This is the last ‘Week Ahead in International Trade’ feature of the year before Christmas, with the Daily Update team set to close their laptops for the festive break on Friday 19 December.
As the year winds down, we bring you some key customs updates, a look ahead to events in parliament this week and an update on the potential signing ceremony of the EU-Mercosur trade agreement.
Customs notices
We begin with some key customs updates you should be aware of going into the new week.
Firstly, the UK government has informed traders that there have been service issues with the Customs Declaration Service over the weekend, which they are currently working to resolve.
“If you are using a location using the Goods Vehicle Movement Service (GVMS) you will be only able to complete customs movements if you have a finalised Goods Movement Reference,” the government has said. For live updates on CDS, visit this gov.uk page.
Businesses using the Customs Duty Waiver Scheme should also note that this service is being updated on 15 December. The government has reminded users that they will need to “update the sector of your undertaking in the digital service before 31 December 2025”. If traders don’t do this, they will not be able to use the waiver scheme from 1 January.
There are also significant updates in EU customs from the end of last week.
Firstly, the European Council announced on Friday that it has agreed to apply a “fixed customs duty of €3 on small parcels valued at less than €150 entering the EU, largely via e-commerce, from 1 July 2026”. This is separate to the handling fee also being discussed by EU member states as part of the EU Customs Reform programme.
The new duty will be a temporary measure that will be in place until the de minimis waiver on customs duties for low value consignments is formally removed through the EU Customs Reform programme. The €3 fee will stand until the new EU Customs Hub becomes operational.
French customs authorities have also confirmed that use of the updated Import Control System 2 (ICS2) will become mandatory from 1 January 2026 and that British goods movements into France will need to be accompanied by an Obligatory Logistics Envelope (ELO) from this time.
The Chartered Institute is running a member-exclusive Lunchtime Learning webinar on Wednesday about the move to ICS2, which you can sign up to here.
Ukraine peace talks
Peace talks will continue this week between the US, Russia, Ukraine and Europe. Politico’s London Playbook notes there are three events to look out for regarding Ukraine this week.
Firstly, the new MI6 chief Blaise Metreweli is due to speak today and is expected to warn that the UK faces a “new age of uncertainty”. Secondly, the chief of the Armed Forces, Richard Knighton, is also due to give a “rallying cry” for a “whole of society” approach to defence and deterrence.
Finally, Ukrainian president Volodymyr Zelenskyy is continuing talks with US political figures on the peace deal, before spending this evening with European leaders – including British prime minister Sir Keir Starmer – in Berlin.
Parliament wraps up for 2025
Back in London, Starmer will host his final Prime Minister’s Questions of 2025 in the House of Commons on Wednesday (17 December).
Parliament goes into recess for the festive break on Friday, returning 5 January 2026.
Before that, a significant piece of trade legislation will appear before the House on Monday – the Industry and Exports (Financial Assistance) Bill.
The bill, which is on its second reading, could potentially raise the ceiling for government-backed financial assistance for businesses.
EV debate
Before Christmas, the leader of the opposition, Kemi Badenoch, is hoping to create debate over the UK’s commitments on electric vehicles (EVs).
The FT reported on Friday that the Labour government will not “dilute” the timeline under which all new car sales need to be EVs from 2035, amid rumours that the EU may relax its targets.
Politico reports that Badenoch will today promote her pledges to abolish EV subsidies and to end the 2030 ban on new petrol and diesel cars. She claims the Conservatives would save the UK £3.8bn by ending the subsidies.
End of year data
The Bank of England (BoE), European Central Bank and Bank of Japan will all vote this week on whether to continue cutting the interest rate in some of the world’s most important economies.
BoE governor Andrew Bailey is expected to announce a cut on Thursday (18 December), but the recent news that the UK economy shrank in October by 0.1% might impact future decisions. Also releasing their data on the same day are Mexico and Norway’s central banks.
Other economic data releases include European inflation figures, the University of Michigan’s US consumer sentiment index and UK employment figures for December.
EU-Mercosur
Saturday (20 December) will see the EU-Mercosur agreement finally signed, barring any last-minute hitches.
European Commission (EC) president, Ursula von der Leyen, and European Council president, Antonio Costa, are expected to travel to Brazil to formally sign the agreement, ending 25-years of on-off negotiation on a trade deal between the EU and the South American nations of Argentina, Brazil, Paraguay and Uruguay.
Reporting from Euronews and Politico suggests that this won’t be plain sailing. France is trying to get a major vote on the agreement delayed, having raised concerns about protecting its agricultural industry. Poland, Ireland and the Netherlands also remain opposed.
The 16 December vote could either seal the deal or add another chapter to this long-running saga.
Other dates to for the diary
- Monday: G20 quarterly GDP data
- Tuesday: 250-year anniversary of the birth of writer Jane Austen
- Wednesday: EU inflation data released
- Thursday: European Council meeting of EU heads of state
- Friday: Last Daily Update of 2025
- Saturday: Signing ceremony of EU-Mercosur trade deal
- Sunday: Africa Cup of Nations begins, with first game between host Morocco and Comoros
