Trade Update – 06 May 2021: Australia, India & Japan launch supply chain initiative, Vietnam-UK FTA begins, NZ-UK FTA talks in good progress 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, INDIA & JAPAN LAUNCH SUPPLY CHAIN INITIATIVE
Trade Ministers Tehan, Goyal and Hiroshi have launched a Supply Chain Resilience Initiative. It aims to boost regional growth with a virtuous cycle of supply chain resilience. A consensus decision by the three economies may also see additional members.
JAPAN’S PARLIAMENT GIVES GREEN LIGHT TO RCEP FTA
The Diet has approved Japan’s ratification of the RCEP FTA. The ASEAN + 5 FTA, one of the world’s biggest, is expected to enter into force early next year following ratification by six ASEAN and three of Australia, China, Japan, Korea and New Zealand.
US LASHES EU TRADE AGENDA
The USTR’s latest intellectual property protection report has described the EU’s geographical indications trade agenda as “highly concerning” saying it significantly undermined trademarks and imposed market access barriers for goods that relied on the use of common names.
VIETNAM-UK FREE TRADE AGREEMENT BEGINS
The Vietnam-United Kingdom FTA entered into force on May 1. The FTA locks in the 65% of tariffs already eliminated on goods traded between the two economies. This will increase to 99% in six years. Vietnam’s share of total UK trade doubled between 2011 and 2020.
INDIA’S ORGANIC FOOD EXPORTS RISE SIGNIFICANTLY
India’s organic food exports rose by 51% to $US1.04 billion in the 2020-21 year. India is currently negotiating mutual recognition agreements for organic products with Australia, Japan, Korea, New Zealand, UAE and Taiwan.
AUSTRALIAN & MALAYSIA TO WAIT FOR WTO DISPUTE PANELS
China and the EU have this week stalled requests by Australia and Malaysia for WTO Dispute Panels to consider barley and palm oil disputes. They argued dispute panels were premature. The requests are now likely to be further considered on May 28.
NZ & UK PROGRESS WITH OVER 50 SESSIONS
NZ and UK negotiators have completed the 4th round of FTA negotiations. The virtual round was held between April 12 and 27 with more than 50 sessions. The UK described the round as positive and productive with good progress being made across the agreement.
BANGLADESH PURSUES INDONESIAN ACCESS
Bangladesh is seeking duty-free access to Indonesia for its readymade garments and has asked Indonesia not to impose safeguard duties on its textile products.
The two economies have agreed to boost trade with the pursuit of a preferential trade agreement.
NZ PREPARES TO LEAD FIRST APEC MINISTERIAL MEETING
Trade Ministers from APEC will meet virtually on June 4-5. It will be the 1 st APEC ministerial-level meeting this year and will be chaired by NZ Trade Minister O’Connor. Its key topics will include further liberalization of environmental goods trade.
AUSTRALIA’S WINE EXPORTS TO CHINA TAKE A DIVE
Australia’s wine exports to China have tanked since hefty anti-dumping duties were imposed last December. Wine Australia statistics show exports to China for the December 2020-March 2021 period totalled $12 million compared to $325 million a year earlier.