Indian Updates
India and Kyrgyzstan sign the Instrument of Ratification of the Bilateral Investment Treaty (BIT)
The Bilateral Investment Treaty (BIT) between India and Kyrgyzstan has come into force from 5th June 2025. The new BIT replaces the previous agreement signed between the two countries in 2000. Some of the features include an emphasis on sustainable development and provisions for investor-state dispute settlement with mandatory exhaustion of local remedies.
India and Canada to resume trade negotiations after a 21-month long hiatus
India and Canada are set to resume trade negotiations after a gap of 21-months, marking a significant step towards revitalizing their economic partnership. The trade negotiations, which were suspended in September 2023, will focus on the Early Progress Trade Agreement (EPTA) as a precursor to a Comprehensive Economic Partnership Agreement (CEPA). This decision follows a meeting between the prime ministers of both the countries on the sidelines of the G7 Summit in Canada. The resumption of negotiations comes amid improved diplomatic relations and growing bilateral trade, despite past political tensions. Both nations emphasized the importance of enhancing collaboration in areas such as clean energy, digital transformation, mobility and supply chain resilience.
Trade negotiations between India and USA slowdowns over contentious issue of crops, steel and pharmaceuticals.
India and the US are facing hurdles in trade negotiations as they aim for an interim deal before the potential tariffs by USA come into force. The trade agreement has faced contentious issues including demands by USA for market access for genetically-modified crops and relaxed regulations on medical devices and for storage of data on local servers. India seeks exemptions from tariffs on steel, automobiles, and pharmaceuticals in USA, currently threatened by the proposed reciprocal measures.
Global Updates
Afghanistan and Uzbekistan Sign Preferential Trade Agreement
Uzbekistan and Afghanistan have signed a Preferential Trade Agreement (PTA) and a Cooperation Program for 2025-2026 on 11th June 2025. The Trade Agreement aims to enhance economic cooperation between the two nations and focuses on simplifying cross-border trade procedures and expanding logistics routes.
The UAE-Serbia Comprehensive Economic Partnership Agreement comes into force
The Comprehensive Economic Partnership Agreement between the UAE and Serbia came into force on 1st June 2025. The Agreement was signed in October 2024 and aims to boost bilateral non-oil trade, by eliminating or reducing customs duties. Customs duty will be eliminated on 96% of the tariff lines on imports from Serbia. Similarly, UAE has committed to eliminate 95% of imports from UAE.
USA and the UK finalise the general terms for the U.S.-UK Economic Prosperity Deal
USA and the UK signed the Economic Prosperity Deal on 8th May 2025. This Agreement rolls back some of the tariffs imposed by U.S. President earlier this the year. Key highlights of the Agreement include a reduction in tariffs on UK cars imported into the U.S. from 27.5% to 10%, and the elimination of tariffs on UK steel and aluminium. The Agreement also includes reciprocal market access for beef and reduced tariffs on ethanol. Negotiations will continue to formalize and expand the terms of this Agreement, aiming for further economic cooperation.
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