Compliance Highlights – January 2026

EU–U.S. Trade Relations: Rising Tensions, Growing Uncertainty

January 2026 opened with renewed tension in EU–U.S. trade relations. The European Parliament has suspended the approval process for the EU–U.S. trade agreement that was politically agreed in July 2025. The move comes in response to repeated tariff threats by the United States, particularly those linked to Greenland and broader geopolitical pressure on European allies.

From the European Parliament’s perspective, the use of tariffs as a negotiating tool undermines trust in negotiated agreements and risks destabilising transatlantic economic relations. As a result, the formal ratification and implementation of the deal have been put on hold indefinitely. This pause creates uncertainty not only around tariff reductions, but also around market access and long-term trade predictability.

At the same time, the European Commission has signalled that it will respond in a coordinated and proportionate manner, emphasising the protection of EU sovereignty and the importance of predictable trade rules. While dialogue with U.S. counterparts remains open, preparations for a potential escalation in trade tensions are clearly underway.

Global Compliance Trends: Chemicals Regulation and EU Policymaking

Beyond trade, regulatory compliance developments in January highlight a continued focus on risk-based regulation. In the United States, the Environmental Protection Agency has finalised risk evaluations for several chemical substances under the Toxic Substances Control Act. These findings will directly shape upcoming regulatory obligations, requiring companies to reassess product safety, supply chains and compliance strategies well before enforcement actions begin.

In parallel, the European Commission has launched a Call for Evidence under its “Better Regulation” agenda. The initiative aims to improve the effectiveness and proportionality of EU lawmaking, with a strong emphasis on simplification without weakening consumer or business protections. For compliance teams, this signals ongoing regulatory reform rather than deregulation — and the need to stay closely engaged with policy developments.

Anticipatory Compliance: From Cost Centre to Value Driver

One of the clearest compliance themes this month is the shift toward anticipatory, or proactive, compliance. The conversation is no longer framed around avoiding fines alone. Instead, the focus is on measurable business value.

To secure investment in forecasting and regulatory intelligence tools, compliance leaders are increasingly expected to speak the language of the C-suite: return on investment. The case for proactive compliance is built on three pillars — avoided fines and penalties, reduced rework costs, and faster time-to-market. When regulatory changes are identified early, compliance can be designed into products and processes from the outset, rather than retrofitted at significant cost later on. In this model, compliance becomes a strategic enabler rather than a reactive control function.

Sector Focus: Maritime Compliance and Sanctions Risk

In the maritime sector, compliance expectations continue to intensify. Recent analyses point to a clear shift away from static, one-off checks toward continuous, predictive monitoring. Best practice now includes regular screening of counterparty vessels, enhanced due diligence where ownership or intermediary structures raise red flags, and close behavioural monitoring of trade flows linked to sanctioned jurisdictions.

Enforcement authorities are increasingly targeting entire facilitation networks — not just individual vessels. This means that brokers, insurers, managers and other intermediaries are firmly within scope. For maritime operators, sanctions compliance in 2026 is less about formal designation lists and more about identifying early warning signals across complex operational networks.

U.S. Employment Compliance: Key Changes Effective January 2026

January also marked the entry into force of several important U.S. state-level employment law changes. Connecticut expanded paid sick leave obligations by lowering the employee threshold for coverage. Delaware strengthened its Family and Medical Leave regime, increasing guaranteed paid leave and limiting employer control over accrual usage. Illinois introduced new civil rights protections, including restrictions on discriminatory use of artificial intelligence in employment decisions, while Washington State tightened enforcement around prevailing wage rules for public construction projects. For employers operating across multiple states, these changes reinforce the importance of regularly updating internal policies, payroll systems and employee documentation. State-level divergence remains a defining feature of U.S. employment compliance, and 2026 is no exception.