A beginner’s guide to economic security: What it means for trade
The return of President Trump to the White House has brought renewed attention to the relationship between trade and national security. This situation raises questions about how governments should respond to increasing pressure to protect economic security while upholding an open and rules-based trading system. What is economic security? The concept of economic security has evolved over the years, reflecting shifting global and domestic circumstances since the end of World War II. Different governments frame economic security risks and threats in various ways, which means there is no universally accepted definition. However, in terms of values, it broadly refers to the absence of a threat of severe deprivation of economic welfare. Rather than providing a single, rigid definition, the EU and Japan have adopted a principle-based approach. This allows them to remain responsive to the risks generated by a rapidly evolving economic, technological, and geopolitical landscape. For example, Japan has established three core principles of economic security: self-sufficiency, indispensability, and safeguarding the rules-based international system. In terms of the instruments, it refers to a nation’s framework to maintain national autonomy and economic resilience against risks and threats. This includes strategies and policies that aim to protect fundamental economic functions, strategic [...]
