Diversified trade networks are Europe's best defence against economic pressure

At the Asia-Pacific Conference in South Korea, German Chancellor Friedrich Merz advocated for a new free-trade network to prevent supply chains from being weaponised as political leverage. Merz found a receptive partner in South Korea's prime minister, highlighting a shared concern among open economies about rising trade friction and vulnerable choke points.

The motivation behind the pitch is clear. When supply lines are concentrated or vulnerable to political coercion, individual nations face severe economic risks. Yet while national leadership can open diplomatic doors, no single European state possesses the market weight to build resilient global trading rules on its own. Germany's industrial footprint is substantial, but its influence expands significantly when anchored in the collective weight of the European single market.

Sceptics argue that bilateral deals allow individual member states to react faster to market disruptions without waiting for consensus in Brussels. Speed is indeed valuable when supply bottlenecks threaten critical domestic manufacturing.

However, fragmented national approaches leave individual countries exposed to targeted pressure from larger powers. By coordinating free-trade partnerships through the European Union, member states can offer international partners access to a market of 450 million consumers. Europe can secure diversified, reliable supply lines far more effectively when it speaks with a single commercial voice.

Drafted with AI, edited by the editor.