BOX 3: RECOMMENDATIONS ON TRANSATLANTIC TECHNOLOGY COOPERATION

Establish an EU-U.S. Trade and Technology Council: The idea originally proposed by former EU trade commissioner Phil Hogan of establishing an EU-U.S. Trade and Technology Council should be advanced early on in 2021. Though some transatlantic digital consultations are already taking place—for instance, as part of the annual U.S.-EU Information Society Dialogue or the ongoing ad hoc dialogue between the European Commission’s Directorate-General for Communications Networks, Content and Technology and the U.S. National Institute of Standards and Technology—a more focused effort is clearly needed. A new high-level format could gather senior representatives from the European Commission and relevant U.S. departments and agencies, along with key industry representatives and could be chaired by the president of the European Commission and the U.S. vice president. Its goal should be to set a common framework for digital principles, coordinate and align the scope and implementation of new regulatory approaches and antitrust legislation, develop standards for emerging technologies, and promote a stronger transatlantic digital marketplace.
Utilize existing multilateral platforms better: The Biden administration should reengage in international standard-setting bodies such as the International Telecommunication Union and work with the EU and like-minded countries to offer an alternative to Chinese tech and telecommunication standards and internet governance. The goal should be to protect fundamental human rights and to promote an open and free internet. The Biden administration should also reengage with the EU and Japan in the World Trade Organization to update the rulebook for digital trade and to address intellectual-property protection. Finally, the United States should reengage in the G7 on digital issues and consult with Europe on the idea of establishing either a D-10 or a T-12 format to tackle technology issues with a wider group of like-minded partners.
Reach compromise on digital taxation: Rather than imposing punitive tariffs against European countries that introduce a digital tax, the Biden administration should, in its first hundred days, reengage in multilateral discussions within the Organization for Economic Co-operation and Development with the goal of shaping a joint approach to the taxation of digital services. Meanwhile, European governments should hold off on any unilateral measures before a common transatlantic approach with the Biden administration can be fully explored.
Sort out data privacy and data standards: A top priority for the United States and the EU should be how to regulate transatlantic personal-data flows following the ruling by the European Court of Justice invalidating the EU-U.S. Privacy Shield. Given the regulatory and commercial disruption the breakdown of the agreement is causing at a time when the transatlantic economy is in recession, resolving this issue should be a top priority for policymakers on both sides of the Atlantic. At the same time, it is clear that the United States lags the EU in setting digital regulations, especially when it comes to a consumer privacy framework. The United States should seek to learn from the EU’s experience with the GDPR in this regard as well as from subnational initiatives like California’s Consumer Privacy Act. Having domestic approaches in place would help increase the United States’ credibility for leading multilateral approaches and build trust with European countries. Additional efforts must also be made to incorporate the United Kingdom into any future transatlantic data arrangement.
Develop a joint AI strategy: Given similarities and some notable differences between their emerging approaches toward AI governance, the EU and the United States should seek to develop a common, or at least complementary, set of AI principles based on shared values and norms that can inform future human-centric and ethical AI legislation. To this end, the EU and the United States should also establish a transatlantic working group on AI consisting of policymakers, ethicists, researchers, regulators, and representatives from the private sector and civil society to work on developing new frameworks, standards, and ethical guidelines for the development and use of AI. To spearhead R&D cooperation in AI, the United States and the EU could also consider signing a mutual AI agreement, similar to what the United States and the United Kingdom have already signed.
Promote more joint transatlantic research and development: While the United States and the EU contemplate ways of supporting their domestic technology sectors through a renewed focus on industrial policy, it is essential that they do not erect new digital walls. The risk that they will resort to protectionist measures is considerable. As part of a joint tech agenda, the United States and the EU, with like-minded partners such as Japan, should promote free competition and deeper cooperation that would enhance collective competitiveness vis-à-vis China. This includes new opportunities for joint research and development and investments, supporting talent development through visa policies and research exchange programs, promoting interoperable standards, and enhancing data-sharing opportunities.
Shape a joint approach to protecting critical technologies: The implementation of the EU’s new investment-screening mechanism and the actions recently taken by member states should inform a more coordinated transatlantic approach. Additional defensive issues where the Biden administration should work with the EU and like-minded partners like Japan include harmonizing definitions of critical technologies, aligning export-control restrictions (including information sharing and best practices) especially with regard to semiconductors, a joint initiative to audit and secure diversified supply chains, and monitoring science and technology partnerships.
Lead together on 5G deployment: In the past few years, the deployment of 5G has become a top issue on both sides of the Atlantic. The Trump administration lobbied European governments to ban, or at least severely curtail, the role of Huawei in building Europe’s 5G wireless networks. There is a need to look at how the EU and the United States can partner on an assertive agenda for deploying 5G and reaping benefits from its applications by investing in setting shared security standards and promoting reasonably priced alternatives to Chinese solutions, not only in Europe, but also in developing countries around the world. They should also partner on researching, testing, and setting standards for 6G technology.