Trade Update – 26 Nov 2020
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.
US HITS CHINA ON CURRENCY
The Commerce Department has announced preliminary anti-subsidy duties of up to 122.5% on twist ties – plastic coated wire for tying bags. The ruling is hugely significant due to the first-time inclusion in the duty calculation of what the US claims is China’s under-valued currency.
APEC LEADERS BACK WTO
Asia Pacific leaders used their APEC Summit on Friday to acknowledge the importance of free, open, fair and non-discriminatory trade and to reaffirm support for the WTO including reform to improve its functioning. NZ has now taken over from Malaysia as chair for APEC 2021.
AUSTRALIA TALKS OF FTA GROWTH
Prime Minister Morrison spoke this week of on-going growth for the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). He forecast it would become such a powerful force for open trade that the US, India and others would join without reservation.
CHINA USES APEC FOR STRATEGIC TRADE PROMOTION
With the ink barely dry on its RCEP signature, China used the APEC Summit to go on a trade offensive with President Xi saying China would favourably consider joining the Comprehensive & Progressive Agreement for the Trans-Pacific Partnership (CPTPP).
AUSTRALIA & UNITED KINGDOM BEGIN FTA ROUND
Trade negotiators from Australia and the UK have been meeting virtually this week for a 3rd round of FTA negotiations. The talks will run until December 4. Meanwhile, a 9 th round of Australia-EU FTA negotiations is expected to begin on November 30.
OTTAWA GROUP TO PURSUE HEALTH INITIATIVE
Trade Ministers of the Ottawa Group have agreed to further progress a proposed WTO Trade and Health Initiative to boost the free-flow of medical supplies as part of a COVID-19 recovery. Its members include Australia, Canada, Japan, Korea, NZ and Singapore.
EXPORT GROUP HITS SNAG
Eleven members of the International Working Group on Export Credits have suspended their membership due to a lack of progress over eight years. They include Australia, Canada, Japan, Korea, NZ and the US. The group is seeking agreed rules for government export finance support.
US LAUNCHES YARN INQUIRY
The US Commerce Department has launched an anti-dumping inquiry into polyester textured yarn from Indonesia, Malaysia, Thailand and Vietnam. It follows a complaint by domestic producers alleging dumping margins of up to 75% on modest imports of $11.3 million in 2019.
AUSTRALIAN CONSULTATION PHASE TO CONCLUDE
Australia is to conclude a key second community consultation phase on November 30. It relates to the contentious issue of geographical indications (GIs) and the potential impact of produce naming restrictions that may emerge from its EU FTA negotiations.
US & TAIWAN PARTNERSHIP DIALOGUE BEGINS
The inaugural US-Taiwan Economic Prosperity Partnership Dialogue was held in Washington DC during the week. It is viewed by the US and Taiwan as a forum to forge new economic ties between the two economies.
