EU trade ministers, meeting on 22 May 2026 under the chairmanship of Cyprus Minister Michael Damianos, debated economic security, WTO reform, and trade negotiations, with broad agreement on de-risking supply chains and closer industry coordination. Executive Vice-President Stéphane Séjourné presented an emergency action plan triggered by the Strait of Hormuz crisis, urging businesses to integrate geopolitical risk into supply chain planning. Ministers supported diversifying away from critical chokepoints, particularly for fertilisers, chips, and minerals.
On WTO reform, the EU reaffirmed its commitment to a rules-based system, but Séjourné acknowledged slow progress due to unanimity requirements. Ministers underlined advancing free trade agreements with India, Australia, Mercosur, Mexico, and ASEAN partners. Divergence emerged on China: Séjourné defended a balanced approach, citing a €300 billion trade deficit, while pushing for diversification. Asked if the US is a like-minded partner, both Damianos and Séjourné affirmed it is a strategic partner. Next steps include a Commission debate on China guidelines and continued FTA implementation.
Stakeholder impact
EU businesses reliant on imports of fertilisers, chips, and minerals face potential cost increases from diversification, but may benefit from reduced exposure to geopolitical shocks. Supply chain operators will need to adapt to new routing and sourcing requirements. Trading partners in the Middle East, Asia, and Latin America stand to gain from accelerated FTA negotiations, while China faces a more cautious EU approach.