Trade Update – 01 Apr 2021: US call for FTA with Taiwan, NZ-UK FTA goes into 4th round of discussion and more…
Weekly trade review provided by Chatto Creek Advisory Pty.
Chatto Creek Advisory Pty Ltd is a Melbourne-based strategic consultancy specialising in trade policy advice and government engagement strategy. It is headed by Russell Scoular, an executive with rich government relations, trade policy, and business experience throughout the Asia Pacific.
AUSTRALIA’S CHINA WINE DISPUTE HEADED TO WTO
A WTO Dispute Panel is likely now that China has hiked five-year anti-dumping duties on Australian wine to between 116 and 218 per cent. Trade Minister Tehan described China’s action as “extremely disappointing and completely unjustifiable.”
AUSTRALIAN PRODUCERS RESPOND TO CHINA HIT
Australian wine producers are responding to China’s anti-dumping duties by chasing new markets. Industry leader Tony Battaglane said, wine producers would now focus on the growing demand for Australian wine in other markets across Asia, Europe, US and UK.
USTR TRADE MEETINGS BY VIDEO
USTR Katherine Tai has spent her first days in office in virtual meetings with the Trade Ministers of Australia, Canada, India, Indonesia, Japan, Korea, Singapore, EU
and UK. She is also scheduled to participate in this week’s G7 Trade Ministers meeting hosted by the UK.
US CONGRESS MEMBERS CALL FOR FTA WITH TAIWAN
Twenty-three US Congress members have written to President Biden calling for the US to pursue an FTA with Taiwan. They said an FTA with Taiwan would demonstrate to Indo-Pacific allies that the US was invested in their security and prosperity.
AUSTRALIA’S WTO BARLEY BID STALLED
A US-Venezuelan trade spat saw the suspension of a monthly WTO Dispute Settlement Body meeting last Friday. This meant Australia’s bid for a WTO Dispute Panel
to be established to review its China barley dispute has stalled as it was to be considered at the meeting.
INDIA STAYS ON US DIGITAL INQUIRY LIST
India remains on a US investigation list of 10 economies with digital services taxes said to discriminate against US digital companies. The US will now be seeking public comment on possible trade actions. Indonesia is among four jurisdictions dropped from the inquiry.
ASEAN ECONOMIC COMMUNITY GETS NEW LEADER
Satvinder Singh has been appointed deputy secretary-general for the ASEAN Economic Community. The Singaporean will report to ASEAN Secretary-General Lim and will play a key strategic role in implementing ASEAN’s economic and trade integration.
INDIA AND BANGLADESH TO ACCELERATE FTA STUDY
India and Bangladesh this week agreed to an “expeditious conclusion” to an ongoing joint study on the prospects of a comprehensive economic partnership agreement. The agreement was reached during a state visit by Prime Minister Modi.
NZ PREPARES FOR NEW FTA ROUND
New Zealand trade negotiators are expected to hold the 4th round of FTA negotiations with the UK over two weeks beginning April 13. The 4th round is again to be held
virtually and follows the 3rd round earlier this year. Farm produce access is expected to be a difficult bargaining issue.
AUSTRALIA REPORTS ON EU GOODS ACCESS
Australia has reported, “constructive discussions” on goods market access, including farm produce, during a 10th round of EU FTA negotiations. Australia also
reiterated it would not agree to protect EU GI terms unless an overall deal was in Australia’s interests.