Preferential Trade updates 02/22

Chinese customs to trial some CPTPP rules in pilot free trade zones

Chinese customs will trial part of the rules of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in some of China’s pilot free trade zones, according to the country’s customs authority. Along with implementing CPTPP rules, China will actively facilitate the construction of platforms for opening up, and promote innovation of customs supervision mechanisms to be rolled out in the pilot free trade zones and later replicated elsewhere, Ni Yuefeng, head of the General Administration of Customs, said at a work conference. In 2022, efforts will be made to implement a customs supervision framework for the Hainan Free Trade Port and support the construction of the Guangdong-Macao In-depth Cooperation Zone in Hengqin, southern China’s Guangdong Province, among others. 

China, Pakistan ink new CPEC agreement

China and Pakistan signed a new agreement on industrial cooperation as part of the China Pakistan Economic Corridor (CPEC) plan during Prime Minister Imran Khan’s on-going visit to Beijing. The agreement followed Mr. Khan’s meeting with Chairman of China’s National Development and Reform Commission (NDRC). The industrial cooperation agreement is a key part of what is being called “phase two” of CPEC. The first phase primarily involved Chinese investments in energy projects as well as road infrastructure. The agreement between Pakistan’s Board of Investment and the NDRC is aimed at boosting Chinese investment in Pakistan as well as transferring Chinese industrial capacity. 

India and UK started their negotiations for a free trade agreement

India and UK started their negotiations for a free trade agreement, with the aim to wrap up the deal by the end of this year. The two countries expect the deal to double bilateral trade by 2030. The first round of negotiations has being on January 17 and future rounds will take place approximately every five weeks. On a deadline to conclude the talks, Goyal said both the sides have agreed that they would focus initially on areas that are of mutual benefit and where there is less disagreement, for which, we have set an aggressive timeline of the next few months and we would be able to easily come up with a substantive agreement in the initial phase itself. 

India is in discussion with ASEAN to start FTA review

India is in discussion with the 10-nation bloc ASEAN for initiating the review of the free-trade agreement in goods between the two regions to seek more market access for domestic products, Parliament was informed. Minister of State for Commerce and Industry said the market access issues and trade barriers being faced in ASEAN (Association of Southeast Asian Nations) countries and China are being regularly taken up with individual countries through bilateral engagements. 

Indonesia, Sri Lanka Agree to Push for PTA Negotiations

Indonesian Ambassador to Sri Lanka and Sri Lanka Trade Minister have agreed to push for immediate negotiations on Preferential Trade Agreement (/PTA) between the two countries.  They reached the agreement during a meeting at the office of the Sri Lanka Trade Minister (Feb 11, 2022), the Indonesian Embassy in Colombo said in a written statement received in Jakarta. It is believed the negotiations on PTA will have a significant impact to enhance economic and trade relations between the two countries. 

Negotiations on India-UAE CCPA complete; could be signed soon

India and the UAE have agreed on all the elements of the proposed Comprehensive Economic Partnership Agreement (CEPA) and it could be signed very soon. The ambassador said both sides are waiting for a final signal from their leadership to sign the pact. 

Singapore, Pacific Alliance countries sign trade agreement

Singapore has signed a free trade agreement with the Pacific Alliance - made up of Colombia, Mexico, Peru and Chile - those governments, in a deal they said would facilitate trade and closer ties with Asia. The deal will aid cooperation in the energy, infrastructure, digital and food industries, as well as shipping and port logistics. 

Turkey and UAE launch free trade deal talks

Turkey and the United Arab Emirates declared that they would begin free trade deal negotiations, potentially carrying the recently improved bilateral relations to a new economic level. The joint declaration to begin negotiations was inked by Turkish President, who paid a visit to the UAE for the first time in nine years following the renewal of ties between the two erstwhile regional rivals.

The two countries began to restore relations over the past year, after 10 years of political and proxy conflicts in places such as Libya, Egypt and the horn of Africa, and accusations the Emiratis were plotting to take down the Turkish government. 

UAE, Indonesia say trade deal could be signed next month

The United Arab Emirates and Indonesia are close to finalising a trade and investment deal after months of negotiations and could sign an agreement in March, officials from the two sides said. 

UAE signs agreement on mutual promotion and protection of investments with Mozambique

The UAE, represented by the Ministry of Finance (MoF), signed an agreement to promote and protect mutual investments with the Republic of Mozambique. The agreement, which was signed at MoF’s headquarters in Dubai, comes as part of the ministry’s ongoing efforts to strengthen and activate means of economic and investment cooperation with various countries of the world. The agreement protects both nations’ investments from all non-commercial risks, covers transfer of profits and revenues, and facilitates resolving disputes. 

Ukraine and Turkey sign free trade zone agreement

The agreement was signed on February 3, after a joint press conference by Ukraine President and President of Turkey. According to the Ministry of Economy, the key position of the agreement is the establishment by Turkey of 0% duties on 10,337 commodity items, which is 95% of the total number of goods exported by Ukraine. Besides, another 1,348 items will be subject to tariff quotas or reduced duties. Thanks to the establishment of a 0% duty on the supply of grain by Turkey, Ukraine will receive improved conditions for access to the Turkish market for processed agricultural products. The agreement also provides for the complete abolition of Turkish duties on industrial products. To ensure the development of domestic metallurgy, Ukraine reserved the right to apply an export duty on the export of scrap metal, while Turkey opens the domestic market for Ukrainian metal, for 510 out of 840 metallurgical goods a zero duty is set.

For another 130 metallurgical goods, a partial reduction in duties was established. Also, quotas of at least 411,000 tons are provided for 167 metallurgy products. Besides, Ukraine maintains duties on used cars and second-hand goods and establishes three- and five-year transitional periods of duties on vehicles and light industry products. The goods produced from Turkish raw materials after the activation of the agreement will be considered Ukrainian and will be able to enter the markets of all European countries duty-free, according to the EUR1 certificate.