European Union: Extension of trade liberalization with Ukraine
Members of the European Parliament (MEPs) voted on Thursday (08.05.2025) to extend the suspension of import duties and quotas on certain imports from Ukraine, such as iron and steel, which expire on 5 June 2025. The new regulation will enter into force for three years, until June 2028, once an agreement has been reached with the Council. Source: European Parliament
EU and Singapore sign landmark digital trade agreement
The European Union and Singapore have taken a significant step forward in their bilateral trade relations with the signing of a landmark Digital Trade Agreement (DTA). Signed by Commissioner for Trade and Economic Security Maroš Šefčovič and Singapore Minister-in-charge of Trade Relations Grace Fu Hai Yien, this Agreement marks a major milestone in deepening EU Singapore cooperation in the digital domain. It also reflects the clear commitment of both sides to strengthen their longstanding economic relations and uphold the rules-based trading order. The DTA allows the EU and Singapore to keep pace with the fast-evolving nature of the digital economy. It sets a high standard for digital trade rules between the EU and Singapore and raises the ambition of digital trade rules globally. It builds on the EU's approach for digital and data rules that puts people and their rights at the centre. Source: European Commission
India expects multi-phase trade deal with US as talks proceed
India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, when President Donald Trump’s reciprocal tariffs are set to kick in. The interim deal will likely cover areas including market access for industrial goods, some farm products and addressing some non-tariff barriers, such as quality control requirements. The talks are still ongoing and there’s no clarity if the Trump administration has agreed to a three-stage process for a trade deal. India’s Ministry of Commerce and Industry and Ministry of External Affairs didn’t immediately respond to requests for further information. The USTR and Commerce Department also didn’t immediately respond to questions.
The second stage of an India-US deal may be a broader and more detailed agreement timed for around September to November. The final leg of the deal will likely be a comprehensive agreement that would follow once there’s approval from the US Congress, possibly concluded only next year.
Malaysia and GCC launched free trade agreement negotiations
Malaysia and the Gulf Cooperation Council (GCC) officially launched negotiations for a Free Trade Agreement (FTA), marking a pivotal step in expanding bilateral trade and investment ties. The GCC comprises six member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The Joint Statement for the launch was signed by YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, and His Excellency Jasem Mohamed Albudaiwi, Secretary General of the GCC. The ceremony took place on the sidelines of the ASEAN-GCC Summit in Kuala Lumpur and was witnessed by YAB Dato’ Sri Anwar Ibrahim, Prime Minister of Malaysia, and His Highness Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, Crown Prince of the State of Kuwait.
Russian-backed union free trade deal with Iran goes into effect
The full-fledged Free Trade Agreement (FTA) between Iran and the Russian-led Eurasian Economic Union (EAEU) officially came into effect on May 15, 2025. This agreement marks a significant expansion of the interim trade pact that had been in place since 2019, aiming to deepen economic ties between Iran and the EAEU member states: Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan.
Key Highlights of the Agreement
- Tariff Reductions: The agreement reduces Iran's average import tariffs on goods from EAEU countries from approximately 20% to 4.5%, significantly lowering trade barriers .
- Trade Coverage: It encompasses preferential access for about 90% of goods traded between Iran and the EAEU, including sectors like metals, grains, oils, paper, and radar equipment .
- Economic Impact: Russian exporters are expected to save around $300 million annually in duties . Iran's Oil Minister anticipates that bilateral trade could increase to $6 billion, with projections suggesting that overall trade between Iran and the EAEU might reach $12 billion in the medium term .
Switzerland and US agree to accelerate tariff talks
Switzerland is seeking to avoid additional customs duties of 31% on its exports to the US, suspended until 9 July by US President Donald Trump. The Swiss economy and jobs are at stake. Such a move would be catastrophic for major sectors of Switzerland's economy including manufacturing and watchmaking. For now, Washington is imposing 10 percent tariffs on goods coming from Switzerland and much of the rest of the world.
Switzerland is among the countries seeking to strike a quick deal to reduce those tariffs, and Keller-Sutter said it was towards the front of the line after "positive" discussions. Switzerland was hit particularly hard with a 31% tariff rate, compared with 20% on the European Union and 10% on Britain, a decision which stunned Swiss officials, who described it as incomprehensible and counterproductive. The U.S. is Switzerland’s single biggest export market. Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that leaves Trump’s 10% rate there in place, modestly expands agricultural access for both countries and lowers prohibitive U.S. duties on British car exports.
UK suspends free trade agreement negotiations with Israel, sanctions settlers
The UK Foreign Secretary has announced that the United Kingdom is to suspend negotiations for a free trade agreement with Israel on account of the commencement of a new military operation in Gaza. The government has also announced new sanctions on a range of Israeli individuals and organisations over their support for “violence against Palestinian communities in the West Bank”.
UK – US economic prosperity agreement
On 8 May 2025, the Economic Prosperity Agreement between the United States of America and the United Kingdom of Great Britain and Northern Ireland came into force. The agreement provides for a reduction in tariffs on a number of goods, including a reduction in tariffs on UK car imports to the US to 10% for 100,000 vehicles per year and the elimination of tariffs on steel and aluminium from the UK. The agreement also provides better access for US agricultural products to the UK market, increasing exports of beef and ethanol, among others. In addition, the agreement streamlines customs procedures and reduces trade barriers in the agricultural, chemical, energy and industrial sectors. The agreement also includes further negotiations on digital services and the pharmaceutical industry. Source: Government of UK
UK agrees trade deal with India
The long-awaited trade deal between the UK and India has been agreed following years of negotiations, the government has announced. The Department for Business and Trade (DBT) confirmed (6 May) that the deal will include cuts on 90% of tariff lines for UK exports to India, with 85% of these “becoming fully tariff-free within a decade”. These numbers include a halving of the duty on whisky and gin exports to India, which will go from 150% to 75% then to 40% at year 10 of the deal. Car tariffs will fall from 100% to 10% with a quota. Source: UK Parliament
UAE-Philippines FTA to be signed next month
Both business chambers from the Philippines and the United Arab Emirates, particularly those from Dubai, are hoping that the Free Trade Agreement (FTA) or the comprehensive economic partnership agreement (CEPA) between the two countries will be signed in June, the country’s first FTA with a Middle Eastern country. The CEPA aims to lower trade barriers, enhance investment flows, and expand opportunities for Filipino professionals across the Gulf region. It is a key component of the Philippine Development Plan 2023–2028 and the Philippine Export Development Plan 2023–2028, reflecting Manila's strategy to diversify export markets and strengthen ties with strategic partners .
Though no exact date has been provided, Special Envoy of the President to the UAE for Trade and Investments Kathryna Yu-Pimentel revealed in her speech at the ‘New Horizons’ Doing Business with the Philippines, that the FTA of UAE and the Philippines will be signed next month.
UAE-Jordan Cepa to come into effect on 15th May
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Jordan officially came into effect on May 15, 2025. This landmark agreement, signed in October 2024, marks the UAE's first CEPA with an Arab nation and aims to significantly enhance bilateral trade and investment ties between the two countries.
Key Objectives and Provisions
- Trade Expansion: The CEPA seeks to boost non-oil bilateral trade from approximately $5.62 billion in 2024 to over $8 billion by 2032 .
- Tariff Reductions: The agreement eliminates or reduces tariffs on over 98% of tariff lines, covering more than 99.5% of UAE goods exported to Jordan. Certain goods, exempted under the Greater Arab Free Trade Agreement for health, religious, environmental, and security reasons, are excluded from these concessions .
- Customs Facilitation: The CEPA establishes a Customs Cooperation and Mutual Administrative Assistance Agreement, aiming to simplify customs procedures and enhance the efficiency of cross-border trade .
- Investment and Economic Cooperation: The agreement provides a framework for deeper cooperation in various sectors, including renewable energy, pharmaceuticals, logistics, and tourism. It also supports small and medium-sized enterprises (SMEs) by reducing trade restrictions and offering platforms for collaboration.