Trade Update – 2nd December 2021: GLOBAL TRADE CONFERENCE HIT BY COVID, AUSTRALIAN MINISTER MAKES GENEVA, CANADA HITS OUT AT US DUTY HIKE 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.
|GLOBAL TRADE CONFERENCE HIT BY COVID: The WTO has postponed its 12th Ministerial Conference in Geneva as travel of some delegates was disrupted by the Omicron variant of COVID-19. WTO director-general Ngozi Okonjo-Iweala said travel bans meant participation on an equal basis was impossible.
AUSTRALIAN MINISTER MAKES GENEVA: Trade Minister Tehan was en-route when the WTO postponed the 12th Ministerial Conference. He continued to Geneva where he met with WTO director-general Ngozi Okonjo-Iweala and senior officials. “We must reconvene MC12 as soon as physically possible,” he tweeted.
CANADA HITS OUT AT US DUTY HIKE: The US has doubled to 17.9% its anti-dumping and countervailing duties on softwood lumber products. Canadian Trade Minister Ng has described the action as extremely disappointing and called on the US to stop imposing what she described as unwarranted duties.
HUGE SAVINGS FORECAST BY GLOBAL STUDY: A joint study by the WTO and OECD has suggested a new agreement on the domestic regulation of the services sector could provide annual savings of $US150 billion. The 67 economies participating in the initiative represent 90% of the world services trade.
US & INDIA REACH DIGITAL AGREEMENT: The US and India have reached an agreement on digital services taxes. The agreement will apply before the full implementation of an OECD agreement. It will enable US companies to accrue against future Indian taxes and the US to terminate additional duties on Indian goods.
AUSTRALIA APPOINTS ENVOY TO BOOST FARM TRADE: Australia has appointed a Special Representative for Agriculture. Su McCluskey will promote Australia’s commitment to a rules-based order for agricultural trade. Agriculture Minister Littleproud said market access was vitally important to Australian farmers.
INDIA BUSTS SMUGGLING RACKET: India has busted an iPhone smuggling racket with more than 3600 iPhone-13 cell phones seized in Mumbai. The phones, with a value in India of $US5.7 million, had been shipped from Hong Kong. The shipment had been declared as memory cards with a value of $US106,000.
CHINA LASHES US ECONOMIC TALKS WITH TAIWAN: China predictably hit out at the US for holding a second economic and trade dialogue with Taiwan. Foreign Ministry spokesman Zhao said China deplored and strongly opposed the talks saying the US should abide by the one-China principle.
AUSTRALIA LAUNCHES “NUISANCE TARIFF” STUDY: The Productivity Commission has begun a study to clarify the costs and benefits of “nuisance tariffs.” The tariffs raise little revenue, provide negligible protection and impose compliance burdens. The study is expected to be published in February 2022.
PHILIPPINES REPORTS BIG SALES TO CHINA: The Philippines reports its food sector secured $US600 million of new sales at the recent China International Import Expo in Shanghai. Forty Filipino food companies participated in the expo. China accounted for 27% of exports by the Philippines last year.