UPSC Prelims 2023 Q87: US-EU Trade and Technology Council — Explained

Consider the following statements:

Statement-I:

Recently, the United States of America (USA) and the European Union (EU) have launched the 'Trade and Technology Council'.

Statement-II:

The USA and the EU claim that through this they are trying to bring technological progress and physical productivity under their control.

Which one of the following is correct in respect of the above statements?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Answer: (c) Statement-I is correct but Statement-II is incorrect

Statement-wise explanation

  • Statement-I: correct — The EU-US Trade and Technology Council (TTC) was launched on 15 June 2021 at the EU-US Summit in Brussels, announced by President Joe Biden and European Commission President Ursula von der Leyen. Its first ministerial meeting was held in Pittsburgh, USA, on 29 September 2021. Further meetings followed in Paris (May 2022) and College Park, Maryland (December 2022), so it was a recent and active forum when the 2023 paper was set.
  • Statement-II: incorrect — Neither side has ever claimed to want to bring 'technological progress and physical productivity under their control'. The stated aim is to coordinate approaches to key global trade, economic and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values. The work is done in practical working groups, ten at the start, covering areas such as technology standards (including AI), secure supply chains such as semiconductors, export controls and investment screening. Because Statement-II is false, it cannot explain Statement-I.

How to eliminate

Statement-I is a plain fact: the EU-US TTC was set up in June 2021, and the India-EU TTC, modelled on it, was in the news in 2022–23. That leaves two possible answers: both statements are correct, or only Statement-I is correct. Statement-II is where you can reason it out. Its wording, 'bring technological progress and physical productivity under their control', describes a goal of dominance. No democratic government states such a goal in an official declaration. Official TTC texts talk about coordination, shared values, standards and resilient supply chains. When a Statement-II attributes a sweeping or hegemonic motive to a grouping (control, monopoly, dominate), treat it as a likely distortion. The fact to remember: the TTC is a coordination forum on trade and technology policy. It has no aim of controlling technology or productivity.

Know more

Trade and Technology Councils (TTCs) are ministerial forums where partners line up their policies on trade, critical technologies and supply-chain security. The EU created the format with the US and then reused it with India.

Feature EU-US TTC India-EU TTC
Set up 15 June 2021, EU-US Summit, Brussels April 2022, announced by PM Modi and President von der Leyen in New Delhi
First ministerial 29 Sept 2021, Pittsburgh 16 May 2023, Brussels
Later meetings Paris (May 2022), College Park (Dec 2022), Luleå (May 2023), Washington (Jan 2024), Leuven (Apr 2024) New Delhi (28 Feb 2025)
Working groups 10 at launch (standards incl. AI, climate and clean tech, secure supply chains, ICT security, data governance, export controls, investment screening, SME digital access, global trade challenges) 3: (1) strategic technologies, digital governance and digital connectivity; (2) green and clean energy technologies; (3) trade, investment and resilient value chains
Co-chairs US: Secretary of State, Commerce Secretary, USTR; EU: EVPs Vestager and Dombrovskis India: EAM, Commerce Minister, MoS Electronics & IT; EU: EVPs Vestager and Dombrovskis

Why the TTC format exists

  • Supply-chain security. After COVID-19 shortages, especially in semiconductors, partners wanted trusted supply chains ("de-risking", friend-shoring).
  • Rules for new technology. Shared standards for AI, 6G and data flows, so that democracies, not rivals, write the rules.
  • Economic security. Coordination on export controls and screening of foreign investment.

India-EU TTC outputs to know: an MoU on semiconductor ecosystems (November 2023), joint work on secure 6G and trusted telecom, and cooperation on EV charging standards and battery recycling under Working Group 2.

In the news

The EU-US TTC held its third ministerial in December 2022, and its fourth was set for Luleå, Sweden, on 30–31 May 2023. The EU had also copied the format with India: the India-EU TTC held its first ministerial meeting in Brussels on 16 May 2023, just before the 28 May 2023 Prelims.

NCERT Concepts to Revise

  • Friend-shoring: Secure, trusted supply chains such as semiconductors are a core TTC agenda item; friend-shoring explains what partners mean by trusted supply chains.

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