FRIEDRICH-EBERT-STIFTUNG GLOBAL EUROPE AND GREAT POWER COMPETITION 3 RESTORING TRUST IN THE TRANSATLANTIC PARTNERSHIP What path should the EU take towards the major actors in the international system that are once again embroiled in great power confrontation? In the great power competition and the trade war between the US and China, the EU is at risk of being caught in the middle between one protectionist power(the US) and an expansionist one(China). None of these two approaches can realistically be an option for the EU due to the bloc's very nature and limited capacities to enter into direct competition with either the US or China. The EU has no other alternative than to build on its tried-and-tested strengths and seek to bring everyone back to the global negotiating table. The EU's power comes from its standard­setting capacity and ability to sustainably define and promote norms, a model of governance that has proven itself in terms of its success and resilience; and which can be replicated should we experience better times, at least in part, at multilateral level. In this process, one cannot overlook the pressing need for normalisation of relations with the US in a pragmatic and constructive manner. Worries about the Donald Trump's White House commitment in NATO aside, economic and trade relations between the EU and the US have been challenging as of late, to say the least, eroding trust and confidence between the two traditional partners. With tariffs first being slapped on EU exports of steel and aluminium and President Trump threatening additional tariffs, Brussels' threat to reciprocate with retaliatory measures of its own, and the interminable Airbus-Boeing dispute before the World Trade Organisation, the problems seem to keep piling up in a disorderly manner. A reinvigorated and balanced EU-US partnership is a much-needed development and a hope shared by many, especially in the context of the need for economic recovery in a post-pandemic world. However, the prospects of a trade agreement between the EU and the US are uncertain, with the Transatlantic Trade and Investment Partnership(TTIP) talks now moribund and no other alternative on the table. The transition of power in the White House provides a window of opportunity to rekindle the dialogue on the transatlantic trade relationship; but, even in a scenario of renewed commitments on both sides, managing expectations will remain key. with MERCOSUR and, against this background, an opening up of markets to the US could prove to be tenuous to say the least; while at the same time about half of the US population, if not more, rejects a further opening of the US economy, a further intensification of internationalisation and globalisation, and acceptance of any exogenous rules and regulations, as witnessed by the negotiations over NAFTA 2.0(officially USMCA), and the general scepticism toward the WTO in the country ⁹. Thus, although the chances of strengthening economic relations appear greater under the Biden Administration, much work and negotiations are needed to make it happen. After all, the last 30 years have been dominated by economic and financial forces headquartered in the US and Europe vying to grab the biggest share of the pie in the frenzied, neoliberal world inviting excesses that followed in the wake of the more sober and cautious Cold War world. This period of exuberant deregulation and an unbridled quest for easy profits, at times at the transatlantic partners' own expense, but most of the times at the expense of other nations, has long since come to a close. The transatlantic partners find themselves unable to pick up the broken pieces and pay for the damage that has been done – in terms of economic governance, the environment, disruptive technologies, migration pressures, etc. It would be wise for the EU to use the European Green Deal commitments to address these issues and assume full responsibility for such, and to become more assertive in this regard on the world stage, but without abusively leveraging its economic and technological superiority. The UK is part of the transatlantic partnership and this should remain so. Perhaps an even more daunting task, but no less crucial, would be to conclude the Brexit negotiations without causing any permanent damage to bilateral EU-UK relations and find an appropriate format for»re-bonding« with London – given not only the United Kingdom's geographic proximity and the intensity of economic exchange, but also the UK's irreplaceable role in the transatlantic community. Arguably, this does not depend on Brussels alone. But negotiations are moving forward slowly but surely, and important progress has been made on technical matters. One should note that a good portion of the EU population is not enthusiastic about the previously negotiated trade agreement 6