Indian Updates
Free Trade Agreement between India and Oman reach final stages
India has announced that the Free Trade Agreement with Oman has nearly reached its final form and that the negotiations are in an advanced stage. The India - Oman Comprehensive Economic Partnership Agreement negotiations formally started in November 2023. The deal aims to boost bilateral trade and investment, potentially impacting Indian exports to Oman like petroleum products, textiles, electronics, and machinery, which currently face a 5% import duty.
Agreement between India and European Free Trade Association (EFTA) to come into force from 1st October 2025
India has announced that its Free Trade Agreement with the European Free Trade Association (EFTA) will take effect from 1st October 2025. The Agreement was signed in March 2024. The announcement was made after the agreement was ratified by Switzerland. Iceland, Liechtenstein and Norway have already ratified the Agreement.
Global Updates
Pakistan and Afghanistan sign a Preferential Trade Agreement
Pakistan and Afghanistan have signed a preferential trade agreement to reduce tariffs on key agricultural exports. The Agreement will come into effect from 1st August 2025 and aims to reduce import duties on grapes, pomegranates, apples, and tomatoes from Afghanistan, and mangoes, kinnows, bananas, and potatoes from Pakistan. Tariffs on these goods, that previously exceeded 60%, will now be reduced to 27%. Substantial duty reductions have been implemented for eight key agricultural products. The Agreement is valid for one year and can be renewed, potentially including additional products in the future.
The USA and European Union agree on a trade agreement
On 27th July, the USA and the European Union agreed to end the months long stand-off to come to a conclusion on a trade agreement. Most notably, the retaliatory tariffs imposed by the USA under IEEPA on the European Union were reduced from 20% to 15%. The 50% tariff on imports of steel and aluminium from the European Union will continue, open for further negotiations for a quota system. The agreement also outlines substantial commitments by European Union, including purchase of energy products like oil, gas, and nuclear fuel from the USA to the tune of USD 750 billion, as well as an additional USD 600 billion in investments in the USA. However, the parties have admitted that the agreement is not legally binding and further negotiation will be undertaken to fully implement the agreement.
The United Arab Emirates and Azerbaijan sign a Comprehensive Economic Partnership Agreement to enhance investment ties
The United Arab Emirates and Azerbaijan have signed a Comprehensive Economic Partnership Agreement, which seeks to boost investment flows and open up opportunities in sectors like renewable energy, tourism, logistics, and construction services. The Agreement is also expected to enhance private sector collaboration, strengthen supply chains, and empower small and medium enterprises (SMEs) to expand their operations internationally.
Indonesia and the European Union conclude negotiations over a Comprehensive Economic Partnership Agreement
The European Union issued a statement announcing the finalization of the EU– Indonesia CEPA. European importers are expected to benefit with respect to trade in chemical products, vegetable oil, cocoa beans, footwear and electrical equipment. Indonesian imports of vehicles, pharmaceuticals, electronic and medical instruments, are expected to be benefitted once the Agreement is ratified.
The United Arab Emirates and EaEU sign a Comprehensive Economic Partnership Agreement
On 27th June 2025, the United Arab Emirates and the Eurasian Economic Union (EaEU) signed a CEPA to enhance bilateral trade cooperation. Under the Agreement, import duties will be reduced from 5% to 0.6% on goods from the EaEU. Further, preferential duties shall be granted to agricultural products and industrial products from the EaEU, such as steel products, petroleum products, and drilling tools. Further, liberalization is also expected in the trade of chemical products.
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