19
Jun 26

Horizon Scan | Navigating Trade and Taxation Policy in a More Complex Global Environment

International trade and taxation policy is evolving at pace, with growing implications for how goods move, how shipping operates, and where investment flows. In this edition of Horizon Scan, and coinciding with the latest meeting of the Chamber's International Trade and Taxation Committee, Policy Director Katrina Ross and Policy Advisor Hannah Gilbert provide a joint perspective on what recent policy developments mean in practice for the industry and members.

Q. What do you make of the UK-EU reset progress and the implications for shipping?

The UK–EU reset is a pragmatic step toward easing some of the friction that has built up in recent years—particularly through the proposed SPS agreement, which should help improve the flow of goods and bring some benefits for parts of the shipping sector, especially short‑sea operators.

That said, it’s important to be realistic about what this does and does not change. While SPS alignment can reduce physical checks and paperwork for certain goods, and facilitate pet travel, it does not tackle the wider complexity at the border i.e. customs processes, safety and security declaration requirements, passenger data requirements and the underlying border systems that ship operators interact with.

It also remains to be seen what the UK-EU ETS linkage will entail for international and domestic ship operators, given that the EU and UK systems are currently not very aligned and the forthcoming UK-EU Summit 2026 on 22 July. 

For the reset to deliver in practice, the focus has to be on details and implementation - making sure the rules are workable, the systems are joined up, the rules don't cause duplication and that the overall regulatory burden on ship operators is reduced.

Q. What in your view is the UK-US relationship's impact on the shipping industry?

The US has seen a major shift in policy direction towards more protectionist measures which aim to revitalise and bolster US industry including its merchant shipping fleet. Recent developments include an increase in the imposition of tariffs which will not only impact cost of key materials, but will likely result in changing cargo flows and potentially retaliation from other key trading partners which could result in a further increase in costs.

The US has publicised its intent to cooperate with allied partners, particularly on seafarer training, shipbuilding and maritime robotics/autonomy - but how this is actually faring remains to be seen. Where the risks lie is less in the UK-US bilateral relationship itself, and more in the wider policy environment. A more transactional US trade policy approach, combined with divergence on issues like decarbonisation or supply chain security, is already causing frictions and increased unpredictability for both the cargo that is being moved and the ships themselves.

Q. What are the International Trade and Tax Committee’s (ITTC) top priorities for the coming months, and what is most urgent for members?

The Committee’s focus in the coming months is on the practical realities of operating in an increasingly complex trading environment. That means tackling persistent frictions at the UK border, particularly around customs processes, passenger processing and system performance. The Chamber continues to engage directly with UK government to highlight these frictions, especially for high‑frequency short sea shipping.

Alongside that, there is a strong emphasis on protecting the UK’s attractiveness for existing and inward shipping investments, while navigating the implications of global tax developments such as OECD Pillar Two and wider international changes. 

At the same time, the international trade backdrop is becoming more volatile, with US tariffs, trade policy shifts and wider geopolitical developments all feeding through into costs and demand for shipping. For members, the most immediate concern isn’t a single policy change, but the cumulative impact of these pressures - border inefficiencies, rising compliance requirements, and increasing uncertainty in global markets - on day‑to‑day operations and competitiveness.

Q. How does the UK Chamber work with international partners and where is that collaboration most impactful right now – both to shape trade and tax outcomes, but on other matters also?

The Chamber works collaboratively and strategically on a national, regional and international level with governments and industry stakeholders. This can be in the form of coordinated advocacy efforts or amplifying national priorities and feeding into global developments and fora. Such strength is most notable in the sharing of joint messaging via industry voices such as the International Chamber of Shipping, BIMCO, INTERTANKO, INTERCARGO, CLIA and the World Shipping Council.

Q. Scanning the Horizon, what do you think will really shape international trade and taxation for shipping in the coming months/year?

Supply chain tensions, severe strains on multi-lateral political engagement and international tax developments will continue to shape the global landscape. These trends are no longer developing in isolation and are already influencing trade routes and decarbonisation pathways. This in turn feeds through into costs, investment decisions and regulatory responses. The challenge for the shipping industry and governments is managing the cumulative effects. A single reform of one issue will not necessarily shift the dial. It is whether the overall global, regional and national policy environments remain workable for the global and regional shipping industries, so that they can serve the world population more efficiently.

For more information on our work in this area, please contact Katrina or Hannah directly. In addition, UK Chamber Members can join the International Trade and Tax Committee via the Member Dashboard.