Trade Update – 22nd July 2021: APEC Leaders look to Trade for Recovery, Trump’s China tariffs near $100 billion, US & Indonesia to revitalize trade 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 LEADERS LOOK TO TRADE FOR RECOVERY:
Leaders of the APEC economies have met virtually and agreed to work together to facilitate the movement of goods and services. In a post-meeting statement, they acknowledged the importance of trade in combating the far-reaching impacts of COVID-19.
TRUMP’S CHINA TARIFFS NEAR $100 BILLION:
US Customs trade statistics have reported $96 billion of penalty duties on goods from China since President Trump imposed Section 301 penalties. They were imposed in 2018 in response to China’s unfair and harmful acquisition of US technologies and IP.
AUSTRALIA ENDS PAPER INQUIRY:
The Anti-Dumping Commission has terminated an anti-dumping inquiry into kraft paperboard from the US. It found the manufacture of microflute cardboard in Australia was not a like product to kraft paperboard. It could therefore not conclude a material injury finding.
NEW ZEALAND & UK BEGIN NEW FTA ROUND:
Trade negotiators from NZ and the UK have this week begun a 6th round of FTA negotiations. The round is the first since Trade Secretary Truss and Trade Minister O’Connor met in London in June and agreed to seek to reach an agreement in principle in August.
US & INDONESIA TO REVITALIZE TRADE:
The US and Indonesia have agreed to revitalize engagement through the US-Indonesia Trade & Investment Framework Agreement (TIFA). This follows a meeting in Washington DC between USTR Tai and Trade Minister Lufti. They agreed to hold a TIFA meeting in 2021.
AUSTRALIAN MINISTER’S MEETINGS CONTINUE:
Trade Minister Tehan is continuing his overseas meetings. Following last week’s ministerial meetings in Singapore, Vietnam and Japan, he met Korean Trade Minister Yoo Myung-hee on Monday ahead of flying to the US to meet US Trade Representative Tai.
MALAYSIA & TURKEY TO EXPAND FTA:
Malaysia and Turkey have agreed to expand their bilateral free trade agreement to include chapters on services, investment and e-commerce. Trade Ministers Azmin Ali and Mehmut Mus have agreed to intensify negotiations to conclude a revised FTA by the end of the year.
US & VIETNAM REACH CURRENCY DEAL:
US Trade Representative Tai has welcomed a US-Vietnam currency agreement saying countries should not be able to manipulate exchange rates to gain unfair trade advantage. Vietnam agreed on Monday to refrain from any competitive devaluation of the dong.
INDIA RELAXES PULSE LAWS:
India has relaxed its pulse stocking laws only two weeks after the laws were implemented in a bid to control prices by preventing excessive stocking. Under the relaxed laws, importers will have a complete exemption. The Government said the relaxation followed a softening in pulse prices.
AUSTRALIA LOOKS AT EU CARBON TARIFF:
Trade Minister Tehan’s officials are investigating whether the EU’s proposed carbon tariffs would breach global trade rules. The tariffs are among proposed new rules to cut EU emissions by 55% by 2030. A similar border tariff proposal has also been flagged in the US.