WIREDGOV

Hello from the sky over the Atlantic, where I’m writing this newsletter from. Hope you are all doing well and that work is slowly winding down into December. Below is your latest rundown of global tech, trade, and regulatory developments. 

1. No EU–UK Deal on SAFE Programme Participation 

Negotiations between the EU and U.K. on British participation in the €150 billion Security Action for Europe (SAFE) defence procurement scheme have collapsed this morning. 

Talks stumbled over how much London should contribute to joint weapons procurement under the loans-for-weapons programme. The U.K. offered only “millions,” while the EU lowered its initial demand of €4.5–6.5 billion to a still-hefty €2 billion - but no compromise followed. 

Timo Pesonen, head of the Commission’s Directorate-General for Defence Industry and Space, informed EU ambassadors today that no deal is expected. 

Meanwhile, the Commission is pursuing a similar agreement wi

2. CPTPP Enlargement 

The 12-nation Indo-Pacific group approved Indonesia, the Philippines, the UAE and Uruguay to begin accession talks - a significant broadening of the bloc’s global reach. 

The Uk Government strongly supports this rapid enlargement, particularly given that the U.K. lacks bilateral deals with all four potential entrants. 

Indonesia alone - nearly 300 million people, half under 30, 5% annual growth - is poised to be a top 5 global economy by 2050. 

By the numbers: 

• U.K. goods/services exports to Indonesia: +44.3% and +55.7% (year to June 2025) 
• U.K. goods/services exports to the Philippines: +49.3% and +50.7% 

3. EU Launches Trade & Investment Dialogue with CPTPP States 

The EU has formally launched a trade and investment dialogue with members of the CPTPP, following meetings in Melbourne this week. 

Talks aim to deepen cooperation in: 

• digital trade (priority area) 
• trade diversification 
• trade & investment facilitation 
• supply chain resilience 
• global trade environment (incl. WTO reform) 

Officials say digital trade is the most promising path toward a meaningful agreement. With all 12 CPTPP members and the EU supporting the stalled WTO e-commerce negotiations, this provides a ready baseline for any digital pact. 

Combined, the EU and CPTPP represent: 

• 32% of global GDP 
• 37% of global trade 
• nearly 25% of WTO membership 

The EU already has trade agreements with all but Malaysia, Brunei and Australia. EU trade commissioner Maroš Šefčovič met his Australian counterpart Don Farrell to revive stalled bilateral deal talks. 

4. Digital Services Tax Quiet Update  

The U.K. confirmed - quietly, in a budget annex - that the Digital Services Tax (DST) will remain in force. The DST applies a 2% levy on revenues of major digital platforms operating in the U.K. 

The review of the DST, long promised, was published with little fanfare - but confirms no change to the tax for now.

5. U.K. to End De Minimis Import Duty Relief on Low-Value Goods 

The U.K. will follow the U.S. and EU in abolishing de minimis import duty relief for low-value shipments. 

Currently, goods under £135 enter the U.K. duty-free - a rule inherited from the EU’s €150 threshold.  

The removal may not take full effect until March 2029, and the government has launched a consultation running until March 2026. 

The consultation will examine: 

• data requirements 
• tariff application methods 
• potential administration fees 
• VAT collection changes 

EU member states are already working to eliminate their own de minimis thresholds as early as next year. 

If you got this far, thank you! One more of these coming your way before Christmas. In the meantime, have a great weekend and a happy start to December!