India, Australia conclude another round of talks for comprehensive trade pact
India and Australia on Saturday concluded another round of negotiations for a comprehensive free trade agreement to strengthen economic ties between the two countries. The two countries have implemented an interim trade deal in December 2022, and are now in negotiations to widen its scope into a Comprehensive Economic Cooperation Agreement. The negotiations covered a wide range of areas, including goods, services and mobility, digital trade, rules of origin, legal and institutional provisions, environment, labour, and gender, bringing greater understanding for convergence in the remaining provisions, it added. To maintain momentum and achieve convergence, both partners will continue the negotiations in virtual intersessions.
Ethiopia issues AfCFTA tariff rules but excludes coffee and key services off tariff-free list
Ethiopia has taken a decisive step toward joining the African Continental Free Trade Area (AfCFTA). Nearly six years after ratifying the agreement, and four years since the African Union launched the world’s largest common market, the country has published regulations in the Negarit Gazette outlining which goods and services will benefit from tariff concessions. For Ethiopia, one of Africa’s fastest-growing economies and a nation often described as the continent’s diplomatic capital, the delay has raised questions about its readiness to embrace integration. Now that the regulation is public, attention has shifted to what Ethiopia has chosen to liberalize, and what it has left out. The 419-page document approved by the Council of Ministers sets out tariff schedules covering almost 6,000 products identified under AfCFTA. As the continental agreement requires, 90 percent of goods fall into Category A, slated for immediate zero tariffs. Seven percent, grouped under Category B, will be phased out over a decade, while three percent grouped under Category C, are permanently exempt, usually to protect national champions. Ethiopia’s regulation, however, makes public only its Category A list. The absence of details on Categories B and C underscores the sensitivity of what the country intends to shield. Source: The Voice of Africa
EU Commission moves to revise trade deals with Morocco to comply with CJEU rulings on Sahara
After months of waiting, the European Commission has finally responded, following Morocco’s demand on November 25, 2024, by taking steps to address the October 4, 2024 rulings of the Court of Justice of the European Union (CJEU), which excluded Western Sahara from EU–Morocco agreements. The European Commission is preparing to launch negotiations to revise the EU–Morocco trade agreement. The proposal, presented on July 22, will be reviewed on September 10 by the Committee of Permanent Representatives (Coreper), just three weeks before the European Court of Justice (CJEU) rulings take effect on October 4, 2024, which exclude products from Western Sahara from the agricultural and fisheries agreements signed with Morocco. According to a document from the Danish Ministry of Foreign Affairs, the European Commission’s proposal seeks to address two major challenges. First, it aims to «align the agreement with the European Court of Justice ruling, EU law, and international law». Denmark, which currently holds the rotating EU presidency until December 31, 2025, added that the proposal also seeks to «maintain existing trade relations and thus allow for the importation of products from Western Sahara at the same preferential tariff rates applicable to Morocco».
India turns to Russia-led Eurasian bloc for FTA
India and the Russia-led Eurasian Economic Union (EAEU) on Wednesday kick-started negotiations for a trade deal as talks with the US broke down after US President Donald Trump called India a “dead economy” and raised tariffs on Indian products to 50 per cent, highest globally. The restart of trade negotiations with EAEU, which has a combined GDP of $6.5 trillion, comes after New Delhi has ostensibly begun a pivot towards China, Russia and Brazil in the face of US economic coercion. The trade deal talks with EAEU were stalled in early 2022 after the Ukraine war. The grouping comprises Armenia, Belarus, Kazakhstan, Kyrgyz Republic, apart from Russia.
India-Oman FTA talks conclude
The negotiations for the India-Oman Comprehensive Economic Partnership Agreement (CEPA) have been concluded that will give a boost to trade and investment flows.
Negotiations on CEPA with Oman started in November 2023, and significant ground was covered by March 2024. In between some issues cropped up which now seems to have been settled.
Indonesia finalizes first North American CEPA with Canada
The Trade Ministry announced that the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) is Indonesia’s first CEPA in North America. Negotiations for the ICA-CEPA concluded in December 2024, and the agreement is expected to be signed in September or October this year. He noted that both countries have signed a Joint Statement on the Completion of the ICA-CEPA, which is expected to broaden market opportunities for Indonesian products in North America. The signing was conducted by Indonesian Minister of Trade Budi Santoso and Canadian Minister of Export Promotion, International Trade, and Economic Development. After more than 2.5 years of negotiation, Indonesian products will gain wider access to penetrate the Canadian market. Besides trade in goods, the agreement will also offer preferential treatment for Indonesian service providers, such as business services, telecommunications, construction, tourism, and transportation sectors. In the investment sector, the agreement will ease access to investments in the manufacturing, agriculture, fisheries, forestry, mining and quarrying, and energy infrastructure sectors. The agreement also covers commitments related to intellectual property rights, good regulatory practices, e-commerce, business competition, Small and Medium Enterprises (SMEs), women’s economic empowerment, the environment, and employment. Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties. The completion of IEU-CEPA negotiations was officially announced during a bilateral meeting between Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
India, Philippines start talks for bilateral trade pact
India and Philippines exchanged the terms of reference of a Preferential Trade Agreement (PTA) that will build on the liberal terms already offered by Asean-India Trade in Goods Agreement (AITIGA) for bilateral trade. The Philippines as a member of the Association of Southeast Asian Nations (Asean) is already covered by AITIGA which has been functional since 2010. Through PTA both sides will be able to fine-tune the concessions suited for enhancing bilateral trade. The Philippines has been named the coordinator for India in the Asean till 2027 and it is India’s priority to complete the review of AITIGA as early as possible. Other members of the Asean are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. With Thailand and Singapore India also has bilateral trade agreements.
Japanese government is considering signing a free trade agreement (FTA) with African countries
The Japanese government is considering signing a free trade agreement (FTA) with African countries. The priority is the eastern part, which is a major logistics hub such as Kenya, and Nigeria, which has a large population. The Nihon Keizai Shimbun (Nikkei) reported on the 17th that the Japanese government is expected to announce such a plan at the 9th African Development Conference (TICAD) in Yokohama from the 20th to the 22nd. In this regard, Japan plans to set up a review meeting involving industry-academic officials to verify the effects and tasks of economic cooperation for about two years. According to the African Development Bank, Africa’s overall economic growth rate is expected to reach 3.9% this year. Out of a total of 54 countries, 21 countries have a growth rate of more than 5%. Africa’s nominal gross domestic product (GDP) is 2.8 trillion dollars (about 3870 trillion won), which is 70% of Japan’s (about 4.2 trillion dollars). Compared to Korea (about 2.1 trillion dollars), the economic growth has been strong recently, at about 30 percent higher. In particular, the abundance of young labor is an advantage. Africa currently has a population of 1.5 billion, mainly young people in their 20s. By 2050, it is estimated to expand to 2.5 billion people, accounting for a quarter of the world’s population. First of all, the Japanese government is considering the East African Community (EAC), which consists of eight Eastern African countries, including Kenya and Tanzania, as candidates for negotiations. Kenya is also called a logistics hub in East Africa due to the maintenance of ports and other facilities. Nigeria and Ghana in West Africa, which have the largest population in Africa, are also mentioned as candidates for negotiations. Nigeria is Africa’s largest energy powerhouse, and Ghana is growing into a logistics and industrial hub in West Africa. Source: Maeil Business Newspaper
Thai-EU FTA talks unlikely to conclude this year
The Department of Trade Negotiations (DTN) admitted that talks on a free trade agreement (FTA) between Thailand and the European Union are unlikely to conclude this year, despite earlier expectations. The event invited stakeholders—including private companies, farmers, SMEs, academics, and civil society groups—to share views on market access for goods, services, and investment under the Thai-EU FTA.
UK and South Korea pledge to complete talks on upgrading FTA by 2025 end
British and South Korean officials agreed to speed up negotiations to upgrade a bilateral free trade agreement as part of their efforts to expand trade and investment. Five rounds of negotiation are over and both sides pledged to complete the talks by the year end. Both sides met last month for the fifth round of negotiations on easing regulations on product origins and introduced new rules in the areas of supply chains and digital trade. The two sides explored ways to expand cooperation in economic security, trading and investment, artificial intelligence, quantum technology, defense industry, engineering, biology, space and energy. South Korean officials requested the British government to ‘favorably review’ its safeguard measures against home-grown steel products and an electric vehicle subsidy scheme to ensure fair competition for Korean companies.