Trade and international update: January 2025

There is a lot to come on the international scene in 2025, from the inauguration of a new US President this week, to the UK-EU reset, growing talk of protectionism and big questions about China relations. But throughout it all, our mantra remains the same: we cannot stick our head in the sand – engagement is always the best option. That’s the message we’re taking to Davos this week, and it’s what we live by in all our international work.

EU-UK Reset

The CBI continues to work closely with UK and EU Government Ministers and officials as well as Members of the European Parliament (MEPs) to press for a truly pro-business reset in the relations between the UK and Europe.

The next big step in that will be an EU-UK Summit planned to take place sometime in the first half of 2025, for which the UK government is developing a strategy based on three pillars: (i) Security and Defence, (ii) Safety of people and (iii) Reducing barriers to trade.

To lay the groundwork for a genuinely business-friendly approach, the CBI took part in the launch of BusinessEurope’s Paper on EU-UK Outlook on 16 January in Brussels. In it, a united UK-EU business voice called for urgent action to bolster the trading and economic relationship between the UK and the EU in the face of growing geopolitical tensions and to tackle shared international challenges – from the economy to the environment – that call for a truly international response.

More collaboration on defence and energy can offer real benefits to both sides, but we also need more action on mobility, regulatory co-operation, customs procedures and mutual recognition of professional qualifications and conformity assessment.

The CBI will keep raising the voice of UK business and pressing the case for an ambitious approach to the reset. Get in touch with us with your thoughts, and tell us about any challenges you have been facing when trading with the EU.

G7/B7 changes

At the beginning of this month, Canada took over the Presidency of the G7 at a time of real political uncertainty for the country, after the resignation of its Prime Minister Justin Trudeau and the election of Donald Trump as US President, who has said he will impose tariffs of Canadian imports.

Meanwhile, the CBI’s sister federation, the Canadian Chamber of Commerce, has assumed the Presidency of the B7. The organisation has already started work on a communiqué ahead of a B7 Summit in Ottawa in May. Some of the key themes are likely to include: (i) Bolstering economic security and resilience, (ii) Strengthening global trade, (iii) Realising the potential of AI and digital and (iv) Propelling the energy transition.  The CBI will be inputting into the communiqué and consulting with members for your input, so together the B7 can present a clear, robust and targeted set of actions for the G7 leaders. Watch this space.