Canada and UAE to Begin Economic Partnership Negotiations CANADA: Canada and the UAE will begin negotiations next month on a comprehensive economic partnership agreement, International Trade Minister Maninder Sidhu told Reuters. Ottawa hopes the talks will deepen ties with the Gulf and attract investment particularly into liquefied natural gas and green-energy projects, part of a broader strategy to diversify exports away from the United States amid tariff pressures. Abu Dhab

Portugal Approves 2026 Budget with Strong Emphasis on Housing and Infrastructure PORTUGAL: Portugal’s parliament has approved the 2026 budget, allocating US$7.5 billion (€6.9bn) to housing and transport infrastructure as part of a broader plan to support growth while maintaining fiscal discipline. The centre-right minority government projects GDP growth of around 2.3% and a fourth consecutive budget surplus, alongside a reduction in public debt to about 88% of GDP. Total expe

Sign Free Trade Agreement Indonesia: Indonesia and the Russia-led Eurasian Economic Union (EAEU) have signed a free trade agreement (FTA) aimed at strengthening two-way trade, Indonesia’s trade ministry said. The agreement was signed over the weekend in St. Petersburg, Russia, and was witnessed by Russian President Vladimir Putin along with leaders of EAEU member states Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Indonesia was represented at the signing by Trade Mini

World’s Fourth-Largest Economy India: India has surpassed Japan to become the world’s fourth-largest economy, according to calculations cited in the Indian government’s end-of-year economic review. Based on current trends, the review projects that India will overtake Germany within the next three years to become the world’s third-largest economy, trailing only the United States and China. India’s gross domestic product has already reached around USD 4.18 trillion and is proje

Full-Year Prices Remain Weak China: China’s annual consumer price inflation climbed to a 34-month high of 0.8% year-on-year in December, up from 0.7% in November and in line with market expectations, according to data from the National Bureau of Statistics. The increase was largely driven by higher food prices, with fresh vegetable prices rising 18.2% and beef prices up 6.9%, supported by pre–New Year holiday demand and policy measures. On a monthly basis, the consumer price

USD 1.19 Trillion Trade Surplus China: China reported a record full-year USD 1.19 Trillion Trade Surplus in 2025, breaking the trillion-dollar mark for the first time in November, according to customs data. The strong export performance comes as Chinese producers brace for three more years of a Donald Trump administration focused on slowing China’s manufacturing strength by diverting U.S. orders to other markets. Despite renewed tariff pressures, China has shown resilience, w

Signs Free Trade Agreement Philippines: The Philippines signed a free trade agreement with the United Arab Emirates (UAE), marking Manila’s first trade pact with a Gulf country and a key step in expanding its global trade footprint. President Ferdinand R. Marcos Jr. and UAE President Sheikh Mohamed bin Zayed Al Nahyan witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) on the sidelines of the Abu Dhabi Sustainability Week (ADSW) 2026 Summit at the

Open Markets to Foreign Investors Saudi Arabia: Saudi Arabia will open its capital markets to all foreign investors from February 1, after the Capital Markets Authority approved rule changes removing the Qualified Foreign Investor framework that previously limited access. The move is aimed at attracting overseas inflows and improving market liquidity as the kingdom advances its economic diversification plans. While JP Morgan expects the immediate impact to be limited since mo

U.S. Justice Department Sues California Cities Over Natural Gas Bans U.S.: The U.S. Department of Justice has filed a lawsuit against the cities of Morgan Hill and Petaluma in California over local ordinances that ban natural gas infrastructure and appliances in new construction. Filed in the Northern District of California, the complaint argues that the bans increase energy costs for consumers and undermine U.S. energy dominance by restricting federally regulated appliances

China CHINA: China’s consumer inflation edged up to a 34-month high in December, yet broader deflationary risks remain entrenched. Data from the National Bureau of Statistics showed CPI rising 0.8% year-on-year, slightly higher than November. However, full-year inflation was flat-the weakest in 16 years, highlighting fragile demand amid a prolonged property downturn, weak job prospects, and external pressures, including the global trade war under Donald Trump. Policymakers co

Benapole Continues to Decline Bangladesh: Trade between Bangladesh and India through the Benapole land port continued to weaken in FY2024–25 following a change of government, as reciprocal restrictions and political uncertainty weighed on bilateral flows. Bangladesh imported 20.39 lakh tonnes of goods from India via Benapole in FY2024–25, down from 21.14 lakh tonnes in FY2023–24, a decline of 75,746 tonnes. Exports through the port also fell by 75,232 tonnes year-on-year, whi

Applications FRANCE: With no budget approved, the MaPrimeRénov’ application window will be suspended nationwide from January 1, 2026, Vincent Jeanbrun has announced. The Minister of Housing confirmed that, in the absence of a parliamentary budget, the State is unable to commit to any new spending. This suspension further prolongs uncertainty around the scheme and adds to the concerns of an already strained sector.  The construction industry is therefore starting the year unde

European Gas Prices Europe: European natural gas markets saw a notable decline in prices toward the end of December 2025, with futures for natural gas dropping to around 50 Euro/MWh after the highs of late 2024, indicating easing cost trends on the continent. Despite this downward movement, demand pressures linked to colder weather forecasts kept market attention high, as climatic conditions remain a key factor influencing consumption and stock levels across Europe. In Italy,

Subsidy Policies for Home Appliances China: China has released detailed policies for its 2026 home appliance trade in subsidy program, along with incentives for the purchase of selected digital and smart products, as part of efforts to boost domestic consumption. According to a notice jointly issued by the Ministry of Commerce and other government departments, individual consumers purchasing energy and water efficient household appliances will be eligible for subsidies of up

Anti dumping duties India: India has imposed anti dumping duties on two Chinese products, cold rolled non oriented electrical steel and 1,1,1,2 Tetrafluoroethane or R 134a, after finding that these goods were exported to India at below normal prices. According to a notification issued by the finance ministry, anti dumping duty on certain Chinese steel producers has been set at US$ 223.82 per tonne, while a higher duty of US$ 415 per tonne has been imposed on other firms for a

GST INDIA: The Goods and Services Tax (GST) Council has cut the tax rate on renewable energy devices and their manufacturing components from 12% to 5%, with the revised rates coming into effect from September 22 this year. To compensate state governments for potential revenue losses, the Council has simultaneously increased the GST on coal and lignite from 5% to 18%. In another key move aimed at supporting energy storage, the GST on non-lithium-ion batteries—including lead-ac

Directorate-General for Energy and Climate Outlines Key Updates for 6th CEE Period France: The Directorate-General for Energy and Climate Outlines Key Updates for 6th CEE Period as it recently clarified the heating-related terms for the 6th period of the Energy Savings Certificates (CEE), beginning 1 January 2026. During a 2 December 2025 webinar, officials announced a five-year framework to provide stakeholder visibility and set an annual obligation of 1,050 terawatt-hours-c

Ministry Faces Criticism Over Adopted Amendments to Energy Regulations France: The Ministry Faces Criticism Over Adopted Amendments to Energy Regulations as Florence Lievyn, president of the GPCEE and member of the Higher Council for Energy, denounces the government's inflexibility after the CSE adopted public-consultation amendments with an unfavourable government opinion. A key amendment keeps the 2030 target for tertiary buildings while restoring the 2027 ambition for resi

Indonesia INDONESIA: Indonesia is on track to become the world’s fourth largest ceramic producer, driven by strong sectoral growth, rising investment and supportive industrial policies, according to the Ministry of Industry. "We are optimistic that Indonesia, with strong investments and well-targeted policies, will break into the global top four in the near future," said Taufiek Bawazier, the ministry's Director General of Chemical, Pharmaceutical, and Textile Industries. Ind

The Indonesian Economic Growth Slows Slightly in Third Quarter Indonesia: The Indonesian economy expanded by 5.04% year-on-year in the third quarter, down from 5.12% in the previous quarter, according to official data released on Wednesday. The moderation in growth poses a challenge for the government, which aims to achieve an annual target of 5.2% and gradually raise it to 8% by 2029. The slowdown coincided with anti-government protests and disruptions in key sectors, includ