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Significance

In their joint statement the two partners stressed their common interest in: ensuring that new technologies reflect and reinforce their democratic values; resisting unfair trading practices of ‘non-market economies’; and working with like-minded countries on technology issues in multilateral forums. However, the statement added that the TTC would not affect either side’s regulatory autonomy.

Impacts

Bilateral trade tensions could escalate if both sides use industrial policy to boost their domestic tech sectors.

To safeguard supply chains, both sides may impose procurement restrictions to favour local tech suppliers or exclude non-domestic firms.

EU leaders could support EU-based cloud providers, especially for storing public data, thereby challenging US corporate dominance.

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