ASEAN and Canada accelerate FTA talks, aim to conclude by late 2025
Canada hosted 11th round of ASEAN-Canada Free Trade Agreement negotiations in Bangkok from January 15-17. The talks focused on advancing discussions across various sectors, with both parties aiming to reach a significant conclusion by the end of 2025. The latest round of negotiations included meetings of seven working groups, covering crucial areas such as sanitary and phytosanitary measures, technical barriers to trade, regulatory best practices, trade in services, investment, intellectual property rights, and legal and institutional frameworks. Key priorities include negotiations on tariff-reduction modalities between member states, finalising framework structures for service trade and investment, and addressing rules of origin requirements. Canada has proposed specific rules of origin for 5,612 items, which ASEAN members are currently reviewing. The negotiations also encompass sustainable trade and development, with ASEAN preparing to submit a draft proposal for Canada’s consideration.
Bilateral trade figures reveal that Thailand-Canada trade was valued at US$2.93 billion in 2023, marking a 10.41% decrease from 2022. Thai exports to Canada totalled US$1.90 billion, with key exports including processed seafood, steel products, computer equipment, rice, rubber products, and automotive parts. Meanwhile, imports from Canada amounted to US$1.03 billion, primarily consisting of electrical circuits, plant products, fertilisers, machinery, and paper pulp.
EU - Chile Interim agreement entered into force
On 1 February 2025, the Interim Agreement on Trade between the European Union and the Republic of Chile (ITA) entered into force.
Amendments:
(1) EUR.1 movement certificates issued and invoice declarations made in accordance with the (old) EU-Chile Association Agreement will no longer be accepted as proof of preferential origin for goods imported and released in the European Union or Chile. From that date, claims for preferential treatment should be based on the statement on origin or on the importer's knowledge, as appropriate;
(2) claims for preferential treatment for products which, at the date of entry into force of the Agreement, are in transit or in temporary storage, e.g. in customs warehouses, should already be based on statements on origin in accordance with Article 3.32 of the ITA;
(3) the status of approved exporter under the (old) Association Agreement will no longer apply and it will not be possible to use the granted authorisation number when making out statements on origin. The system of authorised exporters is replaced by the status of REX registered exporter.
In addition, following the entry into force of the ITA, three new document codes have been created for proofs of origin under the EU-Chile Interim Agreement, to be used from 1 February 2025 in customs declarations for the release of products with preferential Chilean origin into the EU. These are: (a) U123 - statement of origin; (b) U124 - statement of origin for multiple shipments of identical products; (c) U125 - importer's knowledge.
EU: TARIC proofs of origin
Proofs of origin for Interim Agreement on Trade between the European Union and the Republic of Chile:
With a view of the above-mentioned agreement, new TARIC proofs of origin (U123, U124, U125) have been made available in TARIC, with start date 01.02.2025.
- U123: Statement on origin (Article 3.17(5)(a) of the EU-Chile Interim Trade Agreement)
- U124: Statement on origin for multiple shipments of identical products (Article 3.17(5)(b) of the EU-Chile Interim Trade Agreement)
- U125: Importer’s knowledge (Article 3.19 of the EU-Chile Interim Trade Agreement)
EU Commission presents Council with EU's first-ever digital trade agreement
The European Commission has presented its digital trade agreement (DTA) with Singapore to the Council, seeking authorisation for its signature. The DTA with Singapore will help both partners strengthen their relationship further by facilitating digital trade by cutting red tape, enhancing legal certainty for businesses, and strengthening consumer protections online. This agreement reinforces the EU’s role in shaping global digital trade rules and deepens ties with the Indo-Pacific region.
European Commission and Moldova agree on a 2-year Comprehensive Strategy for Energy Independence and Resilience and immediate support with the energy bills
The European Commission and the Republic of Moldova have agreed on a 2-year Comprehensive Strategy for Energy Independence and Resilience of Moldova. It has a two-fold objective of decoupling Moldova from the insecurities of Russian supply of energy and fully integrating it in the EU energy market. Under this strategy, overall support for the Republic of Moldova would account to €250 million for 2025, of which €100 million will be provided by the EU by mid-April. In addition to this overall support, and as part of the same strategy, an offer of €60 million is made available for the people in the Transnistrian region of Moldova (the Left Bank) subject to conditions. In the short term, the overall package will support Moldovan consumers who are facing steep price increases on the Right Bank. It will allow to compensate all excess electricity costs for all households for up to 110 kWh every month until 31st of December 2025.
In the longer term, the EU support will allow Moldova to improve its energy security through investments and reforms for the energy transition and ensure the full phase out of Russian supply of energy resources. The package is a continuation of the work done by the European Union and partners to reduce Moldova's energy vulnerability.
Malaysia to enhance trade with BRICS, FTA partners in 2025
Malaysia has announced its 2025 trade targets, prioritizing partnerships with the BRICS group, leveraging existing Free Trade Agreements, and focusing on emerging markets. As the 2025 ASEAN chair, Malaysia will also emphasize regional integration, digital transformation, and sustainable growth in its trade strategy.
Malaysia, EU resume negotiations for landmark free trade deal
Malaysia and the EU have resumed negotiations for a free trade agreement (MEUFTA). This renewed effort aims to strengthen economic ties, boost Malaysian exports (especially in electronics, palm oil, and scientific equipment), and attract EU investment in sectors like green energy and advanced manufacturing.
EU and Mexico seal updated trade deal
The EU has concluded negotiations with Mexico on an updated trade agreement. Mexico is the EU’s second largest trading partner in Latin America after Brazil. Negotiations for a new modernized agreement started in May 2016 and an agreement in principle on trade aspects was reached in 2018, but was never ratified. Currently, trade and cooperation relations between the EU and the Latin American country are governed by a 2000 Global Agreement. The announcement comes just over a month after the EU signed a similar deal with the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay), which has been strongly contested by the farming sector.
The Commission said the trade elements of the agreement will boost “an already-thriving” relationship. EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services reached €22 billion in 2022. The agreement will also allow the removal of high tariffs on EU exports of food and agricultural products, including cheese, poultry, pork, pasta, apples, jams, chocolate and wine, as well as protecting traditional European products. The deal includes a chapter on trade and sustainability that sets out binding commitments on labour rights, environmental protection, climate change and responsible business products, the Commission said. It also includes a dispute settlement mechanism to ensure the enforcement of these provisions.
Peru and El Salvador resume negotiations towards FTA
The Ministry of Foreign Trade and Tourism (Mincetur) announced that Peru and El Salvador agreed to resume negotiations to sign a Free Trade Agreement, which would expand opportunities for Peruvian companies in this Central American market. El Salvador represents a strategic market for Peru in Central America, with a growing economy and an increasing demand for value-added products. This FTA will open up new opportunities for Peruvian exporters, allowing them to access, under preferential conditions, a country with which we share a vision of integration and economic development. The Peruvian government official underscored that the reduction of tariffs and the facilitation of trade will allow more Peruvian companies to export products more competitively, diversifying their markets and contributing to the growth of employment and investment in our country. In turn, El Salvador’s Minister of Economy stressed that the reactivation of negotiations represents a key opportunity to increase and diversify trade flows of goods and services between both nations.
Philippines to launch free trade negotiations with Chile in April
The Philippines and Chile will begin free trade agreement (FTA) negotiations in Chile this April, aiming to finalize a Comprehensive Economic Partnership Agreement (CEPA) within a year. The CEPA will cover trade in goods and services, and investment, with the Philippines seeking expanded market access for agricultural products and semiconductors, while opening its market to Chilean wine.
Sri Lanka and UAE to sign investment protection pact
Sri Lanka and the United Arab Emirates (UAE) are on track to sign a bilateral Agreement on Reciprocal Promotion and Protection of Investments (ARPPI), aimed at strengthening economic ties and internationalization efforts for businesses in both countries. Delegations from both Sri Lanka and the UAE engaged in discussions in Colombo last week to resume talks on the agreement that will likely improve investor confidence in both markets.
Thailand, Israel consider free trade negotiations
Thailand and Israel are exploring a free trade agreement (FTA) to boost trade and investment. Discussions have begun, focusing on potential collaboration in technology, agriculture, and food security, with Israel also seeking Thai skilled labor. Israel views Thailand as a key partner and potential Southeast Asian hub.