Inequality in Trade Agreement Between the EU and US Remains Unaddressed
The Office of the United States Trade Representative (USTR) has announced a new US-EU trade deal, which includes a concession by the European Union regarding network charges for US content generators. This concession is seen as a step towards addressing non-tariff barriers, specifically the view held by the US that these charges are a form of trade restriction.
The deal may also lead to further reductions of tariffs on more products, potentially boosting economic cooperation between the two regions. However, it does not specify any concessions by US big tech platforms or their contributions to the cost of maintaining European networks, a point of contention in the debate between European telcos and US tech giants.
The debate centres around the idea of a 'fair share', with European telcos arguing that it is only fair for US big tech platforms, such as video streaming platforms, to contribute to the cost of maintaining European networks, given that they are significant generators of traffic carried by European telcos.
Despite the concession on network charges, the European Union will not adopt or maintain network usage fees as part of the trade deal. This means that zero customs duties will be maintained on electronic transmissions, ensuring that digital trade continues to flow freely between the US and EU.
Analyst Dean Bubley highlighted the White House summary of the trade deal on LinkedIn, noting that the deal may involve cooperation on economic security, although the details remain to be seen. The debate between European telcos and US big tech platforms over network charges is not directly addressed in the US-EU trade deal, leaving the 'fair share' argument unresolved.
Counter arguments in the debate suggest that content is a major demand driver for telecom subscriptions, implying that the traffic generated by US big tech platforms is essential for the growth of the European telecom industry. The US-EU trade deal, however, does not explicitly resolve this argument, leaving room for further discussion and negotiation.
In summary, the US-EU trade deal addresses the issue of network charges for US content generators, but does not explicitly resolve the 'fair share' argument between European telcos and US big tech platforms. The deal may lead to further reductions in tariffs and cooperation on economic security, but the details of these aspects are yet to be fully understood.
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