TheEUco-chair welcomed participants to the meeting. The provisional agenda as published inadvance was adopted. BothParties made an opening statement, noting the shared ambition for anopen and constructive dialogue. Item2–Review of completed obligations under the Goods heading The Partiesnotedthe obligation in Article 31 of the TCAas regardsthe exchange of data on PreferenceUtilisation Rate (PUR). This exchangetook place on14 June2024.The Partiesnoted that the existingworking methods work well andwillmaintain them. Item3–Taking stock in the trade in goods, including on Preference Utilisation Rates (PUR) Both Parties delivered presentations outlining key features of import/export flows, noting thatbilateral tradein2023has recoveredin current pricesbut remains subdued and observed decline intrade for some product categories such as mineral products. The parties noted how there may be some cyclic economic factors impacting the data observed, andnoted that a stabilisation of the energy prices may bring a greater degree of stability that may helpbilateral trade. Both Parties also presented on preference utilisation rates (PUR), following the data exchange inadvance of the meeting in line with Article 31 of the TCA. Analysis from both Parties showed highlevels of utilisation rate on both sides, noting some variation on specific sectors. Both Parties agreedthat it would be useful to continue the usefulexchangeofinformation at a technical levelon the topic. Item4–Carbon Border AdjustmentMechanisms The EU provided an update on the implementation of its Carbon Border Adjustment Mechanism(CBAM),highlighting thatitis in its transitional phase during which only reporting is required and thatthisis a learning phase. The EU also explained thattheymade various guidance documents availableto help importers and operators. The UKaskeda number of questions about the reporting, both onquality and the use of default and actual values and inquired about key lessons learnt in the transitionperiod on compliance/ possible changes. The EU indicated that the frequently asked questions itpublished provides many of the answers. The UKconfirmedthat work on CBAM will continue under the new governmentwith a number ofpolicy proposalsstillto be confirmed.TheUKnoted therecent CBAM consultation which ran from21March 2024 until 13 June 2024. The UKareanalysing theresponseswith a view of publishing theoutcome shortly. The UKnoted some key UK CBAM design elements includingsectoral scope and emissions scope. TheUK noted some differences between the UK and EU CBAM includingthe proposed minimumregistrationthreshold of £10,000 in value of CBAM goods overarolling 12-month period. The UKnotedthat there was ahigh level ofinterestinEU CBAMrequirementsamong UK businessesand theysought clarity on the reporting process and how the Commission might incorporate feedback,whilst welcoming the cooperationbothParties have had to date.The UKenquiredaboutthediscussion ontraded electricity in the CBAM.These were discussed at a technical meeting on16thofOctober and the EU noted thatfurther studies and implementing acts are in the pipeline.Electricity israising a number of issues andthe EUlooksforward to continuing discussions. The partiesnoted mutual interestto continue technical discussions andnoted thattheyare alignedwhen it comes to the level of climate ambition and associated risk of carbon leakage and concurredthat it would be important toensure close alignment of their respective CBAMs, in particular regardingits application to third countries. Item5–Exchange of information on Supply Chain Initiatives in the EU and UK TheUK introduced the item,noting that the Global Forum on Steel Excess CapacityMinisterial tookplaceon 8 October 2024under the UK Chair, andthankedtheEUfor itssupport. The UK noted thatthe Ministerial statement reflects in detail the very challenging situation of the sector, in particulardue to increased overcapacityand mentioning that urgent solutions are needed in the sector. The EU thanked the UK for their steering of the GFSEC in their position as chair for 2024. The EU notedthat the EU and UK industries share similar challenges as a result of excess capacity, which only makesit more difficult to transition to a lower carbon future, and the expiry of their respective safeguardmeasures on 30 June 2026. As such, it is important that the GFSEC remains an active forum, so thatlike-minded parties like the EU and the UK continue engaging towards finding the best solution to theovercapacity problems. The EU then gave an update on the activity in the Mineral Security PartnershipForum, notingitisacoordination platform of which both the EU and the UK are partand that the number of members isincreasing.The EU mentioned that the firstphysical meeting of the MSPForumtook place inSeptember andit would like to organise workshops on private investment and another one on ESG. The UKnotedthat security of supply remained key andmentionedit would