TRADE UPDATE – 16 MAY 2025: APEC WARNS OF SHARP GROWTH FALL, AUSTRALIAN PRIME MINISTER TO TALK EU TRADE, US & CHINA TAKE A TARIFF BREATHER 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.
APEC WARNS OF SHARP GROWTH FALL: The APEC Policy Support Unit is predicting 2.6% growth in 2025 compared to the 3.6% growth recorded in 2024. It highlights escalating trade tensions and policy uncertainty. The forecast comes as Trade Ministers from the 21 APEC economies meet in South Korea.
–
AUSTRALIAN PRIME MINISTER TO TALK EU TRADE: Prime Minister Albanese expects to talk trade with European President von der Leyen when they attend the inauguration of Pope Leo XIV at the weekend. Prior to leaving Australia, he said it would be good to explore whether stalled FTA talks could be advanced.
–
US & CHINA TAKE A TARIFF BREATHER: The US and China are to pause hefty tariff hikes for 90 days. The US will cut tariffs on Chinese goods from 145% to 30% and China on US goods from 125% to 10%. The pause follows talks in Geneva. They also agreed to a mechanism for continued trade negotiations.
–
AUSTRALIAN MINISTER GETS NEW TERM: Trade Minister Farrell will continue as Minister of Trade and Tourism. It follows the re-election of the Albanese Government. Former Assistant Trade Minister Ayres will serve as Industry Minister. Matt Thistlethwaite will be Assistant Minister of Foreign Affairs and Trade.
–
NEW ZEALAND MINISTER VISITS LONDON: Trade Minister McClay was in London this week to attend the first in-person meeting of the NZ-UK Ministerial Trade Committee. It marked the second anniversary of a bilateral FTA which has seen goods and services exports to the UK both rise by more than 20 per cent.
–
EU NEGOTIATORS JET TO INDIA: Trade negotiators from the European Union have been in New Delhi this week for an 11th round of negotiations for a free trade agreement. It follows a 10th round of negotiations in Brussels in March. The latest round follows the United Kingdom and India concluding an FTA.
–
MALAYSIA BOOSTS TARIFFS: Malaysia has imposed anti-dumping tariffs of up to 36.8% on flat-rolled tin-coated products of iron and non-alloy steel from China, India, Japan and South Korea. It follows an inquiry which found local industry was being damaged by imports priced below their home country’s selling price.
–
THAILAND & BANGLADESH PREPARE FOR FTA TALKS: Thailand and Bangladesh have signed a joint letter to pursue an FTA with negotiations to begin in late 2025. Thailand has also indicated it will support Bangladesh reviving talks for an FTA linking such economies as Bangladesh, India, Sri Lanka and Thailand.
–
AUSTRALIAN STATES LOOK TO CHINA: Two Australian States are both looking to boost their trade with China. Queensland State Trade Minister Bates is this week leading a state trade mission to Shanghai, Shenzhen and Hong Kong. Victorian State Premier Allan will lead a trade mission to China in September.
–
INDIA & CHILE READY TO NEGOTIATE: India and Chile have reached agreement on the terms of reference for the negotiation of a bilateral Comprehensive Economic Partnership Agreement. A first negotiating round is expected to begin in New Delhi on May 26. A preferential trade agreement was signed in 2006.
