We are pleased to announce that Issue 1, 2026 of TradeWatch, has now been published and is ready to be shared with our network and clients from our global trade page on ey.com.

As 2026 progresses, trade and customs teams are operating in a new environment of accelerated regulatory change and expanding compliance expectations. Requirements are extending beyond the border into data, governance, sustainability, and operating model design, increasing the need for resilient, audit-ready trade functions.

Across jurisdictions, authorities are shifting from document-based compliance to transaction-level traceability, with greater reliance on electronic data and cross-checks. Examples include Mexico’s new electronic customs valuation reporting from 1 April 2026 and the European Union’s move toward a more data-driven, risk-based customs framework. These developments underline a consistent message: effective trade compliance increasingly depends on systems, data quality, and governance.

Sustainability measures are now firmly embedded in customs processes. The European Union Carbon Border Adjustment Mechanism (EU CBAM) entered its definitive phase on 1 January 2026, while businesses are also addressing the operational demands of the European Union Deforestation Regulation, including traceability, due diligence and supplier evidence under clearance-time pressure.

At the same time, facilitation mechanisms remain a focus. Programs such as India’s Manufacturing and Other Operations in Warehouse Regulations (MOOWR) and Authorized Economic Operator (AEO) continue to offer opportunities to improve cash flow, predictability and supply chain efficiency when supported by robust controls.

Trade agreements and geopolitical measures remain central to trade strategy in 2026. Developments such as the European Union–Australia and European Union–India trade negotiations, alongside evolving sanctions, embargoes and trade remedies, are driving organizations to strengthen tariff planning, origin strategies, and automated screening capabilities to support scalable, auditable compliance.

Keeping Up to Date with Developments in Trade 

We hope you find this edition of TradeWatch informative and useful. Our goal is to reflect the key trends affecting international businesses and provide news and insights to inform your trade strategy and improve your trade operations. You can stay updated with global trade developments by subscribing to EY Tax Alerts and future editions of our TradeWatch and TradeFlash publications on ey.com/global trade. Additionally, you can subscribe to future webcasts and access replays of past webcasts via the EY webcasts page on ey.com.

If you would like more information on any of the topics covered in this issue or how they may impact your business, please reach out to the authors listed with the articles or any of the EY Global Trade professionals listed in the Contacts section of the magazine. We also welcome your feedback and suggestions for future editions.

Why TradeWatch?

In today's global economy, moving goods internationally can be a complex and costly activity. TradeWatch provides information about customs and international trade developments to help you develop strategies to manage duty costs and the risks of global trade, to improve trade compliance and to increase the operational effectiveness of international supply chains.