EU and Mercosur Conclude 20-Year Trade Deal

Russia's military expenditures are significantly funded by crude oil and petroleum product exports, primarily from its Baltic Sea ports, which constitute 60% of maritime shipments. The EU and allied nations may need to impose restrictions on this trade to sustain support for Ukraine, despite challenges in combating Russia's 'shadow fleet' and the ineffectiveness of the price cap mechanism. Meanwhile, the EU is set to implement the FuelEU Maritime regulation in 2025, aimed at reducing greenhouse gas emissions in shipping, but the complexity of compliance could pose challenges for shipowners. In the political arena, the EU's trade policy faces turbulence, especially with ongoing disputes with China over tariffs on electric vehicles, prompting calls for a fact-based approach to economic security strategies. Additionally, the EU-Mercosur deal, finalized after 20 years, could create a substantial free trade area, benefiting shipping markets by reducing tariffs on various goods. If ratified, this agreement would facilitate trade with a bloc of 730 million consumers, enhancing EU exporters' competitiveness.