The EU as a global actor in the geoeconomic age: power and weakness in and through trade

For decades, the European Union has derived much of its international influence from its economic size and centrality in global trade. This article addresses the paradox that nowadays the very foundation of the EU’s international power – openness to trade – is also a source of weakness, exposing it to coercion, disruption, and unfair competition. If trade becomes a liability rather than a tool of power, what are the implications for the EU’s position in global economic governance? Building on the framework of ‘power in trade’ and ‘power through trade’, this article introduces the complementary notions of ‘weakness in trade’ and ‘weakness through trade’ to capture how interdependence can serve as both leverage and liability. Tracing policy developments across three eras – the Cold War, the Age of Globalisation, and today’s Geoeconomic Age—the article shows that some global economic contexts present the EU with harder challenges than others. It argues that recently the EU has made some progress in increasing its resilience and remains important in rule-setting but its capacity in coercive economic statecraft is limited compared to that of the United States or China.