Policy brief: Trade policy for the age of AI – a component to strengthen EU competitiveness

This policy brief examines the role of trade policy in enhancing the European Union’s (EU) competitiveness within an increasingly AI-driven global economy. It argues that achieving competitiveness in the age of AI requires access to essential inputs, including data, computing power, energy, connectivity, capital, and skilled labour. Since these resources cannot always be found in sufficient quantities within the EU, international trade will play a vital role in their supply.

This policy brief suggests digital trade policy actions that the EU can take across three dimensions: enhancing the single market, advancing bilateral digital trade agreements, and pursuing plurilateral and multilateral engagements.

• Within the single market, the recommendations emphasize deepening digital services integration, harmonising capital markets, and facilitating the mobility of professionals in digital sectors.
• Bilaterally, the EU is encouraged to develop its trade relations in modern digital agreements and deals to secure critical raw materials.
• On the global stage, the EU is urged to advocate for broader participation in key agreements like the WTO’s e-commerce negotiations and the Information Technology Agreement (ITA), as well as to explore an ITA3 framework to include goods critical to the green and digital transitions.

The policy brief underscores the need for strategic, evidence-based policy measures that balance regulatory ambition with trade openness. By addressing these priorities, the EU can bolster its capacity to secure vital inputs, mitigate geopolitical risks, and improve its competitiveness in the age of AI.

What is the National Board of Trade Sweden?

The National Board of Trade is the Swedish government agency for international trade, the EU internal market and trade policy. Our mission is to facilitate free and open trade with transparent rules as well as free movement in the EU internal market. We provide the Swedish Government with independent analyses, reports and policy recommendations and take into account the views of businesses of all sizes in international trade policy-related matters.