Analysis: Tools for resilient supply chains – an overview of EU policy

Diversified and open trade is more effective than homeshoring.

Hannes Berggren Trade Policy Adviser

Building resilient supply chains has become a key policy objective for the EU. This analysis examines how the EU uses trade and single market policies to strengthen supply-chain resilience.

Evidence from the OECD, IMF and other leading institutions confirms that diversified and open trade is more effective than homeshoring, which often reduces efficiency and increases the risks of domestic shocks.

The EU’s strategic dependencies are concentrated in a small number of products, mostly sourced from non-OECD countries, particularly China. Recognising these risks, the EU has taken steps through initiatives such as the Economic Security Agenda and the Preparedness Union Strategy, which aim to identify vulnerabilities and improve preparedness for disruptions.

What the EU should do next:

  • Improve risk assessments, deepen two-way cooperation with the private sector, and guide industrial policy towards productivity and innovation.
  • Continue strengthening trade openness through regulatory simplification, harmonisation and a stronger single market – especially for services and capital.
  • Build strategic indispensability with trading partners, diversify trade towards trusted non-EU partners, and develop its offer on economic security partnerships.

The analysis is structured in three parts. First, it summarises existing evidence and best practices on how trade policy can support more resilient supply chains. Second, it outlines the policy tools the EU is currently using to enhance supply chains resilience. Third, it compares these findings and highlights where EU policies could be adjusted to create better conditions for companies to build resilient supply chains.

What is the National Board of Trade Sweden?

The National Board of Trade is the Swedish government agency for international trade, the EU internal market and trade policy. Our mission is to facilitate free and open trade with transparent rules as well as free movement in the EU internal market. We provide the Swedish Government with independent analyses, reports and policy recommendations and take into account the views of businesses of all sizes in international trade policy-related matters.