Go to the Mattresses: It’s Time to Reset U.S.-EU Tech and Trade Relations

Addressing vulnerability and promoting security
Nov 04, 2024 | Information Technology and Innovation Foundation

Congress and the next administration should review U.S. trade defense tools to reflect the rise of European protectionism and digital sovereignty. If left unchecked, Europe’s approach will provide a model for other countries and regions to emulate, which ultimately will lead to the fragmentation of the global digital economy into national and regional “walled gardens” notes Robert Atkinson in his report for the Information Technology and Innovation Foundation. The first part provides current and historical context and examples of EU “tech sovereignty” and tech protectionism to highlight that it presents a strategic threat to U.S. trade and tech leadership, especially in light of Chinese techno-economic aggression. The second part details the large EU trade surplus with America. It then discusses the EU’s array of unfair “innovation mercantilist” practices and policies, before putting forth ideas for new, reciprocal tools the United States can develop and use against European firms to demand a level playing field. https://www2.itif.org

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