Thread by @markscott82

US & EU senior officials meet today in Pittsburgh to talk tech & trade. It's part of efforts to rebuild the transatlantic relation after Trump's 4 years.

Here's a thread on what you need to know about today's meeting and what it means for US-US relations.

<<cracks knuckles>>

First, the basics. The EU-US Trade and Tech Council was an idea dreamed up by @EU_Commission president Ursula von der Leyen to pigeonhole US thinking about digital policymaking and trade. The goal: to get DC to follow Brussels' lead

That, obviously, did not happen. The US quickly pivoted the conversation to "let's use this against China!," including efforts to stop Beijing from buying up EU & US companies and creating a Western alliance to set the next generation of tech/trade standards

In typical fashion, this didn't go down well with parts of Europe. Unlike the US, the EU is divided on how strong to pushback against China, so there was serious doubts about what the TTC would become: an anti-China alliance or efforts to get the US to adopt EU digital rules

So we were left with a fudge. The TTC's 10 working groups (details here politico.eu/newsletter/dig…) are a smattering of both. There's some anti-China stuff on investment screening and some EU-stuff around platform governance.

The quintessential transatlantic fudge.

But then the French got involved after the US, UK & Australia did their own deal on submarines. Last week, Paris (and Berlin) pushed very hard to postpone today's TTC meeting as retaliation. That failed. But Paris did succeed in watering down collaboration on semiconductors

So where does that leave today's meeting? Well, the fact that it's happening, I'm told, is success in itself. And that we all have to wait until the next meeting (ironically in France in Spring 2022) for the real meat to be on display.

Today's meeting, per latest communique leak, is about investment screening, AI, export controls, (short-term) chip issues and "global trade challenges." Tellingly, US & EU made it clear that none of this would affect domestic digital rulemaking plans 👇

If that wasn't enough, the US made efforts to get a political agreement over the line on a new transatlantic data deal called Privacy Shield. Brussels balked at that, and Washington then backpeddled, saying that such a deal was never on the cards (sources say it was, though)

OK, let's take a step back. What does this all mean? First, it's fair that the mere fact that this meeting is happening is a "win," especially after France's efforts to scupper the plans last week.

I've covered digital policy for a long time, and it's the first time we're seeing EU & US officials meaningfully talk about AI rules, platform dominance and export controls in ways that could lead (eventually) to mutual positions -- some topics will happen sooner than others

But, as always, I remain skeptical this won't just turn into another talking shop. The final communique is a very much watered down compared to earlier versions (they always are), and both sides pushed back hard on the other's domestic interests

The US didn't like the word "gatekeeper" in the draft, so that was cut out. The EU didn't like the focus on industry-led self regulation, so that was similarly removed.

You can't see the TTC without looking at via the prism of domestic consumption, imo

arguably the biggest short-term win -- on allowing each side to participate in the other's semiconductor funding projects -- got cut because of geopolitical differences.

That's telling in that at a time of a global chip shortage, the EU & US couldn't agree on that

All the while, China is doing its thing on becoming a tech superpower. Interestingly, Beijing offered Brussels the chance yesterday to have a separate tech and trade dialogue. That's proper trolling, imo

What to look out for today? Honestly, not much. There's no press conference and the communique is "meh." Expect flashy photos and handshakes, with a willingness to get back together in the Spring for more details.

I'm not saying that negatively. It's just a fact. The TTC's 10 working groups will continue to meet and likely produce good work. Will they get adopted by senior officials? Maybe. But what is clear to see is that politics w/ a big "P" is alive and kicking

The US still doesn't like Europe's digital regulatory approach. And the EU doesn't think the US is doing enough -- or going fast enough.

Those basic underlying questions need to be answered if the TTC can actually accomplish anything.

Rant over. Thoughts appreciated.

If this kinda thing is your bag, I do it weekly via my newsletter, Digital Bridge, that looks at transatlantic tech issues. Sign up here politi.co/38tlmQp

Current feels on TTC meeting today. Feels like attention already has moved to next meeting in the Spring.

Stakeholder meeting ended. Lots of commitment to listen, promises of more details at next meeting, focus on export controls and investment screening, according to sources in the room. #TTC

Transatlantic reset indeed Ht: @herszenhorn

https://twitter.com/apolyakova/status/1443231397360062466

For those still around, here’s the statement from first meeting of EU-US Trade and Tech Council bit.ly/39RAS8W

We had this, leaked, on Monday. But there you go.