On 13 December 2021, DG TRADE, DG GROW and DG CNECT hosted an EU stakeholder outreach event on EU-U.S. cooperation on secure supply chains under the Trade and Technology Council (TTC) Working Group 3. Participants were invited to provide their views and opinions during the event which, in line with the statement of the Pittsburgh ministerial meeting of 29 September 2021 focused on the supply chains of semiconductors, critical materials, pharmaceuticals and solar energy (see detailed agenda).

On semiconductors, there was recognition that EU-U.S. cooperation is crucial to address existing challenges along the supply chain that include excessive concentration in Asia, export restrictions and bans by U.S., local requirements provisions in U.S. public procurement (BusinessEurope) as well as wafers capacities or recent logistic issues (Broadcom). Some participants suggested that it would be necessary to focus on the resilience of the entire semiconductors ecosystem (IPC, Broadcom). ESIA voiced concerns about fair competition and level playing field in light of the several third country incentives schemes. The German Council on Foreign Relations enquired about the EU CHIPS Act and whether it would take into account the cooperation with the US. Intel welcomed the US and EU Chips Acts. Joint European Disruptive Initiative underlined the importance of working on common standards for future chips. LIA/Better Finance argued that the work could also consider other countries like Taiwan.

Participants also underlined that markets should not be overly regulated and that companies must have room to innovate (BusinessEurope, Intel). BusinessEurope flagged the need to combine trade, industrial and digital policies and the importance of cooperating with like-minded partners (e.g. the U.S.) while recalling the risk of creating overcapacity in the sector (Broadcom). Intel recalled the importance of providing government support to ensure a skilled workforce and to focus on technological standards while voicing the need for quick deliverables. IPC suggested that the TTC could look into issues like advanced packaging.

On critical materials, the German Mineral Resources Agency suggested EU-U.S. cooperation to promote transparency along the supply chains of different products. In the mapping of value chains, it would be helpful to identify the most important players. The TTC should also be a platform for discussions about joint projects to promote diversification. Through investments in R&D, and by creating an enabling policy environment, the extraction and recycling of critical materials could also be augmented in Europe (Swemin). BusinessEurope asked if, with regard to discussions on enhancing greater extraction and production, the TTC will focus on the EU and US or also on possible sourcing from third countries.

EUROALLIAGES, recalling the likely increase demand for silicon in the EU and U.S. and China’s dominant position in global markets, asked about the possibility of removing EU and U.S. tariffs on this key input and expressed its support for EU-U.S. cooperation to increase domestic production. The OECD enquired whether there would bediscussions around cooperation to ensure responsible sourcing of critical materials. Joint European Disruptive Initiative highlighted the importance to have tools to reassess and adapt plans of action on supply chains to the fast changing economic and geopolitical reality. 

On pharmaceuticals, EFPIA noted the global nature of the supply chains and recalled the need to keep trade flows open. EFPIA also emphasised the importance of working with like-minded partners and of discussing the streamlining of regulatory processes, common standards and research. This could be achieved through closer co-operation between the FDA and EMA. EFPIA also showed interest to know how to define critical medicines. LIA/Better Finance highlighted importance of cross-border investment.

On solar energy, there were no interventions by stakeholders.

DG TRADE, DG GROW and DG CNECT thanked stakeholders for their participation and inputs. Attendees were also invited to submit their views and opinions in writing on the Futurium website. The results of the discussions and the posts on Futurium will be further analysed by the European Commission.

On 17 December 2021, the Commission launched an invitation for stakeholders to provide their views/proposals on EU-US co-operation in the Working Group on Secure Supply Chains of the EU-US Trade and Technology Council (TTC WG 3): see NEWS section in the Futurium TTC Working Group 3 platform. Stakeholders are encouraged to submit their views and proposals by 14 January 2022.