Trade and the ability to attract investment are among Ireland and the EU’s most powerful assets, and at the core of economic prosperity and competitiveness.
Compared to the beginning of the last mandate in 2019, the outlook for international trade is now radically different in a transformed global context. Heightened geopolitical tensions and escalating conflicts mean more volatility, less integration and more frequent disruptions to global supply chains. Coupled with this, the EU’s strength in trade and the ability to attract investment have been further challenged by increasing levels of protectionism, including escalating trade disputes and the imposition of tariffs. Global competition for strategic materials and production, particularly in relation to the green transition, is further intensifying among the EU and its international counterparts. For business this means more risks, less opportunities.
In this era of global change and uncertainty, the new EU mandate must renew its commitment to an ambitious trade policy, safeguarding an open, competitive, sustainable and stable trade environment in which business can thrive. It is important that the EU strikes the right balance between enhancing economic security and enabling the European economy, ensuring a commitment to de-risking, not de coupling. A commitment to openness is central to the objective of economic strength and resilience, which, in turn, is crucial for the EU’s economic security. The European Economic Security Strategy must be informed by a credible and thorough assessment of risks. It must also be based on market-driven diversification, ambitious trade agreements and coherent EU policies to support and attract investment, facilitate production and foster competitiveness in Europe. Open and diversified trade makes the EU more prosperous, competitive and resilient, and emphasis on the partnering pillar of the strategy should not be foregone for the sake of overly prescriptive rules and controls on trade.
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