Economic Security as an Anchor for Free Trade

Globalization and free trade have improved standards of living, created jobs, and supported economic growth in most parts of the world. However, the U.S.—China trade conflict and the deceleration in global trade following the COVID-19 pandemic have caused countries and businesses to source products closer. Nearshoring or friend-shoring has become the norm as countries relish economic security to reduce the dependence imposed on their economies.

This article provides a snapshot of economic security initiatives across major economies and provides a rationale for more open trade. The reality of trade is job disruption, but careful policies can mitigate the negative effects of global trade.

EU Pursues Economic Security

The EU Commission’s new economic security initiative aims to promote EU competitiveness, protect against risk, and partner with the broadest range of countries to advance their economic security interest. The measures adopted by the EU seek to;

• Strengthen the protection of EU security and public order by imposing improved screening for foreign direct investment (FDI) into the EU.
• Stimulate discussions and actions for better coordination across Europe in export controls, while abiding by international and multilateral trade regimes and member state…