January 9, 2023
U.S.-European Relations in the 118th Congress
An Evolving Relationship
U.S. leadership of NATO and cooperation with the EU has
Since the end of the World War II, successive U.S.
helped to foster democratic and prosperous European allies
Administrations and many Members of Congress have
that, in turn, have bolstered U.S. foreign and security
supported a close U.S. partnership with Europe. Often
policies and the multilateral trading system. The United
termed the transatlantic relationship, the U.S.-European
States and Europe have worked together on many common
partnership encompasses the NATO alliance, relations with
challenges—from promoting stability in various regions
the European Union (EU), and extensive bilateral political
(including the Balkans, Afghanistan, and Africa), to
and economic ties. Despite periodic tensions over the past
countering terrorism and cybercrime, to addressing Russia’s
70-plus years, U.S. and European policymakers generally
first invasion of Ukraine in 2014. Historically, U.S.-EU
have valued the transatlantic partnership as serving their
cooperation has been a driving force in liberalizing world
respective geostrategic and economic interests.
trade. Experts point out that the well-honed habits of U.S.-
European political, military, and intelligence cooperation
In recent years, the post-World War II transatlantic security
are unique and cannot be easily replicated with other
and economic architecture came under pressure from the
international actors. U.S. engagement in Europe also helps
Trump Administration. The unprecedented nature of
President Trump’s criticisms of NATO, the EU, and key
limit Russian, Chinese, or other possible malign influences.
European countries severely strained relations. U.S.-
At times, some in the United States have expressed
European divisions also existed on numerous issues,
frustration with aspects of the transatlantic relationship.
including China, Iran, the Israeli-Palestinian conflict, arms
Previous U.S. Administrations and many Members of
control, climate change, managing the Coronavirus Disease
Congress have criticized what they view as insufficient
2019 (COVID-19) pandemic, the imposition of steel and
defense spending and burden sharing in NATO, and some
aluminum tariffs, and the role of multilateral institutions.
have questioned the costs of the U.S. military presence in
Europe. U.S. policymakers have long-standing concerns
European officials welcomed Biden Administration efforts
about EU regulatory barriers to trade. President Trump was
to decrease tensions. The launch of Russia’s war against
particularly strident in calling for greater European defense
Ukraine in 2022 has bolstered U.S.-European ties but also
spending and in criticizing EU trade practices as unfair and
raised new challenges. Other foreign policy and trade
damaging to U.S. interests. Advocates of this approach
differences persist as well. The first session of the 118th
maintain that it led to greater European efforts to spend
Congress may evaluate current U.S. interests in Europe,
implications of Russia’s aggression in Ukraine, and
more on defense and address trade inequities.
prospects for future U.S.-European cooperation.
Biden Administration Policies and War in Ukraine
Transatlantic Relations and U.S. Interests
Upon entering office in 2021, the Biden Administration
prioritized bolstering relations with Europe and rebuilding
U.S. policymakers have long regarded both NATO and the
trust. President Biden expressed strong U.S. support for
EU as crucial to maintaining peace and stability in Europe
NATO and its Article 5 mutual defense commitment and
and stymieing big-power competition that cost over
pledged to work with the EU and European governments on
500,000 American lives in two world wars. The United
States spearheaded NATO’s creation in 1949 and
common global concerns. Biden Administration officials
viewed cooperation with European democracies as key to
encouraged the European integration project from its
countering challenges posed by China, Russia, and other
inception in the 1950s. During the Cold War, NATO and
authoritarian governments. European leaders welcomed the
the European project were considered essential to deterring
renewed U.S. commitment to multilateralism, exemplified
the Soviet threat. With strong U.S. support, NATO and the
by President Biden’s decisions to reverse certain Trump
EU have enlarged since the 1990s, extending security and
Administration policies and rejoin the World Health
prosperity across the European continent.
Organization and the Paris Agreement on combating
The U.S. and European economies are deeply intertwined.
climate change. At the same time, some tensions remained
According to U.S. Bureau of Economic Analysis data, the
and new controversies emerged, including in relation to the
transatlantic economy—including the 27 EU member states
U.S. troop withdrawal from Afghanistan in August 2021
and non-EU countries such as the United Kingdom (UK),
and the Australia-UK-U.S. security pact for the Indo-
Norway, and Switzerland—typically generates close to $6
Pacific (known as AUKUS) announced in September 2021.
trillion per year in foreign affiliate sales and directly
In 2022, Russia’s war against Ukraine largely dominated
employs around 10 million workers on both sides of the
Atlantic. The United States and the EU are each other’s
the U.S.-European agenda and strengthened transatlantic
solidarity. The United States, NATO, the EU, and nearly all
largest overall trade and investment partners.
European governments strongly condemn Russia’s actions,
steadfastly support Ukraine’s territorial integrity, and
provide military and/or economic aid to Ukraine. The
https://crsreports.congress.gov
U.S.-European Relations in the 118th Congress
United States and many NATO allies have increased
challenges—both in Europe and beyond—on its own. At
military deployments to Central and Eastern Europe to deter
the same time, for many Europeans, Russia’s war against
further Russian aggression and reinforce the alliance’s
Ukraine has reinforced the importance of the transatlantic
defense posture. The Biden Administration and many
partnership and its combined political and economic clout.
Members of Congress welcomed decisions by Finland and
Sweden in May 2022 to seek NATO membership (NATO’s
Issues for Congress
accession process for both countries is expected to conclude
Potential areas in transatlantic relations for deliberation in
in 2023).
the 118th Congress include the following:
The United States, the EU, the UK, and other allies have
Russia’s War Against Ukraine. Many in Congress
cooperated extensively on imposing sanctions on Russia.
have expressed interest in European military and
The Biden Administration supports EU efforts to end its
financial support for Ukraine. Congress may evaluate
dependency on Russian energy imports and is working to
U.S. and European assistance to Ukraine and the degree
help boost liquefied natural gas shipments to the EU. Some
of U.S.-European coordination and burden sharing.
experts caution that transatlantic unity against Russia could
Congress also may be interested in examining the
fray as the war in Ukraine continues, as many European
conflict’s implications for transatlantic security and
countries struggle with high energy costs and inflation and
defense relations, U.S.-European cooperation on energy
as some in Europe begin to consider requirements for future
policies, and Ukraine’s integration into Euro-Atlantic
peace negotiations for Ukraine or how to manage relations
institutions. (Ukraine aspires to join NATO and was
with Russia in the longer term.
named an official EU candidate in June 2022.)
Revitalizing U.S.-EU economic ties has been another
Future of NATO. NATO’s 2022 strategic concept
priority for the Biden Administration. In 2021, the United
identifies Russia as the most significant threat to allied
States and the EU reached an agreement to address a long-
security, emphasizes NATO’s collective defense role,
standing dispute over civil aircraft subsidies and a deal on
and addresses a range of other challenges facing the
the steel and aluminum tariffs imposed by the Trump
alliance, including China, disruptive technologies,
Administration. A U.S.-EU Trade and Technology Council
hybrid threats, terrorism, and climate change. Congress
(TTC), launched in 2021, focuses on issues such as
may examine these issues as well as future U.S. goals
emerging technologies, supply chain security, and digital
for NATO, the U.S. force posture in Europe, and
governance. The United States views the TTC, in part, as a
ongoing allied efforts to increase defense spending.
vehicle for U.S.-EU cooperation on challenges posed by
U.S.-EU Agenda. In addition to U.S.-EU cooperation
China and other nonmarket economies; recent TTC
on Ukraine and Russia, Congress may assess the IRA’s
meetings have discussed U.S.-EU export controls and other
potential impact on U.S.-EU relations and U.S.-EU
sanctions on Russia. The Biden Administration also has
efforts to enhance digital and technology policy
reached a new commercial data transfer arrangement with
cooperation through the TTC and other initiatives.
the EU to replace the Privacy Shield framework (which the
Congress also may consider how various issues facing
EU’s top court invalidated in 2020 on grounds that it did
the EU—including a difficult economic climate,
not meet EU data protection standards).
democratic backsliding in some EU members, and EU
U.S. tax credits for the purchase of electric vehicles and
foreign policy and defense ambitions—could affect the
other clean energy subsidies in P.L. 117-169 (commonly
U.S.-EU partnership.
referred to as the Inflation Reduction Act of 2022, or IRA)
Brexit. Congress may review the implications of
have sparked new U.S.-EU trade frictions. The EU
Brexit—the UK’s 2020 withdrawal as an EU member—
contends that certain measures in the IRA could
for U.S.-UK and U.S.-EU relations, for NATO, and for
discriminate against EU firms and breach multilateral trade
the Northern Ireland peace accord (its 25th anniversary is
rules. The Biden Administration asserts that EU companies
in April 2023). Some in Congress support a future U.S.-
could benefit from parts of the IRA and has proposed some
UK free trade agreement; the Biden Administration has
flexibilities in recent implementation guidance. A U.S.-EU
not resumed talks begun by the Trump Administration.
task force on the IRA is addressing ongoing EU concerns.
Meanwhile, some U.S. officials and business interests
China. The Biden Administration has sought European
express concern that new EU digital trade and competition
support in addressing strategic, economic, and human
rules could unfairly target large U.S. technology firms.
rights challenges posed by China. The Biden
Administration has restarted a U.S.-EU dialogue on
Managing relations with China may test the transatlantic
China (begun by the Trump Administration), launched
partnership as well. European views on China have
U.S.-EU consultations on the Indo-Pacific, and urged
NATO to address the implications of China’s rise for
hardened in recent years and have come to mirror more
closely U.S. concerns about China’s growing political and
transatlantic security. Congress may consider the
economic influence. At the same time, many in Europe
possibilities for U.S.-European policy coordination
remain wary about a possible new U.S.-China “Cold War”
toward China and potential obstacles.
and are reluctant to antagonize a major economic partner.
Also see CRS Report RS21372, The European Union:
European concerns also exist about ongoing U.S. political
Questions and Answers, CRS Report R47095, U.S.-EU
polarization and whether the United States will remain a
Trade Relations, and CRS In Focus IF12277, Russia’s War
reliable international partner. Some European officials
on Ukraine: U.S. Policy and the Role of Congress.
argue that Europe must be better prepared to address future
https://crsreports.congress.gov
U.S.-European Relations in the 118th Congress
IF12302
Kristin Archick, Specialist in European Affairs
Disclaimer
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https://crsreports.congress.gov | IF12302 · VERSION 1 · NEW