THE EUROPEAN UNION IS UNDERGOING A STRUCTURAL OVERHAUL OF THE CARBON MARKET TO STRENGTHEN ITS RESILIENCE AND STABILISE PRICES. (1 April 2026)
The European Commission has presented a legislative proposal to strengthen the EU Emissions Trading System (EU ETS) by amending the Market Stability Reserve (MSR), a measure designed to protect European industry from extreme volatility in carbon prices. Until now, the system included an ‘automatic cancellation mechanism’. This meant that if the reserve accumulated more than 400 million emission allowances (permits to pollute), the excess was destroyed. Those permits disappeared forever, reducing the total supply and forcing the price of carbon to remain high.
The reform involves removing the automatic cancellation mechanism for emission allowances exceeding the 400-million-unit threshold in the reserve, allowing these to act as a strategic buffer to inject liquidity into the market during periods of scarcity.
According to Climate Commissioner Wopke Hoekstra, this adjustment is a vital step towards improving the system’s resilience and ensuring that decarbonisation proceeds in harmony with the competitiveness of EU businesses.
For the European industrial sector, particularly those plants subject to compliance with the EU ETS in the cement, steel, glass and chemical sectors, this proposal provides greater cost predictability in the medium term. By smoothing out price fluctuations, companies can plan their investments in low-carbon technologies with lower financial risk, thereby preventing the phenomenon called ‘carbon leakage’ to countries with less stringent climate regulations. Companies must pay attention to the new limit values for net greenhouse gas removals set for the period 2026–2029, as these will define the total supply of allowances on the market and, therefore, the economic incentive for the green transition.
For all these reasons, companies should monitor the adoption of this Regulation, as it will be essential for environmental compliance and energy departments during the second quarter of 2026.
https://ec.europa.eu/commission/presscorner/detail/en/mex_26_769
THE UNITED STATES STRENGTHENS PROTECTION FOR ITS METALLURGICAL INDUSTRY WITH A COMPREHENSIVE REFORM OF THE TARIFFS UNDER SECTION 232 OF THE TRADE EXPANSION ACT. (2 April 2026)
The US government, under the administration of President Donald Trump, has announced a structural overhaul of the tariffs imposed under Section 232 of the Trade Expansion Act of 1962, which will affect imports of steel, aluminium, copper and their derivative products.
Through a presidential proclamation issued on 2 April 2026, effective from 6 April, a fundamental change is established in the taxing basis for these liens: ad valorem tariffs will no longer be calculated based exclusively on the value of the metal content but will instead be applied to the total customs value of the imported goods. This measure seeks to address the undervaluation of the lien by foreign exporters— mainly those from jurisdictions that use subsidies to flood the US market with metal products at artificially low prices, thereby undermining US domestic production capacity.
This amendment represents one of the most significant changes to customs valuation policy in the last decade. The new regime imposes a 50% tariff on the total value of products composed entirely of steel, aluminium or copper, such as coils, sheets and extrusions. For derived products (those containing a substantial proportion of these metals), a rate of 25% is set on the total value, closing the legal loophole that allowed importers to declare only the value of the raw metal component.
For Spanish companies in the metallurgical, automotive and industrial components sectors, this change implies a direct increase in the costs of exporting to the US market. On the one hand, they will face a higher barrier to entry in terms of price; on the other, a strategic opportunity arises for those companies that can certify the use of metals sourced from countries with favourable trade agreements or from the US itself.
SPAIN AND ALGERIA RECONFIRM THEIR STRATEGIC ALLIANCE WITH THE REVITALISATION OF TRADE AND ENERGY TIES (10 April 2026)
The Spanish Confederation of Business Organisations (CEOE) and the Algerian Council for Economic Renewal (CREA) have signed a framework cooperation agreement in Madrid aimed at boosting trade and direct investment, symbolising a return to diplomatic and economic normality between the two countries.
This development follows the successful official visit by the Minister of Foreign Affairs, José Manuel Albares, to Algiers last March, during which the strategic importance of Algeria as Spain’s main supplier of natural gas was reaffirmed, guaranteeing not only the continuation of current contracts but also an increase in supply volumes to compensate for the permanent withdrawal of Russian gas from the European energy mix. This restores the necessary legal certainty for Spanish economic operators to regain their position in a market which, in 2025, already saw exponential growth of 270% in Spanish exports.
The collaboration between the CEOE and the CREA aims to dismantle the administrative barriers that have affected Spanish companies in sectors such as agribusiness, construction and water management. The agreement provides for the creation of technical working groups to streamline import permits and facilitate the repatriation of dividends for Spanish investors, an issue that has at times proved complex.
Algeria has once again authorised the large-scale import of live livestock (mainly sheep) from Spain, which comes as a relief to the Spanish livestock sector. Furthermore, the opening of a new Cervantes Institute office in Algiers and the tribute to Spanish Republican exiles underscore that the trade relationship is underpinned by a political commitment to cultural and social integration. For exporters, the recovery of the Algerian market means positioning themselves in a strategic hub connecting Europe with the Maghreb and sub-Saharan Africa, taking advantage of the gas pipeline infrastructure and the new maritime routes being strengthened for the transport of goods and clean energy.
AFCFTA ACCELERATES AFRICAN INTEGRATION WITH RECORD TRADE FORECASTS FOR 2026. (11 April 2026)
The African Continental Free Trade Area (AfCFTA) is transforming the continent’s economic landscape, with projections placing intra-African trade at $230 billion by the end of 2026, a 10% increase on the previous year.
This growth is driven by the effective implementation of the Pan-African Payment and Settlement System (PAPSS), a financial infrastructure that enables trade transactions to be conducted in local currencies, eliminating the need for intermediary currencies such as the dollar or the euro and reducing transaction costs by 20% to 30%. Nigeria, the region’s largest economy, has taken a leading role by signing the agreement to host the Intra-African Trade Fair 2027 (IATF2027) in Lagos, an event expected to generate investment deals worth over $50 billion.
The AFCFTA represents an unprecedented harmonisation of regulations across the continent’s 54 countries, addressing issues of intellectual property, investment protocols and, crucially for businesses, rules of origin certification.
The Nigerian Customs Service has launched technical training programmes to ensure that local businesses and foreign investors can correctly certify the origin of their goods. For companies from the rest of the world involved in machinery manufacturing, food processing and renewable energy, this market of 1.4 billion people offers the opportunity to establish industrial hubs in countries such as Nigeria to serve the entire region under a coherent and predictable legal framework.
According to a report published on 30 March 2026 by the African Export-Import Bank (Afreximbank), although raw materials continue to dominate exports outside the continent, intra-regional trade is shifting towards manufacturing and processed agri-food products, sectors that will account for nearly 50% of the total by 2026. This trend favours the creation of regional value chains. However, the report highlights that a trade finance gap persists, as well as significant trade infrastructure needs, which must be addressed to unlock the $433.8 billion export potential that Africa has yet to tap into.
THE EUROPEAN COMMISSION INVESTS €1.07 BILLION IN DEFENCE PROJECTS TO STRENGTHEN STRATEGIC RESILIENCE. (15 April 2026)
As part of a strategic initiative aimed at strengthening the European Union’s technological autonomy and defence industrial base, the European Commission has announced the allocation of €1.07 billion to fund 57 high-value-added R&D&I projects under the European Defence Fund (EDF).
This funding, which is in line with the objectives of the Defence Readiness Roadmap 2030, will focus on four areas:
- The European Defence Initiative against Drones. The aim is to develop European capabilities to detect, identify, neutralise and secure airspace against threats from unauthorised drones.
- The Eastern Flank Observatory, conceived as an advanced surveillance and early warning system for the eastern part of the Union, combining observation satellites, long-range drones, ground sensors and near-real-time data networks. Its purpose is to strengthen the EU’s capacity to monitor troop movements, military infrastructure and potential threats along the eastern borders.
- The development of advanced artificial intelligence (AI) systems. The funded projects aim to create robust, secure AI systems that are ethically aligned with European regulations, applicable to threat prediction, operational planning, predictive equipment maintenance, satellite image analysis and the automatic processing of large volumes of intelligence data.
- Cyber defence, which includes the protection of critical infrastructure (energy, communications, transport) and command and control systems against cyberattacks, whether state-sponsored or carried out by private individuals.
Of the total amount, €675 million will support 32 military capability development initiatives, whilst €332 million will be allocated to 25 basic and applied research projects, ensuring that Europe leads the next generation of technologies critical to security.
EDF regulations require mandatory cooperation between at least three entities from different Member States, which promotes the integration of defence supply chains across the continent and reduces duplication of costs.
Furthermore, the issuance of €9 billion in EU bonds to finance these policy priorities underscores Brussels’ commitment to a more resilient Europe, capable of responding to current threats.
https://ec.europa.eu/commission/presscorner/detail/en/mex_26_816
SPAIN LEADS INFRASTRUCTURE COOPERATION WITH MAURITANIA FOLLOWING BUSINESS MEETING IN MADRID. (17 April 2026)
The Spain-Mauritania Business Meeting, held at the headquarters of the Spanish Chamber of Commerce in Madrid, has consolidated our country’s position as the leading strategic partner for the development of critical infrastructure in the Sahel.
The Mauritanian Minister for Equipment and Transport, Ely Ould El Veirik, presented an ambitious portfolio of projects to a delegation of more than 80 Spanish companies, including the construction of new motorways, the modernisation of logistics networks and the development of port infrastructure under a public-private partnership model. Spain is currently Mauritania’s main client within the European Union and its third-largest global supplier, with a relationship that goes beyond trade to encompass security, sustainable fishing and the transition to renewable energy, particularly green hydrogen.
This new framework for cooperation has been established, in part, thanks to the work of the Spanish-Mauritanian Business Committee (CAMES), which acts as an arbiter and facilitator to ensure that commercial contracts between the two countries are executed in accordance with international standards of transparency and legal certainty.
Furthermore, the Mauritanian government has expressed its firm commitment to removing certain bureaucratic and administrative barriers to attract the expertise of Spanish engineering and construction firms, which it invites to participate not only as contractors but as stable, long-term partners. Therefore, according to the president of the Spanish Chamber of Commerce, José Luis Bonet, Spanish companies have a strategic opportunity to diversify their markets in a country that acts as a bridge between the Maghreb and West Africa, and which offers exceptional political stability in the Sahel region.
US AND MEXICO INTENSIFY USMCA NEGOTIATIONS AMID PRESSURE OVER RULES OF ORIGIN AND ASIAN COMPETITION. (20 April 2026)
The United States Trade Representative (USTR), Jamieson Greer, has made an official visit to Mexico City, where he met with President Claudia Sheinbaum and the Secretary of Economy, Marcelo Ebrard, to define the roadmap for the joint review of the United States-Mexico-Canada Agreement (USMCA) scheduled for July 2026.
Greer has told Mexican industry leaders that the tariffs imposed on steel and cars ‘are here to stay’, ruling out any possibility of returning to a tariff-free environment. The US administration is seeking to tighten the rules certifying the origin of products, to ensure that added value is effectively generated within the North American region and does not serve as a “re-export hub” for Asian electric vehicles and electronic components.
Under the Treaty’s review clause, the three countries must agree to the 16-year extension before 1 July; otherwise, the USMCA would enter a cycle of annual reviews until its possible expiry in 2036. This uncertainty is putting pressure on Mexico to adopt measures to control dumping of Chinese steel and restrict access to its market for subsidised electric vehicles if it wishes to maintain preferential access to the US market.
The reindustrialisation narrative being promoted by Washington, based on the concept of ‘friend-shoring’ or ‘near-shoring’, aims to bring production back from Asia to the North American bloc.
However, this hardening of the US stance poses a critical challenge to the viability of transatlantic supply chains. The requirement to achieve a Regional Content Value (RCV) of up to 75% for cars, and more specifically, the steel and aluminium content requirements that must now be assessed under the new Section 232 criteria, is forcing companies to reconsider their sources of raw materials.
THE EU-INDIA FREE TRADE AGREEMENT OPENS A NEW ERA OF STRATEGIC OPPORTUNITIES FOR SPANISH EXPORTS. (24 April 2026)
The successful conclusion of negotiations for the Free Trade Agreement (FTA) between the European Union and India, formally signed in New Delhi on 27 January 2026, marks the start of a ratification and impact assessment phase that places Spain in a position of unprecedented competitive advantage in the Indo-Pacific market.
Described by both parties as the most ambitious trade agreement in their history, the treaty provides for the elimination or reduction of tariffs on 97% of European tariff lines, which will enable EU exporters to save approximately €4 billion annually in customs duties. For the Spanish economy, this regulatory framework opens the doors to a nation of 1.5 billion inhabitants projected to become the world’s third-largest economy by 2030, offering privileged access to sectors where Spain is a leader, such as agri-food, infrastructure, renewable energy and the defence sector.
The wine sector, which has historically faced a prohibitive tariff of 150%, will see this rate reduced to 30% for mid-range products and 20% for high-end products, whilst olive oil, fruit juices and processed foods will benefit from an immediate total elimination of duties upon the agreement coming into force. Beyond tariffs, the treaty regulates issues relating to intellectual property and designations of origin, which will protect Spanish brands from unfair competition and potential imitations in the Indian market. Furthermore, the simplification of customs procedures and the digitisation of certificates of origin will significantly reduce administrative costs and processing times for companies wishing to export their products.
The sustainability dimension of the agreement is equally innovative, as it links market access to a mutual commitment to implement the Paris Agreement and the International Labour Organisation’s (ILO) core conventions on labour rights. For Spanish engineering and renewable energy companies, this commitment translates into a more stable and transparent regulatory environment for participating in India’s energy transition megaprojects, which include ambitious plans for solar and wind energies, and green hydrogen.
Foreign direct investment flows from the EU to India are expected to increase by €100 billion over the next decade, creating one million jobs and strengthening the EU’s economic security by diversifying supply chains away from China.
JAPAN RELEASES ITS STRATEGIC OIL RESERVES FOR THE SECOND TIME. (24 April 2026)
Japan’s Ministry of Economy, Trade and Industry (METI) has launched a series of far-reaching measures to shield its economy from geopolitical instability and protect its technological advantages.
Among these measures, the decision to release a second, significant tranche of its strategic oil reserves (5.8 million kilolitres, equivalent to 20 days of domestic consumption) from 1 May 2026, to be delivered sequentially to the country’s four major oil companies, with the aim of stabilising the energy supply and mitigating inflationary pressures on its manufacturing sector.
This is the second intervention of this kind since the start of the conflict in Iran in February, following the release in March which already put the equivalent of one month’s consumption into circulation. The Japanese Ministry of Economy states that they intend to increase purchases from the United States, with the aim of ensuring that at least more than half of its oil enters the country via routes that do not pass through the Strait of Hormuz.
Prime Minister Sanae Takaichi has emphasised that these measures will enable Japan to guarantee crude oil supplies beyond the end of the year, bolstering business confidence and the stability of the domestic market against a backdrop of geopolitical tension and volatile prices.
THE SPANISH PRIME MINISTER OPENS THE ‘INVEST IN SPAIN SUMMIT’ INTERNATIONAL FORUM. (27 April 2026)
The Prime Minister, Pedro Sánchez, has opened the second edition of the ‘Invest in Spain Summit’ forum, held in Madrid. He highlighted that Spain combines political stability, sustainable economic growth, resilience to crises and steadily improving public finances, making it an attractive haven for international investors seeking legal certainty and predictability. This appeal to foreign investment is based on:
- High economic growth, which remains among the highest in Europe.
- A dynamic labour market, supported by data on net job creation and falling unemployment.
- Progress on the green agenda, driven by European and decarbonisation funds.
- The quality of infrastructure.
- The modernisation of the energy sector.
- Investment in public services such as education, healthcare and transport.
The Prime Minister has gone so far as to compare Spain to a hypothetical “listed company”: according to his calculations, if one had invested in Spain since 1960, the return would be the highest among the major developed countries, reinforcing the idea that the country is a long-term asset and not merely a short-term investment destination. This message, aimed at some 75 multinationals from 25 countries, seeks to consolidate Spain’s image as a logistics and technology hub, capitalising on its geographical position, its distribution network and its growing specialisation in sectors such as renewables, digitalisation and the blue economy
In short, and as explained by the Government, the aim is to transform the international perception of Spain from a mere ‘tourist destination’ to a strategic investment hub, capable of attracting foreign capital in high value-added sectors and of withstanding external shocks arising from wars, trade tensions and financial crises better than other markets.
*******************************************
In Madrid, 30 April 2026
International Trade and Sanctions Department
Lupicinio International Law Firm
