Potential for EU-US Coordination on Diversification and Resilience of Supply Chains

Global supply chains offer significant opportunities as well as risks. Since the 2020 pandemic and in the wake of rising geopolitical tensions, several countries have reacted to the challenges posed by integrated global supply chains by adopting a variegated set of measures to secure their production networks by redirecting trade and investment flows. The European Union and the United States have been particularly active on this front by adopting numerous policies to reduce dependencies and increase supply chain resilience and stability. Whereas a number of these policies leverage coordination across the two sides of the Atlantic, several measures also create significant tensions between the two jurisdictions, thereby undermining the potential for coordination in the future.

Paper produced in the framework of the project “La cooperazione economica e tecnologica Ue-Usa di fronte alle nuove sfide geostrategiche e il ruolo dell’Italia”.