USA, EU together solve

The two sides have reached a consensus on “rebalancing” the global supply chain when discussing solutions to overcome the current serious situation of semiconductor chips.

The global “thirst” for semiconductor chips has forced automakers to remove some high-end features on vehicles. Photo: AFP

US – EU Technology and Trade Council (hereinafter referred to as TTC Council) had its first meeting on September 29. According to CNBC, preparations for the meeting were underway after Australia decided to cancel the submarine agreement with France, instead nodding to an agreement with the US that made the French “frustrated”.

France’s exasperation is said to have “cooled down” the final statement of the TTC Council after the first meeting.

The TTC Council was established after Joe Biden was elected US President in early January 2021. At the time, the European Commission, the EU’s executive body, sought to remedy transatlantic immobility in a number of areas. The US administration under President Donald Trump has imposed tariffs on many EU products, making the union eager to find a way out with Mr. Trump’s successor.

Speaking to CNBC by phone, Cecilia Bonefeld-Dahl, general director of DigitalEurope – which represents technology companies and trade associations in Europe – said she hoped the US and EU would separate. geopolitical and industrial issues.

“A strongly digitalized Europe also benefits the US,” said Cecilia Bonefeld-Dahl.

Up to this point, the US and EU have agreed to “identify gaps in the semiconductor chip value chain and strengthen the semiconductor ecosystem of the two sides”. The two sides also pledged to “build a partnership on rebalancing the global supply chain in the semiconductor sector”. TTC Council statedin a joint statement.

The global supply chain has suffered prolonged “pains” because of the persistent Covid-19 pandemic for nearly two years. Chip demand has edged higher in recent months as supplies have become increasingly tight, pushing key industries such as automobiles, TVs, and electronics into a standstill.

Supply chain disruption is a major concern for the EU because the region is currently heavily dependent on international supply chains. Therefore, the European Commission is working on new policies to promote semiconductor chip production within the bloc, while reducing dependence on external sources.

“We intend to work closely together to address trade-distorting and non-market practices and policies, and improve the effectiveness of our internal measures,” the statement said. of the US and EU mentioned.

Ms. Katherine Tai, US Trade Representative expressed her desire to strengthen the technology and trade partnership between the US and EU.

After the first meeting of the TTC Council, the two sides have not yet reached any breakthrough in the area of ​​tariffs. Earlier in the summer, the US and EU agreed to seek a compromise on the steel and aluminum tariffs imposed by the Trump administration.