25 Jun 2026
by Archie Breare

Global Tech & Trade Policy Update

Keir today, Gone post-leadership contest 

The major news is that Prime Minister Keir Starmer announced on 22 June that he would be resigning as both leader of the Labour Party and Prime Minister. Nominations for a new Labour leader will open on 9 July and close for MPs on 15 July. If Andy Burnham is the only candidate, he will be confirmed as PM on 17 July, but if not there will be a leadership contest over the summer and a new PM installed in September ahead of party conference.  

Naturally, this has thrown a lot in the air. For a start, the UK-EU Summit planned for July has been postponed until the new PM is in place. Secondly, there is no certainty over what direction the next PM’s government will take on a range of policy areas. 

However, work by Politico’s Morning Trade Newsletter suggests a possible Burnham premiership would largely continue the current course of UK trade policy. Burnham’s positive comments about EU alignment suggest he will continue the push toward greater EU alignment initiated by Starmer.   

Burnham though may see a greater focus on devolved governments promoting international trade for companies in their regions. Burnham has done this himself with delegations to several American states as Mayor of Greater Manchester, while Sadiq Khan was out in Singapore and Japan promoting London on the week commencing 15 June, where he discussed AI with fellow Mayors AI Forum member Yuriko Koike, the Governor of Tokyo. 

techUK will be monitoring what Burnham and any other potential leadership candidates may mean for the UK’s trade policy as they make their views public. 

The Strait of Hormuz is open-ish 

As of now, the Strait of Hormuz is open to traffic

Brent crude has reached a lower price following the deal between the US and Iran that reopened the Strait. Beyond oil, the opening of the waterway is also good for supplies of helium, which is a key part of semiconductor production.   

The Strait’s status remains uncertain however as long term negotiations between the US and Iran continue. The UK and France meanwhile are working to ensure freedom of navigation for the Strait.  

Chinese commerce minister to visit the UK 

The UK will host Wang Wentao, the Chinese commerce minister, for the Joint Economic and Trade Commission dialogue between the UK and Chinese governments. 

The visit comes amidst tension between China and the EU on a range of things, from the EU’s digital sovereignty proposals to the end of de minimis and disputes over steel.  

Politico reports the focus will be on easing and growing trade in services, with the UK continuing its policy of co-operation where possible and challenging where necessary.  

EU Parliament votes on EU-US Trade Deal 

On 16 June, the European Parliament voted by 440 votes to 151, with 50 abstentions, to support the EU Commission’s trade deal with the United States. This came despite last minute wrangling over the deal and the threat of American tariffs on France to force a repeal of their Digital Services Tax.  

The agreement eliminates tariffs on a wide range of US good in exchange for a 15% US tariff to apply broadly to European goods. The deal was approved by MPs with two changes, namely the inclusion of a ‘sunset clause’ will mean that the deal will expire on 31 December 2029, unless renewed, and second is for ‘clear conditions’ for tariff reductions on products on steel and aluminium. 

European member states now need to approve the deal before the 4 July deadline for the EU to support the agreement. 

Other agreements entering into force 

Thanks to a meeting between Keir Starmer and Indian Prime Minister Narendra Modi on the fringe of the G7 Conference in Evian, the UK and India now have a commencement date for the FTA between the two countries to enter into force. The UK-India FTA will enter into force on 15 July. 

techUK supports the FTA as a landmark diplomatic success, but we urge the Government to continue to develop the deal further and to build on the foundations offered in order to make it truly transformational for UK tech businesses.  

Meanwhile, the 22nd of June saw the entry into force of CPTPP terms between the UK and Mexico. Mexico has become the latest country to ratify the terms of UK entry to the CPTPP, following the visit of the Mexican trade minister to London earlier this year.  

Export of frontier AI models banned by the US 

On 12 June, the US Department of Commerce placed an effective bar on exports of Fable 5 and Mythos 5 to customer outside the United States. The measure keeps Anthropic’s most advanced AI models available out of the hands of non-Americans, including non-Americans in the United States employed by Anthropic.   

The EU Commission and Anthropic have both protested the ban, which may become a de facto licensing regime for frontier AI in the USA and shows the power of the US Government’s ‘kill switch’ in digital technologies. 

The decision was not mentioned the G7 Summit in Evian, where a working lunch of G7 leaders and AI executives focused on collaboration to create an AI governance framework that would maximise growth while addressing any risks to build trust.  

UK begins DTA negotiations with Malaysia 

Not content with implementing existing trade deals, the UK Government has decided to go after some more. The UK and Malaysia launched negotiations on 22 June aimed at creating a full digital trade agreement. The deal will likely look at securing data flows and providing data protection guarantees to ease digital services trade between the two countries.  

UK bringing forward the end of de minimis 

De minimis died in August last year in the USA, will be abolished in July 2026 in the EU, and now the UK has oved its own date 6 months forward to October 2028. The reforms are designed to close a customs loophole allowing some businesses to use small package deliveries to circumvent customs duties on imports. 

New UK Trade Commissioner to Africa 

Alastair Long has been appointed His Majesty’s Trade Commissioner for Africa, following a stint of service in Bahrain as ambassador from August 2023. Long has experience of the role before, serving as Deputy and then Acting Trade Commissioner for Africa between 2019 and 2022. He replaces John Humphrey.  

The UK signs critical minerals deal with Ontario 

It was announced that Ontario’s Minister of Energy and Mines, Stephen Lecce signed a Statement of Intent with Parliamentary Under-Secretary of State for Industry Chris McDonald to build secure critical mineral supply chains. This is part of the UK’s attempt to diversify supply chains but we will see how this statement of intent can be transformed into reality.  

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Meet the team 

Sabina Ciofu

Sabina Ciofu

International Policy and Strategy Lead, techUK

Daniel Clarke

Daniel Clarke

Senior Policy Manager for International Policy and Trade, techUK

Theophile Maiziere

Theophile Maiziere

Policy Manager - EU, techUK

Archie Breare

Archie Breare

Policy Manager - Trade, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK

 

Authors

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.

Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a  master's degree in Modern British History.

In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.

Email:
[email protected]
LinkedIn:
linkedin.com/in/archie-breare-512346230

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