W.35 Policy Watch

The Policy Watch is a weekly update which aims to provide concise insights into the current policy landscape. Tailored for our members and individuals interested in international affairs, this update offers a brief yet comprehensive summary of key developments affecting policy decisions and political trends both globally and locally.

Global: US trade deals:
While the recent US trade agreements do not directly impact trade between the UK and Sweden, there is a profound indirect impact. 

EU

• The ongoing US-EU trade deliberations seem to benefit Sweden in several ways, with major Swedish firms being subject to a more stable framework that protects against any sudden tariff impositions as well as establishing more supply chain security with mineral deals that allow for transition into their ambitious green industrial plans (Eg, battery production and EVs). 

UK 

• The UK’s pursuit of a US trade deal has highlighted extreme vulnerabilities. A deal that allows subsidised US bioethanol to enter tariff-free could price out domestic ethanol, as highlighted through the imminent closure of plants like Vivergo, which have ceased production and are getting ready to lay off their 160 employees. 

Potential issues  

• As a result of these differing trade agreements, manufacturers may face costly rules of origin checks; for instance, a UK engine containing Swedish steel may lose its tariff-free access to the US under a future bilateral deal as its components are no longer considered “local”. Furthermore, UK regulatory alignment with US standards on everything from chlorinated chicken to chemical safety would violate its agreement with the EU. This would instantly create non-tariff barriers, blocking Swedish food, electronics and machinery from UK markets. 

Local: UK/EU Policies:
In recent months, UK and EU policy has seen policy changes aimed at easing entry to markets and setting standards for investment and regulation. 

UK Product Regulation & Metrology Act 2025 

• The UK Product Regulation & Metrology Act 2025  received Royal Assent, giving ministers broad powers to set/modernise product requirements. According to the UK’s legislation database, it enables the UK to mirror or integrate with EU-style environmental/product standards where desired. Sweden (as an EU member) will adopt EU environmental product rules. UK exporters can now design fewer times and sell into Sweden/EU with fewer adjustments.

Growth & Competitiveness Strategy  

• Additionally, HM Treasury set out a Growth & Competitiveness Strategy, signalling deregulation and pro-investment reforms. With Sweden being the hotbed for fintech that it is, this is significant for UK firms looking to deploy capital into Nordic scale-ups. This can allow for the passporting of talent and products more efficiently into Sweden via EU subsidiaries, while keeping their centre in London.

Overview 

• Ultimately, the Product Regulation & Metrology Act and the financial-services reforms mark a shift toward smoother UK-EU/Sweden trade. The product law allows the UK to align more closely with EU environmental standards, cutting compliance costs for exporters and easing Swedish market entry. At the same time, financial deregulation lowers barriers to raising capital and speeds approvals, positioning London as a stronger hub for funding and scaling sustainable businesses.