Rules-based trade is increasingly affected by the growing influence of geopolitical considerations in international economic relations. In claiming (open) strategic autonomy, the European Union (EU) commits to continue seeking multilateral solutions whenever possible, but expresses the will to pursue unilateral paths where necessary. While this policy and its underlying claims have not yet been tested in earnest, there will be ample room for that in 2025, for a variety of reasons. In this context, the new EU economic security strategy represents a multi-facetted initiative for dealing with risks and vulnerabilities stemming from strong economic interdependence. The three stands of this strategy (1) ‘promotion’, (2) ‘protection’ and (3) ‘partnering’ may entail measures that could well conflict with WTO rules which are (still) based on the post-war idea of economic interdependence and embedded liberalism. However, WTO law offers different ways to justify measures taken for geopolitical reasons. In addition to the choosing of not undisputed interpretation of some key justifications (such as Articles XX and XXI of GATT 1994), the design and reasoning of each individual economic security measure will be particularly important in order to make ‘de-risking’ meet the standard of Article XVI:4 of the WTO-Agreement.
Global Trade and Customs Journal