Global Tech and Trade Policy Update
Welcome to the end of July edition of our Global Tech and Trade Policy Update. With summer well underway, we hope you’re managing to take a well-earned break or have one on the horizon. Before we pause for August, here’s a roundup of the latest developments shaping the global tech and trade policy landscape.
1. UK–India Free Trade Agreement Signed
After more than three and a half years of negotiations, the UK and India signed their long-awaited Free Trade Agreement (FTA) on 24 July 2025. This is India’s most ambitious bilateral trade agreement to date, marking a geopolitical win for the UK and a strategic shift for India.
The agreement includes chapters on digital trade, services, telecommunications, intellectual property, and government procurement. It opens up one of the fastest-growing economies in the world to UK tech businesses, albeit with some limitations.
Our initial analysis can be read here.
2. EU Prepares for Retaliation if US Imposes 30% Tariffs
With the 1 August deadline looming, the European Commission has laid out a staggered countermeasure plan in case the US proceeds with its threatened 30% blanket tariff on EU goods under Section 232.
Should the US proceed, the EU's response would unfold as follows:
7 August: Tariffs of up to 25% on US steel, aluminium, and agri-food products.
7 September: 25–30% tariffs on US cars, car parts, glues, graphite, and non-alcoholic beer.
1 December: 25% duties on soybeans and almonds.
7 February 2026: Further retaliatory duties on live animals, chemicals, and iconic American products, including Bourbon whiskey.
The Commission also plans:
Export bans on scrap iron, steel, and aluminium.
Proportional application under WTO rules, as the US “safeguards” do not conform to WTO standards.
Avoiding disruptions to EU industries by phasing measures to give businesses time to adapt.
3. EU–Indonesia CEPA Political Agreement Reached
On 13 July 2025, the EU and Indonesia reached a political agreement on their long-standing Comprehensive Economic Partnership Agreement (CEPA). This marks a breakthrough after years of intermittent progress, driven by renewed high-level political engagement.
Highlights from the agreement:
Market Access: Strong commitments from Indonesia in goods, services, investment, telecoms, and computer services – considered its most ambitious offer to date.
Digital Trade: Full chapter including cross-border data flows, ban on localisation, permanent moratorium on customs duties for digital goods.
Public Procurement: Strong rules but limited access commitments.
The deal is expected to be finalised by September 2025, followed by legal text publication and formal ratification. Entry into force is targeted for Q1 2027, though this is not guaranteed.
The Commission also highlighted the importance of close business engagement in shaping and implementing CEPA and is monitoring US–Indonesia trade negotiations for potential implications.
4. Trump’s AI Action Plan
The White House this month released “America’s AI Action Plan” – a sweeping document that blends industrial policy with national security rhetoric.
Key points:
Repeats “AI Made in America” mantra, aiming to onshore semiconductor manufacturing, AI model training, and data storage.
Proposes mandatory AI supply chain audits for federal contractors.
Calls for a federal data localisation mandate for AI training datasets sourced with US public funding.
Asserts the US right to restrict AI-related outbound investment and export of “strategic algorithms.”
While the plan contains ambitious goals around workforce development and innovation incentives, it has raised concerns around its unilateral and potentially protectionist tone. There is also significant uncertainty around how enforceable many of its ideas are without new legislation.
Enjoy the Holidays – We'll Be Back in September
That’s all for July – and for the summer. We’ll be pausing our updates during August and returning in September, ready to bring you more insights on global tech and trade.
Until then, enjoy the break and recharge!
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