Executive summary

This edition of Trade Talking Points provides updates on:

• United States (US) trade policy announcements
• Asia developments, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Association of Southeast Asian Nations (ASEAN), CPTPP-ASEAN Trade and Investment Dialogue
• European Union (EU) developments, covering the EU reforms to its Regulation on Deforestation-free Products (EUDR)
• United Kingdom (UK) developments, covering UK Budget announcements and the Critical Minerals Strategy

Latest US trade policy announcements

Framework agreements regarding US bilateral trade with Argentina, Ecuador, El Salvador and Guatemala

On 13 November 2025, the US announced new Frameworks for agreements on trade with Argentina, Ecuador, El Salvador and Guatemala.

The frameworks outline plans to increase market access for US-origin goods and reduce barriers to trade, such as standards for defined goods and sectors. However, the official outcome documents specifying each country's tariff rates have not been released.

Argentina: The new framework agreement, pending to be finalized, will strengthen the existing US-Argentina economic and trade relationship by further enhancing bilateral trade and investment. The US and Argentina have agreed on the following:

• The US will remove tariffs on certain Argentine exports that cannot be grown, mined or produced in the US, as well as on non-patented pharmaceutical articles.
• Argentina will grant preferential market access for US exports, including medicines, chemicals, machinery, IT products, medical devices, motor vehicles and a wide range of agricultural products.
• Argentina will eliminate non-tariff barriers for US goods that meet US or international standards, allowing entry without additional conformity assessment requirements.

Ecuador: The new framework agreement, pending to be finalized, will give US and Ecuadorian firms greater access to each other's markets and should improve cooperation on economic and national security issues. The US and Ecuador have agreed on the following:

• The US will remove its tariffs on certain Ecuadorian exports that cannot be grown, mined or produced in sufficient quantities domestically.
• Ecuador will reform its import licensing and facility registration systems for food and agricultural products to reduce non-tariff barriers for US agricultural exports.
• Ecuador will streamline regulatory requirements and approvals for US exports such as motor vehicles, medical devices and pharmaceuticals.
• Ecuador will not impose digital services taxes that discriminate against US companies.

El Salvador: The new framework agreement, pending to be finalized, will further strengthen the US-El Salvador economic relationship and builds upon existing trade relations under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). The US and El Salvador have agreed on the following:

• The US will remove tariffs on Salvadoran exports that cannot be grown, mined or produced in the US, in addition to textiles originating under the CAFTA-DR.
• El Salvador will accept US manufactured vehicles that meet US vehicle safety and emissions standards.
• El Salvador will recognize US Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals.
• El Salvador will eliminate non-tariff barriers for US agricultural exports, particularly regarding fumigation requirements and certifications, improving market access for US agricultural goods.

Guatemala: The new framework agreement, pending to be finalized, will further develop the US-Guatemala economic and trade relationship, building upon the existing CAFTA-DR, which has been in effect since 2006. Both parties have agreed on the following:

• The US will remove tariffs on certain Guatemalan exports that cannot be grown, mined or produced in the US, as well as textiles originating under the CAFTA-DR.
• Guatemala will streamline regulatory requirements and approvals for US exports of pharmaceuticals and medical devices.
• Guatemala will remove market barriers for US agricultural products by accepting certificates issued by US regulatory authorities.
• Guatemala will refrain from imposing digital services taxes on US digital services or products.

(See also EY Global Tax Alert, US announces new trade frameworks and expanded agricultural tariff exclusions, dated 17 November 2025.)

Framework agreement regarding US bilateral trade with Switzerland and Liechtenstein

On 14 November 2025, US President Trump announced initiating negotiations of a framework agreement on Reciprocal Trade with Switzerland and Liechtenstein.

The agreement states the US will reduce tariffs on Switzerland and Liechtenstein to a maximum of 15%, aligning both nations with the tariff rate that the US currently imposes on the EU's.

In addition to the tariff reduction, all parties have agreed on the following:

• Switzerland and Liechtenstein will remove tariffs across agricultural and industrial goods including fish and seafood, certain fruits, chemicals and alcoholic spirits.
• Switzerland and Liechtenstein will invest a combined total of US$200.3b into the US over the next five years, with Liechtenstein committing to increase the number of jobs created by its private sectors in the US by 50% in that period.
• Switzerland and Liechtenstein will continue to refrain from imposing taxes on digital services.

(See also EY Global Tax Alert, US announces new trade frameworks and expanded agricultural tariff exclusions, dated 17 November 2025.)

Modification to the scope of tariffs on Brazil

On 20 November 2025, US President Trump announced modifications to the scope of US tariffs imposed on Brazilian goods.

After discussions with Brazilian President Luiz Inácio Lula da Silva, President Trump announced that Brazilian goods listed in Annex I to Executive Order 14323 (addressing threats to the US by the Government of Brazil) will now be exempt from the 40% US tariffs on Brazil. However, the 40% duty will remain on goods not included in Annex I.

The updated tariff rate was effective from 12:01am EST 13 November 2025.

Modification to the scope of US tariffs with respect to certain agricultural products

On 14 November 2025, the US Trump Administration announced a modification to the scope of tariffs on excluded products under Executive Order 14257.

As a result, 237 agricultural Harmonized Tariff Schedule (HTSUS) classifications and 11 additional categories of agricultural products have been added to Annex II and are now exempt from US tariffs.

(See also EY Global Tax Alert, US announces new trade frameworks and expanded agricultural tariff exclusions, dated 17 November 2025.)

Latest Asia developments

CPTPP-ASEAN publicly commits to existing FTAs and supports the WTO

On 20 November 2025, ministers and representatives from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Association of Southeast Asian Nations (ASEAN) held the inaugural CPTPP-ASEAN Trade and Investment Dialogue in Melbourne. In the meeting, both parties reaffirmed their commitment to existing free trade agreements to support the economic success of their member states.

Additionally, the CPTPP and ASEAN recognized the positive impact of plurilateral negotiations at the World Trade Organization (WTO) and publicly supported the WTO's current reforms to ensure the organization's continued relevance and effectiveness within global trade.

Latest EU developments

Council of the EU proposes EUDR reforms

On 19 November 2025, the EU adopted its negotiating mandate for a targeted revision of the Regulation on Deforestation-free Products (EUDR), which aims to ensure that products consumed in the EU do not contribute to deforestation or forest degradation. The EUDR specifically focuses on seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood.

The proposed revision aims to reduce the administrative burden on businesses and ensure a smooth implementation of the legislation.

The Council of the EU has proposed the following reforms:

• The EUDR would apply from 30 December 2026 for medium-sized and large enterprises and from 30 June 2027 for micro and small enterprises.
• The responsibility to submit the required due diligence report would rest solely with the company that first places the product on the market.
• Businesses and upstream traders would no longer be required to submit separate due diligence statements, with only the first upstream company needing to disclose the document. Micro and small enterprises would be required to submit a simplified one-off declaration.

The Council of the EU will commence negotiations with the European Parliament, aiming to reach a final agreement before the current EUDR enters into force on 30 December 2025.

Latest UK developments

UK Autumn Budget 2025

On 26 November 2025, the UK Government released its Autumn Budget. Among other updates, the Government announced that the UK will be removing customs duty relief for low-value imports (valued at £135 or less) into the UK, otherwise known as the de minimis threshold. The de minimis threshold will be removed by March 2029. In preparation for its removal, the Government will be holding a consultation on a new set of customs arrangements for low-value imports. Businesses handling small consignments should monitor these changes.

(For further details, see EY Global Tax Alert, UK introduces Budget 2025, dated 2 December 2025).

UK Critical Minerals Strategy

On 22 November 2025, the UK Government published Vision 2035: Critical Minerals Strategy, which outlines the UK's 10-year plan to secure minerals vital for national security, clean energy and advanced manufacturing.

By 2035, the UK aims to meet 10% of demand through domestic production and 20% through recycling, while ensuring no more than 60% of supply comes from any one country.

The two key policy objectives of the strategy are to optimize domestic production and build resilient UK and global supply networks.

To achieve these objectives, the UK will leverage its existing industrial clusters, such as those in Teesside, Cornwall and Scotland, support UK businesses through public financing, and continue to enhance critical minerals intelligence.

The UK Government will also launch a British Industrial Competitiveness Scheme (the consultation on this scheme will close on 19 January 2026).