Canada and the US to launch formal talks to review free trade agreement in mid-January
Canada and the U.S. will launch formal discussions to review their free trade agreement in mid-January. The United States-Mexico-Canada trade pact, or USMCA, is up for review in 2026. U.S. President Donald Trump negotiated the deal in his first term and included a clause to possibly renegotiate the deal in 2026. Carney met with the leaders of Canada’s provinces on Thursday to give them an update on trade talks with the U.S. Canada is one of the most trade-dependent countries in the world, and more than 75% of Canada’s exports go to the country’s southern neighbor. But most exports to the U.S. are currently exempted by USMCA. Trump cut off trade talks to reduce tariffs on certain sectors with Carney in October after the Ontario provincial government ran an anti-tariff advertisement in the U.S. That followed a spring of acrimony, since abated, over Trump’s insistence that Canada should become the 51st U.S. state.
Carney said earlier that Canada and the U.S. were close to an agreement at the time on sectoral tariff relief in multiple areas, including steel and aluminum. Tariffs are taking a toll on certain sectors of Canada’s economy, particularly aluminum, steel, auto and lumber. Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, as are 85% of U.S. electricity imports.
EFTA-India Free Trade Agreement
Approved exporters: declarations of origin. Source
EU–UAE Negotiations Move Forward
As EU–UAE negotiations enter their fourth round, talks focus on services and investment, sustainable trade, rules of origin, and intellectual property — all aimed at building a rules-based partnership both sides can rely on.
EU: Agreement on the revision of the GSP
The European Commission, the European Council and the European Parliament reached an agreement on the revision of the Generalised Scheme of Preferences (GSP), the EU's sustainable trade instrument for developing countries. The new agreement provides certainty to the 65 developing countries benefiting from the programme and to EU companies importing goods from these countries. This is particularly important at a time of increasing challenges for developing and least developed countries, such as the recent increase in the use of tariffs.
EU and the UK are strengthening their cooperation in competition law
On behalf of the European Union, of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland on cooperation in the application of their competition laws has been published. The agreement concerns the application of competition law, including merger control and the prevention of abuse of a dominant position. It covers the exchange of information and best practices between the European Commission and the UK competition authorities. This decision shall enter into force on 4 November 2025.
EU-Vietnam - Investment Protection Agreement
On 27 November 2025, the President of the Republic of Poland signed the Act of 17 October 2025 on the ratification of the Investment Protection Agreement between the European Union and its Member States, of the one part, and the Socialist Republic of Vietnam, of the other part, done in Hanoi on 30 June 2019. The purpose of the Agreement is to provide better protection to investors from the Member States of the European Union, than is currently provided for under the bilateral investment treaties (BITs) concluded by individual EU countries with Vietnam. After the entry into force of the Agreement, it will replace the currently applicable Polish-Vietnamese BIT (Agreement between the Republic of Poland and the Socialist Republic of Vietnam on the Promotion and Mutual Protection of Investments, drawn up in Warsaw on 31 August 1994, Journal of Laws of 1995, item 209). The ratification act enters into force 14 days after its publication.
EU reaches agreement to ban Russian gas imports to EU
Council presidency and the European Parliament’s representatives reached a provisional agreement on the regulation to phase out imports of Russian natural gas. The regulation constitutes a central element of the EU's REPowerEU roadmap to end dependency on Russian energy following Russia's weaponisation of gas supplies with significant effects on the European energy market.
The regulation introduces a legally binding, stepwise prohibition on both liquefied natural gas (LNG) and pipeline gas imports from Russia, with a full ban from the end of 2026 and autumn 2027 respectively. It will contribute to the overarching goal of achieving a resilient and independent EU energy market, while preserving the EU's security of supply.
EU-South Africa CTIP
The Clean Trade and Investment Partnership deal opens new space for trade and investment in renewables, clean fuels, grids, and climate tech—while strengthening cooperation on the raw materials needed for the industries of the future. Now comes the video that explains the story behind the four letters.
European Commission eyes 12 January signing for Mercosur trade deal
The European Commission is aiming to sign the free trade agreement with the Mercosur countries on 12 January in Paraguay. Commission president Ursula von der Leyen had planned to travel to Brazil’s Foz do Iguaçu after the European summit in Brussels to sign the agreement. The trip was cancelled after it became clear at the summit that she lacked sufficient backing, with France and Italy asking for more time. The delay came amid protests in Brussels, where thousands of farmers demonstrated against the agreement with the Mercosur bloc of Brazil, Argentina, Uruguay and Paraguay, warning of unfair competition. The postponement was a setback for the Commission and for countries such as Germany and Spain, which strongly support the deal.
EU-Singapore – second meeting of the Digital Partnership Council
On 1 December 2025, the European Union and Singapore held their second meeting of the Digital Partnership Council in Brussels, confirming their intention to cooperate in a number of digital areas, from artificial intelligence (AI) to cybersecurity and beyond. Both sides confirmed their desire to increase mutual competitiveness, support innovation and shape digital regulations and standards. One important area is semiconductors and quantum technologies. The parties expressed interest in collaborative research, e.g. under the Horizon Research programme, and in opening up to cross-border investment in the semiconductor ecosystem.
India inks Oman FTA, gains duty-free boost
India and Oman on signed a free trade agreement that allows duty-free access of almost all Indian goods in the West Asian country, a comprehensive services package spanning 127 sectors, and a liberalised mobility framework for Indian professionals including accountants, architects, doctors and practitioners of traditional medicine. The India-Oman Comprehensive Economic Partnership Agreement (CEPA) was signed in Muscat by Union commerce Piyush Goyal and his Omani counterpart Qais bin Mohammed Al Yousef in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik.
The CEPA gives zero-duty access to products of all major labour-intensive sectors of India, including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agriculture, engineering, pharmaceuticals, medical devices, and automobiles. The agreement is expected to be operational by the first quarter (April-June) of 2026-27 after completing all regulatory processes, two people aware of the development said, requesting anonymity. India and Oman started negotiations for the CEPA in November 2023.
The FTA is only Oman’s second with an individual country (after one with the US), although the Gulf Cooperation Council bloc of which Oman is part has agreements with some countries. It is the latest among a series of trade deals signed by India, the most recent one being a Comprehensive Economic Trade Agreement with the UK, which reduces tariffs on almost 90% of the goods traded by the two countries.
Indonesia signs trade deal with Russia’s Eurasian bloc amid US tariffs
Indonesia and the Russia-backed Eurasian Economic Union (EAEU) have just signed a free trade pact, a document that is expected to act as a cushion against rising US protectionism. Trade Minister Budi Santoso represented Jakarta at the signing ceremony in St. Petersburg. The accord aims to ease virtually all tariffs on Indonesia’s goods trade with the EAEU members, namely Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Indonesia’s export-import activities with the four latter members remain modest to this day. Indonesia will give the EAEU access to an open market, while the bloc will expand its market access for our goods. We can strengthen the global supply chain together, advance energy transition, and develop the digital economy.
New Zealand – India concludes FTA with aim to double trade
New Zealand and India had concluded talks on a free trade deal that would help to double bilateral trade over the next five years. The agreement will eliminate or reduce tariffs on 95% of New Zealand’s exports to India with more than half of the products to be duty free on day one of the pact, while all Indian goods would have duty free-access to New Zealand. New Zealand also agreed to invest $20 billion in the Asian country in the next 15 years. The deal makes good on a 2022 election promise from New Zealand’s governing National Party that if elected it would finalise a New Zealand-India free trade agreement in its first term.
Two-way trade between the two countries totalled about $1.81 billion in 2024, dominated by pharmaceuticals from India and forestry and agricultural products from New Zealand. The size of the trade between the nations is dwarfed by India’s total goods trade which exceeded $1 trillion in the 2024-25 financial year (April-March). The Indian government said the free trade deal excluded market access to dairy, coffee, milk, cream, cheese, yoghurt, whey, caseins, onions, sugar, spices, edible oils and rubber, to protect its farmers and domestic industry. India has been accelerating talks with partner countries to diversify its exports after Washington imposed a 50% tariff on Indian goods entering U.S. markets. The trade deal with New Zealand is the third this year, following an economic partnership agreement with Oman announced on Thursday and one with United Kingdom in May.
The countries expect to sign the agreement in the first half of 2026, the New Zealand government said.
South Korea - Egypt agree to swiftly launch negotiations for comprehensive economic partnership
Korean Trade Minister Yeo Han-koo and his Egyptian counterpart agreed to swiftly commence negotiations for a comprehensive economic partnership agreement (CEPA) between the two countries to expand bilateral ties. The ministry said the Korea-Egypt CEPA will help Korea expand its presence in emerging markets, including Africa, amid heightened global trade uncertainties and open new opportunities for Korean companies in the automobile, semiconductor, renewable energy and infrastructure sectors.
South Korea - UK seal upgraded free trade deal easing auto export rules
South Korea and the United Kingdom have concluded negotiations on an upgraded free trade agreement, easing rules of origin for Korean automobiles and consumer goods exports to the UK, while expanding market access for Korean firms in Britain’s high-speed rail and services sectors. The agreement builds on the bilateral free trade pact in effect since 2021, following Britain’s exit from the bloc, largely modeled on the European Union-South Korea free trade agreement signed in 2011. Since then, the two sides have held six rounds of negotiations and five ministerial meetings to upgrade the deal.
The most significant change is a lower threshold for Korean automobiles, which account for about 36 percent of Korea’s shipments to the UK. Under the previous rules, vehicles qualified for exemption from the 10 percent tariff only if at least 55 percent of their value was created in Korea. The upgraded agreement lowers that requirement to 25 percent. The revision is particularly significant as Korean automakers ramp up production of electric vehicles, where value calculations can fluctuate sharply depending on the prices of imported raw materials such as lithium and graphite used in battery manufacturing.
Consumer goods are also set to benefit from eased rules of origin. Tariffs of up to 8 percent on beauty and other chemical products will be waived if key processing steps, including chemical reactions, refining and mixing, are carried out in Korea. Processed foods such as gimbap and kimchi will also qualify for tariff-free treatment even when key ingredients are sourced from third countries and imported for final production in Korea.
The agreement also expands access for Korean firms to the UK’s high-speed rail procurement market, addressing what Seoul described as a long-standing imbalance in market openness. In services, Britain agreed to further open sectors such as online gaming, where Korean firms have a strong global presence, and to provide greater legal certainty for new services based on emerging technologies including artificial intelligence. The two sides also agreed to streamline visa procedures to facilitate the entry of Korean engineers and specialized workers involved in building manufacturing facilities in the UK, the ministry said.
In addition, the agreement updates the digital trade framework, covering cross-border data transfers and online consumer protection, while promoting joint development and investment in AI.
Thailand looks to sign free trade deal with Bangladesh
Thailand has expressed strong interest in opening negotiations on a bilateral free-trade agreement with Bangladesh, a move that could significantly expand trade and encourage Thai investment, as Dhaka intensifies efforts to deepen economic and diplomatic engagement with South-east Asia. The both countries were also working towards launching a direct shipping route between Thailand’s Ranong port and Bangladesh’s Chittagong port, a development expected to strengthen maritime connectivity and reduce logistical costs. The service is likely to begin in March, following talks between the shipping authorities scheduled for February. During the meeting, the two sides discussed a broad range of issues aimed at further strengthening bilateral relations, including trade and investment cooperation, maritime connectivity, the prevention of online scams, multilateral engagement and people-to-people exchanges.
Yunus, who has long-standing professional ties with Thailand, expressed optimism that relations between the two countries would deepen during Chirasawadi’s tenure.