Trade Update – 11th August 2022: AUSTRALIA QUERIES TARIFF COSTS, CANADA CHALLENGES US LUMBER DUTIES, INDIA URGES BUSINESS TO EXPLOIT TRADE AGREEMENTS 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 QUERIES TARIFF COSTS: The Productivity Commission has suggested Australia’s cost of collecting tariffs is becoming higher than the revenue raised. It suggests new FTAs with the UK, India and the EU meant system-wide costs could range from $1.41 to $4.81 for every dollar of revenue collected.
CANADA CHALLENGES US LUMBER DUTIES: Canada is to initiate dispute action under the Canada-US-Mexico Trade Agreement against US anti-dumping and subsidy duties on softwood lumber products from Canada. This follows a review by the US where it decided to reduce but not remove the duties.
INDIA URGES BUSINESS TO EXPLOIT TRADE AGREEMENTS: Commerce Minister Goyal has urged Indian business to study free trade agreements to identify where they can have a competitive advantage. Australia and India are expected to soon resume negotiations to move from an interim to a comprehensive FTA.
AUSTRALIAN TRADE MINISTER MEETS EU DIPLOMATS: Trade Minister Farrell met in Canberra with EU Ambassador Pulch and senior diplomats from EU economies during the week to discuss the next steps in FTA negotiations between Australia and the EU. A 13th round of FTA negotiations is scheduled for October.
NEW ZEALAND REPORTS MEAT EXPORT BOOST: New Zealand’s red meat exports were up by 20 per cent to $11 billion in the 2021/22 year. The Meat Industry Association reported the value of sheep meat exports were up by 12 per cent over the previous year and beef by 28 per cent.
AUSTRALIAN MINISTER HEADS TO US: Trade Minister Farrell has jetted to the US this week where he will meet members of the Biden Administration to discuss the implementation of the Indo-Pacific Economic Framework as well as building resilient supply chains and the strengthening of digital trade rules.
US CONTINUES DUTIES ON CHINESE WASHERS: The US International Trade Commission has voted to continue anti-dumping duties on large residential washers from China. It follows a 5-year sunset review of the duties. The Commission found US industry would suffer material injury if the duties were removed.
CAMBODIA HOSTS FTA UPGRADE TALKS: Trade officials from ASEAN, Australia and New Zealand have been talking in Siem Reap to further advance negotiations to upgrade the ASEAN-Australia-NZ Free Trade Agreement. It follows a previous negotiating round in Jakarta. The FTA first entered into force in 2010.
AUSTRALIA TO REVIEW EXPORT PROGRAM: Trade Minister Farrell has announced an “operational review” of the Export Market Development Grants program. The review is additional to the program’s legislated five-yearly reviews. Minister Farrell said the review would be completed by Austrade within three months.
CANADA APPOINTS NEW WTO AMBASSADOR: Canada has appointed Nadia Theodore as its next Ambassador to the World Trade Organization. She is well known in Asia Pacific trade circles having previously served as her country’s director of negotiations for the Trans-Pacific Partnership FTA.