DIGITALEUROPE’s response to the call for evidence on the proposed DiversifyEU Trade Instrument

Executive summary

DIGITALEUROPE supports the EU’s objective of strengthening economic security and resilience through the diversification of critical supply chains. Reducing concentrated dependencies and developing alternative sources of supply are essential to Europe’s long-term competitiveness and security of supply. However, to achieve these objectives, the proposed DiversifyEU package and the trade diversification instrument should be targeted, proportionate, evidence-based and grounded in market realities. It should address clearly demonstrated critical dependencies while preserving the benefits of open trade and globally integrated supply chains. Diversification should not mean blanket restrictions on third countries, but rather aim to build appropriate capacity and capabilities at European level, without creating unnecessary costs, market restrictions or administrative burdens for companies operating in Europe.