THE 17TH BRICS SUMMIT IS HELD IN RIO, MARKED BY THE EXPANSION OF THE GROUP (2025-07-07)
The 17th BRICS summit in Rio de Janeiro on 6 and 7 July brought together leaders from Brazil, India, China, South Africa, Russia and Indonesia ―the latest permanent member to join in January 2025― to strengthen cooperation on trade, investment, artificial intelligence (AI) and global governance. A declaration on international AI governance was adopted and it was agreed that India will assume the presidency in 2026. The summit concluded with a strong message in favour of multilateralism and a profound reform of international institutions. The meeting brought together eleven members following the recent expansion of the group, although it was marked by the notable physical absences of Xi Jinping and Vladimir Putin, who were represented virtually or by their ministers.
In their final declaration, comprising 126 points, the leaders called for changes to the UN, the IMF and the World Bank, bodies they consider outdated with the growing economic weight of the Global South. They also spoke out against trade protectionism and unilateral tariff measures, instead committing to strengthening the use of local currencies in transactions and moving towards a financial architecture less dependent on the dollar.
The summit highlighted the importance of a more inclusive and multipolar international order, rejecting both the growing militarisation of conflicts such as those in Ukraine and the Middle East and the paralysis of the multilateral system. Although they avoided directly confronting the United States, the leaders implicitly supported Russia in the face of Western criticism and called for resolving conflicts through dialogue and diplomacy.
Beyond politics, the BRICS countries highlighted the need to boost cooperation in key areas such as energy transition, artificial intelligence and technological innovation, reaffirming their willingness to position themselves as an alternative to Western economic and regulatory leadership.
IRAQ ACTIVATES THE TIR SYSTEM: NEW LOGISTICS CORRIDOR IN THE MIDDLE EAST (2025-07-14)
A new road transport corridor connecting Turkey with Kuwait through Iraq is now operational, marking a milestone in regional connectivity and cross-border trade efficiency. Turkish logistics operator Hasbayrak International Transport successfully completed the first shipment under the TIR transit system, transporting fresh fruit and vegetables in just four days, compared to the 45 days required by the traditional sea route.
The transit was carried out through Iraq via the Al Abdali border crossing, with customs procedures completed at the Sulaybia inland dry port. The operation symbolises both the full operationality of TIR in Iraq, in force since April 2025, and the official reactivation of the system in Kuwait, under the direction of the Kuwaiti Deputy Prime Minister and Minister of the Interior and with the support of the General Customs Administration.
IRU Director of TIR and Transit Services Tatiana Rey-Bellet highlighted the impact of the new route, noting that it reduces transit times by more than 90 %, enabling consumers to enjoy fresher, higher-quality products and strengthening the competitiveness of transport operators.
The opening of this route not only represents a significant advantage for the Turkish international transport sector, but also opens up direct access to strategic high-potential markets such as Kuwait, Saudi Arabia and the United Arab Emirates. This is a development that, according to operators, will have a transformative effect on the dynamics of trade in the region and contribute to Iraq’s economic reconstruction thanks to close collaboration between the IRU, its members and national authorities.
WORLD TRADE GREW MORE THAN EXPECTED IN THE FIRST QUARTER OF 2025, BUT OUTLOOK WEAKENS (2025-07-15)
On 15 July, the World Trade Organisation (WTO) published its latest data on global merchandise trade, revealing growth of 3.6 % in the first quarter compared to the previous quarter and 5.3 % year-on-year. This momentum was mainly driven by a sharp increase in imports in North America, where companies brought forward their purchases in anticipation of new tariffs in the United States.
As a result, the WTO revised its forecasts for 2025 upwards. Global merchandise trade volume is now expected to grow by a flat 0.1 %, instead of the decline showed by the initial forecast. This revision reflects the temporary effect of advance purchases and the entry into force of trade agreements that cushioned the impact of new protectionist measures.
Regional differences were notable. North America led quarterly import growth with an increase of 13.4 %, followed by Africa with 5.1 % and Latin America and the Caribbean with 3.6 %. In terms of exports, the Middle East led the increases with 6.3 %, followed by Asia with 5.6 %, South America with 3.2 %, Africa with 2.5 %, Europe with 1.9 % and North America with 1.8 %.
In terms of sectors, trade in office and telecommunications equipment recorded a year-on-year increase of 16 %, chemicals rose by 12 % and clothing by 7 %. In contrast, exports of automobiles fell by 4 %, fuels by 7 % and mining products by 3 %.
Despite this initial growth, the WTO warns that import demand could cool in the upcoming months. The impact of inventory build-up and tariff tightening could lead to a slowdown, especially in developed economies that no longer plan to make further advance purchases.
https://www.wto.org/spanish/news_s/news25_s/stat_15jul25_s.htm
KENSINGTON TREATY: UNITED KINGDOM AND GERMANY LAUNCH A NEW ERA OF STRATEGIC COOPERATION (2025-07-17)
On 17 July, the United Kingdom and Germany signed the Kensington Treaty, a historic pact that strengthens bilateral cooperation in defence, security, the economy and mobility, making it the most ambitious agreement between the two countries since the Second World War. British Prime Minister Keir Starmer and German Chancellor Friedrich Merz signed the document at the Victoria & Albert Museum in London, highlighting that it marks “a new era” in relations between London and Berlin after Brexit.
The treaty commits both countries to provide mutual assistance in the event of an armed attack, including with military means, reaffirming that there is no strategic threat to one that is not a threat to the other. In terms of defence, it extends the 2024 Trinity House Agreement to include the joint development of long-range precision strike systems (over 2 000 kilometres) and the strengthening of cooperation on armoured programmes such as the BOXER. It also aligns with the Northwood Declaration signed between the United Kingdom and France, aimed at coordinating the use of their nuclear arsenals, thus consolidating a London-Berlin-Paris strategic triangle within the framework of NATO.
Beyond the military sphere, the Kensington Treaty establishes commitments on border security, the fight against irregular immigration, intelligence cooperation, energy transition and the fight against climate change. It also provides for measures to facilitate the mobility and integration of young people and university students, as well as initiatives to promote scientific and technological collaboration.
EU WINS WTO CASE AGAINST CHINA OVER 5G PATENTS (2025-07-21)
On Monday, the European Union won an important victory at the World Trade Organisation (WTO) in its dispute with China over intellectual property rights linked to third, fourth and fifth generation mobile technologies (3G, 4G and 5G). The multilateral body’s arbitration mechanism ruled in favour of Brussels and urged Beijing to reverse, within a maximum period of 90 days, certain measures adopted by its courts in relation to patents.
The dispute dates back to 2022, when the EU filed a formal complaint accusing China of imposing restrictions that violated international rules. Although a WTO panel had issued a partial ruling in favour of China on 21 February, the appeal lodged by the EU has succeeded in overturning that ruling. The arbitration recognised that China’s so-called “anti-litigation measures” —which prohibited the parties involved from continuing proceedings in other jurisdictions, even outside the country— constituted a violation of the international legal framework by impeding the legitimate exercise of procedural rights.
Beyond this specific case, the decision is significant because it reinforces the validity of the WTO dispute settlement system, despite the fact that its Appellate Body has been blocked since 2019 due to a lack of judges. In view of this situation, members have resorted to a consensus-based provisional arbitration mechanism, which allows key disputes in world trade to continue to be resolved.
https://www.lavanguardia.com/economia/20250721/10911063/ue-gana-pleito-omc-china-patentes-5g.html
TRUMP ANNOUNCES TRADE DEAL WITH JAPAN AMID SPECULATION OVER THE FUTURE OF PRIME MINISTER ISHIBA (2025-07-23)
Former President Donald Trump announced a trade agreement with Japan that could end weeks of tense negotiations that had created economic uncertainty in Tokyo and doubts about the future of Japanese Prime Minister Shigeru Ishiba. According to Trump, Japan will invest $550 billion in the US, and a 15 % tariff will be applied to Japanese imports, lower than the 25 % that had been previously threatened. The tariff to be imposed on US exports to Japan was not clarified.
The agreement also provides for the opening of the Japanese market to US products such as cars, trucks, rice and other agricultural products. Ishiba said he would review the terms before giving an official response, although a senior government official described Trump’s announcement as “accurate” and “welcome by Japan”. Car exports, which account for more than a quarter of Japanese exports to the US, will maintain a 15 % tariff with no volume limits, which was confirmed by Ishiba, boosting Japanese automotive stocks.
However, the agreement does not include 50 % tariffs on Japanese steel and aluminium imports, nor does it mention defence spending. Amid domestic political pressure following two election defeats, there is speculation that Ishiba could resign before the end of the month, although this has not been confirmed.
This pact with Japan follows other recent agreements by Trump with the Philippines, Indonesia, the United Kingdom and Vietnam. In particular, the US will impose a 19 % tariff on Philippine and Indonesian products in exchange for the removal of trade barriers on US products. These announcements are part of a trade offensive ahead of Trump’s 1 August deadline for new agreements.
INDIA-UNITED KINGDOM FREE TRADE AGREEMENT: MORE INVESTMENT, LESS TARIFFS AND GREATER COOPERATION (2025-07-25)
On 24 July 2025, India and the United Kingdom signed a free trade agreement that marks a milestone in their economic relations and is the first such agreement between India and a European country since Brexit. The pact seeks to boost bilateral trade, which reached $20.5 billion in 2024, with the aim of increasing it to $120 billion over the next five years.
The agreement provides for the elimination or reduction of tariffs in strategic sectors such as digital technology, automotive, pharmaceuticals, textiles and public procurement. It also includes provisions to facilitate access for Indian SMEs to the British market, encourage mutual investment and strengthen cooperation on innovation and sustainability.
According to official sources, the agreement will become a catalyst for job creation in both countries, as well as strengthening critical supply chains and diversifying markets in a global context marked by trade volatility. It must be ratified by the British Parliament and the Indian legislature, a process that could be completed within six to twelve months.
For London, this treaty reinforces its strategy to consolidate itself as a commercial hub after Brexit; for New Delhi, it represents a decisive step towards its goal of becoming one of the world’s leading export powers.
THE CARIBBEAN SEEKS TO STRENGTHEN TRADE TIES WITH AFRICA IN THE FACE OF UNCERTAINTY WITH TRADITIONAL PARTNERS (2025-07-28)
Caribbean nations have announced their intention to significantly expand their trade opportunities with Africa, in a move that could mark a strategic shift in their economic policy. The General Secretariat of the Caribbean Community (CARICOM), Carla Barnett, made the announcement during the opening of the AfriCaribe Trade and Investment Forum, held in Saint George, Grenada.
Barnett stressed the need to diversify the region’s economic relations, which have traditionally been dependent on the United States, Canada and Europe, especially at a time marked by rising global protectionism. She recalled that trade with Africa currently accounts for less than 3 % of total Caribbean transactions, a figure that she said must grow given the uncertainty surrounding ties with traditional partners.
The shift takes on added significance following Washington’s imposition in April of a 10 % base tariff on almost all its trading partners, a measure that has caused concern in the Caribbean. The United States remains CARICOM’s largest partner: in 2023, it purchased a quarter of its exports, valued at $38.8 billion, and supplied 39 % of imports, totalling $43.4 billion.
The region’s structural vulnerability—dependent on tourism, food and fuel imports, and heavily exposed to climate disasters—reinforces the urgency of diversifying markets. Barnett also recalled that the Caribbean and Africa are already collaborating on joint campaigns, such as claims for historical reparations for slavery and demands for compensation for the effects of climate change, which disproportionately affect small island states.
US AND EUROPEAN UNION REACH TRADE AGREEMENT WITH 15 % GENERAL TARIFF (2025-07-28)
On 27 July 2025, in Turnberry (Scotland), US President Donald Trump and European Commission President Ursula von der Leyen announced a historic trade agreement that averts an imminent tariff escalation between the two powers. The European Union has agreed to a 15 % general tariff on all its exports to the United States, a measure that will take effect immediately and was signed just days before Trump’s threat to impose 30 % tariffs from 1 August was activated.
The pact, which is unbalanced in terms of European interests, includes the automotive sector, despite Brussels’ efforts to exclude it, but leaves out pharmaceutical products. It also includes a European commitment to purchase US$750 billion worth of US fuels over the next few years, reinforcing the EU’s energy dependence on the US.
The scale of the transatlantic relationship underlines the importance of this agreement: every day, products worth €2.4 billion cross the Atlantic, making this the world’s most intense trade relationship. Although Brussels managed to avoid an even more drastic scenario, the agreement has been criticised by various European sectors, especially in France, where there are plans to resort to the Union’s anti-coercion instrument to counter what they consider an asymmetrical manoeuvre.
The international context adds even more weight to this pact. The United States will continue to push for bilateral agreements and, in fact, Trump is scheduled to meet this week in Stockholm with representatives from China, with whom a fragile truce remains in place after a tariff escalation that saw levies reach 145 % on Chinese exports and 125 % on US exports. The move reinforces Washington’s strategy of consolidating its position vis-à-vis Europe while reopening negotiations with Beijing, consolidating a trade overview marked by uncertainty and geopolitical pressure.
https://www.reuters.com/business/us-eu-avert-trade-war-with-15-tariff-deal-2025-07-28/?utm
UNITED STATES STRENGTHENS TRADE AGREEMENTS IN ASIA (2025-07-31)
Donald Trump continues to press forward with his trade agenda in Asia. After intense negotiations, the United States and South Korea have reached an agreement deemed favourable by both parties: Trump secures a political and economic win, while South Korea avoids a far more severe tariff escalation.
As seen in deals with Japan and later with the European Union, the new agreement sets a 15 % tariff on South Korean imports—well below the 25 % tariff that Trump had threatened to impose from this Friday onward. In addition, South Korea has pledged billions of dollars in investments, including USD 100 billion in liquefied natural gas and other energy products, and USD 350 billion in strategic investments.
South Korean President Lee Jae‑myung described the deal as overcoming “a major hurdle”, emphasising that it removes uncertainty around export conditions and ensures US tariffs on their exports are equal to or lower than those on their main trading competitors. Lee reportedly capitulated to Trump’s pressure for fear that higher tariffs could derail Asia’s fourth-largest economy.
US negotiators applied particular pressure on major South Korean industrial giants such as Samsung Electronics and Hyundai Motor Group. South Korea is the sixth-largest US trading partner. President Lee is expected to visit the US in two weeks for a bilateral summit with Trump.
In recent weeks, Trump has struck similar trade agreements across Asia: Japan (15 % tariff), Indonesia (19 %), the Philippines (19 %), and Vietnam (20 %). These moves primarily target Southeast Asian nations serving as intermediaries for Chinese goods evading US tariffs.
China remains the only country resisting Trump’s tariff war. This week saw a third round of high-level negotiations between Beijing and Washington in Stockholm, following meetings in Geneva and London. The objective: to extend the 90‑day trade truce reached in May.
Since that truce, US duties on Chinese goods have been cut from 145 % to 30 %, while China reduced its tariffs from 125 % to 10 %. The remaining 20 % difference relates to punitive measures tied to fentanyl, as the US accuses Beijing of not doing enough to curtail exports of chemical precursors linked to the drug.
https://www.elmundo.es/economia/macroeconomia/2025/07/31/688ac0c6fdddffd92d8b4590.html
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In Madrid, 31 July 2025
International Trade and Sanctions Department
Lupicinio International Law Firm
