Interaction between Power and Trade in EU Trade Policy 2021 and its Implications for Iran

European Commission published EU trade policy titled an open, sustainable and assertive trade policy in Feb 2021. The main concern underlying this new policy is EU preparation for confronting new geopolitical developments derived from increasing role of Asia in the global economy, great power competition and new advancements in digital trade and global communication. Due to Iran’s economic interactions with EU countries and also the sensibility of Iran’s economic ties with Asian partners to EU policy, EU trade policy would have significant impacts on Iranian economy. The article investigate the elements of EU trade policy 2021 and how it influences Iran. Applying Barnett and Duvall conceptualization of power, the article argues that EU approach to global trade has evolved from power to trade to power through trade and this approach has paradoxical impacts on Iranian economy; negative impact in regard to EU compulsory and discursive power and positive impact in regard to EU structural and institutional power.