Indian Updates
India and the United Kingdom finalize a free trade agreement
India and the United Kingdom have finalized a Free Trade Agreement on 6th May 2025, after three years of negotiations. The deal includes zero-duty exports for 99% of Indian products to the United Kingdom. India has committed to reduce tariffs on key exports from United Kingdom such as whisky, medical devices, cosmetics and advanced machinery. The consumers in the United Kingdom are expected to benefit from lower duties on Indian imports of clothing, footwear and food items. Additionally, Indian tariffs on automobiles are expected to drop from over 100% to 10% under a special quota system.
India and Oman in the final stages of the India-Oman Comprehensive Economic Partnership Agreement
India and Oman have reportedly reached the final stages of the trade negotiations over the CEPA. Most notably, both sides are yet to agree on the 'Omanisation policy' which calls for quotas for employing Oman nationals in private sectors. The quotas specified can be amended over time. India has raised concerns over the fluidity of the policy and has argued for fixation of quotas in order to ensure that the policy does not undermine the trade liberalization effected by the CEPA.
India and Chile initiate negotiations for a Comprehensive Economic Partnership Agreement
India and Chile have announced the launch of trade negotiations for a Comprehensive Economic Partnership Agreement (CEPA), to enhance bilateral trade relations. The proposed agreement aims to unlock the full potential of the commercial relationship between the two sides, boosting employment, bilateral trade in goods, health and pharmaceuticals, defense and security, infrastructure, mining and mineral resources.
Global Updates
The USA and the United Kingdom conclude talks over US-UK Economic Prosperity Deal
The USA and the United Kingdom have finalized the US – UK Economic Prosperity Deal (EPD). The deal includes significant concessions for both the sides. It is expected that American duties on automobiles will reduce from 27.5% to 10%. The United Kingdom has agreed to offer preferential duty-free quota of 1.4 billion litres for ethanol from the USA. The agreement also ensures streamlined customs procedures and preferential access for the American aerospace components. In respect to the American tariffs on steel and aluminium products, the United Kingdom has committed to comply with the requirements for supply chain security and ownership of production facilities. In return, the USA will apply MFN rate for UK steel and aluminium and their derivative products.
China and the USAannounce successful negotiations diffusing tariff tensions
The USA and China issued a joint statement on 12th May 2025 announcing mutual commitments to reduce the reciprocal tariffs imposed in April 2025. The countries have committed to reduce the tariffs by 24 percentage points and to retain 10% duty for an extended period of 90 days. Both sides have also agreed to eliminate the additional duties imposed in retaliation to the other. The countries have committed to a 90-day pause on further tariff increases to facilitate ongoing negotiations.
China and Association of Southeast Asian Nations (ASEAN) bloc conclude negotiations over the revised free trade agreement
China and the ASEAN bloc have concluded negotiations over the revised version of the ASEAN-China Free Trade Area. The negotiations began in November 2022 with the intensified efforts in background of the reciprocal tariffs imposed by the US. The revised agreement calls for cooperation in digital innovation, environmental sustainability, and supply chain resilience.
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