More than two trillion euros: This was the value of the EU's external trade with its neighbouring countries in 2025 – more than with the USA and China combined. As trade conflicts with other countries around the world intensify, neighbouring countries are coming into focus as trading partners. The German Chamber of Commerce and Industry (DIHK) is therefore calling for a more strategic EU neighbourhood policy in a current position paper: The EU should deepen economic relations with adjacent states and integrate them more closely into the Single Market. “Europe often looks far afield for new trading partners and overlooks the opportunities on its doorstep,” says DIHK Foreign Trade Chief Volker Treier. “Closer relations with neighbours secure supply chains, develop sales markets and reduce critical dependencies.” 

This is also particularly true for the German economy: In 2025, foreign trade with European neighbours outside the EU amounted to 414 billion euros. In comparison, German companies do much less trade with heavyweight economies such as the USA (241 billion euros) or China (252 billion euros). German companies have built up direct investments of 261 billion euros with European neighbours, twice as much as in China, employing more than one million people. The strongest integration is with Switzerland, the United Kingdom and Turkey. 

Concrete steps for key partners 

According to the DIHK, key elements of a strategic EU neighbourhood policy should focus on relations with these countries as well as EU accession candidates.

Closer integration with the United Kingdom and Switzerland in particular brings clear economic opportunities. The German economy welcomes efforts, especially by the United Kingdom, towards a customs union or accession to the European Economic Area (EEA). The stakes are high, as shown by Brexit: Before its departure, the United Kingdom was Germany's fifth most important trading partner, today it is in ninth place. In the short term, the EU and the United Kingdom should swiftly conclude negotiations in areas such as electricity, veterinary agreements and emissions trading to facilitate trade for businesses. "Ten years after the Brexit referendum, it is clear that the economic separation has harmed both sides. Now, hurdles must be lowered again, and cooperation must be intensified,” says Treier. “We also need progress with Switzerland and Turkey: if Europe offers its neighbours reliable perspectives, this will also create economic opportunities.” 

For Switzerland, the agreement package signed in March 2026 should be ratified quickly, and the 1972 trade agreement modernised. For Turkey, the customs union in place since 1996 should finally be modernised. The economy expects a binding dispute resolution mechanism and better market access for services and public procurement. 

For EU accession candidates, the DIHK envisions a gradual approach: The countries should gain access to the Single Market as soon as they have adopted EU law and this is monitored. However, quality should take precedence over speed, as only with the rule of law can legal certainty in trade and investments be guaranteed. 

The neighbourhood also offers opportunities in terms of access to energy and raw materials. With Norway and the other EEA states, the EU should deepen cooperation on energy supply. With Greenland and the Faroe Islands, trade expansion should be strengthened. 

A strong Single Market as a prerequisite 

All of this requires a competitive Single Market. As the home market for 26 million companies, it is still hampered by varying national regulations, bureaucracy and restrictions on the trade in services. Without reforms, the EU will also lose its appeal for its neighbours. “A larger economic area does not automatically make Europe stronger. What matters is that companies can operate smoothly across borders,” emphasises Treier. “Anyone who wants to make Europe more independent must do two things at the same time: dismantle barriers in the Single Market and expand cooperation with neighbours. Strength comes from open markets and reliable rules – certainly not from new isolation.” 

You can find the DIHK position paper available for download here: