The major story of the week for global trade is the agreement after many years of negotiation – and a recent acceleration owing to the US President’s approach – of a trade deal between the EU and India.
There was a smaller agreement between the UK and China, meanwhile, as prime minister Sir Keir Starmer visited Beijing to meet with Chinese leader Xi Jinping.
The big picture: After years of talks, the EU has signed a trade deal with India that Brussels claims will lower tariffs and other trade barriers on a vast tranche of goods.
European Commission President, Ursula von der Leyen, wrote that the agreement was the “mother of all trade deals”:
“We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger."
The EU is looking to grow its exports by double by 2032, and increased access to the 1.4 billion-strong market could help it to do so. India will remove tariffs on chemicals, machinery and electrical equipment, while also reducing duties on automobile imports to 10% up to a quota of 250,000 vehicles.
India has said that it has " prudently safeguarded sensitive sectors, including dairy, cereals, poultry, soy meal, certain fruits and vegetables, balancing export growth with domestic priorities". There is also a framework deal to ease short-term travel for professionals moving between India and the EU.
You can read more about the deal here.
Good week/bad week: A good week for UK citizens looking to holiday in China, as the UK struck a deal with the Asian nation to allow visa-free travel for 30 days. The announcement came following Starmer’s meeting with Xi in Beijing, where he also secured a “new partnership to expand the UK’s world-leading services sector in China”.
It meant it was a less positive week for Donald Trump’s view of the UK’s direction, as he warned that it was “very dangerous” for the country to pursue stronger ties with China. UK Trade minister, Sir Chris Bryant, argued this was "wrong", adding:
“[It would be] bonkers frankly for the UK to ignore the presence of China on the world stage. Of course, we enter into our relationship with China with our eyes wide open.”
How’s stat: US$213.5bn – that’s the volume of funding poured into China’s Belt and Road Initiative in 2025, marking by far its biggest ever year. You can read more about China’s shifting trade and investment relationships in this week’s China Trade Digest.
Quote of the week: “By speaking up now, traders can help ensure the new system is practical and avoids unnecessary burdens, particularly for SMEs that are most exposed to rising costs and compliance pressures.”
Chartered Institute of Export & International Trade Customs Practice lead, Caroline Rowden, on changes to the UK’s de minimis regime.
The week in customs: Our latest Ask the Experts feature examined statements of origin, registering goods with another country’s customs authority and commodity codes. Chartered Institute members can read every answer here.
Other headlines this week: Panama’s Supreme Court has struck down a contract for a Hong Kong company to operate two ports in the Panama Canal. It follows efforts by Trump to reduce Chinese influence in the country.
The World Customs Organization’s ‘World Customs Day’ event spotlighted how important customs is in “protecting society”. Global Trade Today spoke to Rowden to mark the occasion, and she offered tips for traders looking to protect their supply chains from counterfeits.
In our latest Trade Insights feature, we looked at whether Trump’s tariffs are likely to outlast his presidency, including whether a Democrat administration or one led by a different Republican figure could be likely to reverse the duties.
True facts: It’s 57 years to the day since the Beatles played their final concert together, atop the roof of Apple Corp in London. The band continue to make a major contribution to the UK economy – not least in their home city of Liverpool, which benefits from an economic boost of over £80m annually thanks to the association.
