This Week in Foreign Affairs — Brussels (#11, 2026)
EU-Australia security and trade agreements concluded; Parliament welcomes partnership; Customs Union reform advances; SAFE defence funding for France and Czechia; Anti-corruption directive adopted.
March 22, 2026 to March 28, 2026
EU-Australia security and trade agreements concluded; Parliament welcomes partnership; Customs Union reform advances; SAFE defence funding for France and Czechia; Anti-corruption directive adopted.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🏛️ European Parliament
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
EU and Australia sign Security and Defence Partnership and Free Trade Agreement
On 23 March 2026, the European Commission announced the adoption of a Security and Defence Partnership and the conclusion of negotiations for a Free Trade Agreement (FTA) with Australia. The Security and Defence Partnership was signed virtually by High Representative/Vice President Kaja Kallas and Australian Deputy Prime Minister Richard Marles and Foreign Minister Penny Wong. The FTA is expected to increase EU exports to Australia by up to 33% over the next decade, with key sectors including dairy, motor vehicles, and chemicals. The agreement also includes provisions on critical raw materials and sustainability. The final text of the FTA requires approval by the Council and European Parliament before it can enter into force.
Commission welcomes historic agreement to reform EU Customs Union
On 25 March 2026, the Commission welcomed the agreement between the Parliament and Council on a comprehensive reform of the EU Customs Union, the most ambitious overhaul since 1968. Key elements include a new EU Customs Authority, the EU Customs Data Hub, and targeted measures for e-commerce, including the removal of duty exemption for low-value parcels and a temporary €3 duty on these parcels from 1 July 2026. The reform aims to harmonise customs procedures, improve risk-based controls, and modernise digital infrastructure across Member States.
SAFE initiative: Commission approves defence funding for Czechia and France
The European Commission cleared national defence plans for Czechia and France under the Security Action for Europe (SAFE) initiative, provisionally allocating €2.06 billion and €15.09 billion respectively. The funds, part of the Readiness 2030 defence package, are intended to strengthen strategic capabilities and drive joint procurement from the European defence industry. Final loan agreements are expected to be signed following approval by the Council.
Selection of Lille as seat for new EU Customs Authority
The European Parliament and Council selected Lille, France, as the seat of the EU Customs Authority (EUCA) on 24 March 2026. The decision follows a joint call for applications and is considered a key step in finalising the wider Customs Reform. The EUCA will support the implementation of the new Customs Data Hub and improve customs risk management and compliance across Member States.
Reallocation of €34.6 billion in cohesion policy funds to EU strategic priorities
On 24 March 2026, the Commission confirmed that Member States have reprogrammed €34.6 billion from 2021-2027 cohesion policy funds to reinforce EU competitiveness, defence, housing, water resilience, and energy connectivity. The reallocation follows the 2025 mid-term review and offers enhanced pre-financing and co-financing rates to participating regions, including additional support for eastern border regions.
EU Legislation (Official Journal)
Agreement on interpretation and application of the Energy Charter Treaty in intra-EU disputes
The Agreement published in OJ L 2026/757 (CELEX: 32026A0757) establishes a common understanding among EU Member States and the European Union that Article 26 of the Energy Charter Treaty cannot serve as a legal basis for intra-EU arbitration proceedings. The measure responds to CJEU rulings (e.g., Achmea, Komstroy) and aims to prevent investor-State arbitration within the EU under the Treaty.
Provisional anti-dumping duty imposed on imports of yarns of polyamide from China
Commission Implementing Regulation (EU) 2026/734 of 26 March 2026 imposes provisional anti-dumping duties of up to 90.1% on imports of synthetic continuous filament yarns of aliphatic polyamides from the People’s Republic of China. The measure addresses findings of significant dumping and injury to the Union industry. The regulation enters into force the day after publication in the Official Journal.
Council Decision on EU position regarding ICAO environmental protection standards
Council Decision (EU) 2026/730 of 17 March 2026 sets the EU position at the 237th session of the ICAO Council to support amendments 3, 12, and 15 to Annex 16 of the Chicago Convention, relating to environmental protection standards and recommended practices. The decision ensures alignment of Union law with international aviation environmental standards.
European Parliament
Parliament adopts directive on combating corruption
On 25 March 2026, the European Parliament debated and approved the directive on combating corruption (COM(2023)0234), replacing Council Framework Decision 2003/568/JHA and amending Directive (EU) 2017/1371. The directive harmonises definitions and penalties for corruption offences across Member States, including bribery, misappropriation, and obstruction of justice.
Parliament advances negotiations on common system for return of third-country nationals
At its 26 March 2026 plenary, Parliament voted to enter into negotiations on a regulation establishing a common system for the return of third-country nationals staying illegally in the Union (COM(2025)0101). The regulation would replace Directive 2008/115/EC and related acts, aiming to streamline procedures for return across Member States.
EU Council
Foreign Affairs Council (Trade) sets EU position for WTO Ministerial Conference
On 26 March 2026, the Foreign Affairs Council (Trade) adopted conclusions on the EU's position and expectations for the 14th WTO Ministerial Conference in Yaoundé, Cameroon. The Council approved its initial and closing positions during the conference, with the Commission regularly consulting Member States throughout the event.
Eurogroup discusses economic impact of Middle East crisis
The Eurogroup met on 27 March 2026 to assess the economic consequences of the crisis in the Middle East, particularly its effect on EU energy markets. Ministers discussed policy responses to surging energy prices, with an emphasis on targeted, temporary support for vulnerable households and businesses.
EP Committee Work
Committee on Foreign Affairs welcomes EU-Australia security and trade agreements
On 24 March 2026, the Committee on Foreign Affairs (AFET) and International Trade (INTA) welcomed the conclusion of the EU-Australia security and defence partnership and free trade agreement. Statements by David McAllister (AFET Chair), Bernd Lange (INTA Chair), Seán Kelly (Delegation Chair), Željana Zovko (AFET rapporteur), and Jörgen Warborn (INTA rapporteur) underscored the agreements' significance for EU engagement in the Indo-Pacific and strengthening cooperation on trade, security, and defence.
What We're Reading This Week
- La défense de l’Ukraine menacée par le renversement des priorités de l’Administration Trump: Le recentrage des priorités de l’administration Trump compromet le soutien militaire essentiel à l’Ukraine face à l’agression russe.
- Will Michelle Bachelet become the next UN Secretary-General? What the forecasts are saying: Forecasts suggest Michelle Bachelet is emerging as a prominent contender for the next UN Secretary-General position.
- Trump to 'unleash hell' if Iran doesn't make deal, White House says: The White House warns of severe consequences for Iran if diplomatic efforts to reach a deal fail.
- Orbán’s spies were hunting me, says Hungarian journalist accused of espionage: A Hungarian journalist claims to have been targeted by government surveillance after facing espionage accusations.
- Ukraine deepens Gulf security ties as Kyiv exports air defense expertise: Ukraine expands its influence in the Gulf by sharing air defense technology and strengthening regional security partnerships.
