The EU needs to be open and assertive in its new trade policy

To be competitive and grow, European businesses need the opportunities offered by global markets. 85 % of economic growth happens outside of Europe and EU firms need to tap into that. If we cannot trade freely with fast-growing markets around the world, and if we cannot access vital imports or allow investment into and out of the EU, we cannot expect to improve productivity or our overall competitiveness. Keeping markets open, including the EU’s own, therefore must remain the key focus when it comes to the EU’s external economic policies. This includes negotiating and implementing free trade agreements, exploring opportunities for new partnerships and continue developing the multilateral trade rules.

Open trade is also essential for the green and digital transitions. Transforming the economy into a sustainable model is vital for our future and holds great opportunities for businesses, but it is not possible without trade and a reduction in red tape.

Keeping markets open in these challenging times unfortunately carries risks. Proper attention needs to be paid to a range of growing and multifaceted risks, including discriminatory policies, economic aggression, geopolitics and outright security risks. Companies need to navigate an increasingly risky environment, but the EU, and its member states, also have a role to play to mitigate and address risks. Measures should always be introduced in such a way as to minimize negative trade effects. Ultimately, the EU can only be secure if it is strong and it can only be strong if it is competitive, which requires openness. Therefore, an approach that is open and assertive is the way forward.