The economy today

Trade and technology: The United States and Europe strengthen their cooperation in the face of Russia

Audio 03:31

United States Secretary of State Antony Blinken, United States Secretary of Commerce Gina Raimondo, European Commissioner for Competition Margrethe Vestager, European Commissioner for Trade Valdis Dombrovskis, Minister of Foreign Affairs Jean-Yves Le Drian, in Paris as part of the Commerce and Technology Council, May 15, 2022. © AFP/Kevin Lamarque

By: Anne Verdaguer Follow

3 mins

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The European Union and the United States are continuing their informal trade talks in Saclay near Paris this week as part of the CTT (Trade and Technology Council).

The war in Ukraine

is a game-changer and the allies took the opportunity to show a united face against Russia.

The fight against disinformation at the heart of the discussions

This is the second meeting of the United States/European Union Trade and Technology Council.

A partnership created 9 months ago and which was initially thought of as a response to Chinese power, but which now focuses on actions to be taken in an attempt to undermine the Russian war effort.

The fight against disinformation coming from Moscow was at the heart of the discussions, in particular on the shortage of foodstuffs.

Moscow is accused of discarding on this subject.

“ 

Tons and tons and tons of grain are being prevented from leaving Ukraine because of

...

the Russian invasion and, of course, we need this to be known

 said Commission Vice-President Margrethe Vestager, and Russia's manipulation of the media extends worldwide, she continued.

As a reminder, Ukraine is one of the main world producers and exporters of cereals.

The reduction in deliveries led to a spike in prices.

For Europe and the United States, it is therefore necessary to try to reduce excessive dependence on certain trading partners for agricultural commodities and inputs in order to strengthen the solidity of global food production.

Finally, for the European Commissioner for Trade, it is important to find alternative means of land transport for these grain exports from Ukraine, which were mainly done by sea before the war.

A “task force” to secure supply chains

Due to sudden disruptions in the supply chains of critical foodstuffs and materials from Russia, the two allies have agreed to create a "task force", a kind of "early warning system" to ensure safety in the chains. supply in Africa, and in Asia in particular, and thus avoid shortages.

The key word is transparency.

Legislation on chips will emerge, the idea being to repatriate production capacities.

And this is already the case with Intel, the American chip champion which recently unveiled an investment plan of 80 billion euros in Europe.

► To read also: India and the European Union create a Trade and Technology Council

The two blocks are in the process of adopting legislation that will allow them to massively subsidize the construction of these future

silicon valleys

.

European and US officials have also agreed to diversify supply chains for rare earths and solar power generation.

Ending Trump-era trade disputes for good

The objective of this trade and technology council is not to revive the old transatlantic partnership - the TTIP - abandoned by Donald Trump or to open new markets, but to cooperate on compatible regulations, and to consolidate the transatlantic links on very broad subjects.

Because it ranges from the interference of foreign countries to respect for human rights and data protection.

This platform ultimately aims above all to defend common values ​​based on free trade and a certain vision of democracy.

A rapprochement that today takes on even more meaning with the war in Ukraine.

© RFI

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