The Week Ahead in International Trade: UK infrastructure plans, G7 summit and tariff hopes

This week’s trade news will centre on the talks between world leaders at the G7 summit in Canada, with focus likely to fall on US tariffs as well as the situation in the Middle East. There is also a curious agenda item at an economic forum meeting in Russia, as well as infrastructure announcements planned by the UK government.

Infrastructure boost

UK chancellor Rachel Reeves is set to announce a new 10-year infrastructure plan for the country to the tune of £725bn this week.

The boost to infrastructure spending will aim to increase overall economic growth. The new Infrastructure Strategy will include the £39bn housing investment and £14.2bn allocated for the Sizewell C nuclear power station from last week's Spending Review, and there will also be new funding announced for transport links, tunnels and healthcare.

In a bid to end what it calls a “disjointed approach” to infrastructure development, the government is establishing a National Infrastructure and Service Transformation Authority (NISTA), a body that chief executive Becky Wood said would “be embracing the abundance of opportunities it outlines”.

Canada and US

Politico’s report that the UK and Canada could cut trade barriers after discussions between leaders Sir Keir Starmer and Mark Carney put this week’s G7 meeting in Canada into context.

Starmer has said that, because “the world is changing on trade and the economy", there is a need to further liberalise trade with other nations. Previous trade deal talks between the UK and Canada foundered in 2024 due to Canadian accusations that the UK "has a series of unscientific nontariff trade barriers in place” on meat imports.

It could also be a big week for the UK’s US tariff hopes, after expectations that business and trade secretary Jonathan Reynolds would update on the implementation of the countries’ Economic Prosperity Deal (EPD) failed to materialise last week. There’s growing anticipation that Reynolds will deliver an update on the subject to Parliament tomorrow (17 June).

G7 summit

As for the G7 event itself, which runs until tomorrow in Kananaskis, Canada, there will be leaders in attendance from the UK, US, Germany, France and more.

New Canadian prime minister Carney will again face US president Donald Trump after their recent Oval Office meeting, with the shadow of Trump’s imposition of tariffs – as well as his calls for Canada to become the 51^st US state – hanging over them. Other nations will also be keen to make a case for themselves to a president that has placed tariffs on goods from every nation in the world.

There is also likely to be focus on renewed hostilities in the Middle East after Israel and Iran exchanged several rounds of missile fire over the weekend. While global markets have had a “surprisingly muted response” to the tensions according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, there remain concerns over the long-term implications, as an oil price rise could have knock-on effects for shipping and trade.

Other meetings

The summit isn’t the only meeting taking place this week – Russia, which was expelled from the G7 in 2014 following its annexation of Crimea, will play host to the St Petersburg International Economic Forum on Friday (20 June).

Among the most eye-catching of the announcements from the summit’s organisers is a ‘business dialogue’ at the event between representatives from the US and Russia. Billed as a ‘pragmatic discussion on the economy’, it follows remarks in February by the head of Russia’s sovereign wealth fund, Kirill Dmitriev, that US companies could start returning to Russia before the end of the year.

The Bonn Climate Change conference also begins today, which aims to bridge the gap between the annual COP meetings on climate action. UN climate change chief Simon Stiell said, following last year’s event in Bonn, that there remains a “very steep mountain to climb” on the issue.