13 July 2026 Trade Talking Points | Latest insights from EY's Trade Strategy team (9 July 2026) This edition of Trade Talking Points provides updates on trade policy developments, including the United States Trade Representative's issuing a statement on the United States-Mexico-Canada Agreement (USMCA) Joint Review, the European Commission's presenting the European Union (EU)-Indonesia Comprehensive Economic Partnership Agreement and Investment Protection Agreement to the Council of the EU, and Canada's ratifying the United Kingdom's (UK's) accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. USTR holds public hearing on proposed action in the Section 301 investigation into failures to take action on trade in forced-labor goods On 7-9 July 2026, the Office of the US Trade Representative (USTR) held public hearings regarding the proposed responsive action in the Section 301 investigations into the acts, policies and practices of 60 economies. This relates to the alleged failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. (For background on the investigation, see EY Global Tax Alert, USTR issues Section 301 determinations on forced-labor investigations across 60 economies; additional duties proposed and comment period open, dated 3 June 2026.) The public hearings gave interested parties the opportunity to present evidence and opinions regarding the action proposed by the USTR, while also allowing the USTR to gather evidence and assess the impact of its proposed measures on stakeholders. The investigation covers the 60 largest trading partners of the US, including China, the European Union, India and the UK. On 6-7 July 2026, the Office of the USTR held public hearings regarding the proposed responsive action in the Section 301 investigation into Brazil's acts, policies and practices. Areas in scope included digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation. (For background on the investigation, see EY Global Tax Alert, USTR issues Section 301 determination on Brazil, initiates Section 301 IP investigation into Vietnam; tariffs proposed and comment periods open, dated 2 June 2026.) The public hearings gave interested parties the opportunity to present evidence and opinions regarding the action proposed by the USTR, while also allowing the USTR to gather evidence and assess the impact of its proposed measures on stakeholders. On 1 July 2026, the USTR, Jamieson Greer, issued a statement on the USMCA joint review held the same day. USTR Greer confirmed that the US did not agree to renew the USMCA in its current form, due to the existing US trade deficit with Mexico and Canada and other perceived shortcomings of the USMCA. Greer also confirmed that the US will continue to engage with Mexico and Canada to address US concerns. The agreement remains in force pending resolution of those concerns or until the USMCA's termination on 1 July 2036. The US will meet with Mexico the week of 20 July 2026 to commence the third round of bilateral negotiations related to the USMCA joint review. The USMCA is a free trade agreement between the US, Mexico and Canada, which entered into force on 1 July 2020. On 29 June 2026, President Trump issued a proclamation declaring an emergency in response to concerns over the availability of phosphate fertilizers needed to meet expected agricultural demand in the US. The proclamation recognizes disruptions in global phosphate fertilizer supply chains, together with insufficient production of US-made phosphate fertilizer to support domestic agricultural food production. To address these issues, the proclamation authorizes the temporary suspension of certain anti-dumping and countervailing duties on imports of phosphate fertilizers from Morocco for eight months or until the emergency is terminated, whichever occurs first. Morocco has been afforded temporary duty-free treatment for phosphate fertilizer imports because the Trump Administration identified Morocco as a country capable of supplying phosphate fertilizer to the US without disruption. On 25 June 2026, the US and Uzbekistan agreed to trade commitments to strengthen their bilateral economic, trade and investment relationship.
On 1 July 2026, the EU introduced a new Steel Regulation to protect the sector from the effects of global overcapacity. The regulation caps the volume of steel that can enter the EU duty-free at 18.3 million metric tonnes per year. Half of the EU's annual import quota of 18.3 million tonnes has been reserved exclusively for trading partners with a Free Trade Agreement (FTA) with the EU. The remaining half is available to all trading partners without discrimination, including FTA partner countries. On 29 June 2026, the European Commission presented its proposals on the Comprehensive Economic Partnership Agreement (CEPA) and the Investment Protection Agreement (IPA) with Indonesia to the Council of the EU for signature and conclusion.
Pending approval from the Council of the EU, the CEPA and IPA will require the European Parliament's consent before their conclusion and entry into force. Indonesia will also be conducting its own internal ratification procedures. On 3 July 2026, the Canadian Minister of International Trade, Maninder Sidhu, announced Canada's ratification of the Protocol on the Accession of the UK to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Canada's ratification of the UK's accession to the CPTPP will complement the existing Canada-UK Trade Continuity Agreement, providing British and Canadian businesses with increased opportunities in goods, services and investment. The CPTPP is a trade bloc comprising 12 member nations, including Australia, Canada, Japan and the UK. On 1 July 2026, the UK Government implemented a new steel trade measure limiting tariff-free steel imports by reducing the overall quota volume by 51% compared to the previous steel safeguard measure, which ceased to apply on 30 June 2026. The regulation aims to protect the UK steel sector from the impact of global overcapacity. Following the announcement of the measure on 19 March 2026, the UK Government engaged closely with the EU ahead of the new EU steel trade measure and agreed on an approach that reflects the highly interconnected nature of the UK and EU supply chains. The updated steel trade measure applies a tariff-rate quota to 20 product categories. Any imports exceeding the quota volume will be subject to a 50% import tariff. The right to access the quota is granted by His Majesty's Revenue and Customs (HMRC) to importers in the UK on a "first-come, first-served" basis.
Document ID: 2026-1474 | ||||
