Asia’s emerging markets grow in importance for Sweden and the EU

News

As the global economy evolves, Asia’s emerging markets are taking on an increasingly important role. Their strong economic development creates both opportunities and challenges for trade relations with Sweden and the EU.

A new report from the National Board of Trade highlights a path forward for trade between Sweden and the EU in Asia’s rapidly evolving economies, including India, Malaysia and Vietnam. Geopolitical tensions—including US protectionism and Chinese economic coercion—highlight the need for both Sweden and the EU to explore other mechanisms to strengthen existing partnerships for enhanced trade.

“Despite rapid growth in the region, Swedish exports to these markets currently account for only around 2 per cent of total goods exports. However, there is no fast track for improved trade with emerging markets in Asia—the trade opportunities lie above all in a long-term potential”, says Heidi Lund, one of the authors of the report.

The report highlights the value of free trade agreements but emphasises the need for a more nuanced and flexible trade engagement—one that considers each country’s specific conditions, widespread regional integration and the geopolitical reality, in order to find solutions that are mutually beneficial.

Read the report: EU and Sweden: Trade with Emerging Asia | Kommerskollegium