Global Tech & Trade Policy Update

This is the final Global Tech and Trade Policy Update of the year. Thank you for reading our updates throughout 2025, hope we helped make the world of trade make a little more sense in a year that was anything but stable on that front.

1. UK–US Technology Prosperity Deal (TPD) — current status

The Technology Prosperity Deal signed by the UK and the US in September is currently on hold. Implementation has been paused by the United States following complaints related to broader trade disagreements. The suspension means ministerial-level activities and other commitments under the deal are pending further engagement between the parties. There has been no formal termination; rather, both sides are expected to continue dialogue in the coming months.

Why it matters:
The TPD is intended to facilitate cooperation on digital and tech policy between two major markets. The pause introduces uncertainty around near-term delivery.

2. US–EU digital trade tensions also escalate

The United States Trade Representative’s office has publicly threatened direct retaliation in response to EU digital regulatory rules that it considers burdensome for US firms. A list of major European companies was highlighted in this context, marking a step up in rhetoric between the jurisdictions.

The European Commission has maintained that EU rules apply equally to all firms regardless of origin. Brussels and Washington remain in ongoing discussions covering digital regulation, market access and enforcement practices, but specific tensions over enforcement and reciprocity persist.

3. WTO reform push: Most-Favoured-Nation principle under scrutiny

The United States has circulated a detailed communication to members of the World Trade Organization (WTO) arguing that the Most-Favoured-Nation (MFN) principle is outdated and that the institution needs comprehensive reform. The paper asserts that MFN does not accord with current global trade realities and calls for expanded reform discussions that also cover security exceptions, overcapacity and supply chain resilience.

The move comes ahead of the WTO’s Ministerial Conference in March 2026, where reform of the organisation is expected to be the main agenda item. The US position challenges a long-standing cornerstone of WTO law, which generally requires equal trade treatment among members absent specific exceptions under WTO rules.

Negotiations on an updraded UK–South Korea free trade agreement have concluded this week. The deal includes significant provisions relevant to digital trade and services:

These enhancements reflect the growing integration of digital and services rules in modern trade agreements.

5. Registration open: techUK Delegation to India AI Impact Summit 2026

Registration is now open for the techUK Delegation to New Delhi, coinciding with the India AI Impact Summit 2026 (16–20 February 2026). The delegation is open to both techUK member and non-member companies. Participants will receive:

6. Tech from unexpected places: Sweden’s Skövde gaming ecosystem

Finally, on a lighter note, Sweden’s city of Skövde has gained attention as a growing hub for video game development, with studios producing globally recognised titles and building a dynamic local digital creative sector.

We wish you restful holidays and look forward to guiding you through another year of developments in global tech and trade policy.

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.