Repositioning the European Union in new geopolitical conditions

Nikolić Goran (Institut za evropske studije, Beograd), goranvnikolic@gmail.com
Zvezdanović Lobanova Jelena (Institut društvenih nauka, Beograd), jzvezdanovic@idn.org.rs
Ćurčić Petar (Institut za evropske studije, Beograd), petar.pero.curcic@gmail.com

Trade conflicts with the United States (US) and China have accelerated the need for greater self‐sufficiency in key sectors of the European Union (EU). The new Industrial Acceleration Act, adopted by the European Commission in March 2026, will determine whether the “Made in EU” industrial policy can facilitate cooperation with trading partners while avoiding protectionist traps, particularly in relations with China. The aim is to support production in the EU. Partners covered by free trade agreements, as well as signatories of the WTO General Agreement on Government Procurement, would be allowed to participate in EU member states’ public procurement. Reducing risky dependence on Washington is closely linked to efforts to open new market access opportunities for the EU. While there are more than 40 EU trade agreements with partners, many others are in the pipeline, with the two most important ones—with the Southern Common Market in Latin America (MERCOSUR) and India—having been signed in January this year. These agreements send a strong geopolitical signal that the participating countries want to trade and cooperate under predictable and rules‐based conditions. The EU and its economic partners have an opportunity to lead the world towards a new multilateralism. Ideally, countries should devise new rules on subsidies and economic security while deepening cooperation on rare earth elements and critical raw materials within the framework of the World Trade Organisation (WTO) or based on plurilateral arrangements, thereby increasing resilience in global supply chains. To remain a reliable partner, the EU must remain open. The new industrial policy aimed at strengthening the competitiveness of European industry, accelerating the green transition, and facilitating foreign investment should be more flexible with regard to numerous administrative requirements and the desire for full reciprocity in public procurement.

Keywords: trade policy, EU, free trade agreements, US, China