This Week in Foreign Affairs — Brussels (#26, 2026)
Modernised EU-Mexico trade deal backed; EU renews exclusion of Russian hydrogen offers; Canada-EU defence procurement agreement enters force; MEPs review Ukraine, Moldova accession.
July 05, 2026 to July 11, 2026
Modernised EU-Mexico trade deal backed; EU renews exclusion of Russian hydrogen offers; Canada-EU defence procurement agreement enters force; MEPs review Ukraine, Moldova accession.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🏛️ European Parliament
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Foreign Affairs Council: On July 13, the EU Council's Foreign Affairs Council configuration is scheduled to hold an ministerial meeting in Brussels.
- Committee on International Trade (INTA): On July 13, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Annual report on export controls of dual-use items- Presentation by Denis Redonnet, Chief Trade Enforcement Officer; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Committee on Foreign Affairs (AFET): On July 14, the European Parliament's Committee on Foreign Affairs (AFET) is scheduled to meet. Agenda includes: Chair’s announcements; Dialogue on the Reform and Growth Facility for Moldova; Dialogue on the Reform and Growth Facility for the Western Balkans.
- Committee on Foreign Affairs (AFET): On July 14, the European Parliament's Committee on Foreign Affairs (AFET) is scheduled to meet. Agenda includes: * * *; Chair’s announcements; Date of next meetings.
- Committee on International Trade (INTA): On July 14, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Annual report on export controls of dual-use items- Presentation by Denis Redonnet, Chief Trade Enforcement Officer; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Subcommittee on Security and Defence (SEDE): On July 14, the European Parliament's Subcommittee on Security and Defence (SEDE) is scheduled to meet. Agenda includes: Chair’s announcements; Coordinators’ meeting; Date of next meetings.
- Committee on Development (DEVE): On July 15, the European Parliament's Committee on Development (DEVE) is scheduled to meet. Agenda includes: * * *; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Subcommittee on Human Rights (DROI): On July 15, the European Parliament's Subcommittee on Human Rights (DROI) is scheduled to meet. Agenda includes: Ambassadors' slot: Exchange of views with Ambassador Jestas Abuok Nyamanga, Head of Mission of the United Republic of Tanzania to the European Union; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Subcommittee on Security and Defence (SEDE): On July 15, the European Parliament's Subcommittee on Security and Defence (SEDE) is scheduled to meet. Agenda includes: Ambassadors' slot: Exchange of views with Ambassador Jestas Abuok Nyamanga, Head of Mission of the United Republic of Tanzania to the European Union; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Subcommittee on Security and Defence (SEDE): On July 15, the European Parliament's Subcommittee on Security and Defence (SEDE) is scheduled to meet. Agenda includes: Chair’s announcements; Date of next meetings; *** End of electronic vote ***.
European Commission
Commission and High Representative propose new EU sanctions regime targeting migrant smuggling and organised crime
On 8 July 2026, the European Commission and the High Representative, Kaja Kallas, proposed a new EU sanctions regime aimed at countering migrant smuggling, human trafficking, arms and drug trafficking, and money laundering emanating from outside the EU. President Ursula von der Leyen announced that the regime would target identified individuals and entities, freezing assets and imposing travel bans, as outlined in the 2025 State of the Union. Commissioner Magnus Brunner and Commissioner Maria Luís Albuquerque stated that the proposals aim to disrupt criminal networks by removing access to financial and logistical resources. The Council will examine the proposal; adoption requires unanimity among Member States. The new regime will complement ongoing criminal law reform files at EU level.
Commission presents EU Action Plan on Cybersecurity and Artificial Intelligence
The Commission released its Action Plan for Cybersecurity and Artificial Intelligence on 6 July 2026. The plan consolidates the EU's legal and operational approach to emerging AI risks in cybersecurity, building on the AI Act, Cyber Resilience Act, and NIS2 Directive. A new EU evaluation capacity for advanced AI systems will be launched with ENISA and the Joint Research Centre, aiming to strengthen independent testing and risk assessment from 2027. The initiative includes the development of an EU blueprint for structured access to cybersecurity-relevant AI, an open-source campaign coordinated by ENISA, and the 'EU Grand Challenge on AI for Cybersecurity' competition. The Action Plan also connects with the General-Purpose AI Code of Practice, enforceable from August 2026.
Remarks by Commissioner Dombrovskis at ECOFIN: Economic outlook, Recovery Facility milestones, Ukraine, sanctions
On 9 July 2026, Executive Vice-President Valdis Dombrovskis addressed the ECOFIN Council, welcoming the Irish Presidency's work programme and reporting that Denmark had completed implementation of its Recovery and Resilience Plan. The Council endorsed amendments for payments to eight Member States and Hungary's revised €10 billion plan. Dombrovskis reported that over €7 billion in EU loans were disbursed to Ukraine, with the first €3.2 billion under new macro-financial assistance going to Kyiv. He called for swift adoption of the 21st package of sanctions against Russia. The Council recommended Bulgaria reduce its deficit below 3% by 2029 and accepted the Netherlands' revised fiscal plan. The meeting included debate on the upcoming Savings and Investments Union package.
Commission issues €11 billion in EU-Bonds for political priorities and support to Ukraine
On 6 July 2026, the European Commission conducted its seventh syndicated transaction for the year, raising €11 billion in two tranches: €6 billion in a new 5-year EU-Bond and a €5 billion tap of the 20-year EU-Bond. The transaction is part of the €80 billion funding target for the second half of 2026, supporting EU priorities such as defence, recovery, and assistance to Ukraine. Investor demand for both tranches was high, with order books exceeding €83 and €94 billion, respectively. The EU's outstanding debt stands at €827.16 billion, with joint lead managers including Deutsche Bank, HSBC, LBBW, Morgan Stanley, and SG.
Commission and High Representative statement on the 31st anniversary of Srebrenica genocide
High Representative Kaja Kallas and Commissioner Kos issued a statement on 9 July 2026 marking the 31st anniversary of the Srebrenica genocide. They reaffirmed EU support for Bosnia and Herzegovina as a sovereign, democratic country, and called on regional leaders to reject genocide denial and revisionism. The statement aligns with the UN resolution designating 11 July as the International Day of Reflection for Srebrenica.
EU Legislation (Official Journal)
Renewal of exclusion of Russian and Belarusian hydrogen offers in EU hydrogen market mechanism
Commission Implementing Decision (EU) 2026/1551 of 9 July 2026 (OJ L, 2026/1551) renews until 30 July 2027 the temporary exclusion of hydrogen and derivatives originating in Russia and Belarus from being collected through the EU Hydrogen Mechanism set out in Regulation (EU) 2024/1789. The decision cites persistent risks to energy security and the nascent stage of the EU hydrogen market.
EU and Canada: Entry into force of agreement on Canadian participation in SAFE instrument procurement
Information notice (OJ L, 2026/1699) confirms that the Agreement between the EU and Canada on the conditions for participation of Canadian legal entities in procurement under the SAFE Instrument will enter into force on 1 August 2026. The agreement, signed in Munich on 14 February 2026, implements bilateral access to joint defence procurement as provided for in the SAFE framework.
Anti-dumping duty on Chinese tyres for passenger cars, buses, lorries
The European Commission adopted Implementing Regulation (EU) 2026/1540 on 6 July 2026 (OJ L, 2026/1540), imposing anti-dumping duties on imports of new pneumatic tyres from China used on motor cars, buses, or lorries with load index ≤121. The investigation, initiated in May 2025 following a complaint by the Coalition Against Unfair Tyre Imports, found significant dumping consistent with Regulation (EU) 2016/1036.
Suspension extended: Measures on certain US products following WTO large civil aircraft dispute
Commission Implementing Regulation (EU) 2026/1549 of 6 July 2026 (OJ L, 2026/1549) prolongs the suspension of commercial policy measures under Regulation (EU) 2020/1646 against certain US products after continued suspension of US countermeasures related to the WTO large civil aircraft dispute.
Fisheries Partnership: EU-São Tomé and Príncipe implementation protocol 2025–2029
Council Decision (EU) 2026/1548 of 8 June 2026 (OJ L, 2026/1548) approves the Protocol implementing the Fisheries Partnership Agreement between the EU and the Democratic Republic of São Tomé and Príncipe for 2025–2029, following Council Decision (EU) 2025/2139 and consent from Parliament.
European Parliament
Plenary backs modernised EU-Mexico Global Agreement and interim trade deal
On 8 July 2026, the Parliament approved the EU-Mexico Modernised Global Agreement (MGA) and an interim trade agreement (iTA) by 479 and 474 votes in favour, respectively. The agreements, which update the previous framework from 2000, provide for tariff liberalisation, protection of 568 EU geographical indications, and enhanced cooperation on democratic principles and rule of law. The iTA allows trade provisions to apply ahead of full ratification by Member States.
Parliament welcomes reform progress by Ukraine and Moldova amid accession talks
On 8 July, Parliament adopted reports on Ukraine's reform progress and Moldova's advancement of EU-related reforms. MEPs welcomed the opening of the first fundamental negotiation clusters for both countries and encouraged continued reforms in judicial integrity and anti-corruption. Emphasis was placed on defending against destabilising foreign interference.
EU Council
Foreign Affairs Council to review Russia’s war against Ukraine, Middle East, Black Sea strategy
The Foreign Affairs Council meets on 13 July 2026 with an agenda to discuss developments in Russia’s war of aggression on Ukraine, the Middle East conflict, Black Sea regional strategy, and EU-UN relations.
EP Committee Work
INTA Committee adopts recommendation on conclusion of EU-Mexico Interim Trade Agreement
At its extraordinary meeting on 6 July 2026, the Committee on International Trade (INTA) adopted a recommendation (rapporteur: Borja Giménez Larraz, PPE) on the conclusion of the Interim Agreement on Trade between the EU and the United Mexican States. The session included an electronic vote and consideration of opinion from AGRI. The recommendation aligns with the AFET committee’s parallel work and supports Parliament’s position on the iTA.
AFET Committee draft opinion on 2027 EU general budget tabled
On 6 July 2026, the Committee on Foreign Affairs (AFET) published a draft opinion on the EU’s general budget for 2027, with Matjaž Nemec named as rapporteur. The document reviews budgetary priorities for foreign affairs and external action.
AFET Committee extraordinary meeting held in Strasbourg
The Committee on Foreign Affairs (AFET) convened an extraordinary session on 6 July 2026 in Strasbourg. Agenda items addressed current foreign policy challenges and EU enlargement, including preparation for discussions on Ukraine and Moldova.
SEDE Subcommittee meets on Security and Defence matters in Strasbourg
On 8 July 2026, the Subcommittee on Security and Defence (SEDE) held a session in Strasbourg focused on security and defence, in the context of ongoing geopolitical developments and EU external action.
