U.S.-European Relations in the 118th Congress

U.S.-European Relations in the 118th Congress

Updated May 29, 2024
U.S.-European Relations in the 118th Congress
An Evolving Relationship
(including the Balkans, Afghanistan, and Africa) to
Since the end of World War II, the United States and
countering terrorism and cybercrime to addressing Russia’s
Europe have forged a wide-ranging partnership. Often
first invasion of Ukraine in 2014. Historically, U.S.-EU
termed the transatlantic relationship, the U.S.-European
cooperation was a driving force in liberalizing world trade.
partnership encompasses the 32-member North Atlantic
Additionally, the well-honed habits of U.S.-European
Treaty Organization (NATO), relations with the 27-member
political, military, and intelligence cooperation are unique
European Union (EU), and extensive bilateral political and
and cannot be easily replicated with other international
economic ties. Despite periodic tensions over the past 75
actors. U.S. engagement in Europe also helps limit Russian,
years, U.S. and European policymakers generally have
Chinese, or other possible malign influences.
valued NATO, the EU, and the broader relationship as
At the same time, U.S. concerns exist about aspects of the
serving their respective geostrategic and economic interests.
transatlantic relationship. Despite ongoing overall U.S.
During the Trump Administration, U.S.-European relations
support for NATO (including in Congress), successive U.S.
were strained by President Trump’s strident criticism of
Administrations have called for more European defense
NATO, the EU, and key European countries, as well as by
spending and some Members have supported and urged all
policy divisions on a range of issues, including relations
allies to meet NATO’s agreed defense spending guidelines.
with China and Iran, tariffs and other trade issues, climate
U.S. officials have long regarded certain EU regulatory
change, and managing the COVID-19 pandemic.
approaches and other policies as barriers to trade. President
European officials welcomed Biden Administration efforts
Trump was particularly forceful in calling for greater
to decrease tensions, and U.S.-European cooperation has
European defense spending and in criticizing EU trade
strengthened since Russia’s invasion of Ukraine in 2022. At
practices as unfair and damaging to U.S. interests.
the same time, some foreign policy and trade differences
persist. The 118th Congress has considered or may continue
Biden Administration Policies and War in Ukraine
to evaluate U.S. interests in Europe, the future of NATO,
Upon entering office in 2021, President Biden expressed
implications of Russia’s aggression in Ukraine, and
strong U.S. support for NATO and its Article 5 mutual
prospects for U.S.-European cooperation on regional and
defense commitment and pledged to work with the EU and
global challenges, including China.
European governments on common global concerns. Biden
Administration officials viewed cooperation with European
Transatlantic Relations and U.S. Interests
democracies as key to countering challenges posed by
U.S. policymakers for decades have regarded both NATO
China, Russia, and other authoritarian governments.
and the EU as crucial to maintaining peace and stability in
European leaders welcomed the renewed U.S. commitment
Europe and stymieing big-power competition that cost over
to multilateralism exemplified by President Biden’s
500,000 American lives in two world wars. The United
decisions to rejoin the World Health Organization and the
States spearheaded NATO’s creation in 1949 and
Paris Agreement on combating climate change. At the same
encouraged the European integration project from its
time, some tensions remained and new controversies
inception in the 1950s. During the Cold War, NATO and
emerged, including in relation to the U.S. troop withdrawal
the European project were considered essential to deterring
from Afghanistan in August 2021 and the Australia-UK-
the Soviet threat. With strong U.S. support, NATO and the
U.S. security pact for the Indo-Pacific (known as AUKUS)
EU have enlarged since the 1990s.
announced in September 2021.
The U.S. and European economies are deeply intertwined.
Since 2022, Russia’s war against Ukraine has dominated
U.S. data indicates that the transatlantic economy—made
the transatlantic agenda. The Biden Administration, NATO,
up of the United States, the 27 EU members, and the non-
the EU, and nearly all European governments strongly
EU countries of the United Kingdom (UK), Norway, and
condemn Russia’s actions, steadfastly support Ukraine’s
Switzerland—typically generates around $6 trillion per year
territorial integrity, and have been providing military and
in foreign affiliate sales and directly employs up to 10
economic aid to Ukraine. The United States and many
million workers in total. The United States and the EU are
NATO allies have increased military deployments to
each other’s largest overall trade and investment partners.
Central and Eastern Europe to deter further Russian
aggression and reinforce the alliance’s defense posture. The
Officials and experts on both sides of the Atlantic assess
Biden Administration and House and Senate majorities also
that U.S. leadership of NATO and cooperation with the EU
welcomed decisions by Finland and Sweden to seek NATO
has helped foster democratic and prosperous European
membership. (Finland joined NATO in April 2023 and
allies that, in turn, have bolstered U.S. foreign and security
Sweden in March 2024.)
policies and the multilateral trading system. U.S. and
European officials have worked together on many common
The United States, the EU, the UK, and other allies have
challenges—from promoting stability in various regions
cooperated extensively on imposing sanctions on Russia
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U.S.-European Relations in the 118th Congress
and are considering options for using immobilized Russian
challenges in Europe and beyond, and to do so on its own if
sovereign assets to support Ukraine. Biden Administration
necessary. For other Europeans, Russia’s war against
officials have worked to help boost liquefied natural gas
Ukraine has reinforced the importance of the transatlantic
shipments to the EU, as part of U.S. efforts to help the EU
partnership and its combined political and economic clout.
reduce its dependency on Russian energy imports. At times,
both U.S. and EU funding for Ukraine has faced political
Issues for Congress
hurdles and periodic delays. Transatlantic differences could
Potential areas in transatlantic relations for deliberation in
arise as U.S. and European officials begin to consider
the 118th Congress include the following:
requirements for future peace negotiations or how to
• Russia’s War Against Ukraine. Congress may assess
manage relations with Russia in the longer term.
U.S.-European cooperation on Ukraine, including
Revitalizing U.S.-EU economic ties has been another Biden
assistance to Ukraine and the degree of U.S.-European
Administration priority. In 2021, the United States and the
burden sharing. Congress also may be interested in
EU reached interim agreements to address disputes over
examining the conflict’s implications for transatlantic
civil aircraft subsidies and on U.S. steel and aluminum
security and defense relations, energy policies, and
tariffs imposed on the EU. Also in 2021, the United States
Ukraine’s aspirations to join both NATO and the EU.
and the EU launched a new Trade and Technology Council
• NATO. NATO’s 2023 Vilnius Summit and 2022
(TTC) to focus on issues such as emerging technologies,
strategic concept identified Russia as the most
supply chain security, and digital governance. The Biden
significant threat to allied security; emphasized NATO’s
Administration views the TTC, in part, as a vehicle to work
collective defense role; and addressed other challenges
with the EU on issues posed by China and other nonmarket
facing the alliance, including China, disruptive
economies; TTC meetings also have discussed U.S.-EU
technologies, terrorism, and climate change. Congress
export controls and other sanctions on Russia. Additionally,
may examine these issues and future U.S. goals for
the Biden Administration concluded a new commercial data
NATO in light of the alliance’s 75th anniversary and the
transfer arrangement with the EU to replace the Privacy
July 2024 Washington Summit. Congress also may
Shield framework (which the EU’s top court invalidated in
assess the extent of the U.S. force posture in Europe and
2020 for not meeting EU data protection standards).
allied efforts to increase defense spending.
U.S. tax credits for the purchase of electric vehicles and
• U.S.-EU Agenda. In addition to U.S.-EU efforts on
other clean energy subsidies in P.L. 117-169 (commonly
Ukraine and Russia, Congress may assess Biden
known as the Inflation Reduction Act of 2022, or IRA)
Administration efforts to negotiate a CMA and to work
sparked new trade frictions. The EU contended that some
with the EU on clean energy, digital and technology
IRA measures could discriminate against EU firms and
policies, and trade issues through the TTC and other
breach multilateral trade rules. Since March 2023, U.S. and
initiatives. Congress also may consider how issues
EU officials have been negotiating a critical minerals
facing the EU—including the June 2024 European
agreement (CMA) to facilitate EU access to certain IRA tax
Parliament elections and EU foreign policy and defense
credits for electric vehicles. U.S.-UK CMA negotiations
ambitions—could affect U.S.-EU relations.
also have been ongoing since June 2023. Some in Congress
•
question the Administration’s pursuit of CMAs as executive
UK Relations. Congress may review the implications of
agreements without formal congressional approval. Some
Brexit—the UK’s 2020 withdrawal as an EU member—
U.S. stakeholders and Members also voice concern that new
for U.S. relations and for the Northern Ireland peace
EU digital rules could unfairly target U.S. technology firms.
process. Some in the House and Senate support a future
U.S.-UK free trade agreement (FTA); the Biden
Managing relations with China and addressing the Israel-
Administration is working on a CMA and other trade
Hamas conflict may test U.S.-EU relations as well. EU
issues with the UK but has not resumed comprehensive
views on China in recent years have come to mirror more
FTA negotiations begun by the Trump Administration.
closely U.S. concerns about China’s political and economic
•
influence. At the same time, some EU officials and national
China. The Biden Administration has continued a U.S.-
governments appear wary about U.S.-China tensions and
EU dialogue on China (initiated by the Trump
reluctant to antagonize a major economic partner. As for
Administration), launched U.S.-EU consultations on the
Hamas’s October 2023 attacks on Israel and the ensuing
Indo-Pacific, sought to address economic and other
conflict in the Gaza Strip, the Biden Administration and the
concerns about China through the TTC, and urged
EU have affirmed Israel’s right to defend itself “in line with
NATO to address the security implications of China’s
international law.” President Biden and EU leaders also
rise and closer China-Russia relations. Congress may
have expressed increasing concern about the humanitarian
consider possibilities for U.S.-European policy
crisis in Gaza. U.S. and EU officials have cooperated on
coordination toward China and potential obstacles.
some aspects of the conflict—for example, establishing a
Also see CRS Report RS21372, The European Union:
maritime humanitarian aid corridor for Gaza—but divisions
Questions and Answers; CRS In Focus IF10931, U.S.-EU
within the EU and some differences in U.S.-European
Trade and Economic Relations; and CRS In Focus
perspectives may complicate policy coordination.
IF12575, U.S.-EU Trade and Technology Council:
European concerns also exist about whether and to what
Background and Issues.
extent the United States will remain a reliable international
partner. Some European policymakers have long argued
Kristin Archick, Specialist in European Affairs
that Europe must be better prepared to address future
IF12302
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U.S.-European Relations in the 118th Congress

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https://crsreports.congress.gov | IF12302 · VERSION 4 · UPDATED