13 October 2026
From new market openings to paperless customs and harder questions about who benefits, trade agreements are being reshaped for a more uncertain global economy.
Free trade agreements (FTAs) are back at the centre of global economic diplomacy—but signing a deal is only the beginning. September and October brought fresh progress on agreements involving India, the European Union (EU), New Zealand, the Philippines and ASEAN. At the same time, governments and businesses are paying closer attention to implementation: rules of origin, regulatory barriers, digital trade, supply-chain security and whether exporters actually use the market access on offer.
For India, the month’s developments carry a practical message. The India–New Zealand FTA is due to take effect on 20 October, India and the EU have moved their agreement into the EU approval process, and India is pushing to improve how businesses use existing trade pacts. In parallel, negotiations to review the ASEAN–India goods agreement have been accelerated, while a new India–MERCOSUR protocol aims to make origin documentation digital.
India–New Zealand: a new agreement goes live
The most immediate milestone for Indian exporters is the India–New Zealand FTA, scheduled to enter into force on 20 October 2026. New Zealand’s Parliament passed the implementing legislation on 16 September, completing a key step toward implementation. Under the deal, New Zealand will provide duty-free access for 100% of Indian exports from the first day, including products such as textiles and apparel, leather and footwear, gems and jewelry, engineering goods and processed foods. The agreement also provides tariff-free access to certain manufacturing inputs, which may help reduce costs for Indian producers.[1]
The agreement extends beyond goods. India’s government says the pact includes opportunities for services providers and professionals, a dedicated quota of 5,000 temporary employment visas for skilled Indians and 1,000 working-holiday visas annually. It also provides for student mobility and post-study work rights for specified graduates. New Zealand has committed to facilitate US$20 billion in investment into India, while the two governments have set an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion by 2030.
The tariff opening is not without safeguards. India has excluded sensitive products—including dairy, sugar, edible oils and several agricultural commodities—from tariff concessions. New Zealand apples, kiwifruit and Manuka honey receive calibrated access through tariff-rate quotas, minimum import prices and seasonal windows. For Indian businesses, the task now is to understand the product-specific tariff schedule and rules of origin before assuming that every shipment will automatically qualify. Preferential treatment depends on satisfying the agreement’s conditions and following the required procedures.
India–EU: progress, but not yet in force
On 11 September, the European Commission submitted proposals to the EU Council for authorization to sign and conclude the India–EU FTA. The move advances the agreement from political announcement toward formal EU approval, but it does not mean the agreement is already signed or operational. The European Parliament’s legislative tracker notes that the two sides would like to sign in December 2026; further institutional steps would still be required afterward.[2]
The agreement is expected to be significant in scale. The European Parliament tracker says tariffs on more than 90% of EU goods exports to India are to be eliminated or reduced. India’s own August overview says the proposed agreement would provide preferential treatment across 97% of EU tariff lines, covering approximately 99.5% of bilateral trade value. The precise commercial effect will depend on the final text, staging periods, exceptions and the products that qualify under the rules of origin. [3]
For Indian exporters, the EU opportunity is wider than a tariff calculation. Textiles, footwear, processed foods, engineering goods and other export sectors may gain from improved access, while services commitments and regulatory cooperation could matter to professional and technology businesses. But EU market access comes with demanding requirements on product quality, sustainability, traceability and technical standards. Lower duties can improve price competitiveness; they do not remove the need to meet the destination market’s regulatory conditions.
India–ASEAN: review gathers pace
India’s existing trade relationship with ASEAN is also under review. At the 15th meeting of the ASEAN–India Trade in Goods Agreement (AITIGA) Joint Committee, held in Jakarta from 6 to 9 October, the parties agreed to accelerate negotiations on outstanding chapters and set time-bound deliverables for the negotiating groups. The next Joint Committee meeting is scheduled for January 2027 in India.[4]
The review matters because the agreement’s benefits have long been contested in India. The Financial Express reports that India sought a review amid concerns that imports from ASEAN had risen faster than the gains Indian exporters expected; it puts India’s trade deficit with the bloc at US$51.54 billion in FY 2025–26, up from US$4.98 billion in 2010–11. Negotiators are examining subjects including market access, customs procedures, standards, trade remedies, sanitary and phytosanitary measures, and rules of origin.
The outcome could affect a wide range of trade, from electronics and machinery to chemicals and agricultural goods. For companies, changes to origin rules and customs procedures can be as consequential as tariff reductions: they determine which goods qualify for preferences and how reliably firms can claim them. The review’s challenge is to improve access and enforcement while maintaining predictable regional supply chains.
MERCOSUR: paperwork gets a digital upgrade
On 14 September, India and MERCOSUR signed an additional protocol to their Preferential Trade Agreement (PTA). It recognizes electronic Certificates of Origin (CoO) as having the same legal validity and evidentiary value as paper certificates, subject to the parties’ domestic laws and authorized issuance procedures. The protocol will take effect after the required internal procedures and notifications are completed.
This is a targeted trade-facilitation step, not a new tariff deal. The existing India–MERCOSUR PTA provides preferential concessions on 450 tariff lines on India’s side and 452 on the MERCOSUR side. Digital CoOs should help reduce paperwork and processing time for eligible trade, but they do not expand the product coverage or alter the underlying concessions.[5]
For exporters, the distinction is important: a smoother certificate process can make existing preferences easier to claim, but it does not create new market access by itself. Firms will still need to check tariff eligibility, product-origin rules and the domestic implementation status before relying on electronic documentation.
A global shift toward regional deals
India’s developments sit within a broader global push to deepen trade links and diversify supply chains. On 22 September, the EU and the Philippines reached what the European Commission called a “substantial agreement” in their FTA negotiations. The announcement represents a major step, but negotiations are expected to continue before formal conclusion; the European Parliament tracker says the parties are aiming to complete the process in 2027.
The EU’s wider Southeast Asia strategy is increasingly bilateral. Singapore and Vietnam already have FTAs in force, while negotiations with Indonesia have concluded and talks with Thailand and Malaysia are advancing. A region-to-region EU–ASEAN FTA remains a longer-term prospect. The pattern suggests that governments are pursuing agreements with individual partners where a bloc-wide bargain is difficult, while still looking for ways to build regional economic frameworks.[6]
South Korea, meanwhile, is updating its trade arrangements for newer priorities. From 28 September to 1 October, Korea and ASEAN held a round of negotiations to upgrade their FTA, focusing on areas that include digital trade, critical minerals, supply chains, intellectual property and rules of origin. South Korea also joined negotiations on a Green Economy Partnership Agreement with New Zealand, Singapore and Chile, covering issues such as trade in low-emission goods and cooperation on climate-related trade measures. [7]
These initiatives point to an evolution in what trade deals are expected to do. Traditional tariff cuts remain important, but newer agreements increasingly address digital commerce, critical-mineral supply chains, sustainability and regulatory cooperation. Businesses should therefore read an FTA as a package of market-access rights and compliance obligations—not simply a schedule of lower duties.
India’s utilisation challenge
India’s Commerce Department announced an FTA Utilisation Cell in October to help businesses identify opportunities under the country’s trade agreements. The cell is expected to work with industry associations, Export Promotion Councils and state governments. Commerce Secretary Rajesh Agarwal has also called for market-specific plans that address non-tariff barriers, quality standards and practical routes into partner markets.[8]
The initiative addresses a persistent gap between negotiating access and using it. India’s own trade overview reports that the UAE was India’s largest individual FTA export market in FY 2025–26, with merchandise exports of US$37.36 billion. It also reports that exports to Australia reached US$7.28 billion, more than 80% above the FY 2020–21 level. Those figures show that agreements can accompany increased trade, but the effect of any agreement depends on sector conditions, demand, competition and how firms use the preferences.[9]
For companies, the practical checklist is straightforward: identify the relevant preferential tariff; verify the product’s origin qualification; confirm the required certificate and documentation; assess non-tariff standards and licensing; and compare the total landed cost against competing suppliers. Smaller businesses may need external assistance with tariff classification, origin calculations and export documentation. The new utilisation cell could help bridge that information gap, although results will ultimately be measured by actual use and export performance.
What to watch next
The next few months will test whether the latest announcements translate into working commercial arrangements. The New Zealand agreement is the immediate test for implementation and exporter uptake. The India–EU deal must proceed through the relevant approval and signing steps before firms can rely on its preferences. The ASEAN–India review must reconcile India’s concerns about the balance of trade with the shared interest in dependable regional supply chains. The MERCOSUR protocol, meanwhile, will need domestic implementation before exporters can make full use of electronic CoO.
For businesses, the central lesson is that trade agreements are becoming more operational—and more technical. Tariff preferences matter, but so do product origin, standards, customs procedures, regulatory approvals and the ability to navigate them. India’s expanding network creates options; the competitive advantage will go to companies that convert those options into compliant, cost-effective shipments.
