Bhutan-Thailand FTA set for implementation by 2026
The Free Trade Agreement (FTA) between the Kingdom of Bhutan and the Kingdom of Thailand is expected to be implemented by January 2026. The National Assembly is set to adopt the agreement today, following which it will be forwarded to the National Council for deliberation. The agreement, once in effect, will provide Bhutanese exports with duty-free access to the Thai market, boosting their competitiveness. Thailand has committed to eliminating tariffs on 94 percent of its 10,731 tariff lines. In return, Bhutan will remove tariffs on all 5,867 of its tariff lines, offering reciprocal market access.
This development means that a wide range of Bhutanese goods such as essential oils, cordyceps, apples, spices, honey, pickles, tea, alcoholic beverages, and potatoes—currently facing tariffs of 5 to 60 percent, will enter the Thai market at zero duty.
In addition to tariff elimination, Thailand has offered Bhutan a Country-Specific Quota (CSQ) for 11 sensitive agricultural products that fall under Thailand’s protected list. Under this quota, Bhutan will be allowed to export 20,000 metric tonnes (MT) of potatoes, 130 MT of garlic, 250 MT of tea, 10 MT of coffee, and 25 MT of trout duty-free. The quota covers 77 tariff lines and may be revised in the future, depending on Bhutan’s production capacity and export demand. The agreement also simplifies trade procedures. Of the 165 products proposed by Bhutan, 138 will now qualify for duty-free access under a relaxed 30 percent local content requirement. For Bhutan’s emerging ferro alloy industry, Thailand has reduced the rule-of-origin requirement from 40 percent to 30 percent for seven key iron and steel products.
All 131 export-potential products identified by Bhutan’s private sector have been granted zero-tariff access to the Thai market.
Cameroon ratifies Samoa agreement to extend EU-ACP trade pact
On June 11, Cameroon officially deposited its instruments of ratification for the Samoa Agreement at the European Union headquarters in Brussels. This new partnership agreement between the European Union (EU) and the countries of Africa, the Caribbean, and the Pacific (ACP) is set to replace the 2000 Cotonou Agreement, which established the framework for the Economic Partnership Agreements (EPAs). The Samoa Agreement was signed in November 2023, provisionally entering into force in January 2024, and is slated to run for a period of 20 years. According to Minister Plenipotentiary and Counselor at the Cameroonian Embassy in Brussels and to the EU, this formal act makes Cameroon one of the first signatory states to ratify the new legal instrument that will shape relations between the European Union and ACP countries for the next two decades.
Canada-Indonesia free trade pact reaches final stage, ready to be signed
The Free Trade Agreement (FTA) between Indonesia and Canada has been finalized and is ready for signing by both countries, announced Canadian Ambassador to Indonesia Jess Dutton. A legal scrub is a process of reviewing and verifying the text of legal documents, often international agreements, to ensure accuracy and consistency before finalization by the parties involved. Dutton expressed hope that the agreement would be fully implemented in 2026, believing it would benefit both nations. Dutton also affirmed Canada’s support for Indonesia’s food security program, acknowledging the Indonesian government’s efforts in this area. "We want them to invest in this sector, and we want to do more to support Indonesia’s priorities in food security and other areas," he said.
Canada rescinds digital services tax after Trump suspends trade talks
Canada authority said that it would rescind a new tax it planned to collect from large tech companies after President Donald Trump last week called the levy a “blatant attack” on the United States and said he would suspend trade talks with Ottawa over it. In a statement, the Canadian government said Prime Minister Mark Carney and Trump had agreed to resume negotiations on a “mutually beneficial comprehensive trade agreement” and would aim to reach a deal by July 21. The White House did not immediately respond to a request for comment. The move came hours before Canada was set to begin collecting the first payments from a digital services tax it implemented last year. The levy would have applied to tech firms such as Google, Apple, Meta and Amazon. A trade group representing those companies last week estimated that the tax, which would apply to revenue earned from social media services and online marketplaces involving Canadian users, would collectively cost U.S. firms as much as $2.3 billion annually. The tax has long drawn opposition from Washington. The Biden administration argued that it discriminated against U.S. companies. Canadian business groups have also criticized the levy, in part because they believed it could strain U.S.-Canada ties and imperil a key trade relationship.
EU and Ukraine reach agreement in principle on a modernised trade relationship
The Commission has concluded negotiations with Ukraine on the review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). The agreement in principle on the review of the trade liberalisation provisions under the Association Agreement marks a new phase in establishing a long-term, predictable, and reciprocal framework within the broader context of Ukraine's accession process. It also fully takes into account the sensitivity of certain agricultural sectors, raised by EU Member States and farmers. This review contributes to the gradual integration of Ukraine into the EU's Single Market and illustrates that the EU's commitment to supporting Ukraine is as firm as ever. Once adopted, the reviewed DCFTA will be beneficial for both sides, by providing a framework for long-term economic certainty and stable trade relations.
Next steps
Both sides will now work to fine tune the technical elements of the agreement. Member States and the European Parliament will be informed about the details of the agreement in the coming days.
Subject to final legal revision of the agreement in principle, the EU and Ukraine will now proceed with their respective procedures for the formal endorsement of the reviewed DCFTA.
On the EU side, the Commission will adopt a proposal for a decision of the Council, for it to endorse the agreement. The agreement will then be formally adopted by the EU-Ukraine Association Committee.
EAEU signs trade agreements with Mongolia and UAE
An agreement on economic partnership between the Eurasian Economic Union and the United Arab Emirates and an interim trade agreement between the Eurasian Economic Union and Mongolia were signed on the sidelines of the meeting of the Supreme Eurasian Economic Council in Minsk. On the part of the Eurasian Economic Union, both agreements were signed by Chairman of the Board of the Eurasian Economic Commission Bakytzhan Sagintayev and members of the EEC Council from all five EAEU member states. According to the Belarusian Ministry of Foreign Affairs, both agreements contain the obligations of the parties to mutually reduce or zero import customs duties on goods. The agreed tariff concessions cover more than 90% of Belarus’ bilateral trade in goods with Mongolia and the United Arab Emirates, which will contribute to trade and economic ties with these countries, will reduce the financial burden on importers and exporters, and improve the conditions for the supply of goods of mutual interest.
The agreement between the EAEU and the UAE ensures the operation of the free trade zone on a permanent basis. In addition to tariff concessions, it applies to various areas of sectoral cooperation. The interim trade agreement with Mongolia has been concluded for three years and can be extended for the same period. After the first three years of the agreement, the parties can begin negotiations on a full-fledged free trade zone. Source
India, UK review FTA progress, pact may be signed by September
India and the UK on Thursday reviewed the progress made in the ongoing Free Trade Agreement (FTA) negotiations, with a view to charting out a clear, time-bound roadmap for its finalisation and implementation. The conclusion of FTA negotiations between India and the UK was announced on May 6. The agreement is getting ready to be signed. Work on documentation is going on and legal scrubbing is in progress. The process will be completed by August -September. After the agreement is signed, it has to be ratified by both countries before it comes into force. In the UK, the ratification is done by the Parliament and this process could take up to a year. For India, the ratification of agreements is done by the Cabinet. So, it could take up to 15 months from now for the FTA to become operational.
India - Switzerland, Norway, Iceland, Liechtenstein likely to come into effect by Sep 2025
The Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) is likely to come into effect from September 2025. The Minister kicked off the second leg of his Europe visit with meetings in Bern in Switzerland with global CEOs and industry leaders of the EFTA member country. India already has an FTA with the EFTA bloc, which also comprises Liechtenstein, Norway, and Iceland. EFTA is yet to formally ratify its Trade and Economic Partnership Agreement (TEPA). While India and Liechtenstein have already ratified the TEPA signed on 10th March 2024, the process in Switzerland is taking longer as it is a direct democracy. Stating that the Swiss industry is eagerly awaiting the implementation of the FTA with India, the Minister said that he came across appreciation for India’s growth potential and innovation ecosystem during interactions with CEOs of several Swiss pharmaceutical and life sciences companies who are looking to invest in India.
India-US trade pact likely to announce soon
India is on track to finalize an interim trade agreement with the US as soon as this week. The interim deal, which would be among the first with a major US trading partner, would be an initial step towards a comprehensive bilateral accord between Washington and New Delhi. The trade pact talks between the two countries are at a crucial stage with India sticking to the red line on the issue of market access in agriculture, genetically modified (GM) crops, and dairy. Efforts are on to stitch the trade deal before July 9, when 26% reciprocal tariffs will come into effect. India's trade negotiators extended their stay in Washington, beyond the scheduled two-day visit ending June 27, as talks with the US government stretched on. Trump had on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of the administration's trade levies on many countries. The tariffs were paused for 90 days until July 9.
India, Canada to resume FTA talks after 21-months pause
India and Canada have agreed to resume negotiations on a free trade agreement (FTA) that were suspended in September 2023, just before New Delhi was to host the G-20 Summit. In the first meeting between Canadian Prime Minister Mark Carney and Prime Minister Narendra Modi on the sidelines of the G-7 summit in Kananaskis in Canada, both leaders made the decision to normalise the ties beginning with the early return of High Commissioners to the capitals. Both sides also discussed opportunities for future collaboration in areas like clean energy, digital transformation, LNG, food security, critical minerals, higher education, mobility and supply chain resilience, the statement added.
The suspension of trade negotiations was the first step and after that the ties nosedived sharply as Canada’s then Prime Minister Justin Trudeau accused India of interference in its domestic affairs and targeting its citizens. By October 2024 India had expelled the Canadian High Commissioner and withdrawn its High Commissioner in Ottawa.
India is seeking greater access to its traditional products and liberal visa norms for its professionals. Canada wants greater opening for its agriculture products and automobile sector in the Indian market. Apart from the trade agreement India and Canada were also discussing an investment agreement – Foreign Investment Promotion Agreement.
First round of Malaysia-EU FTA negotiations held in Belgium on June 30
The first round of negotiations for a new and comprehensive free trade agreement (FTA) between the European Union (EU) and Malaysia is being held in Brussels, Belgium, from June 30 to July 4 this year. Negotiations for an earlier FTA between the EU and Malaysia were launched in 2010 but stalled after seven rounds in 2012 following Putrajaya’s reservations over EU’s palm oil procurement policies, subsidies and sustainability clauses. The EU is the fourth-largest trading partner of Malaysia (after China, Singapore, and the US), accounting for 9.5 per cent of the country’s total trade in goods in 2023.
Bilateral trade in goods between the two countries equalled €44.7 billion (€1=RM4.81) in 2023. EU goods imports from Malaysia stood at €29.1 billion in 2023, while EU goods exports reached €15.6 billion last year. Trade in services amounted to almost €11 billion in 2022.
Malaysia signs free trade pact with Norway, Iceland and other EFTA countries
Malaysia has signed a wide-ranging economic partnership agreement with the four member states of the European Free Trade Association (EFTA): Norway, Iceland, Switzerland and Liechtenstein. The signing ceremony took place in Tromsø, Norway. The new partnership covers trade in goods and services, investment, intellectual property, government procurement, competition, sustainable development, and sanitary standards, among other areas. More than 90% of Malaysia’s exports to the EFTA countries will receive long-term duty-free access.
Switzerland and Chile enter into new Bilateral Investment Treaty
On 3 June 2025, Switzerland and Chile signed a new bilateral investment treaty (2025 Switzerland-Chile BIT or BIT). Chile is one of the most important destinations for Swiss foreign investment in Latin America. In 2023, Swiss direct investment in Chile totaled approximately CHF 192 million, with around 180 Swiss companies operating in the country. As outlined in this article, the 2025 Switzerland-Chile BIT will establish modern rules for the promotion and protection of foreign investments made by Swiss nationals and companies in Chile.
United States – Pakistan Trade Talks to Conclude Next Week
Trade talks between Pakistan and the US are expected to conclude next week, according to an official statement. The development came at a virtual meeting between Finance Minister and the US Commerce Secretary. During the meeting, it was decided to expedite the trade agreement so that a partnership, based on strategic and investment interests, would be concluded in due course, covering areas of mutual interest. The US administration under President Donald Trump announced tariffs on several countries and Pakistan was faced with a 29 per cent tariff on exports to the US. The measure aimed to offset Pakistan’s surplus which was around USD 3 billion in 2024. Pakistan offered to import more US goods, including crude oil, and to open up investment opportunities through concessions for US firms in Pakistan’s mining sector so that the issue of trade imbalance could be addressed.
US signs order confirming parts of UK-US tariff deal
President Donald Trump has signed an executive order to reduce tariffs on UK cars being shipped to the US, which will bring into force parts of a tariff deal agreed between the two countries last month. Speaking at the G7 summit in Canada, Prime Minister Sir Keir Starmer called the move a "very important day" for both countries. It comes after weeks of talks to implement parts of the pact, which the UK government hopes will shield British businesses from the impact of Trump’s tariffs. But the deal includes a 10% levy on most UK goods, including cars, and did not address the expected removal of charges on steel imports. The pact, initially agreed last month, is the first that the White House has announced since it imposed wide-ranging tariffs on various goods entering America earlier this year. It was signed shortly before the White House said Trump would leave the summit early due to the situation in the Middle East. Trump has raised taxes on goods entering the US, in a series of rapid-fire announcements in an attempt to encourage businesses and consumers to buy more American-made goods. The moves had sparked financial turmoil and alarm around the world, including in the UK, where car manufacturers and steelmakers rely on the US as a key destination for exports.
Tariffs remain for steel
In the order Trump signed, the US said it would allow up to 100,000 cars into the US at a 10% tariff, instead of the 25% import tax imposed on all car imports earlier this year, as agreed under the terms outlined in May. The order said the US would set up a similar system for steel and aluminium, but did not specify what it would be.
UK-US tariff deal begins but still no news on steel
A deal to cut import tariffs between the US and UK has come into force, giving British car makers preferential access to the world’s biggest consumer market. It will allow UK motor manufacturers to sell up to 100,000 vehicles to the US at a tariff of 10% - a big advantage over international competitors - while tariffs on UK aerospace exports have been cut to zero. In return, the UK will scrap tariffs on beef and US ethanol imports - a move which the British bioethanol industry says will make it impossible for it to compete. However, UK steel and aluminium remain subject to a 25% tariff, which could double to 50% if the UK and US do not reach a deal by deadline day on 9 July. The agreement, which was signed at the G7 summit earlier this month, cuts some of the sweeping tariffs imposed by US President Donald Trump that sent global markets into chaos in April. Under the US-UK agreement, UK carmakers can sell up to 100,000 cars a year to the US with a 10% tariff, down from 27.5%. Tariffs on the UK aerospace sectors, too, will be removed. However, details on steel and aluminium tariffs have yet to be finalised. They remain subject to a 25% tariff, which could double to 50% if the UK and US do not reach a deal by the deadline.South Korea and China hold 12th round of follow-up negotiations to expand FTA South Korea and China have kicked off a fresh round of follow-up negotiations aimed at expanding their bilateral free trade agreement (FTA) to include services and investment. Trade delegations from both sides began the 12th round of follow-up negotiations under the FTA, aiming to expand the trade deal to include services, investment and finance, according to the Ministry of Trade, Industry and Energy. In this week’s meeting, they plan to discuss expanding market access in the three areas as part of efforts to facilitate trade in services and promoting investment between the two countries. Seoul and Beijing implemented their bilateral FTA in December 2015, removing major tariffs on products. Since 2018, they have held 11 follow-up meetings to expand the scope of the trade agreement to investment and service sectors.
Unite States: Trump announces a US trade deal with Vietnam
In a subsequent post announcing more details, Trump said the United States will charge a 20% tariff for Vietnamese exports into America, and a 40% tariff for “transshipping.” US Commerce Secretary Howard Lutnick said in a post on X Wednesday afternoon the “transshipping” tariff means “if another country sells their content through products exported by Vietnam to us — they’ll get hit with a 40% tariff.” The 20% tariff is double the current minimum tariff rate the US is charging on goods from Vietnam and virtually every other country.