The start of 2026 brings a series of significant legal and policy developments that are reshaping global supply chains across multiple industries and regions. From new trade agreements and regulatory reforms to sanctions updates and sustainability initiatives, governments worldwide are taking steps that will directly influence cross-border commerce, manufacturing, and logistics.
Cross-Border – UK-US pharmaceuticals deal; US-China trade deal; China-ASEAN upgraded trade agreement; US trade deals with Southeast Asian countries; EU-Indonesia trade agreement
Asia-China is focused on improving the reliability and security of domestically produced automotive chips. China: Some rare earth export controls eased; China: 15th 5-year plan; China: Aligning export controls on electric passenger vehicles with those of conventional vehicles; China: MOFCOM seeks public comments on the revised draft.. Foreign Trade Law
Europe: GPSR guidance published; ECHA recommends 4 substances for REACH authorisation; safeguard measures on ferroalloy imports; the Critical Chemicals Alliance launched; the EU adopts a 19th sanctions package against Russia; Council agrees to Russian gas phase-out. Regulation: A New Tool for Mineral Supply Chain The Transparency initiative has been launched, along with strategic projects aimed at enhancing raw materials security.
UK – Critical minerals strategy; Cyber Security and Resilience (Network and Information Systems). Bill published: Tackling modern slavery in NHS supply chains; Cabinet Office issues Anti-slavery Risk Tiering Tool; the government considers stronger measures on forced labour in supply chains; the UK imposes a new wave of sanctions against Russia.
US – Amended Biosecure Act advances; federal hemp ban scheduled to take effect during 2026; Proposed change into PFAS reporting for business; Expanded critical minerals listing; tariffs on likely heavy truck imports; New tariffs on specific wood products
Cross-Border
UK-US pharmaceutical deal
On 1 December 2025, the UK government announced a deal to secure a 0% tariff on pharmaceutical exports to the US. The deal guarantees zero tariffs on UK pharmaceutical exports to the US for at least 3 years. Being reciprocal, the government will increase the National Institute for Health & Care Excellence (NICE) cost-effectiveness threshold by 25% for new US pharmaceutical companies. It will also cut the cap on revenue the National Health Service (NHS) can reclaim from pharmaceutical businesses to no more than 15%.
Impact: Pharmaceutical businesses may benefit from early launches due to tariff-free exports, besides improved pricing frameworks. Investment in UK-based research and manufacturing could benefit from government incentives. These initiatives could boost the UK’s role in global pharmaceutical supply chains. US businesses may benefit from higher NHS spending, besides the revised NICE thresholds.
The EU has established clean trade initiatives, along with an investment partnership with South Africa.
On November 20, 2025, the EU and South Africa signed the first Clean Trade and Investment Partnership. This initiative strengthens clean supply chains with renewable energy, clean fuels, raw materials, and technologies.
The Memorandum of Understanding (MoU) on mineral and metal value chains intends to develop joint industrial projects across extraction, refining, and recycling. Under Global Gateway, nearly USD 13.92 billion will fund green hydrogen, e-batteries and critical raw material projects. The partnership seeks to create jobs and diversify supply chains. The initiative would accelerate the clean transition while reinforcing EU-South Africa partnerships.
Impact: The energy and raw materials sectors may benefit from increased investments in renewable energy, green hydrogen, and critical mineral projects. Transport and logistics may benefit from infrastructure modernisation supported by European Investment Bank loans. Manufacturing and recycling may see growth through joint industrial projects on metal value chains. Improved medical technology supply chains and increased vaccine production could be beneficial to healthcare.
US-China trade deal
On 1 November, the US Administration released a fact sheet. This outlined a deal struck between the US & China regarding their economic and trade relations. It sets out China’s commitments to halt the exports of fentanyl precursors, lift certain rare earth export controls, and resume purchases of soybeans and other agricultural goods from the US. According to the US, China will also suspend or remove retaliatory tariffs and non-tariff countermeasures taken against the US since March 4th, 2025. In return, the US, amongst others, will lower ‘fentanyl’-related tariffs, extend certain tariff exclusions, and suspend the implementation of the BIS’s ‘Affiliates Rule’ for a period of 1 year.
