Daily Briefs


Photo : Reuters/YvesHerman

08 October 2021, Friday

EU-US technological cooperation on AI, Semiconductors and Supply Chains ​​​​​​​

The inaugural meeting of the Trade and Technology Council (TTC), a new forum to improve economic ties, digital policy, and the effective resolution of possible conflicts was held in Pittsburgh, US.

IN FOCUS 
By Vaishnavi Iyer

EU-US technological cooperation on AI, Semiconductors and Supply Chains
Recently, the European Union and the United States convened for increased scientific and technology cooperation at the EU-US Trade and Technology Council (TTC). The TTC is a new forum that aims to improve economic ties, digital policy, and the effective resolution of possible conflicts. The inaugural meeting of the council was held in Pittsburgh, Pennsylvania. EU Commissioners Margrethe Vestager and Valdis Dombrovskis were present, along with the US Commerce Secretary Gina Raimondo, Trade Representative Katherine Tai and Secretary of State Antony Blinken. Speaking about the meet, Blinken explained: “It's just a remarkable spirit of cooperation, collaboration and a desire between the United States, the European Union, to work very, very closely together.”

Focus points: Artificial Intelligence, semiconductors, China
With mostly economic and policy components, the summit emphasized technology as its central concern. Microchips, forced labour, counterfeit, cloud infrastructure, digitization of MSEs, robotics, Artificial Intelligence (AI), and other subjects were discussed and strategies were declared at the summit. Human rights, regional peace, and climate change were also discussed by the committee. In the short term, joint efforts would involve collaborations in resolving supply chain challenges, with a long-term goal of strengthening semiconductor ecosystems and reducing chip overdependence on Asian countries. 

Technology's influence and power were two significant questions raised throughout the summit. To govern online marketplaces, the European Commission passed the Digital Markets Act (DMA). The US views the EU's DMA to be an overreach that would contradict its very goal of providing customers with more choice to intrude on and overreach their security. The US was not in favour of an intrusive legislation or being forced to comply with EU regulations. However, the Council has set basic standards for both parties to meet, including other foreign allies, on which they would collaborate. AI was a major topic on the agenda with partners vowing to defend fundamental rights and personal security; a legislation governing AI regulation was also introduced. To ensure its trustworthiness, accuracy, non-discrimination, and responsibility, they committed to building "a shared understanding" as well as uniform monitoring criteria.

The partners also focused on global issues surrounding the behaviour of "non-market economies." Though China was not mentioned, its presence was clearly felt as they discussed market-distorting subsidies and unfair treatment of international enterprises, among other issues. The discussions centred on democratic values and technological engagement as well, with a focus on fundamental rights. 

What was not addressed?
The summit failed to address issues that have exacerbated tensions between the EU and the US, such as the Trump administration's tariffs on steel and aluminium produced in the EU. In return, the European Union increased taxes on US imports, although it also postponed a planned increase in import tariffs in the event that the TTC allows for discussions to resolve the issues. Following the European Court of Justice's (ECJ) ruling to invalidate the Privacy Shield, the meeting did not include a discussion of the EU-US data flow. There was no discussion of a WTO reform or government subsidies. Despite the EU placing tariffs on digital companies, the bulk of which are based in the US, the partners did not discuss taxation. 

China cast an unspoken shadow over the summit, and both countries' diplomatic responses differed. Recognizing China as a prospective rival, Brussels seeks to prevent cold wars by referring to China as a "cooperation partner, a negotiating partner, an economic competitor, and a systemic rival." It is now up to the United States to decide whether or not to undertake the China rhetoric. However, given Beijing's technological prowess and political clout, we may soon see a Chinese reference at the next summit.

Due to the AUKUS tensions, France had attempted to postpone the meeting. However, many EU leaders objected to this, preferring to refer to the AUKUS dispute as a bilateral issue rather than a wider matter concerning the EU. The next TTC summit scheduled for March will be held in Europe with France assuming the EU presidency.

References

What's on the agenda for the new EU-US Trade and Technology Council?,” Euronews, 29 September 2021

"EU and US vow to boost microchip supplies and promote trustworthy AI,” Euronews, 01 October 2021


IN BRIEF
By Joeana Cera Matthews         

POLAND
Border tensions with Belarus intensify
On 08 October, the Polish soldiers patrolling the Belarusian border were allegedly fired at by the Belarusian border force according to Poland’s foreign ministry spokesperson. Following this, Belarus’ charge d’affaires was called for by the Polish government. PAP news agency quoted Border Guard spokeswoman Anna Michalska as saying that no one was hurt during the firing. However, the Belarusian charge d’affaires rejected the allegations made against Minsk’s forces. The continued state of emergency declared at the border of Poland and Belarus condemns media coverage of the situation in the region. The EU, along with NGOs like Amnesty International have already criticized the Polish handling of migrants at the border. (Poland claims Belarusian forces fired shots across border,” Deutsche Welle, 08 October 2021)

Constitutional Court approves precedence of Polish law over EU law
On 08 October, the Polish constitutional tribunal ruled against the primacy of EU law over Polish law. The dispute which has been going on for a few months; the ruling followed a request by Poland’s Prime Minister Mateusz Morawiecki to review the European Court of Justice’s (ECJ) decision of giving primacy to EU law. The EU is of the opinion that the tribunal is illegal, given the fact that it is being politically influenced by the ruling Polish party. Due to this reason, the EU has withheld the post-pandemic reconstruction funds that would facilitate Poland's recovery. While ruling party leaders commended the ruling, comments from the opposition party included Borys Budka of the Civic Coalition saying: “Non-recognition of ECJ rulings is de facto the path to Polexit.” European Parliament President David Sassoli was just one among the many that the ruling angered from within the bloc. The European Commission in response to the judgement released a statement confirming that the EU law held “primacy over national law” as well as “constitutional provisions”. (“Poland's top court rules against primacy of EU law,” Deutsche Welle, 07 October 2021) 

MIGRATION
Afghan resettlement: The EU fails to pledge complete allegiance to UNHCR request
On 07 October, the European Commission shot down a United Nations Refugee Agency (UNHCR) request to resettle 42,500 Afghans for the next five years. Following an EU-hosted online forum, the European Commissioner for Migration Ylva Johannson said that despite the “doable” nature of the demand, it still required commitment from the member states. The EU was asked to protect half the number of total Afghans at risk by the UN High Commissioner for Refugees Filippo Grandi. The forum also included the EU Commission proposing a “multi-annual support scheme for Afghans at risk”, the details of which weren’t revealed. Johannson also reaffirmed that there would be regular talks conducted on Afghan resettlement given the “dire” situation of the country. (“UN targets on Afghan resettlements 'doable' says EU, but without commitments,” Deutsche Welle, 07 October 2021)

Croatia: Report reveals migrant violence along Croatia-Bosnia border
On 06 October, a report of a special investigation conducted over a period of nine months by German public broadcaster ARD and other European media houses was published. Footage released alongside included Croatian police using violent methods to mercilessly pushback migrants attempting to cross-over from Bosnia to Croatia, an EU member state. Nicknamed “Operation Corridor” by officials, there exist claims that the pushback by the “intervention police” had been ordered by the Croatian government. Footage regarding the same was obtained via drones as well as by disguised journalists. The report also includes that the operation was partly funded by the EU as Zagreb has received EUR 177 million since 2014 for “migration management”; however, the EU Commission maintains its ignorance regarding the same. EU’s Home Affairs Commissioner Ylva Johannson found the report to be “shocking” and expressed her concern about the same. (Amanda Rivkin, “Violent migrant 'pushbacks' at Croatian border exposed by media,” Deutsche Welle, 07 October 2021) 

INTERNATIONAL
AUKUS: France to return ambassador to Australia after rift
On 06 October, French Foreign Minister Jean-Yves Le Drian announced that the ambassador to Canberra, Jean-Pierre Thebault, would soon return to his post; he failed to mention a date regarding the same. On 07 October, Australian Prime Minister Scott Morrison welcomed this announcement while refusing to accept the need to mend relations with France stating that he believed Australia’s alliance with France was “bigger than a contract”. However, he added that French President Emmanuel Macron had not picked up his calls, confessing that there was no way the AUKUS deal would have occurred without France getting upset. Thebault is being sent over with specific goals in place: he is to work out an agreement that would “redefine the terms” of the France-Australia equation as well as “firmly defend” France’s interests. (“Australia welcoming back French ambassador after sub row,” Deutsche Welle, 07 October 2021)

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