Global Pacts Shape New World Order
This week saw major powers forge critical alliances and economic ties. India and the EU finalized a landmark Free Trade Agreement, opening 99% of export access and boosting trade. Brazil and the EU established mutual data transfer recognition, creating the world's largest secure data flow area. Canada deepened ties with Japan through a defense pact. Meanwhile, Germany projected modest growth but eyes reforms. Global cooperation on issues like antisemitism and cyber defense also emerged as key themes.
Key Developments:
- India-EU Trade Deal: A defining moment, this FTA impacts 1.4 billion people.
- Data Flow Pacts: Brazil-EU agreement creates a vast digital corridor.
- Defense & Security: Canada-Japan pact, UK condemns UNRWA HQ demolition.
- Economic Focus: Germany's growth outlook, Nigeria courts investment.
Australia Celebrates, Builds, and Upgrades
Australia Day saw Sydney honor heroes and welcome new citizens. The Australian of the Year Awards recognized key figures, while events celebrated community spirit.
Infrastructure and Relief Take Center Stage
- Singleton Bypass nears completion, promising to divert thousands of vehicles.
- NSW prioritizes safety in the Blue Mountains, investing in road upgrades.
- Motorists receive $215M in toll relief, easing financial burdens.
- The Lung Bus offers vital health checks to workers across NSW.
NSW Focuses on Skills, Jobs, and Security
- Significant investment in TAFE NSW aims to boost skills and job prospects.
- Record apprenticeships at Sydney Trains signal a commitment to training.
- A new Cyber Security Strategy addresses emerging threats, including AI.
- Northern Beaches Hospital expands surgical capacity.
Brazil Secures Data Pact, Eyes World Cup
VP Alckmin and EU's McGrath finalized a data protection equivalence agreement, creating a vast secure data flow zone. This pact, effective January 27, benefits 700 million people and aims to spur business growth. Separately, FIFA and CBF discussed the 2027 Women's World Cup with President Lula, anticipating millions of fans.
President Lula also signed seven decrees for agrarian reform, expanding land access. In Panama, Lula championed regional autonomy and signed a trade deal. He highlighted Brazil's progress against hunger and inequality, noting record foreign capital and $629 billion trade in 2025. VP Alckmin also met Jewish leaders to address antisemitism.
Canada Invests Heavily, Expands Global Reach
This week saw significant Canadian investment across multiple sectors. Rural transit in BC received $894K, while Quebec and Canada injected $2.05M into Atelier Côté & Audet for expansion. A new Groceries and Essentials Benefit aims to provide up to $237 monthly for low-income families. Defense Minister signed a tech pact with Japan.
Global Partnerships and Domestic Support
Canada deepened international ties with a defense pact inked with Japan and an MOU for critical minerals with the NWT. Energy cooperation and trade were boosted through meetings with UAE and India officials. Domestically, judicial appointments were made in Alberta.
Infrastructure, Housing, and Security Focus
Halifax secured $6.4M for flood defenses. Atlantic housing support is forthcoming. The Cyber Centre issued a warning on escalating ransomware threats. Canada also contributed to global condemnation of an UNRWA HQ demolition and funded six dementia projects.
China Overhauls Drug Regulations
Beijing announced sweeping changes to its drug regulations this week, effective January 27, 2026. The revised rules prioritize drug safety and efficacy while aiming to spur innovation within the pharmaceutical sector. Key objectives include tightening oversight throughout the drug lifecycle and encouraging the development of novel treatments. This move signals a significant shift in China's approach to pharmaceutical governance.
Germany Eyes Modest Growth, Reforms
Germany's cabinet greenlit its annual economic report, forecasting a slight 0.2% growth for 2025 and a more optimistic 1.0% in 2026. The government is prioritizing reforms aimed at cutting red tape, fostering innovation, reducing energy expenses, and increasing the labor force. These measures are designed to bolster exports and navigate ongoing geopolitical uncertainties.
India, EU Ink Landmark Trade Deal
Republic Day saw Bharat Parv launch, honoring citizens and constitutional ideals. PM Modi acknowledged global greetings. The BRO conducted a significant rescue in J&K.
- EU Trade Pact: India and the EU finalized a Free Trade Agreement, granting 99% export access and boosting sectors like textiles and auto. New security, defense, and green hydrogen initiatives were also agreed.
- Economic Gains: The FTA is projected to significantly increase trade, with PM Modi calling it India's largest. President Murmu highlighted poverty reduction, while health reforms aim to speed up drug development.
- Domestic Focus: New waste management rules mandating segregation by April 1, 2026, were announced.
Italy Recalls Envoy, Boosts Africa Aid
Meloni recalled Ambassador Cornado from Switzerland following the release of Jacques Moretti, demanding a joint probe into the Crans-Montana tragedy. Meanwhile, Italy is set to significantly upgrade its healthcare system via the NRRP and strengthen ties with Africa, with PM Meloni heading to Ethiopia for a Mattei Plan summit. The nation also marked Holocaust Remembrance Day, condemning antisemitism.
Key Developments:
- Diplomatic Rift: Italy recalls ambassador over Moretti release, seeks investigation.
- African Engagement: Meloni to attend Mattei Plan summit in Ethiopia.
- Domestic Investment: EUR 30 billion allocated for local NRRP projects.
- Disaster Relief: €100 million pledged to Sicily after Cyclone Harry; 78 boilers sent to Ukraine.
Japan Boosts NK Missile Intel, Safety
Prime Minister Kishida directed a maximum effort to gather intelligence on a suspected North Korean missile launch. The directive emphasized public information dissemination, ensuring the safety of aircraft and vessels, and bolstering contingency readiness. This proactive stance reflects ongoing regional security concerns.
Tinubu Courts Investment, Eyes African Role
Shell pledges $20 billion for Nigeria, buoyed by President Tinubu's economic agenda. The President also visited Türkiye for trade and security talks, aiming to boost bilateral ties and reach $5 billion in trade. Vice President Shettima welcomed Plateau State to the APC and championed African inclusion and investment. The Federal Government secured ₦501 billion for the power sector. Tinubu mourned industrialist Otunba Ojora.
Putin Courts Global Allies, Honors History
President Putin engaged in a flurry of diplomatic activity this week. Meetings with the Malaysian Sultan and Syrian President Ahmed al-Sharaa highlighted discussions on infrastructure, military aid, and regional stability. Russia also strengthened ties with Kazakhstan through the Sirius talent initiative and prepared for a visit from the UAE's President.
Key Developments:
- Diplomatic Engagements: Putin met with Malaysian Sultan Ibrahim and Syrian President al-Sharaa.
- Historical Commemorations: The 82nd anniversary of the Leningrad siege was marked, alongside Holocaust Remembrance Day.
- International Cooperation: Partnerships with Kazakhstan on talent development and discussions with the UAE and CAR presidents were central.
What Changed:
- Syria Ties: Bilateral relations with Syria reportedly increased by 4%.
- Global Outreach: Russia actively pursued partnerships across Asia, the Middle East, and Africa.
- Historical Reflection: Significant focus was placed on remembering past tragedies and honoring victims.
UK Reforms Policing, Backs Syria Ceasefire
This week saw significant UK developments. Policing faces sweeping reforms, potentially including force mergers. The MHRA will chair the Access Consortium, aiming to improve drug access. Claire Archbold was appointed NI Crown Solicitor.
- Prison literacy gets a boost with author Lee Child as Prison Reading Laureate.
- Pubs will receive 15% business rates relief for 2026-27.
- The UK and allies backed a Syria ceasefire extension.
- £20M fund launched for UK defense tech startups.
- The UK condemned Israel's demolition of the UNRWA HQ.
US Expands Alliances, Boosts Trade
The U.S. strengthened international ties this week. Oman joined the Artemis Accords, deepening space cooperation. A strategic dialogue in Muscat covered regional peace and a new pact. Trade with Oman hit $3.3 billion in 2025.
The U.S. also rallied allies in Prague to enforce Iran sanctions. Deputy Secretary Rigas visited Japan to bolster the alliance. Bahrain and the U.S. signed $17 billion in deals.
Finally, U.S.-ROK talks in Seoul focused on boosting investments and travel. A working group discussed ROK investment in the U.S. and worker mobility.