Europe needs to learn the art of the trade deal
Financial Times
February 22, 2026
AI-Generated Deep Dive Summary
Europe must enhance its ability to negotiate effective trade deals in order to compete on a global scale. The continent's traditional reliance on multilateral agreements has left it less agile compared to other regions like Asia or North America, where bilateral deals have become more prevalent. This shift is particularly crucial as Europe seeks to redefine its economic partnerships post-Brexit and amid rising competition from the US-China trade dynamic.
Historically, Europe’s approach to trade has been characterized by a preference for multilateral frameworks, such as those within the World Trade Organization (WTO). However, this strategy has sometimes limited its ability to adapt quickly to shifting global economic landscapes. The recent spate of deals between the US and China, as well as emerging markets in Asia, underscores the need for Europe to refine its trade negotiation tactics.
One key challenge for Europe is balancing the diverse interests of its member states while maintaining a unified front in negotiations. This complexity is further compounded by the region's economic ties with both developing and developed nations. Despite these hurdles, recent successes in negotiating trade agreements with partners in Asia highlight Europe’s potential to strengthen its global economic influence.
For businesses and investors, understanding Europe’s evolving trade strategy is critical. A more effective deal-making approach could open new markets for European companies while also influencing global supply chains and pricing dynamics. However, it also carries risks, particularly for industries that may face increased competition or regulatory scrutiny as a result of these agreements.
In summary, mastering the art of trade deals will be essential for Europe to maintain its economic competitiveness and navigate an increasingly complex global market. The ability to strike balanced, strategic agreements will not only bolster Europe’s standing on the world stage but also offer opportunities—and challenges—for businesses across the continent and beyond.
Verticals
businessfinance
Originally published on Financial Times on 2/22/2026