Toxic Unilateralism

How the EU’s Unilateral Trade-Related Measures Drive Polarization in Global Trade Relations

Authors

  • Sophie Bohnert Vienna University of Economics and Business

DOI:

https://doi.org/10.25365/vlr-2025-9-2-50

Keywords:

unilateralism, multilateralism, international trade, polarization

Abstract

Trading powers such as the European Union and the United States are increasingly using unilateral trade-related measures to protect national security or mitigate the effects of climate change. At the same time, global trade relations are becoming more polarized, marked by ideological divides and contrasting economic policies. These trends suggest a shift from the cooperative multilateralism of the World Trade Organization to unilateralism, which risks geoeconomic fragmentation and complicates solutions to global challenges.

Unilateralism, defined as action by a single polity without international consent, both responds to and exacerbates polarization, creating a vicious cycle of tit-for-tat measures. This “toxic” unilateralism disrupts trade and investment activities, realigns alliances, marginalizes developing economies, and undermines compliance with multilateral rules. As confidence in the multilateral system erodes, cooperation on global issues weakens.

The paper examines these dynamics by analyzing EU policies such as the Carbon Border Adjustment Mechanism and the Anti-Coercion Instrument. It draws lessons from the 1920s and 1930s, a period of economic nationalism and protectionism. It argues that, while unilateral action can address pressing issues, multilateralism remains essential for stability, predictability, and effective global cooperation.

Author Biography

Sophie Bohnert, Vienna University of Economics and Business

Sophie Bohnert holds a Bachelor of Laws and a Master of Laws in Business Law from the Vienna University of Economics and Business/Maastricht University. She also holds a Bachelor of Science in Business, Economics and Social Sciences with a major in Business Administration from the Vienna University of Economics and Business. During her studies she worked as a Tutor at the Institute for Company Law and as an eLearning Assistant at the Institute for International and European Law at the Vienna University of Economics and Business. In 2024, she graduated from the College of Europe with a Master’s degree in European Legal Studies, specializing in European law and economic analysis. In the same year, she was awarded a doctoral degree from the Vienna University of Economics and Business. Her doctoral thesis provided a comparative legal analysis of the phenomenon of common ownership under US antitrust law and EU competition law. During her doctoral studies, she worked as a Teaching and Research Assistant at the Institute for International and European Law of the Vienna University of Economics and Business.

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Published

2025-05-21