Tweet Global Markets

EU-US Summit Is an Opportunity to Re-Establish Trust in the Transatlantic Relationship

Today’s EU-US Summit in Brussels, at which President Obama will join his European counterparts, Herman Van Rompuy, President of the European Council, and José Manuel Barroso, President of the European Commission, provides an important opportunity to reinforce EU-US economic ties. A strong transatlantic partnership will send a message to global markets that the greatest prospects for economic growth and development lie in keeping borders open to data flows and preventing mandates on where servers and other computing infrastructure are located.

The commercial relationship between Europe and the US is the most significant in the world. Yet events this past year have strained this bond, in particular revelations about US government access to data. As a result, some European policymakers have argued the EU should retreat from its strong economic ties with America, calling for suspension of the Safe Harbor mechanism that facilitates cross-border data flows, requesting servers to be located geographically within Europe, even pushing for European IT independence. Concerns about government access to data are valid and should be the subject of continued dialogue between the US, EU and other governments. But they cannot be used as an excuse to create commercial barriers to data flows that will impede a critical foundation of the transatlantic economy.

Such measures would have an immediate and very negative impact; most importantly, cordoning off European companies and consumers from the rest of the world. In a globally networked economy, this would be dangerously disruptive and ultimately self-defeating. It would slow innovation and growth – a counterproductive result for both economies.

Eurostat this week released a report that finds the US was Europe’s largest trading partner in 2013, with, perhaps surprisingly, a trade surplus in Europe’s favor of €92 billion last year. This is equally true in the ICT sector where Europe enjoyed a surplus of €2.7 billion in trade of computer and information services. Clearly, an open market for transatlantic commerce, including for digital services, is of massive economic benefit to Europe and the US alike. On the contrary, walling off data behind European borders would be both futile and ill-advised. No economy will grow as fast in isolation as it will if it is connected to others.

The Transatlantic Trade & Investment Partnership (TTIP) is an opportunity to begin to enshrine these principles in order to prevent digital products and services being undercut by a harmful new wave of digital protectionism. And today’s Summit is a fitting occasion to demonstrate a cohesive transatlantic front in that regard.

Thomas Boué

Author:

Thomas Boué oversees the BSA | The Software Alliance’s public policy activities in the Europe, Middle East and Africa region. He advises BSA members on public policy and legal developments and advocates the views of the ICT sector with both European and national policy makers. He leads on security and privacy issues as well as broader efforts to improve levels of intellectual property protection and to promote open markets, fair competition, and technology innovation in new areas such as cloud computing.

Prior to joining BSA, Boué served as a consultant in Weber Shandwick where he advised clients on a wide range of technology and ICT-related policy issues and represented them before the EU institutions and industry coalitions. In this role, he also served as policy and regulatory adviser for both EU and US telecom operators. Prior to that Boué worked for the EU office of the Paris Chamber of Commerce and Industry where he was responsible for the lobbying activities towards the EU Institutions in the areas of trade, education, and labor, as well as for the organization and running of seminars on EU affairs for SMEs and business professionals.

Boué holds a Master of Business Administration from the Europa-Insitut (Saarbrücken, Germany), a Certificate of Integrated Legal Studies (trilateral and trilingual Master’s degree in French, English, German and European Law, from the Universities of Warwick (UK), Saarland (Germany) and Lille II (France) as well as a Bachelor of Arts in Law from the University of Lille II, France. He is based in BSA’s Brussels office.

Leave a Reply

Your email address will not be published. Required fields are marked *