Trade Update – 29nd July 2021: Australian Minister Meets USTR, Canada Secures WTO Dispute Panel, Global Services Trade Slumps 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.
AUSTRALIAN MINISTER MEETS USTR:
Trade Minister Tehan has flown home to two weeks of quarantine following a series of ministerial meetings in Asia and the US. A meeting in Washington DC with USTR Tai focussed on WTO reform, supply chain resilience, digital trade policies and trade battles with China.
CANADA SECURES WTO DISPUTE PANEL:
A WTO Dispute Panel will consider Canada’s complaint against canola import restrictions by China. It was agreed this week by the WTO Dispute Settlement Body. It follows failed consultations and a subsequent procedural blocking move by China in June.
GLOBAL SERVICES TRADE SLUMPS:
The WTO has reported sluggish global services trade in the first quarter of 2021 with a 9% fall year-on-year. Global services trade fell 21% in 2020. The biggest influence on the decline has been the COVID-19 impact on travel which has fallen more than 60% year-on-year.
UK CUTS WINE RED TAPE:
Wine from economies like Australia and New Zealand are expected to benefit from the UK’s announcement that will remove a bureaucratic requirement for V1-1 certificates on imported wine. The UK believes the removal will save wine importers up to $A240 million annually.
SINGAPORE CONCLUDES PACIFIC NEGOTIATIONS:
Singapore and the Pacific Alliance (Chile, Colombia, Mexico and Peru) have concluded negotiations for a free trade agreement. It is expected the new FTA will be signed at a scheduled Pacific Alliance Summit in December and enter into force in 2022.
PERU MAKES EIGHT:
Peru has ratified the CPTPP FTA. Following passage of the necessary legislation, Peru lodged its paperwork with the New Zealand Depositary on July 21. It will become a party to the mega FTA on September 19. Peru is the 8th economy to ratify the FTA with Brunei, Chile and Malaysia still to do so.
AUSTRALIA PURSUES NEW PRODUCE MARKETS:
Agriculture Minister Littleproud has announced a series of grants to help agricultural produce exporters to diversify export markets. The grants totalling nearly $6 million cover a wide range of produce including grain, wine, dairy, meat, nuts, cotton and seafood.
OTTAWA GROUP HOLDS THIRD MEETING OF 2021:
The Ottawa Group, a reformist trade group including Australia, New Zealand, Canada, Japan, South Korea and Singapore, has met for the third time in 2021. It identified key priorities for supporting WTO reform efforts and how best to support those efforts.
INDIA TERMINATES INQUIRY:
India has ended a safeguard inquiry into PVC suspension grade resin from Japan. The inquiry began in September 2020 following a complaint by local industry that a tariff cut had led to it being injured by rising lower-cost imports. The industry recently withdrew its complaint.
MALAYSIA EXTENDS STEEL DUMPING DUTIES:
Malaysia has announced a five-year extension of anti-dumping duties on painted and colour coated steel coils from China and Vietnam. The duties of 52.10% on China steel and up to 34.85% on Vietnamese steel follow a sunset review of duties imposed in 2016.