Trade Update – 2nd September 2021: Australia & India To Pursue December Agreement, US Farm Exports Hit Record Levels, Vietnam To Cut Farm Tariffs 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.
AUSTRALIA & INDIA TO PURSUE DECEMBER AGREEMENT: Trade Minister Tehan and Commerce Minister Goyal have told their negotiators to conclude an “early harvest” trade agreement by December, and to meet as many times as necessary to conclude an agreement. The ministers met virtually during the week.
US FARM EXPORTS HIT RECORD LEVELS: The Department of Agriculture is forecasting record agriculture exports of $US173.5 billion in 2021 and a further record of $US177.5 billion in 2022. The boom is being driven by record corn and soybean exports, strong demand from China and reduced foreign competition.
VIETNAM TO CUT FARM TARIFFS: Vietnam and the US announced during last week’s visit to Hanoi by Vice President Harris that MFN tariffs on a range of farm produce would be eliminated or reduced. This includes corn, wheat and pork products. This is additional to some agricultural tariff cuts made by Vietnam in July.
AUSTRALIA EXTENDS FREIGHT SUPPORT: Australia has further extended its freight assistance program with $260.9 million in new funding. This will take funding to $1.04 billion. The program has supported more than 13,000 flights to maintain the flow of perishable trade during the COVID-19 pandemic.
NEW ZEALAND APPOINTS NEW AMBASSADOR: New Zealand has appointed Clare Kelly as its Ambassador to the World Trade Organization. She is currently an Assistant Secretary in the Ministry of Foreign Affairs and Trade. She succeeds David Walker, one of New Zealand’s most distinguished trade officials.
INDIA TARGETS YARN DUMPING: The Ministry of Commerce has recommended anti-dumping duties be applied to polyester spun yarn imported from China, Indonesia and Vietnam. The duties will range up to $US281 a metric tonne. A final decision to impose the duties will be made by the Ministry of Finance.
MALAYSIAN MINISTER KEEPS POST: International Trade Minister Mohamed Azmin Ali has kept his economic portfolio following a reshuffle of some Cabinet portfolios by Prime Minister Ismail Sabri Yaakob. The reshuffle follows the appointment of Malaysia’s new Prime Minister on August 21.
AUSTRALIA GETS US SUGAR BOOST: The US has allocated 90,100 metric tonnes of additional tariff rate quotas for raw cane sugar. The quotas have been allocated to 26 economies. The Dominican Republic has the largest allocation of 19,083 tonnes followed by Brazil 15,722 tonnes and Australia 8,999 tonnes.
ASIAN ECONOMIES FACE WTO TRADE REVIEWS: Three key Asian economies – Singapore, South Korea and China – will face trade policy reviews at the WTO over the next two months. Trade policy reviews are a mandated exercise for WTO members and allow for a transparent review of a country’s trade policies.
AUSTRALIAN COMMITTEE CALLS FOR FTA ANALYSIS: Parliament’s Treaties Committee has called on the Government to implement a process of independent modelling and analysis of new trade agreements to boost public confidence. The Government has yet to respond to the recommendation.