key objectives of the TCC will include aligning transatlantic policies on semiconductors, AI policy and 6G technology.
• The rise of great power rivalry will force the EU to adopt positions on Russia and China much closer to those of the United States.
• US and EU initiatives such as the US ‘Buy American’ provisions and the EU’s carbon border adjustment mechanism could create new frictions.
• The reconstruction of Ukraine could be a chance for EU-US cooperation on a major economic project with long-term geopolitical implications.