Abstract

For decades, the benefits of expanding international trade and foreign direct investment seemed unquestionable. However, the COVID19 pandemic, the Russian invasion of Ukraine (and its economic and energy implications for Europe) and the growing geostrategic rivalry between the US and China have been displacing the "neoliberal" paradigm with one that emphasizes the importance of economic security and warns of the dangers associated to the weaponization of interdependence. This article analyzes the implications of this new paradigm for the future of globalization, trade agreements and multilateral trade governance. It focuses, in particular, on how the European Union is attempting to incorporate elements of economic security without adopting protectionist measures, as part of its drive for strategic autonomy.

Abstract

For decades, the benefits of expanding international trade and foreign direct investment seemed unquestionable. However, the COVID19 pandemic, the Russian invasion of Ukraine (and its economic and energy implications for Europe) and the growing geostrategic rivalry between the US and China have been displacing the "neoliberal" paradigm with one that emphasizes the importance of economic security and warns of the dangers associated to the weaponization of interdependence. This article analyzes the implications of this new paradigm for the future of globalization, trade agreements and multilateral trade governance. It focuses, in particular, on how the European Union is attempting to incorporate elements of economic security without adopting protectionist measures, as part of its drive for strategic autonomy.