MULTILATERAL: EU-US Trade Deal & more – 29th July 2025

Saluton from BA! This is the Rorshok Multilateral Update from the 29th of July twenty twenty-five. A summary of what's going down in the world's major multilateral institutions.

Kicking off this edition, on Sunday the 27th, President Trump said that the U.S. and EU had finalized a trade deal just ahead of a deadline he had set. He met with EU representatives in Scotland, where they settled on a 15% tariff for most EU products heading to the U.S., which is more than what Europe wanted, but less than the original 30% that Trump had threatened.

The EU also agreed to make major investments and buy a large amount of American energy.

Leaders from several countries welcomed the outcome, saying it prevented a damaging trade dispute.

Meanwhile, on Saturday the 26th, Austria’s Foreign Minister said she's open to sparking a nationwide discussion about joining NATO. Even though Austria has stuck with its neutrality since the nineteen fifties, the war in Ukraine has shifted how some leaders are thinking about the country's defense. The Foreign Minister stressed that staying neutral doesn’t mean staying passive and argued that Austria needs to boost its defense and build stronger ties.

This is pretty significant, since Austria has maintained a policy of neutrality for decades. Since the security landscape in Europe has shifted, Austria has also changed its strategy, participating more actively in EU defense initiatives. Recent moves include joining the European Sky Shield air-defense project and increasing involvement in EU military funding.

Next up, on Friday the 25th, the UN Security Council held a closed-door emergency meeting to address the escalating violence between Thailand and Cambodia as it stretched into a third day. While the council didn’t release an official statement, diplomats confirmed all fifteen members urged both countries to ease tensions and work things out peacefully. They also encouraged the Association of South East Asian Nations or ASEAN to step in and help mediate. Cambodia’s UN envoy called for an immediate ceasefire and insisted his country wasn’t the aggressor.

Concerns about Cambodia and Thailand aren’t entirely new; Border disputes between them date back to French colonial rule, when unclear mapping created confusion about territorial boundaries. Tensions have flared periodically since then.

Since we mentioned ASEAN, on Sunday the 27th, the association began a regional effort to make sure AI tech stays safe and trustworthy. Under Malaysia’s leadership, they’re setting up the ASEAN AI Safety Network to push for shared rules, better oversight, and ethical standards across member countries. The main concerns include misinformation through deepfakes and weakening cybersecurity.

The announcement came during a major AI conference in Shanghai, where ASEAN’s Secretary-General pointed out that issues like bias, fake info, and data misuse need urgent attention.

Going back to UN news, on Monday the 28th, France and Saudi Arabia kicked off a UN conference aimed at reviving the two-state solution by recognizing Palestinian statehood. Other European countries may follow suit, though big players like the UK remain cautious.

With Israel and the U.S. absent, the meeting will focus on reforming Palestinian leadership, sidelining Hamas, and pressuring for an end to the Gaza war. At the meeting, France urged the EU to actively push Israel toward accepting a two-state resolution to the Israeli-Palestinian conflict.

On the legal front, on Wednesday the 23rd, the International Court of Justice delivered a major opinion declaring climate change a massive global threat that affects all life. The court said countries are legally bound to take meaningful climate action, and if they don’t, they could be violating international law. It also warned against sending climate-displaced people back to unsafe conditions.

For some context, the International Court of Justice issues opinions and judgments on a case-by-case basis, normally a few times per year. It delivers two main types of decisions: binding judgments in cases between states and non-binding advisory opinions when requested by UN organs or specialized agencies. Judgments in cases between states are typically legally binding only for the parties involved and cannot be appealed. Advisory opinions, while influential, carry no binding legal force but can shape international law and guide UN actions.

Still in legal updates, on Thursday the 24th, a group of judges from the International Criminal Court formally called out Hungary for not arresting Israeli Prime Minister Netanyahu during his April visit, despite an active arrest warrant tied to alleged war crimes in Gaza. They said Hungary clearly should have cooperated and that its refusal seriously weakened the court’s ability to do its job. Recall that the Court doesn’t have its own enforcement power. Hungary’s Prime Minister Orbán defended the move and even started the process to leave the court altogether.

This is a big controversy for nations beyond Hungary, too. Some member countries of the International Criminal Court have signaled that they might comply with an arrest order if one is issued. Others are facing political pressure not to act against Netanyahu, citing concerns over the legitimacy or timing of the charges. The issue has reignited debates over the Court’s reach, and how international law interacts with actual politics.

On Thursday the 24th, UNICEF’s regional director for the Middle East and North Africa warned that the situation in Gaza is spiraling, especially for kids. In the previous week, dozens of children died from hunger and dehydration. Malnutrition is now widespread, and even the kids who make it to hospitals aren’t guaranteed help because supplies are running low. The agency is urging immediate, unrestricted aid access, saying time is running out.

On to South America: on Friday the 25th, the Inter‑American Development Bank approved a $1 billion loan to support Brazil’s Ecological Transformation Plan aimed at boosting private investment. This program offers blended finance tools to improve business conditions and attract sustainable projects. It’s tied to recent tax reforms and includes frameworks for green sovereign bond issuance and a national bioeconomy strategy. The goal is stronger governance, better productivity, more jobs, and income growth, while keeping social and environmental responsibility front and center.

On Thursday the 24th, the International Monetary Fund and Argentina reached a staff-level deal that would release $2 billion in funding. This comes after a review of Argentina’s economic progress under an ongoing loan program. The country is dealing with serious economic challenges, but the fund acknowledged efforts to stabilize the situation, including tighter spending and adjustments to its currency approach.

The agreement still needs final approval from the fund’s leadership. If signed off, it’ll help Argentina keep pushing ahead with its recovery plan and deal with growing financial pressures

On Tuesday the 22nd, the Pan American Health Organization and the Caribbean Community signed a plan running through twenty twenty-nine to tackle public health priorities in the English-speaking Caribbean. The agreement aims to improve how the region tracks diseases, handles emergencies, and supports its health workforce. There’s a big focus on working closely with local governments and aligning with broader development goals.

Still on health: on Tuesday the 22nd, the World Health Organization sounded the alarm about chikungunya making a comeback, mirroring the big outbreak back in two thousand four–two thousand five. This mosquito-borne illness, known for fever, intense joint pain, and lasting health issues, is spreading across the Indian Ocean islands, into Africa, Southeast Asia and India. Countries like France and Italy are also reporting both imported and local transmission. The World Health Organization is advising people to use repellent and wear long sleeves to avoid getting bitten.

For our final story this week, from Tuesday the 22nd until Friday the 25th, the Economic Community of West African States held a training session in the Gambia to help its teams sharpen their messaging skills. The idea is to move away from generic statements from the organization and build a communication game plan that actually resonates across the region.

Aaand that’s it for this week! Thank you for joining us!

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See you next week!