Preferential Trade updates November 2024

November 12, 2024

Algeria marks a historic turning point by officially joining the African Continental Free Trade Area (AfCFTA)

On November 1, 2024, Algeria marks a historic turning point by officially joining the African Continental Free Trade Area (AfCFTA), alongside commemorating its struggle for independence. Since ratifying the agreement in 2021, the country has collaborated with the United Nations Economic Commission for Africa to maximize the benefits of this membership. With the AfCFTA, Algeria aims to diversify its exports, focusing on agriculture, pharmaceuticals, and industry. This initiative promises to enhance infrastructure, boost employment, and strengthen intra-African trade, paving the way for a more dynamic economy.

Australia and UAE sign a new free-trade agreement

Tariffs will be eliminated on dozens of key agricultural exports into the United Arab Emirates under a free-trade agreement that is estimated to bring an additional $50m in annual revenue to Australian farmers. Signed on Wednesday after nearly a year of negotiations, the deal eliminates tariffs on more than 99 per cent of Australia’s exports to the Middle East nation, including meat, dairy, grains and oilseeds, chickpeas, lentils, nuts, horticulture and honey. The UAE is already South Australia’s biggest trade and investment partner in the Middle East, with two-way trade worth $9.9bn and two-way investment worth $20.6bn. It is also a significant distribution hub for The Gulf region. Outside of agriculture, alumina and higher education are the primary Australian exports to the UAE.

Indonesia-Canada trade pact negotiations enter final stage

The negotiations of the trade deal between Indonesia and Canada have entered the final stage as the two economies wish to substantially conclude the agreement later this week. In 2021, Indonesia and Canada officially launched negotiations for a comprehensive economic partnership agreement (CEPA) that will pave the way for greater market access. Negotiators of both countries are currently convening in the West Javan capital of Bandung for what Indonesia hopes to be the final round of negotiations. Government data showed Indonesia-Canada trade amounted to $2.4 billion in January-August 2024. Indonesia recorded a $528.4 million deficit when trading with Canada that period. Bilateral trade totaled $3.4 billion last year during which Indonesia mainly imported Canadian wheat and fertilizers, to name a few.

Kuwait: Entry into force of the amending protocol to DTA with Kuwait

The amending protocol to the double taxation agreement (DTA) between Switzerland and Kuwait has entered into force. With a few exceptions, most of the changes will apply from 1 January 2025. 
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Korea begins fifth round of free trade talks with Malaysia

The industry ministry said Tuesday that it has launched the fifth round of negotiations with Malaysia for a bilateral FTA as Korea aims to broaden its trade portfolio. The latest round of negotiations for the FTA began in Seoul for a four-day session, following the resumption of talks in August after a five-year hiatus, according to the Ministry of Trade, Industry and Energy. Korea already has an FTA with the Association of Southeast Asian Nations, but it is seeking to deepen economic ties with individual members through separate free trade agreements. The ministry said that both countries aim to make progress in negotiations across 13 sectors, including goods, services, investment, economic cooperation and the digital industry.

Thailand seeks FTA negotiations with Eurasian Economic Union

Thai Commerce Minister discussed with Russian Deputy Minister of Agriculture Sergey Levin in Bangkok. During the discussion, Thailand expressed a desire to get Russia’s support in starting negotiations for FTA between Thailand and EAEU to expand their trade and investment ties. Thailand and Russia agree to strengthen trade and investment cooperation, particularly in high technology and artificial intelligence, areas in which Russia possesses expertise and is interested in expanding its manufacturing base. The minister said that over the past several years, more data center and printed circuit board manufacturing has relocated to Thailand, which is expected to contribute to continued investment in high technology, in particular digital innovation.

New UK-EU Competition Cooperation Agreement

UK Government and the European Union have formally concluded technical negotiations on the UK-EU Competition Cooperation Agreement. 

  • Negotiations conclude to support international cooperation on competition 
  • Will allow for closer cooperation between CMA and EU’s competition authorities 
  • New agreement will supplement UK-EU Trade and Cooperation Agreement (TCA)

This agreement is aimed at improving cooperation between the UK’s and EU’s competition authorities, allowing for greater dialogue between the Competition and Markets Authority in the UK, the European Commission and the National Competition Authorities of the EU Member States. The agreement will ensure more effective enforcement of global competition laws, helping to support businesses both in the UK and EU as well as protecting consumers.

UAE, Vietnam seal comprehensive economic partnership agreement

The UAE and Vietnam have concluded talks on a bilateral trade deal known as a Comprehensive Economic Partnership Agreement (CEPA), underscoring the Gulf state’s broader strategy to forge strong global economic partnerships. The bilateral trade pact is expected to unlock new avenues for cooperation in key sectors such as food production, apparel, textiles, machinery, and metals. Notably, non-oil bilateral trade between the two countries surged 8.7 per cent to $6.1bn in the first half of 2024, with non-oil exports soaring 58.4 per cent year-on-year. Under the CEPA, the UAE has committed to phasing out tariffs on 99 per cent of Vietnam’s exports, and the ASEAN nation has pledged to remove tariffs on 98.5 per cent of the UAE’s exports.

UK and Switzerland resume trade talks for an upgraded free trade agreement

The UK will on Monday [14 October] kickstart negotiations with Switzerland on an enhanced and upgraded Free Trade Agreement (FTA). Switzerland is the UK’s 10th largest trading partner and 7th largest export market, with total trade between our two countries worth £51bn in 2023. The talks, the first to take place under this Government, provide a chance to further strengthen our trading relationship, drive economic growth and create jobs across the UK. The UK and Switzerland are both leading service-based economies, with services trade accounting for nearly £30 billion of UK-Swiss trade, despite our existing trade agreement focusing mostly on goods.

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