Europe's time to change gear: Navigating two-way trade corridors Europe's time to change gear: Navigating two-way trade corridors

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Saif Malik is CEO & Head of Coverage, UK at Standard Chartered. Standard Chartered: Tech expertise and global presence With deep connections in the world’s fastest-growing markets, a future-forward digital strategy and a robust suite of client tools from open APIs and AI-enabled treasury services, Standard Chartered helps UK TMT clients manage complex transactions with ease and scale confidently across borders.

Europe's time to change gear:

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Navigating two-way trade corridors

Caroline Eber-Ittel, CEO of France and Head of Coverage for Europe at Standard Chartered

Trade between Europe and emerging markets is no longer a one-way flow. Across Asia, the Middle East, and Africa, commercial ties are deepening in both directions. The European Union remains Africa’s largest trading and investment partner, with trade between the regions up roughly 30% over the past decade. Asia now accounts for more than 28% of EU goods exports and 40% of imports, alongside strong services trade. Investment patterns reflect the same shift. Cross-border investment into emerging regions such as Africa and India has risen sharply, with investment into Africa up around 109% since 2019. Investment into Europe is also increasing, underscoring the emergence of a more balanced, two-way trade and investment corridor. Geopolitics, a reconfiguration of global supply chains and the energy transition are accelerating the trend, which now spans sectors ranging from technology to consumer goods to manufacturing.

Europe and emerging markets: Investing both ways

In practice, the shift is visible in a growing web of reciprocal investments and services. European manufacturers have long operated facilities in Vietnam. Now, Vietnamese electric vehicle companies are setting up headquarters and retail operations in Germany and other European markets. French luxury brands operate retail outlets in China, while Chinese biotech firms are setting up research and innovation hubs in Europe. Capital is flowing in both directions. Norway-owned finance institution Norfund recently invested $75 million in Mulilo, a South African renewable energy developer. At the same time, Middle East sovereign wealth funds from Saudi Arabia, the United Arab Emirates and Qatar are increasing investments in European assets and projects, while Chinese firms are building electric vehicle battery plants across central and western Europe. European companies are prioritising the most dynamic regions for growth, where demand and investment are rapidly expanding, says Caroline Eber-Ittel, CEO of France and Head of Coverage for Europe at Standard Chartered. “In places like India, there’s a strong manufacturing market alongside rapid digital innovation, and a population that is eager to grow and develop,” she says. “Our European clients want to be active participants in those trends.” Companies entering Europe are equally focused on expanding logistics, consumer goods and financial services across the continent. According to Eber-Ittel, Europe’s large, affluent population, well-educated workforce and political stability continue to make it an attractive destination. “In a disruptive world, it’s a region that is more balanced and predictable,” she says.

How businesses are navigating the new terrain

As emerging market players establish in Europe and European firms expand across Asia, Africa, and the Middle East, the international trade environment is becoming more complex. For European companies, navigating the shift successfully requires a balance between regulatory compliance and operational agility. Many companies are diversifying logistics networks, using multiple ports and building new warehouses to manage imports and exports more efficiently. Others are forming partnerships with local distributors to ease entry into new markets. One of the world’s largest courier companies, for example, recently expanded its logistics infrastructure in the Middle East. Elsewhere, public and private partners are supporting large-scale infrastructure projects such as the Lobito Atlantic Railway, which aims to connect inland African markets with Atlantic ports. Regulatory expertise has become another key differentiator. Companies expanding into Europe must comply with EU sanctions and increasingly complex requirements related to ESG, carbon emissions and data protection. Emerging regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which requires exporters to report emissions and meet defined thresholds, are changing how firms document compliance and manage supply chains. Digital solutions can help companies meet these requirements while streamlining documentation. “Investing in the right digital solutions is another key to navigating this change,” says Eber-Ittel. “Real-time tracking for customs forms, invoicing and supply chain management is invaluable for cross-border commerce.”

A strong partner for integrated global commerce

Rising trade between Europe and emerging markets reflects a broader move towards integrated global commerce — the ability for companies to operate effectively across borders. Achieving that integration requires firms to manage regulatory obligations and documentation, handle global payments across multiple currencies and build resilient supply chains. With established relationships in local markets, Standard Chartered is well-positioned to support businesses both inside and outside Europe as they navigate this environment. “We play a unique role in connecting Europe with dynamic emerging markets because our footprint is aligned with global growth,” says Eber-Ittel. “That allows us to support companies operating in complex markets.”

Standard Chartered plays a unique role in connecting Europe with dynamic emerging markets because our footprint is aligned with global growth, that allows us to support companies operating in complex markets.

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Caroline Eber-Ittel, CEO of France and Head of Coverage for Europe at Standard Chartered

Standard Chartered combines cross-border expertise with localised knowledge of sanctions and risk management, and frequently helps coordinate communication between client offices in Europe and emerging markets. “We focus on delivering both global and local client coverage, which is critical for relationship management as well as at the product level,” Eber-Ittel says. Two of the bank’s Spanish clients, Acciona and Cobra, for example, have invested in Australia’s largest Renewable Energy Zone (REZ), highlighting growing links between the two countries in infrastructure and energy. “We support them in their financing and hedging for this large-scale project,” Eber-Ittel says. The bank has also partnered with British International Investment to expand access to trade finance in Kenya and Tanzania, and provides standby liquidity facility to support GuarantCo in developing sustainable infrastructure across Asia and Africa. Navigating today’s trade corridors demands expertise, connectivity, and the ability to operate across borders. “As a global super-connector bank, Standard Chartered is equipped to facilitate trade across our network,” Eber-Ittel says. “We are eager to see clients succeed as new opportunities continue to emerge.”