Belarus ratifies EAEU-Iran free trade agreement
Belarus has ratified the free trade agreement between the Eurasian Economic Union and its member states, on the one hand, and the Islamic Republic of Iran, on the other. The document was posted on the National Legal Internet Portal, BelTA has learned. The creation of a full-scale free trade zone between the EAEU member states and Iran is expected help diversify exports by removing tariff and non-tariff barriers for a wide range of goods, as well as by offering better terms for trade and economic cooperation. After duties are scrapped, Belarusian products will be more competitive on the Iranian market.
New A.TR movement certificate rules for EU–Türkiye Customs Cooperation
Starting from 8 July 2024, EU Member States will accept A.TR movement certificates issued electronically by the Turkish competent authorities, bearing a QR code and without a wet-ink signature. This is pending the adoption of a Decision of the EU–Türkiye Customs Cooperation Committee, with retroactive effect, currently under preparation.
EU and Singapore conclude digital trade agreement
The European Union and Singapore announced the conclusion of negotiations on a digital trade agreement. The agreement, which took just one year to complete and is not yet publicly available, complements the broader EU-Singapore trade agreement that entered into force in 2019 and which contains only minimal and outdated rules on digital services.
EU–Kenya Economic Partnership Agreement enters into force
July 1st, the EU-Kenya Economic Partnership Agreement (EPA) has entered into force, representing a key milestone in the EU-Kenya Strategic Partnership. The agreement will boost bilateral trade in goods, increase investment flows, strengthen the ties between reliable partners, and facilitate mutually advantageous economic relations in a sustainable manner, stimulating job creation and economic growth.
The EU-Kenya EPA is the most ambitious deal negotiated with an African country in terms of sustainability, and can serve as a template for other sustainable trade agreements. These commitments include binding provisions on labour issues, gender equality, environment and the fight against climate change.
EU-New Zealand Free Trade Agreement Guidance on rules of origin
The Commission has published a guidance document on the application of the rules of origin set out in the EU New Zealand Free Trade Agreement which entered into force on 1 May 2024. Under this Agreement, EU exporters that are shipping consignments of EU originating products above EUR 6 000 need to make out a statement of origin for those products to allow importers in New Zealand to claim preferential tariffs. To do this the EU exporter must be registered in the REX system and state their REX number on that statement.
EU clinches digital trade deal with Singapore
The EU concluded negotiations with Singapore on a new Digital Trade Agreement designed to increase online trade, help SMEs with digital transformation and facilitate data flows. The deal was announced following talks in Brussels by Trade Commissioner and Singapore’s Minister for Trade Relations and complements the EU-Singapore Free Trade Agreement which came into effect in 2019.
Following five rounds of negotiations between Brussels and Singapore, both parties have agreed to implement various measures to enhance cooperation in digital trade; the agreement aims to reduce administrative and financial burdens for SMEs, enable interoperable digital trade systems for e-payments and electronic contracts, and establish rules on data flow, among other things.
This agreement forms part of an EU strategy to forge partnerships in the East and Southeast Asian region, amidst commercial tensions with China. The agreement will come into effect once it receives approval by Singapore and from the Member States through a qualified majority system (15 out of 27, representing at least 65% of the total EU population) in the Council and a vote in the European Parliament. The previously concluded Tree Trade Agreement with Singapore is still to be ratified by 9 members states.
Hong Kong and Peru conclude talks on free-trade pact
Hong Kong and Peru have concluded talks over a bilateral free-trade deal that also covers investment and intellectual property, according to the financial secretary, which once signed will add to the eight existing such pacts the city has in place. Hong Kong has eight free-trade agreements covering 20 economies, namely with mainland China, New Zealand, the Member States of the European Free Trade Association, Chile, Macau, Asean, Georgia and Australia. Peru was Hong Kong’s fifth-largest trading partner in Latin America last year, with total merchandise trade exceeding HK$5 billion (US$640 million). Over the past five years, bilateral trade has grown at an annual average pace of 4 per cent.
India, Eurasian Economic Union finalizing broad contours for proposed FTA
Additional Secretary in the Department of Commerce said that on the EEU proposed free trade agreement (FTA), chief negotiators of both sides have already met and broad contours are being finalised. Scope and the ToRs (terms of reference) of the proposed free trade agreement are under stakeholder consultation internally in India and same with Russia and soon it will be exchanged so that the next steps can take place. On the timeline for both sides to formally launch negotiations for the pact, he said that unless there is an understanding on the ToR, the launch date is premature to be decided.
In such agreements, two or more trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. These agreements provide greater market access to Indian goods and services. Russia is the top trading partner of India in the bloc, with bilateral trade worth $65.7 billion in 2022-23. India’s exports to Russia stood at $4.26 billion in 2023-24, while imports were $61.43 billion due to an increase in crude oil imports. The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was $131.38 million, $59 million, $331.7 million, and $55 million, respectively, in the last fiscal.
Indonesia, GCC launches free trade agreement talks
Indonesia and the Gulf Cooperation Council (GCC) initiated negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry. The event was highlighted by the signing of a joint statement by Indonesian Trade Minister and GCC Secretary-General. the FTA is expected to boost exports of Indonesian commodities, such as motor vehicles, palm oil, jewelry, coffee, textiles, and electronics.
The significant potential benefits of the I-GCC FTA for both Indonesia and the Gulf countries, covering not only trade in goods but also services, customs, trade barriers, and small and medium enterprises. The GCC is a cooperative group of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.
Serbia concludes trade agreements with Egypt and UAE: Tariffs to be eliminated on specific products
Serbia has successfully finalized negotiations on free trade agreements with Egypt and the United Arab Emirates (UAE), which are set to come into effect following ratification and exchange of notes. The Ministry of Trade has also indicated potential for establishing free trade agreements with the Republic of Korea.
- Finalized Agreements and Future Prospects
After lifting of trade barriers for Serbian products in China, effective from July 1, tariffs with Egypt and the UAE are also anticipated to be abolished soon. The Ministry of Domestic and Foreign Trade (MDFT) informed RT Balkan that the signing of the free trade agreement with Egypt is imminent, as negotiations have been completed and only the necessary formal procedures remain before the official signing.
Similarly, negotiations with the UAE have concluded, and the legal and technical review of the agreement’s text is underway. The signing of this agreement is expected shortly. Both agreements will become effective upon ratification and exchange of diplomatic notes.
- Expanding Trade Horizons
The Ministry of Trade has revealed that discussions are ongoing regarding the establishment of a free trade agreement with the Republic of Korea, which boasts a highly developed and technologically advanced economy, making it an extremely attractive trade partner.
The Ministry emphasized that these agreements, by reducing or eliminating customs duties, provide Serbian businesses with more favorable access to the markets of Egypt and the UAE compared to countries that do not have free trade agreements with them. This enhances the competitiveness of Serbian products. Additionally, these agreements are expected to increase mutual trade volumes and Serbian exports, thereby contributing to increased investment and the creation of new jobs.
- Products Benefiting from the Agreements
With respect to industrial products originating from Serbia, tariffs will be completely eliminated for items such as copper cathodes and sections of cathodes, various pharmaceuticals for retail, specific types of paper and cardboard, gas oils, semi-finished aluminum products, hand tools, other construction ceramics, tiles, certain machinery parts, locks and furniture locks, and various marine cranes.
These developments signal a significant step forward in Serbia’s trade relations, promising substantial economic benefits and reinforcing its position in the global market.
Switzerland and Laos sign bilateral air service agreement
Switzerland and the Lao People's Democratic Republic signed a bilateral air service agreement on 26 July. This agreement modernises the one concluded between the two countries in 1999 and will replace it when it comes into force. It reflects the Federal Council's efforts to improve Switzerland's air connections by giving airlines greater flexibility in their operations.
Thailand ready to start free trade negotiations with EAEU
Thailand is ready to start negotiations on concluding a free trade agreement (FTA) with the Eurasian Economic Union (EAEU). Both sides discussed ways to promote bilateral cooperation in various areas of mutual interest, particularly trade, investment and tourism. Apart from trade promotion activities organised by the Commerce Ministry such as trade fairs and business negotiations via online channels, both sides discussed establishing a Joint Commission on Trade and Economic Cooperation between Thailand and Kazakhstan. The Thai side also expressed readiness to start negotiations on the FTA with the EAEU and wished to seek Kazakhstan’s support on this matter.
The EAEU is an FTA that came into being in 2015 to increase economic cooperation and raise standards of living among its members. The member states are Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. It is estimated that nearly 200 million people live in the member states and that EAEU countries have US$5 trillion in combined GDP.
UAE and Morocco finalize CEPA to boost goods and services trade through tariff cuts, regulatory reforms
The UAE and Morocco have finalized the terms of a Comprehensive Economic Partnership Agreement (CEPA) that will launch a new chapter of mutually beneficial trade and investment ties between the two countries. The conclusion of negotiations for the CEPA was confirmed by the signing of a joint statement by UAE minister of State for foreign trade, and minister of industry and trade of Morocco. The UAE-Morocco CEPA will facilitate the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary barriers to trade, improving market access for services, enhancing customs harmonization, and establishing flexible rules of origin for goods. The CEPA will establish platforms for investment and private-sector collaboration in priority sectors like renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT. In 2023, the two nations had $1.3 billion in non-oil trade, a 30 percent increase from 2022 and 83 percent more than in 2019. The UAE is the largest Arab investor in Morocco, with over $15 billion invested in a variety of strategic projects.
UAE and Chile sign major trade agreement
The UAE and Chile have signed a Comprehensive Economic Partnership Agreement (CEPA), aimed at stimulating non-oil bilateral trade by removing trade barriers and simplifying customs procedures. It will also help establish new pathways for investment cooperation while providing a platform for both countries’ private sectors to expand partnerships. CEPA between the UAE and Chile supports mutual economic growth by providing opportunities for business communities and the private sector to expand on both sides. These agreements cover a range of areas, including food security and agrifood investment; cooperation in investment, information technology, and peaceful space research and activities; and a declaration of intent in the field of mining.
UAE and Mauritius sign comprehensive economic partnership agreement
The UAE signed a comprehensive economic partnership agreement with Mauritius, with the pact expected to boost both economies by removing tariffs and increasing market access. The terms for the agreement were concluded in December and it marks the UAE’s first Cepa signed with an African country, the government said in a statement. Under the deal, Mauritius will remove 99 per cent of tariffs on imports from the UAE, while the Emirates will eliminate 97 per cent of its fees. It is expected to boost the UAE’s GDP by 0.96 per cent, while adding more than 1 per cent to the economy of Mauritius by 2030. In 2023, two-way trade reached $170.4 million, up 14.5 per cent compared to 2022.
The UAE is currently the eighth-largest investor in Mauritius, with $13.2 billion invested in the country, supporting projects in tourism, real estate, renewable energy and technology.