Members consider trade agreements involving Australia, Cambodia, China, India, Nicaragua

The India-Australia Economic Cooperation and Trade Agreement , covering trade in goods and services, came into force on 29 December 2022. Australia will eliminate customs duties on 98.3% of its tariff lines by the end of the implementation period in 2026, while India will do so for 69.8% by 2031. For trade in services, both parties have enhanced sectoral commitments beyond those under the WTO General Agreement on Trade in Services (GATS), including the movement of natural persons.

Australia said the landmark Agreement represents a significant development in the economic relationship between Australia and India and supports both countries' deeper integration into the global economy. Australia added that the Agreement includes provisions on strengthening investment certainty, promoting regulatory cooperation and enhancing mobility for skilled professionals.

India said the Agreement has driven mutual growth and showcases the complementarity of both economies. The Agreement has significantly advanced trade ties and created new opportunities for business and employment. India added that both countries are committed to building on the momentum to deepen economic integration.

The Free Trade Agreement between China and Nicaragua,  goods and services, entered into force on 1 January 2024. At the end of the transition period in 2038, 95.2% of tariff lines of China and 94.8% of tariff lines of Nicaragua will be duty-free under the Agreement. Each party will retain tariffs on approximately 5% of tariff lines after full implementation.  On trade in services, the Agreement follows a negative list approach and adds new or improved commitments compared to the parties’commitments under the GATS in a number of areas including business services and health services. Moreover, the Agreement includes, among other things, provisions on the environment, competition, dispute settlement, small and medium enterprises, and e-commerce.

China said the Agreement establishes a high level of openness between both economies in terms of trade in goods and services and for investment. China noted that both economies are highly complementary and that there is a great potential for trade and investment cooperation.

Nicaragua said the Agreement, which builds upon the July 2022 Early Harvest Agreement, will produce mutual benefits for both countries. Nicaragua added that the Agreement provides an opportunity to transform the country's structure of production, trading and investment.

The Free Trade Agreement between China and Cambodia, covering trade in goods and services, came into force on 1 January 2022. Under the Agreement, China has committed to eliminating customs duties on 97.3% of its tariffs by 2041, while Cambodia has committed to eliminating 90% of its tariffs during the same period. Much of the tariff elimination has been "front loaded" by both parties, with most tariff reductions already applied since 2022. For trade in services, Cambodia's sectoral commitments remain the same as in its GATS commitments, except for a limited number of sectors, while China's existing GATS commitments are further enhanced for a number of sectors under the Agreement. The Agreement also contains provisions on cooperation under the Belt and Road Initiative (BRI).

China said the Agreement is its first bilateral free trade agreement (FTA) signed with a least-developed country (LDC), noting that this sets a good example of cooperation with LDCs. China said it is also the first FTA that sets an independent chapter on cooperation under the BRI and that it will enhance value chains between the two countries.

Cambodia said the Agreement is consistent with WTO commitments as it eliminates duties on a substantial amount of trade between the two countries. Cambodia noted the Agreement provides benefits beyond the economic aspect as it also contributes to Cambodia's broader development strategies.

Implementation of the RTA Transparency Mechanism

The Committee also took note of one new notification of an RTA, as well as five notifications of changes since its last session in November 2024. The signature of one Agreement was also the subject of an early announcement.

The outgoing chair, Ambassador Salomon Eheth (Cameroon), noted that there are 30 RTAs involving only WTO members and 38 involving non-members for which a factual presentation has to be prepared, counting goods and services separately. In addition, there are at least 58 RTAs currently in force that have not been notified to the WTO, with an updated list of these circulated prior to the Committee meeting and available on the RTA database. A number of delegations encouraged members to notify these agreements as soon as possible, while noting that delays may be due to constrained capacities of small delegations.

The Committee took note of the updated schedule for the submissions of  implementation reports on RTAs. It noted that as of 1 March 2025, such reports were due for 223 RTAs with an additional 15 becoming due in 2025.

Election of new Chair

Members elected Ambassador José Valencia of Ecuador as the new Committee Chair. He replaces Ambassador Eheth.

Next meeting

The next Committee meetings for 2025 are scheduled for 17 June and 10 November.

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