KATHMANDU: Two major trade agreements have marked a shift toward stronger global economic ties, according to international news sources.
India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA). The deal aims to boost bilateral trade and investment. It will reduce import duties on UK-made completely built-up (CBU) cars.
The current 110% tax will fall to 10% in five years for ICE vehicles and in ten years for electric and hybrid vehicles.
However, imports will follow a fixed annual quota.
Luxury brands like Jaguar, Land Rover, Bentley and Rolls-Royce are expected to benefit. At the same time, 99% of Indian exports, including auto parts, engineering goods and EV components will enter the UK duty-free.
The UK will also ease visa rules for Indian professionals in R&D, design and engineering. These workers will be exempt from UK social security payments for up to three years.
In a separate move, the US and the EU have signed a new trade deal, lowering the risk of a trade war. A 15% import tariff will apply to most EU goods entering the US less than the earlier threat of 30% to 50%.
The deal was finalized after talks between President Donald Trump and EU President Ursula von der Leyen in Scotland.
The auto sector sees partial relief. German brands like Volkswagen, BMW and Mercedes-Benz still face cost pressures. Key sectors like aircraft parts, semiconductor tools, generic drugs and chemicals are exempt from the tariff.
The EU will invest $600 billion in the US and buy $750 billion worth of US energy and defense products. EU automakers must adjust to the 15% duty, while US brands like Ford and GM gain a competitive edge.
