doi.org/10.52340/eab.2025.17.04.01

journal N 4.2025

The aim of this paper is to examine the modern understanding of economic diplomacy, its role in state activities, and the practical economic goals and objectives pursued by diplomatic missions. A deeper grasp of the dynamics of international interaction in the political and economic spheres contributes to the advancement of relations and the strengthening of interdependence among countries. The paper explores both the form and concept of economic diplomacy. As an instrument of state economic policy, economic diplomacy belongs to the domain of normative economics. Its practice employs a wide range of tools, which can be grouped into three main areas:
Commercial diplomacy: the use of political influence and economic relations to promote international trade and investment. This plays a crucial role in improving market functioning and/or addressing market failures, thereby reducing the costs and risks of cross-border transactions (including issues of property rights).
Structural policies: the deployment of economic assets and relations to enhance the value of cooperation through bilateral trade and investment agreements. Such measures foster collaboration, establish politically stable relations for mutual benefit, and strengthen economic security.
International organizations: the expansion and development of these institutions serve to consolidate a favorable political climate and international politico-economic environment, enabling the promotion and implementation of national objectives.
The paper emphasizes that, for the effective development of the tasks, tools, and driving factors of economic diplomacy, it is essential first to define the boundaries of its implementation. Finally, the article discusses current trends in the evolution of economic diplomacy and models for organizing economic systems of diplomacy.
Economic diplomacy has been an integral part of foreign policy since its inception. It represents the primary mechanism for fostering productive trade and economic relations at both bilateral and multilateral levels, and serves as a key instrument for promoting effective cooperation among countries and regions at the international level.
The priority of economic interests, which emerges in the course of cooperation between states despite their differences, is shaped by the diverse trajectories of economic development. Effectively addressing this priority fosters the strengthening of social, economic, and political relations worldwide, highlighting the indispensable role of economic diplomacy in this process.
The processes of globalization – transformed in varying degrees in today’s era of economic interdependence – have elevated economic diplomacy to a central component of international relations. It functions as a “measure” for assessing the level of relations between countries. Consequently, the economy has assumed a pivotal role in diplomatic practice, the boundaries between traditional political and economic diplomacy have become increasingly distinct, and economic diplomacy is progressively integrated into classical diplomacy.
Today, economic diplomacy is emerging as a discipline in its own right, one that synthesizes an understanding of the dynamics of international interaction in both political and economic spheres. It shapes the development of relations at these levels and highlights their growing interdependence.
The functional capabilities of unified diplomacy are multifaceted, as each specific area of diplomatic activity is interconnected. This integrated approach is manifested in both bilateral and multilateral relations among states.

Keywords: Economic diplomacy, economic policy, international economic relations, tasks and tools of economic diplomacy.
JEL Codes: F5, F13, F02, F42, O19

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