This Week in Foreign Affairs — Brussels (#29, 2026)
EU-Mexico Strategic Partnership Agreement signed; Multiple new anti-dumping duties on Chinese chemicals; Joint EU-UK expert panel list; Iran and DRC sanctions updated.
July 26, 2026 to August 01, 2026
EU-Mexico Strategic Partnership Agreement signed; Multiple new anti-dumping duties on Chinese chemicals; Joint EU-UK expert panel list; Iran and DRC sanctions updated.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
European Commission
Commission disburses €3.47 billion to Ukraine under Defence Support Loan
On 29 July 2026, the European Commission disbursed an additional €3.47 billion to Ukraine, drawn from the €90 billion Ukraine Support Loan instrument. The disbursement focuses on drones, missiles, air defence, and Gripen fighter jets, responding to Ukraine's urgent military needs. The funding follows earlier allocations, with €28.3 billion to be disbursed during 2026 for defence industrial capacity. The Commission’s action supports Ukraine’s air defence and is part of the Implementing Decision adopted by the Council on 23 April 2026 for up to €45 billion in support. President Ursula von der Leyen stated that the action marks a step towards deeper integration of the EU and Ukrainian defence industries.
Commission and High Representative mark the 75th anniversary of the 1951 Refugee Convention
On 27 July 2026, a joint statement by the European Commission and the High Representative reaffirmed the EU’s full commitment to the 1951 Convention relating to the Status of Refugees. The statement underscored the Convention’s role as the global framework for refugee protection and highlighted the EU’s continued support for the UNHCR and related international agreements. The statement referenced the EU’s Pact on Migration and Asylum, in application since June 2026, and the Union’s efforts to host refugees from Ukraine and implement voluntary humanitarian admission. The Commission cited the more than 4.4 million people currently benefitting from temporary protection in the EU.
Japan officially joins Horizon Europe research programme
From 29 July 2026, Japan is formally associated to Horizon Europe, marking the entry of the most populous non-EU country to the programme. With this step, Japanese researchers and organisations participate fully in Horizon Europe Pillar II (€52.4 billion), accessing funding and coordination on international research projects. Negotiations concluded in December 2025, and the Commission highlights the move as a component of the EU–Japan Strategic Partnership, fostering cooperation in climate, digital, and health technologies.
Commission seeks feedback on amendments to regional State aid guidelines for 2028–2034
On 27 July 2026, the European Commission launched a public consultation on amendments to the Guidelines on regional State aid. The proposed updates would apply for 2028–2034, taking into account socio-economic data and specific challenges in eastern regions bordering Russia, Belarus and Ukraine. Member States and stakeholders may submit comments until 30 September 2026. The updated guidelines are expected to be adopted by end-2026, supporting preparation of new regional aid maps effective from 2028.
Commission issues Statement of Grounds to Temu over possible obstruction under the Foreign Subsidies Regulation
On 30 July 2026, the Commission notified PDD Holdings Inc. (Temu) and WhaleCo Technology Limited of alleged failures to cooperate during an inspection carried out in December 2025 in Dublin. The Commission’s Statement of Grounds concerns Temu's non-compliance with requests for information on organisation, management, and records under Article 14 of Regulation (EU) 2022/2560 (Foreign Subsidies Regulation, FSR). If confirmed, the conduct may result in fines up to 1% of turnover. Temu is invited to respond before a final decision is taken.
EU Legislation (Official Journal)
Political, Economic and Cooperation Strategic Partnership Agreement signed between EU and United Mexican States
On 31 July 2026, the EU and its Member States and the United Mexican States signed a comprehensive Strategic Partnership Agreement (CELEX: 32026A1509), as formalised by Council Decision (EU) 2026/1510 and Decision (EU) 2026/1742. The agreement covers political dialogue, cooperation on sustainable development, trade, and investment, establishing a free trade area in line with Article XXIV of GATT 1994 and GATS Article V. An Interim Agreement on Trade is provisionally applied, pending entry into force of the full partnership.
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Anti-dumping duties imposed on several chemical imports from China
Between 27 and 28 July 2026, the Commission adopted regulations imposing anti-dumping duties on: (1) synthetic continuous filament yarns of polyamide (Commission Implementing Regulation (EU) 2026/1823), (2) sodium benzoate (Commission Implementing Regulation (EU) 2026/1854), and (3) benzyl alcohol (Commission Implementing Regulation (EU) 2026/1857), all originating in the People’s Republic of China. The measures address findings of material injury to EU industry and establish duty rates ranging from 52.6% to 75.4% for sampled Chinese producers.
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Council extends restrictive measures against Iran and amends sanctions lists
On 24 and 30 July 2026, the Council adopted a set of amendments to restrictive measures against Iran, including Council Decision (CFSP) 2026/1866 and Regulation (EU) 2026/1867, and updated the lists of designated persons and entities in connection with Iran's missile support for Russia and regional armed entities. Several designations were removed, some entries updated, and several additional measures renewed until July 2027.
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Council Decision appoints Birgitte Markussen as EU Special Representative for the Sahel
On 23 July 2026, Council Decision (CFSP) 2026/1876 appointed Birgitte Markussen as EU Special Representative for the Sahel for the period 1 September 2026 to 31 August 2027, replacing João Cravinho. The decision defines the geographical scope and formal mandate, highlighting dialogue and coordination with regional and international stakeholders.
List of experts established under the EU-UK Trade and Cooperation Agreement, Article 409
On 30 June 2026, the Trade Specialised Committee on Level Playing Field under the EU-UK Trade and Cooperation Agreement adopted a list of at least 15 individuals who are willing and able to serve as members of expert panels on competition, sustainable development, and related issues, as mandated by Article 409 of the agreement.
Council renews and updates sanctions related to Democratic Republic of the Congo and human rights abuses
On 28 and 30 July 2026, the Council updated restrictive measures related to the Democratic Republic of the Congo and imposed additional sanctions under the Global Human Rights Sanctions Regime. The lists of targeted persons and entities were amended, including designations for individuals and entities associated with scam centres in Southeast Asia.
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Anti-dumping duty maintained on ferro-silicon imports from China and Russia
On 27 July 2026, the Commission extended the anti-dumping duty on imports of ferro-silicon originating in the Russian Federation and China following an expiry review under Regulation (EU) 2016/1036. The regulation maintains duty rates of 15.6%–31.2% for Chinese producers and 17.8%–22.7% for Russian producers, citing likelihood of dumped imports if measures were repealed.
EU Council
EUROPEAN Union Special Representative appointed for the Sahel region
On 23 July 2026, the Council appointed Birgitte Markussen as European Union Special Representative for the Sahel with a mandate running from 1 September 2026 to 31 August 2027. The EUSR is tasked with advancing the EU’s political, security, and development objectives in the region, supporting the Union’s integrated approach.
