Global Trade Map in Motion: EU, US, and UK Advance Key Pacts While WTO Backs Small Economies

A flurry of diplomatic activity in mid-February signals a concerted push by major economies to finalize new trade agreements, while multilateral efforts to ensure inclusive growth are also gaining traction. Developments involving the European Union, Australia, the United States, North Macedonia, and the United Kingdom are setting the stage for new contractual frameworks governing billions in international trade.

The European Union and Australia have achieved “constructive and positive” progress in their long-running free trade agreement negotiations, according to a joint statement from the European Commission released on February 13. Following ministerial meetings in Brussels, both sides reported narrowing gaps on several outstanding issues and reaffirmed their goal of an “ambitious, balanced, mutually beneficial trade deal.” The existing trade in goods and services between the two partners is already valued at over €87.5 billion annually.

Meanwhile, the United States has finalized a new trade framework with North Macedonia, as announced by the White House on February 12. The “Agreement on Reciprocal, Fair, and Balanced Trade” is designed to strengthen the bilateral economic relationship and expand market access for both nations’ exporters. Key terms include North Macedonia’s elimination of customs duties for all U.S. industrial and agricultural goods.

In Europe, post-Brexit trade relations continue to be formalized. On February 17, the European Commission announced it had adopted proposals for the signing and implementation of a new agreement with the United Kingdom concerning Gibraltar. This agreement will establish the legal framework for relations not covered by the broader EU-UK Trade and Cooperation Agreement and aims to ensure regional prosperity by removing physical barriers to the movement of people and goods.

While these bilateral pacts are advancing, there is also momentum on the multilateral front. On February 18, The Eastleigh Voice reported that World Trade Organization members have agreed on a draft decision to better integrate small economies into the global trading system. The agreement, which will be presented for approval at the 14th Ministerial Conference in March, specifically calls for helping smaller economies integrate into the digital trade landscape, signaling a broader commitment to inclusive global commerce.