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EU-US Trade Relations: Searching for Stability 

Following a week of high-profile meetings, including Commissioner Valdis Dombrovskis' visit to Washington and President Trump's encounter with European leaders in Rome, transatlantic trade ties may be entering calmer waters. 

The US administration has recently floated the idea of a potential "deal" with the EU to avert the full force of its new "reciprocal" tariffs, initially announced in April but delayed until July. 

As the US economy grapples with market volatility triggered by the new tariff regime, early signs suggest a more structured dialogue between Brussels and Washington could be on the horizon. 

India’s Global Trade Push: Brussels, London, Oslo 

Indian Commerce Minister Piyush Goyal is intensifying his international engagement, with a packed schedule this week including visits to Brussels, London, and Oslo this week. 

In Brussels, Goyal will meet EU Trade Commissioner Maroš Šefčovič to assess progress on the EU-India Free Trade Agreement negotiations. Despite strong political will to wrap up talks by the end of 2025, negotiators on the ground remain cautious about the timeline. 

Meanwhile, in London, Goyal has been pressing the UK government on carbon taxes. India is seeking exemptions or concessions on new carbon border adjustment measures being introduced in the UK. Goyal has warned that high carbon tariffs on steel, cement, and other industrial goods could severely impact India’s exports - particularly given India’s heavy reliance on coal for industrial production. 

The issue is becoming central to India’s trade talks with Europe as well, as countries across the continent, including Norway, roll out similar carbon pricing schemes. Goyal’s discussions this week will focus on minimizing the impact of these new carbon costs on Indian exports, with broader implications for finalising trade deals with both the UK and the EU by the end of the year. 

In Oslo, Goyal is expected to continue raising carbon-related concerns as he prepares for the implementation phase of the EFTA-India FTA signed in 2024. 

UK-US Trade Talks: Cautious Optimism Amid Tariff Challenges 

Hopes for a renewed US-UK trade agreement remain alive, but officials on both sides are urging caution. Cabinet Office Minister Pat McFadden recently said that while an agreement is “possible,” nothing is guaranteed, and the priority remains securing a deal that serves the UK's long-term interests. 

Talks have gained momentum following a meeting between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent during the IMF Spring Meetings. Discussions are focusing heavily on easing some of the steep tariffs that have lingered since the Trump administration - particularly the 25% duties on cars, steel, and aluminium - though officials accept that Trump’s 10% baseline tariffs are unlikely to be rolled back. 

Chancellor Reeves emphasized the importance of building stronger partnerships in emerging fields like fintech, cryptocurrency, and digital assets, areas where she says the two sides have significant alignment. 

UK-Turkey FTA: Progress Toward Modernisation 

The UK and Turkey are moving closer to modernising their bilateral trade framework. Negotiators have successfully concluded a new chapter on Technical Barriers to Trade, aligning many provisions with the standards set out in the UK-EU Trade and Cooperation Agreement. 

This updated TBT chapter includes annexes on key sectors such as automotive and chemicals - areas critical to UK manufacturing and exports. Once formally signed and brought into force, the revised provisions are expected to offer UK businesses improved market access and reduced regulatory hurdles. 

Formal negotiations to upgrade the overall UK-Turkey FTA are also progressing, with both sides preparing for a first full round of talks in the coming months. 

UK Focus on Strategic Industries and Innovation 

The UK government is ramping up efforts to strengthen its strategic industries amid a volatile global trade environment. 

Science Minister Patrick Vallance has signed a memorandum of cooperation on quantum technologies with Japan, covering research collaboration, investment, security, and standards. This agreement aligns with the UK’s broader push to deepen innovation ties with allies and to maintain leadership in next-generation technologies like quantum computing. 

Meanwhile, Investment Minister Poppy Gustafsson was in Paris engaging French investors in infrastructure and creative industries, reflecting a broader strategy to attract capital into Britain's energy transition, digital, and rail sectors. 

EU-UK Relations: Steadying the Post-Brexit Course 

London hosted this week the EU-UK Joint Committee overseeing the Brexit Withdrawal Agreement, including key elements of the Windsor Framework addressing Northern Ireland’s trade status. 

Trade Commissioner Maroš Šefčovič and his UK counterpart Nick Thomas-Symonds have co-chaired the talks. Šefčovič has also met with UK ministers Jonathan Reynolds, David Lammy, and Hilary Benn. 

These discussions come just weeks ahead of the major EU-UK Summit scheduled for 19 May, which is expected to set the tone for future cooperation across trade, energy, security, and youth mobility. 

Australia and Canada Elections: Trade Talks Back on Track? 

This week’s elections in Australia and Canada could reset momentum for broader trade engagement with Europe and the UK. 

In Australia, voters head to the polls on Saturday. Whichever party emerges victorious, there is renewed interest in reviving Australia-EU FTA talks, which stalled in 2023 over agricultural market access demands. Australia is also signaling greater interest in tightening economic ties with the UK and CPTPP partners, particularly as global tariff tensions continue to destabilise traditional trade routes. 

Meanwhile, Canada also held federal elections this week, with Prime Minister Mark Carney’s Liberals retaining power, although not with an outright majority. The Liberals have previously expressed strong interest in restarting trade talks with the UK. A more stable government in Ottawa would likely speed up discussions on modernising the UK-Canada trade relationship and deepening collaboration in sectors like critical minerals, clean technology, and digital trade. 

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