By Philip Blenkinsop
BRUSSELS (Reuters) -U.S. President Donald Trump’s tariffs have unleashed an unprecedented burst of free trade agreements and negotiations towards them by partners seeking to offset potential lost exports to the United States.
The following is a summary of some of the main action since Trump’s re-election last November.
THE EUROPEAN UNION
Mercosur – European Commission has proposed a deal with the South American bloc for an envisaged signing by the end of the year. The deal offers a potential record 4 billion euros ($4.7 billion) of tariff removal on EU goods.
Mexico – Update of existing FTA from 2000, with more opening of agri-food and government contract markets.
Indonesia – FTA concluded on September 23, with EU saying it will lead to 600 million euros of duties cut from EU exports.
India – Negotiations, relaunched in 2022, have gathered pace and both sides eye an agreement by the end of this year.
The EU has advanced talks with the Philippines and Thailand, revived negotiations with Australia and Malaysia and launched them with the United Arab Emirates this year.
MERCOSUR
Trade bloc including Argentina, Brazil, Paraguay and Uruguay.
European Free Trade Association (EFTA) – Deal with Switzerland, Iceland, Liechtenstein and Norway sealed in July.
Canada – To resume negotiations that stalled in 2021.
UAE – Brazil expects to finalise deal by the end of 2025.
The bloc also expects to advance negotiations with India, Indonesia, Japan and Vietnam.
INDIA
EFTA – India’s trade pact with EFTA takes effect on Wednesday.
New Zealand revived talks after a decade-long hiatus and promptly said they aimed for a deal in two months.
India also has negotiations with Chile, Oman, Peru and the European Union and launched talks with the Eurasian Economic Union comprising Armenia, Belarus, Kazakhstan, the Kyrgyz Republic and Russia.
UNITED ARAB EMIRATES
The UAE has initiated a raft of bilateral trade, investment and cooperation deals to reduce its dependence on fossil fuels and bolster long-term growth prospects.
It signed three agreements in a single day in January – with Kenya, Malaysia and New Zealand.
It has further talks with the European Union, Japan, China, Korea, Australia, Pakistan, India, Turkey and Mercosur.
EAST ASIA
China, Japan and South Korea have been less active with free trade negotiations, focusing their efforts more on deals with Washington to limit tariffs.
The three did hold their first joint economic dialogue in five years in March and agreed to cooperate closely on a proposed trilateral free trade agreement, on which little progress has been made since talks started in 2012.
Their leaders are also expected to attend the first summit since 2020 of the Regional Comprehensive Economic Partnership – a loose Asian trade bloc – in Malaysia in October.
($1 = 0.8493 euros)
(Reporting by Philip Blenkinsop; Editing by Toby Chopra)
Comments