Strengthened free trade agreements can improve the EU’s crisis preparedness
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About trade
Published: 01 Jul 2025
Free trade agreements (FTAs) can play a crucial role in helping the EU to respond in times of crisis. By including mechanisms such as early warning systems or joint monitoring of supply chains for essential goods and services, FTAs can help keep trade flowing during disruptions.
Recent global shocks – such as the COVID-19 pandemic and Russia’s full-scale invasion of Ukraine – have revealed vulnerabilities in the EU’s supply chains. These crises have prompted a shift in trade policy, with greater emphasis on reducing dependencies and improving resilience.
“Free trade agreements can offer stability, trust and diversification of supply – all of which are essential during a crisis,” says Kim Larsson in a new analysis.
The analysis highlights untapped potential in the EU’s existing FTAs. While some agreements already include provisions for cooperation during crises, more can be done. For example, partners could develop joint contingency plans, agree on early warning systems for supply chain disruptions, and adopt exceptional measures for essential workers and services.
“We have three recommendations to the European Commission. The easiest to implement is making better use of the FTA committees. These committees already meet regularly. Some of them already discuss crisis preparedness and how to maintain trade flows during crises. The European Commission could expand this work – for example jointly monitoring the supply chains for essential goods and services with its FTA partners.”
Read the full analysis
Analysis: The EU’s Free Trade Agreements – A tool to enhance crisis preparedness