Executive summary

This edition of Trade Talking Points provides updates on trade policy developments, including the outcomes of United States (US) President Trump's state visit to China, the European Union (EU) Council and EU Parliament reaching a provisional agreement on the EU-US Joint Statement, and the United Kingdom (UK) and the Gulf Cooperation Council (GCC) signing the UK-GCC Free Trade Agreement.

Latest US trade policy announcements

President Trump met with Xi Jinping during a state visit to China

On 17 May 2026, the White House announced the outcome of US President Trump's state visit to China, during which he met with the Chinese President Xi Jinping. The state visit included extensive dialogue covering bilateral trade, economic cooperation and geopolitical issues.

As part of their bilateral trade discussions, both parties agreed that:

• China will address US concerns regarding supply-chain shortages related to rare earths and other critical minerals.
• China will address US concerns regarding prohibitions or restrictions on the sale of rare earth production and processing equipment and technologies.
• China will purchase at least US$17b per year of US agricultural products in 2026 (prorated), 2027 and 2028, in addition to the soybean purchase commitments made in October 2025.
• The US and China have formally established the Board of Trade to manage bilateral trade in non-sensitive goods, and the Board of Investment to provide a forum for discussing investment-related issues.

US announces extension of African Growth and Opportunity Act

On 19 May 2026, the Trump Administration announced the extension of duty-free treatment under the African Growth and Opportunity Act (AGOA) for imports originating from eligible sub-Saharan African countries until 31 December 2026.

In addition, the Trump Administration announced that Gabon has met the eligibility requirements to qualify as a beneficiary sub-Saharan African country.

Gabon's reinstatement as a beneficiary of AGOA follows its termination as an AGOA beneficiary on 29 December 2023, when US President Biden deemed Gabon was not making continual progress toward meeting the requirements to be classified as a beneficiary sub-Saharan African country.

Latest EU trade policy announcements

EU and Mexico sign interim trade agreement

On 22 May 2026, the EU and Mexico signed the EU-Mexico Modernised Global Agreement (MGA) and the EU-Mexico interim Trade Agreement (iTA) at the eighth EU-Mexico Summit in Mexico City, Mexico.

As part of the MGA and iTA, both parties agreed that:

• Mexico will protect 232 spirits and an additional 336 European Geographical Indications on wines, beers and food.
• The EU and Mexico will strengthen cooperation on supply chains for critical raw materials.
• EU businesses will be given the same market access as Mexican firms when bidding for Mexican government contracts.

Following the signature of the MGA and iTA, the EU and Mexico will follow their respective procedures to ratify the agreements. The MGA will be subject to ratification by all EU Member States.

EU Council and European Parliament reach provisional agreement on EU-US Joint Statement

On 20 May 2026, the EU Council presidency and the European Parliament reached a provisional agreement on two regulations aimed at implementing the tariff-related aspects of the EU-US Joint Statement.

The first regulation eliminates the remaining customs duties on US industrial goods and grants preferential market access including via tariff rate quotas and reduced tariffs for certain US seafood and non-sensitive agricultural products. The second regulation focuses on extending the duty suspension for imports of lobster.

The EU-US Joint Statement was agreed on 21 August 2025. Under the agreement, both parties have agreed that:

• The EU intends to eliminate tariffs on all US industrial goods and to provide preferential market access to a wide range of US seafood and agricultural goods, including dairy products, fresh and processed fruits and vegetables, and processed foods.
• The US commits to apply the higher of either the US Most-Favored Nation (MFN) tariff rate or a tariff rate of 15% on goods originating from the EU.
• The US will apply only the MFN tariff to unavailable natural resources, all aircraft and aircraft parts, and generic pharmaceuticals and their ingredients and chemical precursors.

Before entering into force, the provisional agreement on both regulations must be endorsed and adopted by the EU Council and the European Parliament.

Latest UK trade policy announcements

UK and GCC sign UK-GCC Free Trade Agreement

On 20 May 2026, the UK and the GCC signed the UK-GCC Free Trade Agreement (FTA).

Once the deal is fully implemented, the FTA will eliminate duties worth an estimated £580m per year on UK goods exported to the GCC, with the FTA removing an estimated £360m in duties on the first day of its entry into force.

The GCC is a regional political and economic bloc consisting of six member states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.