EU–India and new free trade opportunities
One of the main topics was the EU’s free trade agreement with India. When the agreement enters into force, it will create the world’s largest free trade area, covering nearly two billion people. According to analyses from the Swedish National Board of Trade (Kommerskollegium), the agreement is expected to drive significant export growth in Swedish areas of strength such as motor vehicles, paper products, and metals. The services sector, particularly telecoms, financial services, and advanced technology, is also expected to expand.
At the same time, implementation may be delayed by 18–24 months following the European Parliament’s paused process. Discussions are under way regarding the possibility of provisional application.
In parallel, the EU continues negotiations with Mexico and Indonesia, and welcomes the EU and Canada opening negotiations on a digital trade agreement.
Trade barriers within the EU – a competitive disadvantage
A clear challenge was highlighted during the breakfast: today it is often easier for Swedish companies to invest outside the EU than within the Union. Trade barriers are estimated to equate to tariffs of 45 per cent for goods and as much as 110 per cent for services. At a time of increased global competition, this creates unnecessary costs for businesses.
The importance of concrete input from companies was emphasised, to help identify and remove barriers in the Single Market.
Last year’s successes: digitalisation and responsible sustainability communication
The discussion also drew on tangible progress from the previous year.
A key priority has been digital trade documents. Swedish companies are still constrained by legislation that requires physical documents, while countries such as the United Kingdom, the United States, and France have already modernised their frameworks. At the end of last year, the ICC, together with other business organisations including Trade Partners Sweden, presented a concrete legislative proposal to the Swedish Government. This is an issue Sweden can address nationally, and failing to do so risks Swedish companies falling behind internationally.
Another important success was the work around the EU’s Green Claims proposal. The proposal aimed to combat greenwashing, but in practice risked requiring prior approval of all sustainability communications. Through close collaboration with member companies, and supported by the ICC’s role in setting standards for marketing communications, the proposal was halted in its then-current form. At the same time, the ICC has launched updated global guidelines for responsible environmental marketing to help businesses.
Economic security and the relationship with the United States
Economic security was highlighted as a central element of both national and European security policy. The European Commission is now prioritising tools to protect the Union’s economic interests, with measures that must be well-justified and proportionate.
The relationship with the United States remains crucial. The US is Sweden’s third-largest export market for goods and the largest for services. During the meeting, participants discussed recent tariff threats and the EU’s readiness to respond with countermeasures, while also stressing that dialogue with the business community is essential.
Building on the 2025 priority areas: taxation, climate, and the circular economy
Tax issues were already a high priority in 2025, particularly after the United States withdrew from the OECD agreement on a global minimum tax and threatened retaliatory taxes. A new agreement has created an uneven playing field between US and European companies. At the same time, UN negotiations are ongoing on an international tax treaty, where the ICC is the only business organisation with official observer status.
In sustainability and climate, COP31 will take place in Antalya in November, with the business community actively involved to strengthen ambition and improve the conditions for the green transition. The circular economy, an upcoming EU Circular Economy Act, and questions around carbon pricing and harmonised emissions reporting remain high on the agenda.
Carbon pricing was highlighted as one of the most effective market mechanisms for driving the transition, and work is ongoing to develop common global standards.
Summary: A decisive year for Europe’s trade
The message from the World Trade Breakfast was clear: 2026 will be a decisive year for Europe’s economic development and for the future rules that govern global trade.
In a time of increasing protectionism and fragmentation, free trade and harmonised global rules are more important than ever. Trade policy is one of the most powerful tools to strengthen Sweden’s and Europe’s long-term prosperity, geopolitical room for manoeuvre, and cooperation with strategically important partners.
Through our participation in the World Trade Breakfast, Trade Partners Sweden will continue to contribute to the dialogue on how Swedish companies can navigate, and influence, developments in a rapidly changing global trade environment.
