Global Trade and Regulatory Updates: A Round-up of Recent Developments
Asia-Pacific
China and ASEAN Agree Major Upgrade to Free Trade Pact
A significant enhancement to the China-ASEAN Free Trade Area was formalised on 28 October with the signing of the protocol for its Version 3.0 upgrade in Kuala Lumpur, Malaysia. The upgraded agreement covers nine key areas: the digital economy, green economy, supply chain connectivity, standards and technical regulations, sanitary measures, customs facilitation, competition policy, small and medium-sized enterprises, and economic cooperation. Both sides will now initiate their respective domestic ratification processes to bring the protocol into force at the earliest opportunity.
South Korea Expands Energy Efficiency Rules to 54 Product Categories
South Korea's Ministry of Trade, Industry and Energy has broadened its energy efficiency management system, as detailed in Notice No. 2025-145. The scope of regulated products is now expanded to 54 categories. The new rules require all testing institutions to be certified by the Korea Energy Management Corporation (KEMCO) and establish specific testing standards. For instance, fans will be assessed on airflow efficiency, gas boilers on heating efficiency, air fryers on a new thermal efficiency calculation, and printers on standby power consumption.
India Revises GST Rates for Automotive Sector, Postpones Safety Rules
Effective 22 September 2025, India's Goods and Services Tax (GST) Council has implemented changes to tax rates for the automotive sector. Reductions include: two-wheelers (under 350cc) and small cars (length ≤4m, petrol ≤1200cc or diesel ≤1500cc) moving from 28% to 18%; tractors (under 1800cc) from 12% to 5%. Conversely, the rate for luxury and high-displacement vehicles (length >4m or displacement >1500cc) has been increased from 28% to 40%.
Separately, India's Ministry of Heavy Industries has deferred the implementation of mandatory safety certification for machinery and electrical equipment. The new deadline is now 1 September 2026, providing a one-year extension from the original date of 28 August 2025. The regulations cover 20 categories of equipment, requiring them to meet Indian safety standards and obtain BIS certification.
Australia Tightens Energy Standards for Lighting Products
The Australian government has announced a comprehensive upgrade to its energy efficiency regulations for lighting products. By 3 March 2026, LED lamp suppliers must comply with the new Greenhouse and Energy Minimum Standards (LED Lamps) Decision 2025. Furthermore, regulations for traditional incandescent bulbs will be significantly tightened from 4 October 2025, requiring compliance with the 2024 Incandescent Bulbs Decision.
Philippines Makes E-commerce Trust Mark Voluntary
The Philippine Department of Trade and Industry has reversed its decision to mandate the 'Philippine E-commerce Trust Mark' following opposition from sellers. As of the end of the year, the trust mark will be voluntary. The Department stated it aims to refine the scheme to be "more useful, fair, and beneficial," with a review of its voluntary status planned for early 2026.
Americas
Mexico Suspends Planned Tariff Hikes on 1,371 Products
On 9 October 2025, Mexican President Claudia Sheinbaum announced that the Congress would postpone approval of a government proposal to raise tariffs on 1,371 products from China and other Asian nations. The proposal, submitted in early September 2025, sought to increase duties on items like automobiles, textiles, and steel to 50%. Mexico will now consult with the affected countries to assess the impact and potentially adjust the plan to avoid trade retaliation.
Europe & Central Asia
EU Publishes Amended REACH Fee Regulation, Bans PFAS in Firefighting Foams
The European Commission has formally published the amended REACH Fee Regulation (Implementing Regulation (EU) 2025/2067) on 16 October 2025. The regulation introduces a 19.5% increase in registration fees, based on cumulative inflation from 2021-2023, though fees for small and medium-sized enterprises (SMEs) remain unchanged. The new fee structure applies from 5 November 2025, while amendments to the SME verification process will take effect on 5 February 2027.
In a separate move, the EU has banned per- and polyfluoroalkyl substances (PFAS) in firefighting foams through Regulation (EU) 2025/1988, effective 23 October 2025. Firefighting foams with a PFAS concentration equal to or exceeding 1mg/L can no longer be placed on the market or used.
European Parliament Adopts Revised Waste Framework Directive
On 9 September 2025, the European Parliament adopted revisions to the Waste Framework Directive targeting textiles and food waste. Textile producers placing goods on the EU market will have 30 months after the directive's entry into force to cover collection, sorting, and recycling costs under new Extended Producer Responsibility (EPR) schemes. These rules apply to all producers, including those outside the EU using e-commerce platforms, with micro-enterprises granted an extra year to comply.
Turkey Restricts Imports of Three Product Categories from Chinese E-commerce
Turkey's Ministry of Trade has prohibited the import of footwear, toys, and leather goods via the 'simplified customs declaration' procedure from certain Chinese e-commerce platforms, effective 20 October 2025. The decision follows inspections which found that 148 out of 182 products tested (81%) failed to meet safety standards, with excessive levels of toxic substances such as phthalates, lead, cadmium, and polycyclic aromatic hydrocarbons.
Russia Introduces New Safety Standard for Reflective Children's Clothing
A new national standard (GOST) for reflective components on children's and adolescent clothing took effect in Russia on 20 October 2025. The standard is part of the 2022-2027 Children's Goods Standardisation Programme and aims to improve the safety of young road users. Full implementation is expected within two to three years.
Uzbekistan Simplifies Environmental Rules for Imported Vehicles
Uzbekistan has abolished ecological certification for new imported passenger (M) and goods (N) category vehicles. Compliance with Euro 4 standards or above can now be confirmed via documentation from the manufacturer or the country of origin. Electric vehicles (excluding hybrids) are exempt from environmental assessment entirely.
Middle East & Africa
Saudi Arabia Implements New Pre-Arrival Cargo Data Rules
Effective 29 October 2025, new regulations from the Saudi Ports Authority (MAWANI) and the Zakat, Tax and Customs Authority (ZATCA) require all cargo arriving at Saudi seaports to have its manifest data pre-submitted via the FASAH platform. Deadlines are 72 hours for distant ports, 24 hours for nearby ports, and any time before arrival for voyages under 24 hours. Late submissions will incur fines.
UAE Introduces Mandatory Certification for Electric Vehicles
The UAE has issued Technical Regulation UAE.S 2698:2024, making certification mandatory for electric vehicles and related components from 30 August 2025. The regulation covers charging infrastructure, powertrain components, and complete vehicles. All relevant products must obtain ECAS LVE certification, with additional ECAS RoHS or AD QCC certifications potentially required.
Algeria Mandates Bank Approval for Import Plans
Banks in Algeria are now required to obtain approval from the Ministry of Foreign Trade and Export Promotion for a company's import forecast plan before processing any import-related banking procedures, including the opening of Letters of Credit.
Pakistan Approves Commercial Import of Used Vehicles
Pakistan's Economic Coordination Committee has approved the commercial import of used vehicles. Until 30 June 2026, only used vehicles up to five years old can be imported; this age restriction will be lifted thereafter. The current 40% regulatory duty will be reduced by 10% annually from 2026 until its complete abolition in the 2029-30 financial year. All imported used vehicles must meet Pakistan's automotive safety and environmental standards.