Trade Update – 10th March 2022: AUSTRALIA TERMINATES VIETNAMESE INQUIRY, SOUTH KOREA & MEXICO TO RESUME FTA TALKS, AUSTRALIA & INDIA CLOSE TO FTA DATE and many 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 TERMINATES VIETNAMESE INQUIRY: The Anti-Dumping Commission has terminated an inquiry into the alleged dumping of copper tube imported from Vietnam. It follows a year-long inquiry which found there had been dumping by some exporters but at a negligible dumping margin of less than two per cent.
SOUTH KOREA & MEXICO TO RESUME FTA TALKS: South Korea and Mexico are to resume negotiations for an FTA between the two economies. It follows talks in Mexico City between Trade Minister Yeo Han-koo and Economy Secretary Clouthier. The negotiations began in 2006 but have been suspended since 2008.
AUSTRALIA & INDIA CLOSE TO FTA DATE: Australia and Indian negotiators are close to a 30-day target date for reaching an interim FTA between the two economies. Trade Ministers Tehan and Goyal set a 30-day target in Delhi in February. Indian media have since suggested an interim FTA could be signed on March 11.
WTO CALLS GLOBAL SUPPLY CHAIN FORUM: The World Trade Organization is to host a major Supply Chain Forum on March 21 in a bid to find ways to mitigate the impact of COVID-related supply chain disruptions. The virtual forum will be attended by WTO members, shipping lines, traders and logistics companies.
US HIKES “BUY AMERICAN” RULES: President Biden has announced a toughening of “Buy American” rules for procurement by the US Government. Products currently qualify as Made in America for federal procurement when 55% of their parts are US-made. This will be increased in three steps to 75% in 2029.
CANADA LIFTS RUSSIAN TARIFFS: As western economies implement a range of Russian sanctions Canada has responded to the invasion of Ukraine by withdrawing MFN tariff status for Russia and Belarus. They join North Korea as countries whose imports to Canada are subject to a higher 35% tariff rate on most imports.
AUSTRALIA OFFERS BIOSECURITY AID TO INDONESIA: Australia has offered biosecurity assistance to Indonesia following an outbreak of lumpy skin disease among cattle in Riau Province. The disease has never been recorded in Australia, but an outbreak would have potentially serious trade implications.
MALAYSIA READIES FOR RCEP: Malaysia will next week become a participating member of the RCEP FTA. The RCEP FTA – the largest free trade agreement in the world – enters into force for Malaysia on March 18. Malaysia will be the 11th economy to have completed ratification of the mega trade agreement.
INDIA BOOSTS INCENTIVE PROGRAM: India is extending its incentive program for the manufacture of air-conditioners and LED lighting. A second application window will be open between March 10 and April 25. Forty-two applicants with investments of $US600m have been approved for the 7-year $US810m program.
THAILAND ANNOUNCES APEC DATES: Thailand has announced that APEC Leaders will meet in Bangkok for their annual summit on the 18 and 19 November. It will be the first in-person summit in three years. Trade Ministers from the APEC economies are to meet in May.