India and the EU conclude their free trade agreement
27 January 2026
On 27 January 2026 leaders of India and the European Union announced in New Delhi the conclusion of a free trade agreement, after talks that began in 2007. It covers goods, services, investment, customs, technical barriers, sustainability and digital trade, with tariffs removed or cut on the great majority of trade, phased over up to ten years for sensitive lines. India kept protection for dairy. The text still needs legal scrubbing and approval before it enters into force, expected in late 2026 or 2027.
Background. The EU has 27 member States and is one of India's largest trading partners. India's other recent agreements include the UAE CEPA (in force May 2022), the Australia ECTA (December 2022) and the EFTA Trade and Economic Partnership Agreement (in force October 2025), under which EFTA promised $100 billion of investment.
Why CLAT asks: Know which agreements are signed and which are in force: questions often turn on that difference.
Source: European Commission IP Helpdesk: EU-India free trade agreement concluded (29 January 2026)
US tariffs on Indian goods cut to 18%; an interim trade framework follows
2 February 2026
On 2 February 2026 President Trump announced that US tariffs on Indian goods would fall from 50% to 18%. The 50% had been a 25% 'reciprocal' tariff plus a 25% penalty over India's purchases of Russian oil, which was withdrawn. Days later the two countries released a framework for an interim trade agreement as a step towards a broader deal. Reports said Indian refiners would stop new Russian oil orders; the joint statement itself did not mention Russian oil. India said its farm and dairy sectors stayed protected.
Background. A 'reciprocal' tariff is set by reference to the other country's tariffs or trade surplus. Under WTO rules, members must give each other most-favoured-nation treatment, except within free trade agreements and for developing-country preferences.
Why CLAT asks: The most-favoured-nation principle and its exceptions explain why bilateral tariff deals are contested.
Sources: The Daily Star (Reuters): US, India unveil interim trade framework; Arab News: US to cut tariffs on India to 18% as Delhi agrees to end Russian oil purchases
India and the Gulf Cooperation Council agree terms for FTA talks
5 February 2026
On 5 February 2026 India and the Gulf Cooperation Council signed the Terms of Reference for negotiating a free trade agreement, at Vanijya Bhawan, New Delhi, in the presence of Commerce Minister Piyush Goyal. The ToR cover tariffs and non-tariff measures, rules of origin, services and investment, with food and energy security among the stated priorities.
Background. The GCC, founded in 1981 and based in Riyadh, has six members: Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. India already has a CEPA with the UAE (2022) and signed one with Oman in December 2025.
Why CLAT asks: Name the six GCC members: a frequent question.
Source: All India Radio News: India and GCC sign Terms of Reference for a free trade agreement (5 February 2026)
India and New Zealand sign a free trade agreement
27 April 2026
Commerce Minister Piyush Goyal and New Zealand's Trade Minister Todd McClay signed the India-New Zealand free trade agreement at Bharat Mandapam, New Delhi, on 27 April 2026, after talks concluded in December 2025. New Zealand's exports will see tariffs cut or removed on about 95% of goods, Indian exports to New Zealand become duty-free, and New Zealand committed about $20 billion of investment in India over 15 years.
Background. New Zealand's dairy exports are its biggest interest, and dairy is the sector India protects most closely in all its trade deals.
Why CLAT asks: Match the agreement to its minister and city of signing; and remember why dairy is sensitive.
Source: Bloomberg: India, New Zealand sign 'once-in-a-generation' trade deal (27 April 2026)
The India-UK trade agreement enters into force
15 July 2026
The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in London on 24 July 2025, entered into force on 15 July 2026 after both sides completed ratification and settled a late dispute over UK steel duties. The Double Contribution Convention on social security came into force the same day, sparing Indian professionals posted to the UK from paying into both countries' schemes for up to five years.
Background. Talks concluded on 6 May 2025 after fourteen rounds. A double contribution convention avoids workers paying social security in two countries for the same work.
Why CLAT asks: Signed in 2025, in force in 2026: dates like these are how CLAT tests current affairs.
Sources: The Tribune: India-UK trade agreement will enter into force from July 15; IANS: India-UK trade pact operational from July 15
WTO's 14th Ministerial Conference in Yaoundé ends without a declaration
30 March 2026
The WTO's 14th Ministerial Conference met in Yaoundé, Cameroon, from 26 to 30 March 2026, chaired by Cameroon's trade minister. It adopted decisions on small economies and on special and differential treatment under the SPS and TBT agreements, and agreed to continue fisheries-subsidy talks, but could not agree a final declaration or extend the moratorium on customs duties on electronic transmissions, which was due to expire on 31 March. The reform package was sent back to Geneva.
Background. The WTO was set up on 1 January 1995, replacing GATT, and is based in Geneva. Its highest body, the Ministerial Conference, meets about every two years; MC13 was held in Abu Dhabi in 2024. Its Director-General is Ngozi Okonjo-Iweala.
Why CLAT asks: WTO basics (year, seat, Director-General, last two ministerials) are perennial GK.
Sources: USTR: Press release regarding the WTO's 14th Ministerial Conference (March 2026); Business in Cameroon: WTO MC14 ends in Yaoundé with partial agreements
Europe's carbon border tax enters its definitive phase
1 January 2026
The EU's Carbon Border Adjustment Mechanism moved from a reporting-only transition into its definitive phase on 1 January 2026. Importers of covered goods must be authorised declarants and declare the verified carbon emissions embedded in their imports each year, with the purchase of CBAM certificates, priced in line with the EU Emissions Trading System, due from 2027 for 2026 imports. Importers bringing in under 50 tonnes a year are exempt. Iron and steel make up most of India's CBAM-covered exports to the EU, and aluminium a growing share.
Background. CBAM covers iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. India argues it is a unilateral trade barrier contrary to the climate principle of common but differentiated responsibilities.
Why CLAT asks: The 'common but differentiated responsibilities' principle is a likely environmental-law question.
Sources: RIS Policy Brief 128: CBAM and India; GreenSutra: CBAM in 2026 explained
