Preferential Trade

Preferential Trade updates April 2026

April 28, 2026

Canada presses for wider trade agreement in talks with US

Canada-United States Trade Minister Dominic LeBlanc said the government wants to resolve trade frictions with the Trump administration as part of a comprehensive agreement, rather than through “one-off” deals. U.S. officials have pushed Canada for specific concessions and sometimes received them — without giving Canada anything in return. Last June, Prime Minister Mark Carney’s government dropped a digital services tax at the Trump administration’s request. But weeks later, President Donald Trump raised the tariff rate on Canadian goods anyway. Carney then dropped many of Ottawa’s retaliatory tariffs against the U.S. as the two sides were talking. But Trump broke off those discussions the following month.

China signal push to upgrade Switzerland FTA, expanding trade to services, digital sectors

China signalled readiness to advance talks on upgrading its Switzerland FTA, aiming to expand cooperation into services, digital trade and investment, reinforcing support for open trade amid global protectionist pressures. China has signalled its readiness to advance negotiations on upgrading its existing free trade agreement with Switzerland, in a move aimed at deepening economic ties and reinforcing support for open trade amid a more protectionist global backdrop. In a weekend statement following a bilateral meeting in Bern, China’s Commerce Ministry said it is willing to push forward talks toward a “high-standard” upgrade of the current pact, with a focus on expanding cooperation across trade, investment and innovation. The upgrade is expected to broaden the scope of the agreement beyond traditional goods trade into areas such as services, e-commerce, intellectual property protection and the digital economy. The China–Switzerland free trade agreement, which came into force in 2014, was China’s first such deal with a continental European country and remains a key pillar of bilateral economic relations. The existing agreement has already eliminated the vast majority of tariffs, covering nearly all Chinese exports to Switzerland and a substantial share of Swiss exports to China, helping to lift bilateral trade to around $60 billion annually in recent years. Efforts to modernise the pact have been underway for some time. Feasibility discussions began in early 2024, with formal upgrade negotiations launching later that year. Multiple rounds of talks have since taken place, with officials describing progress as constructive.

Package Switzerland-EU: Federal Council approves agreement on the involvement of the cantons

At its meeting on 22 April 2026, the Federal Council approved the agreement between the federal government and the cantons on their involvement in the context of the package ‘Stabilisation and further development of relations between Switzerland and the EU (Bilaterals III)’. Among other things, it is intended to ensure that the cantons are involved in the application of the institutional elements of the single market agreements – such as the dynamic alignment of legislation or the settlement of disputes. Approval was granted subject to the outcome of the parliamentary deliberations on the package Switzerland-EU.

EU Commission proposes full resumption of EU-Syria Cooperation Agreement

Commission proposed the full resumption of the EU–Syria Cooperation Agreement, marking a new step in bilateral relations. Originally in place since 1978 and partially suspended in 2011, the agreement provides a framework for economic and social cooperation and fair trade. Its revival aims to support Syria’s recovery and re-engagement, while restoring structured EU–Syria cooperation. The proposal will now need to be formally adopted by Council and subsequently notified to the Syrian Transitional Authorities. This is an important political signal ahead of the upcoming EU-Syria High Level Political Dialogue that will be held on 11 May 2026.

EU and South Korea strengthen trade and technology cooperation

The two sides strengthened their partnership by holding their first Strategic Dialogue on Trade, Supply Chains and Technology, while also endorsing the final text of the EU-Korea Digital Trade Agreement (DTA) to be signed at the EU-Korea Summit later this year. During the Trade Committee meeting, both sides highlighted the FTA's tangible benefits for businesses and citizens. Commissioner Šefčovič emphasized in particular the constantly growing trade in goods, as well as the significant level of investments. Both sides welcomed progress on the update of the Motor Vehicles and Parts Annex, an agreement to work towards a Mutual Recognition on Electronics, and a decision to set up a Working Group on Cosmetics.

EU Commission is updating EU competition rules on technology licensing agreements

The European Commission has adopted the revised Technology Transfer Block Exemption Regulation ('TTBER') and guidance on the application of Article 101 of the Treaty to technology transfer agreements following an in-depth review of the rules in force since 2014. Technology transfer agreements are agreements whereby a company holding rights to technology (such as patents, industrial design rights or software copyrights) authorises another company – usually by licensing – to use those rights to produce goods or provide services. The TTBER exempts technology transfer agreements from the prohibition of anti-competitive agreements in Article 101(1) of the Treaty on the Functioning of the European Union, subject to certain conditions. The guidance helps companies interpret the TTBER and provides guidance on the assessment of technology transfer agreements and other non-block exempted agreements.

EU launches the provisional application of the Interim Agreement with Mercosur

A Notice concerning the provisional application of the Interim Trade Agreement between the EU and Mercosur has been published. According to the information published in the Official Journal of the EU, the European Union and the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) have completed the procedures necessary to commence the provisional application of the Interim Trade Agreement. Provisional application will commence on 1 May 2026 between the EU and those countries that have formally notified the completion of their national procedures. The notice confirms that all four Mercosur countries have submitted the relevant notifications, enabling the trade mechanisms provided for in the Interim Agreement to enter into force.

Extension of the EU–Ukraine Agreement on scientific cooperation

A notice has been published regarding the entry into force of the extension of the Agreement on Scientific and Technological Cooperation between the European Community and Ukraine. According to the notice in the Official Journal of the EU, the extension of the agreement entered into force on 7 April 2026. At the same time, it was confirmed that the extension is valid for a further five-year period, effective from 8 November 2024. The agreement, originally signed in 2002, has already been renewed several times (2003, 2011, 2015, 2020, 2025), and its aim remains to support joint research activities, researcher mobility and cooperation in key technological areas.

EU-India - European Parliament approves the extension of the research contract

The published European Parliament Legislative Resolution C/2026/1501 approves the renewal of the Agreement for Scientific and Technological Cooperation between the European Community and the Government of India. Acting on the basis of the Council's proposal and an earlier decision in 2002, Parliament agreed to extend the cooperation, stressing its importance for research, innovation and joint scientific projects. The resolution instructs the President of Parliament to forward her position to the EU institutions and to the authorities of the Member States and India.

EU-Switzerland - new cooperation agreement in the Space Programme Agency

Published on 8 April 2026, the Agreement regulates the rules for Switzerland's participation in the EU Agency for the Space Programme, allowing it to be formally included in Galileo and EGNOS activities. The document confirms that the cooperation is based on previous agreements on GNSS programmes and security procedures, and that Switzerland contributes financially and participates in the work of the Agency on a similar basis to that of the Member States. The aim is to deepen cooperation in the field of satellite navigation and to ensure a stable legal framework for Switzerland's participation in EU space projects. The Agreement shall be subject to ratification or approval by the Contracting Parties in accordance with their procedures. The Contracting Parties shall notify each other of the completion of the internal procedures necessary for the entry into force of this Agreement. The full text of the Agreement can be found in Polish <here> and in English <here>. At the same time, a separate Decision introduces the provisional application of the agreement on Switzerland's participation in the EU Agency for the Space Programme, allowing for its earlier inclusion in activities related to Galileo, EGNOS and other components of the Space Programme.

EU-Morocco - Launch of the Digital Dialogue

The European Union and the Kingdom of Morocco have strengthened their relationship as strategic partners in the digital area by launching the EU-Morocco Digital Dialogue. The EU-Morocco Digital Dialogue also aims to implement the commitments set out in the Pact for the Mediterranean, the EU's strategic initiative that aims to strengthen cooperation and partnerships with the countries of the Southern and Eastern Mediterranean, including in the digital area.

EU-UK relations: member states greenlight EU-UK deal on Gibraltar

The Committee of Permanent Representatives has agreed today (April 1st) the texts of the agreement and decisions of signature and provisional application of the Agreement between the EU and the UK in respect of Gibraltar.  The EU-UK Agreement in respect of Gibraltar will complete the legal framework of the relations between the EU and the United Kingdom established by the Trade and Cooperation Agreement. Gibraltar is not included in the scope of the EU-UK Trade and Cooperation Agreement, signed in 2020 and in force since 2021. The main objective of the EU-UK agreement in respect of Gibraltar is to secure the future prosperity of the whole region. This objective will be reached by removing all physical barriers on persons and goods circulating between Spain and Gibraltar, while fully safeguarding Schengen, the EU's Single Market, and its Customs Union.

EU and Australia strengthen relations with Security and Defence Partnership and Trade Agreement

The EU and Australia have announced a landmark Security and Defence Partnership and concluded negotiations on an ambitious and balanced free trade agreement. Together, these agreements open doors to greater market access, shared defence commitments, and stronger supply chain resilience, delivering tangible benefits for both partners at a time of geopolitical uncertainty.

EU is updating rules of origin in trade with Pacific countries

Decision No 1/2026 of the EU-Pacific Trade Committee (applied by the Independent State of Papua New Guinea and the Republic of Fiji) amends Protocol II on rules of origin and administrative cooperation, facilitating the use of tariff preferences and improving the exchange of information between customs authorities. The decision was adopted and entered into force on January 30, 2026.

EU confirms the entry into force of the revised transport agreement with Ukraine

According to an official notice published in the Official Journal of the EU, the revised agreement between the European Union and Ukraine on the carriage of goods by land has been in force since 19 February 2026. The act amends an earlier agreement of 29 June 2022, which allowed Ukrainian and EU carriers to operate without permits due to transport disruptions caused by Russia's aggression against Ukraine. The amendment aims to extend and clarify the rules for the functioning of the "solidarity lanes" and to ensure the smooth functioning of EU-Ukraine trade.

EU-Australia: FTA and new security and defence relations

The European Union and Australia have announced the adoption of a landmark Security and Defence Partnership. They have also concluded negotiations on an ambitious and balanced Free Trade Agreement (FTA) and agreed to launch formal negotiations on Australia’s association with Horizon Europe, the world’s largest research and innovation funding programme. Through these actions, the EU and Australia are achieving mutually beneficial results and further strengthening their already close relations at a time of geopolitical uncertainty. On the EU side, the negotiated draft texts will be published shortly. The texts will undergo the necessary internal procedures before the Commission submits its proposal to the Council for the signing and conclusion of the agreement.

European Union and AfCFTA secretariat strengthen their partnership to promote intra-African trade and investment

The European Union (EU) and the African Continental Free Trade Area (AfCFTA) Secretariat signed a Memorandum of Understanding (MoU) on 20 April 2026, strengthening their partnership to accelerate the African Continental Free Trade Area which is the largest free trade area in the world. The EU-AfCFTA partnership ambitions to boost regional and continental economic integration on the African continent and to align European and African interests along strategic priorities. The MoU was signed by H.E. Jozef Síkela, European Commissioner for International Partnerships, and H.E. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, on the sidelines of the EU-Ethiopia Business Forum taking place 20 – 22 April in Addis Ababa, Ethiopia. The MoU builds on the broader AU-EU partnership based on the Joint Vision for 2030 reaffirmed at the 7th AU-EU Summit last year in Luanda, where EU and African Heads of State and Government committed to continue promoting a prosperous, stable, and sustainable Africa and Europe. Among these is the EU Technical Assistance Facility (EU-TAF), which provides demand-driven technical support to the AfCFTA Secretariat, the AU and its specialised agencies, Regional Economic Communities, AU Member States, the private sector, and civil society. This facility positions the EU and its Member States as single largest partner to the AfCFTA Secretariat. Both parties committed to deepen intra-African trade and investment, notably through open dialogue for mutual benefit, to fully support the effective implementation of the AfCFTA across the continent, in the joint interest of the African and EU private sectors. The agreement further advances the objectives of the African Union’s Agenda 2063 and contributes to a rules-based, open, and equitable multilateral trading system.

India, South Korea eye upgrade in free trade agreement, ‘more balanced’ ties

India and South Korea have agreed to upgrade their existing free trade agreement, Union commerce minister Piyush Goyal on Monday said, adding that the two partners are working towards a “more balanced” partnership to address New Delhi’s concern over growing bilateral trade deficit. India imported goods worth $21.06 billion from South Korea in 2024-25 and exported $5.82 billion, resulting in a trade deficit of $15.24 billion.

The specific timeline to complete upgradation of the existing India-South Korea Comprehensive Economic Partnership Agreement (CEPA) is significant as negotiations for the same have gone on for almost a decade. After the Modi government came to power, it realized that certain FTAs signed previously were largely one-sided and weak on rules of origin, allowing products from a third country getting concessional duty access to India. On June 18, 2016, New Delhi and Seoul agreed to review CEPA to make it more comprehensive and balanced.

India, New Zealand to sign FTA

India and New Zealand signed a landmark Free Trade Agreement (FTA) on April 27, 2026, marking a major milestone in strengthening bilateral economic relations. The agreement, signed by Union Minister for Commerce and Industry, Mr. Piyush Goyal, and New Zealand Minister for Trade and Investment, Mr. Todd McClay, provides duty-free access to 100% of Indian exports to New Zealand, significantly enhancing market access for key sectors such as textiles, pharmaceuticals and engineering goods. The FTA also aims to double bilateral trade to Rs. 46,220 crore (US$ 5 billion) within five years, while promoting services trade, professional mobility and cross-sector collaboration. The agreement is expected to reduce tariff barriers, improve ease of doing business and create new opportunities for Indian exporters across manufacturing and services sectors.

The agreement includes a commitment by New Zealand to invest Rs. 18.49 lakh crore (US$ 20 billion) in India over 15 years, strengthening long-term economic cooperation and boosting capital inflows. Additionally, provisions such as streamlined visa pathways, including around 5,000 annual work visas, are expected to facilitate talent mobility and deepen people-to-people ties. While ensuring broader market access, the pact also safeguards sensitive sectors such as dairy and agriculture, reflecting a balanced approach to trade liberalisation. The FTA is also expected to encourage joint ventures, technology transfer and supply chain integration between the two countries. Overall, the agreement is poised to enhance export competitiveness, attract investments and strengthen India’s integration into global value chains, particularly within the Indo-Pacific region, supporting sustained economic growth and diversification of trade partnerships.

India-UK FTA may come into force mid-May

The Comprehensive Economic Partnership Agreement (CETA) is likely to come into force from the second week of May as the ratification process and completion of other legal requirements enter into the final stage. The agreement signed in July 2025, has been vetted by the both houses of UK’s Parliament in March. In India the ratification of FTAs is through executive process, needing Cabinet approval. Post ratification and before entry into force other rules and regulations also need to be amended to make the agreement enforceable. These include customs notifications by both sides to update the national tariff schedule to bring it in line with the commitments in the trade agreements. Along with CETA, the Double Contribution Convention (DCC) will come into force. The DCC will exempt Indian professionals and their employers from social security payments in the UK for up to three years. It will ensure that employees moving between the UK and India, and their employers, will only be liable to pay social security contributions in one country at a time. It will also ensure that employees temporarily working in the other country for up to 3 years will continue paying social security contributions in their home country, preventing the fragmentation of their social security record. The CETA will allow 99% of the Indian exports to enter the UK duty free and cover almost 100% of the trade in value terms. For the UK, India will reduce or eliminate duties on 90% of the tariff lines that account for 92% of the imports. The immediate target for the FTA is to double bilateral trade – both goods and services – to $ 120 billion by 2030 from $ 56.9 billion in 2024-25. The talks on the agreement began in January 2022 and were concluded on May 6 last year.

First round of India-Canada FTA talks in April-May

India and Canada will hold the first round of negotiations on their Comprehensive Economic Partnership Agreement (CEPA) in April or May Currently, both sides are engaged virtually to lay the groundwork. India and Canada signed Terms of Reference (ToR) for their FTA on March 2 and aim to conclude negotiations by the end of this year. Through CEPA both sides aim to double their bilateral trade to $50 billion by 2030. It is the third attempt by both sides for an FTA. Negotiations on CEPA with Canada first started in 2010 but made little progress. The negotiations relaunched in March 2022 before being abandoned in August-September of 2023 due to political differences. Agrawal said the next meeting for the review of Asean-India Trade in Goods Agreement (AITIGA) would be held on March 30-31. It will be the 12th meeting of the Joint Committee that is spearheading the review process.

Malaysia, EU to continue fourth round of FTA talks in June

The fourth round of the Malaysia–European Union Free Trade Agreement (MEUFTA) negotiations will be hosted by Malaysia and held in June 2026, following the positive momentum from earlier rounds. The Ministry of Investment, Trade and Industry (Miti) said the MEUFTA negotiations have concluded the third round, held in Brussels, Belgium, from Feb 9 to 13, 2026. Prime Minister Datuk Seri Anwar Ibrahim, together with President of the European Commission Ursula von der Leyen, announced the resumption of free trade agreement (FTA) negotiations on Jan 20, 2025, during his working visit to Brussels. Miti said that since the first round, held from June 30 to July 4, 2025, both parties have shown a strong commitment to narrowing differences on various outstanding issues related to the FTA.

Philippines, Canada to finalize text for FTA in July

The Department of Trade and Industry (DTI) is looking to finalize the text for the Philippines’ free trade agreement (FTA) with Canada by its third round of negotiations in July. An FTA with Canada, which is set to be the Philippines’ first trade deal in North America, is anchored on the two countries’ aim to diversify their respective export markets. The DTI earlier said that the Philippines is expected to finish FTA negotiations with Canada ahead of the ASEAN-Canada Free Trade Agreement (ACAFTA) this year. The ACAFTA is one of the priority economic deliverables of the Philippines as chairman of the ASEAN this year. A trade deal between the Philippines and Canada comes amid global trade uncertainties that have prompted countries to expand market access and reduce trade barriers.

South Korea-UAE CEPA to take effect May 1

South Korea and the United Arab Emirates(UAE) have agreed to implement their Comprehensive Economic Partnership Agreement(CEPA) on May 1. The agreement was reached on Friday during a virtual meeting between Trade Minister Yeo Han-koo and his UAE counterpart, Thani Ahmed al-Zeyoudi. Following the National Assembly’s ratification of the trade deal on Tuesday, the trade ministry notified the UAE of the completion of domestic procedures and has since held consultations to expedite the agreement’s entry into force. The CEPA marks South Korea’s first free trade agreement with an Arab country in the Middle East. The deal will gradually eliminate tariffs on 91-point-two percent of goods, including crude oil, over the next ten years, lowering South Korea’s import costs. In addition, the pact creates a framework for collaboration in sectors such as energy, resources and advanced industries.

UAE-Azerbaijan CEPA officially enters into force

A comprehensive trade agreement between the UAE and Azerbaijan has officially come into force, aiming to deepen economic ties, expand investment flows and widen market access between the two countries. The comprehensive economic partnership agreement (CEPA) is expected to reduce or eliminate tariffs on a broad range of goods and services, creating new opportunities for exporters, investors and small businesses on both sides. It also seeks to strengthen private-sector cooperation across sectors including logistics, renewable energy, construction and advanced manufacturing. The deal marks Azerbaijan’s first trade agreement to include a dedicated services chapter, opening the door for expanded collaboration in finance, consulting and professional services.

UAE–Vietnam comprehensive economic partnership takes effect

The Comprehensive Economic Partnership Agreement between the United Arab Emirates and Vietnam has officially entered into force, marking a major step forward in bilateral trade and investment relations. The agreement is designed to remove trade barriers, significantly reduce customs duties and establish a robust framework for deeper economic cooperation across a wide range of sectors. Its implementation is expected to accelerate trade flows and create new opportunities for private-sector engagement in both countries. Vietnam is the UAE’s largest trading partner within the Association of Southeast Asian Nations (ASEAN). Bilateral non-oil trade grew by 4 per cent in 2024 to reach US$12.6 billion, before surging further in 2025 to exceed US$16.05 billion – a year-on-year increase of 27.4 per cent. With the agreement now in force, trade volumes are forecast to expand further as improved market access and streamlined procedures take effect. The agreement is expected to enhance cooperation not only in goods trade but also in investment and high-value economic activities. Under the deal, more than 90 per cent of Emirati exports to Vietnam will see tariffs eliminated or sharply reduced, covering 99 per cent of their total export value. In parallel, Vietnam will benefit from reduced duties on 95 per cent of its product categories exported to the UAE, also accounting for 99 per cent of current import value, a move set to significantly boost two-way trade. The partnership is aligned with the UAE’s broader strategy to expand global trade ties and diversify its external economic relations. Vietnam’s role as a key ASEAN economy makes the agreement a strategic pillar in the UAE’s ambition to raise non-oil foreign trade to around US$1.1 trillion by 2031.

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