This article examines
the European Union’s (EU’s) evolving approach to trade and investment policy in
an era of rising geopolitical tensions, economic fragmentation and increasing
global unilateralism. As confidence in multilateral institutions, such as the
World Trade Organization (WTO), declines, the EU – traditionally a proponent of
multilateralism – has increasingly adopted unilateral legal instruments to
defend its strategic interests. Although several commentators have attempted to
categorize these new tools, existing taxonomies are largely descriptive and
one-dimensional. They fail to capture the broader geopolitical and normative
implications of the EU’s emerging trade and investment strategy. This article
seeks to address these shortcomings by proposing a novel, multidimensional
taxonomy that considers the instruments’ regulatory rationale and strategic
intent, as well as how they interact with the WTO framework. Rather than
providing a full legal assessment of WTO compatibility, the taxonomy aims to
serve as a functional guide for policymakers and stakeholders. It provides a
clearer understanding of which measures risk exacerbating ‘policy-driven’
geoeconomic fragmentation, and of how the EU might constructively utilize
unilateralism within WTO reform efforts. Focusing on legislative acts adopted
between December 2019 and December 2023, including the Foreign Direct
Investment Screening Regulation, the Carbon Border Adjustment Mechanism and the
Foreign Subsidies Regulation, the article maps the EU’s more recent turn to
unilateralism. It concludes by emphasizing the importance of a structured legal
taxonomy as a tool for shaping policy and enhancing legal certainty in
international trade relations.