Analysis: Recommendations to strengthen the EU’s economic security cooperation

As geopolitical tensions rise, the EU is placing greater emphasis on economic security. A new analysis from the National Board of Trade Sweden outlines ten ways to strengthen cooperation with third countries in this area.

What does the EU’s current economic security cooperation with third countries look like?

The EU’s economic security cooperation has expanded in recent years, for example through the G7, free trade agreements, digital partnerships and other bilateral partnerships. These provide an important foundation. However, cooperation remains relatively limited and fragmented, especially compared with how quickly the EU has developed its economic security instruments. As a result, many tools are still applied unilaterally, indicating there is room for deeper and more structured cooperation.

The analysis outlines different levels of economic security integration. What should determine how far the EU integrates with different partners?

The level of trust between the EU and its partners is a key factor in determining how far integration should go. Deeper cooperation requires countries to share more sovereignty. This, in turn, calls for strong alignment of interests and values. The framework therefore takes a gradual approach to economic security cooperation, with integration deepening as trust grows.

What would a framework inspired by NATO’s Article 5 to address economic coercion look like, and what could it lead to?

Such a framework would aim to increase coordination among partners in response to cases of economic coercion. It would build on existing cooperation and instruments. It could strengthen deterrence and make responses more effective by enabling collective rather than unilateral action. At the same time, it would raise questions about member states’ competences, sovereignty and potential risks. It would therefore require careful design and further analysis.

Which partners should the EU prioritise when expanding economic security cooperation, and why?

The EU should prioritise deeper cooperation with trusted partners such as Japan and Canada, while also expanding cooperation with countries such as South Korea, the UK and Australia. These partners share values related to rules-based trade and already have cooperation frameworks in place with the EU. Strengthening ties with these partners can lead to more coordinated and effective economic security policies. However, the EU should also engage with a broader set of partners, including through the G7 and the OECD. It should also expand certain forms of economic cooperation, including on rules-based trade and in addressing non-market practices, with a wider group of trading partners.

How could the EU better engage low- and middle-income countries in economic security cooperation?

The EU could do this by including them in cooperation aimed at addressing non-market practices, particularly where they are directly affected. This could involve capacity building, information sharing and early warning mechanisms. To encourage participation, the EU should also promote diversified, rules-based trade and avoid unnecessarily restrictive or protectionist approaches in its trade and industrial policies.

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.