TL;DR
NATO is not just a military alliance; trade between its members grows measurably because of it.
When a country joins NATO, you might assume it just gains a set of bodyguards. After Russia invaded Ukraine in 2022, trade inside NATO rose by 9% to 15%.
The reason is straightforward: allies do not attack each other, so doing business with them carries less risk, and firms naturally trade more with them.
The bodyguard contract doubles as a trade deal
Researchers went back to NATO's founding in 1948 and ran the numbers: each new member raised bilateral exports by 12% to 27% on average.
The sharpest growth was not in food or clothing but in dual-use components — the parts that go into both tanks and tractors.
In the end, signing a mutual defence pact amounts to signing half a trade agreement. Who knew the side hustle of a military alliance was making money?
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