Global Tech & Trade Policy Update

28-29 May saw both the TECH7 Summit and the G7 Digital Ministers meeting take place in France, this year’s G7 host country.

The G7 Tech Ministers meeting took place in Evian on 29 May, which has agreed the broad digital priorities that the G7 will work towards at the full heads of state and government meeting from 15-17 June.

The TECH7 is an initiative begun by techUK in 2021 during the UK’s latest G7 presidency, and brings together the leading tech trade associations from each of the G7 countries and the EU.

This year’s summit saw the launch of our latest TECH7 joint statement outlining our recommendations to the G7 addressing eight major strategic areas:

We were glad to see many of the TECH7’s recommendations included in the final G7 declaration and we look forward to working with the G7 on these items of work.

US Section 301 Investigations spur further tariff proposals

On 2 June, the United States Trade Representatives announced the outcome of 60 investigations under Section 301 of the 1974 Trade Act. The US has determined that all 60 investigated economies were not doing enough to tackle forced labour in their supply chains and is proposing additional tariffs and duties on each as a result.

The Section 301 investigations are the latest attempt by the US administration to legally justify the Trump Administration’s tariffs. Each economy will now be subject to a hearing on the 7 July and, if found to not be tackling forced labour in supply chains, economies could face tariff increases of 10% -12.5%. While the EU was found not have enforced a prohibition on importation of good made from forced labour, the UK was also found not to have imposed a sufficient prohibition in law.

It is likely therefore the UK will be subject to additional tariffs, but the Government should also see this as a reason to update the Modern Slavery Act with reforms that align the UK with the EU, given the EU was deemed to have been a law imposed on prevention of forced labour.

Politico reports that the EU is assembling a group of digital partnerships around the world amongst other middle powers in order to reduce reliance on the United States and China.

The EU is set to launch a digital partnership with Brazil, the notable obstacle to an agreement on the continuation of the e-commerce moratorium at MC-14 in Yaoundé. The EU is attempting to create multilateral partnerships between partners to form a tech ecosystem of their own.

These digital partnership initiatives follow negotiations between the EU and CPTPP countries not to escalate tariffs on one another in a bid to reduce the impact of any US tariffs.

techUK will be pushing for the UK to be a leading part of this coalition of the middle powers and to ensure it secures a digital partnership with the EU that reflects the mutual importance of the EU and UK’s digital sectors to each other.

UK-EU Reset summit still not finalised

Despite the move toward closer middle-power relations, the EU-UK summit, which the UK Government wishes to act as a reset with the EU, still has no firm date. The summit has been in the news recently as the sides try to agree what’s on the table before a July summit becomes impossible.

It has been reported that the EU has rejected the possibility of a single market for goods and that, despite expected agreement on phytosanitary standards and carbon trading schemes, youth mobility remains a sticking point for the UK.

UK Business and Trade Secretary Peter Kyle has meanwhile called for the UK to agree a tech pact with the EU in a similar manner to the Tech Prosperity Deal negotiated with the United States to ensure fast delivery of tech goals on both sides of the Channel.

The EU has signed an enhanced Economic Partnership Agreement with four members of ESA: Comoros, Madagascar, Mauritius and Seychelles. This is the first EU trade agreement with African countries to include commitments on services trade and the first with countries in Sub-Saharan Africa.

The agreement includes provisions on digital trade, including provisions preventing the application of customs duties on electronic transmissions and banning data localisation requirements. Aside from this, the agreement covers intellectual property through a new framework and strengthened enforcement tools, promotes access to public procurement opportunities and also includes chapters on environmental sustainability, labour rights and responsible business conduct.

The EU hope the agreement will set a precedent for future negotiations with African countries and have left the agreement open for other ESA nations to join.

DBT announces new incentives for UK scaleups

London Tech Week also saw the UK Government announce a series of measures designed to support UK scaleups, including a ‘concierge service’ to provide assistance to growing companies.

Amongst the announced measures was a visa reimbursement scheme to help scaleups bring in any necessary talent.

techUK will be publishing our full reaction to the measures next week, so keep an eye out.

UK signing critical minerals pacts

The British Geological Survey has signed an MoU with Ukraine’s Geology and Mineral service to facilitate critical minerals collaboration. Meanwhile Politico reports that the UK and South Korea are close to a critical minerals partnership, as they seek to diversify their supply chains.

Critical minerals diversification is a hot topic right now, especially with the G7 summit in Evian around the corner where critical minerals are on the agenda.

The ECA unites countries representing more than half of all global trade and is designed to facilitate free open and trusted cross-border digital trade. At MC-14 in Yaoundé, 67 co-sponsors of the ECA announced they would implement the ECA through interim arrangements, pending its introduction into the WTO rulebook.

The meeting on 9 June saw an ‘ambitious but feasible target’ of bringing the agreement into force by mid-2027. The group would then continue work to incorporate the agreement into the WTO’s legal framework.

Argentina applies to join the CPTPP

Argentina has applied to join the CPTPP trading partnership, which includes the UK.

The move comes as part of Argentina’s general policy of liberalising trade under President Javier Milei, with Argentina supporting free trade deals between Mercosur and the EU alongside this push to join the CPTPP.

Argentina is the latest Latin American applicant to the CPTPP, joining Uruguay and the recently acceded Costa Rica in seeking entry to the bloc. Mexico has also finished ratifying UK entry, allowing the UK to trade with Mexico on CPTPP terms from 22 June 2026.

techUK International Policy and Trade Programme activities

techUK supports members with their international trade plans and aspirations. We help members to understand market opportunities, tackle market access barriers, and build partnerships in their target market. Visit the programme page here.