In today’s (28 July) trade news, we review the latest missive from HMRC outlining its response to export control breaches.
UK prime minister Andy Burnham seeks to target youth unemployment with a new educational focus on vocational skills and qualifications, including apprenticeships.
There’s also some competing interpretations of the EU-US trade balance, one year on from the ‘Turnberry’ trade deals signed between the two parties.
UK export control breaches
Another reminder from the Export Control Joint Unit (ECJU) on why it’s vital to ensure compliance with export controls and sanctions in international trade.
In a notice to exporters shared today, the ECJU announced that two UK exporters had been fined £216,530.30 and £20,889.15 respectively for “unlicensed exports of military-listed goods”.
The notice highlighted that the payments were compound settlements, offered as a result of the businesses making voluntary disclosures to HMRC about their breaches and because the breach was regarded as “inadvertent” or “due to weaknesses in internal controls”.
The ECJU’s notice says that the government will opt for compound settlements instead of criminal prosecution in these instances, and will “not normally offer a compound settlement where an exporter intended to breach the controls.”
To ensure that your business remains compliant with UK export controls and sanctions, you can reach out to our Export Controls Advisory Practice to receive tailored support based on your business activity.
Members can also learn more about how to review business processes to ensure the integrity of your supply chains amid increasing controls and attempts to contravene them. Most recently, a Lunchtime Learning session on knowing your customer and other aspects of compliance.
Different approach to Russia sanctions
A new set of recommendations from the Economic Security Council of Ukraine (ESCU) suggest the next round of EU sanctions should target Russia’s critical mineral vulnerabilities, rather than just hitting Moscow’s energy trade.
A report from ESCU highlights described minerals that Russia cannot easily source as “one of the most underestimated pressure points on the Russian war economy”.
“Russia cannot quickly rebuild its own raw-materials base, cannot fully replace critical imports, and cannot sustain its military-industrial complex without external supplies,” the report’s authors argue.
This follows the passing of the 21st round of EU sanctions against Russia, which continued to focus on stifling Russia’s war economy by curtailing its energy trade, sanctioning its ‘shadow fleet’ of tankers responsible for continuing that trade, and individuals and organisations facilitating its military efforts.
Burnham touts apprenticeships and technical learning
Andy Burnham continues his government’s focus on domestic reform designed to improve the lives of working people, with education policy emphasising technical and vocational skills.
Burnham has announced proposals to allow secondary school students to study subjects like manufacturing and AI alongside traditional academic subjects.
In a Times op-ed he wrote that:
“In the age of AI, practical and technical skills haven't become less valuable - they've become more valuable than ever.”
Politico also noted that proposals also include a structural shift towards new educational pathways that create routes straight into work, enabling students to choose to pursue technical qualifications rather than A-levels.
Burnham will meet with apprentices based in the East Midlands today, alongside Department for Work and Pensions secretary Pat McFadden.
The visit and education reforms underscore the ambition inherited by Burnham’s administration to reduce the number of young people designated as not in education, employment or training (NEET). This number stands at one million – the highest level for 12 years.
The Chartered Institute’s apprenticeship delivery arm IOEx Ltd provides qualifications open to learners of all ages, supporting professional development within freight and supply chains. The first learners graduated last year at our October Mansion House graduation ceremony.
EU-US trade balance
Politico highlights analysis carried out by Global Trade Alert which suggests the EU-US trade deal – having just passed its one-year anniversary – has put a dent in Brussel’s sizable trade surplus.
The deal introduced a 15% tariff on most EU exports, capping the rate that could be applied to EU goods at 15%, irrespective of subsequent sector- and product-specific levies the Trump administration might seek to levy.
Between September and December 2025, the EU’s goods surplus fell to US$53.7bn, a 36% decrease on the same period a year prior. This trend accelerated between January and May, with the surplus standing at 65.7%.
Author Simon Evenett wrote that “these results suggest that the Turnberry agreement has been accompanied by a substantial narrowing of the EU's goods trade surplus, driven by both lower European exports in the US market and stronger US sales into the European market”.
However, in an article published on the EU’s online trade and economic security hub to mark a year since its deal with the US, Brussels described trade as “balanced and complementary”, contrasting its goods trade surplus of €198bn with the US’ services trade surplus of €178bn. This, it claims, results in a US deficit of only €20bn.
It also recorded a 3.5% increase in EU goods exports to the US, rising from €536bn to €555bn.
Elsewhere in the headlines
- Fears about borrowing among AI companies has sparked a mass sell-off across the sector, with household names like Nvidia shedding as much as 7% yesterday (27 July)
- Chinese e-commerce firm Shein says it posted a loss in Q1, directly attributing the result to the introduction of US tariffs
Yesterday in Trade
- Fresh Trump threats against the EU over its decision to fine Google under its Digital Markets Act
- The UK is facing pushback from several EU member states as it seeks to contribute to a Brussels tech fund to develop promising businesses
- Burnham suggested he wouldn’t hold another UK general election before 2029
You can read more on those stories here.
