Trade Update – 27 May 2021: India reports Record Foreign Investment, Australia and Sri Lanka Sign New Biosecurity Agreement, European Union Stalls China Agreement and 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.
UK TALKS ENTER CRITICAL PHASE
Trade talks between Australia and the UK have entered a critical phase on agricultural issues. Trade Minister Tehan told Sky News officials were engaging daily and he expected to have mid-week talks with Trade Secretary Truss. This was in addition to their usual weekly Friday talks.
AUSTRALIA & EU TALKS TO RESUME
Australia and the EU are scheduled to begin an 11th round of FTA talks. The round will be held from June 1-11. The negotiations are heading toward a critical phase with anticipated tough talking in the months ahead over agriculture and GI issues coming to the fore.
APEC OFFICIALS GET TO WORK
Senior officials from the APEC economies have started a series of more than 30 meetings in the lead-up to a Trade Ministers’ meeting on June 5. Under the chairmanship of New Zealand, the officials will prepare a series of proposals for consideration by the ministers.
AUSTRALIAN NITRATE DUTIES END
Industry Minister Porter has signed an anti-dumping notice ending dumping duties on ammonium nitrate imported from the Russian Federation. The duties were first applied in 2001. The ministerial notice follows a continuation review by the Anti-Dumping Commission.
INDIA REPORTS RECORD FOREIGN INVESTMENT
India has reported its highest foreign direct investment inflow of $US81 billion in 2020/21. This was 10% higher than the previous year. Information technology was the biggest sector with 44% of the FDI. Gujarat was the top recipient state with 37% of the FDI.
EUROPEAN UNION STALLS CHINA AGREEMENT
The European Parliament has frozen consideration of the EU-China Investment Agreement. Negotiations were concluded in December 2020. Parliament will not consider any talks on ratifying the agreement while a range of Chinese sanctions remain in place.
AUSTRALIA & SRI LANKA SIGN NEW BIOSECURITY AGREEMENT
Agriculture Minister Littleproud expects a new biosecurity agreement between Australia and Sri Lanka will boost trade. The agreement includes Sri Lankan approval for the in-transit phosphine fumigation of Australian bulk grains, pulses and oilseeds.
NZ INQUIRY REJECTS POTATO CLAIM
A final report by the Ministry of Business has concluded there has been no dumping of frozen potato fries from Belgium and the Netherlands that has injured NZ industry. It follows an investigation launched in mid-2020 after a complaint by the New Zealand potato industry.
PHILIPPINES TO ESTABLISH NEW TRADE BODY
President Duterte has signed an executive order creating the Philippines Trade Facilitation Committee to ensure compliance with the WTO’s trade facilitation agreement. It will be chaired by the Finance Department and charged with improving customs procedures.
THAILAND & PAKISTAN LOOK TO CONCLUDE FTA
Thailand and Pakistan have indicated a willingness to conclude a bilateral free trade agreement. Negotiations first began in 2015. The latest development came during bilateral political talks this week to coincide with a 70th anniversary of diplomatic relations.