Trade Update – 7th October 2021: US To Talk Frankly With China, Australia & India Launch Fast-track Talks, US & Vietnam Reach Timber Agreement 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.

US TO TALK FRANKLY WITH CHINA: USTR Tai is preparing for “frank conversations” with Chinese Vice Premier Liu over what she describes as China’s continued lack of adherence to global trading norms. Tai said this week it was clear China’s plans did not include meaningful reforms to issues raised by the US.

AUSTRALIA & INDIA LAUNCH FAST-TRACK TALKS: Trade Minister Tehan and Commerce Minister Goyal have met in Delhi to formally resume FTA negotiations. They also agreed to an exchange of offers by October 31, conclusion of an interim agreement by December and a full agreement by the end of 2022.

US & VIETNAM REACH TIMBER AGREEMENT: The US and Vietnam have reached a timber agreement that will avoid the imposition of trade sanctions by the US. As part of the agreement, Vietnam has undertaken to keep illegally harvested and traded timber out of commercial supply chains.

EU POSTPONES AUSTRALIAN FTA TALKS: The EU has postponed a 12th round of FTA talks with Australia by a month following the latter’s decision to cancel a submarine contract with France. The negotiations are about to enter a critical phase as the two sides debate market access and contentious GI issues.

NEW ZEALAND EXTENDS AVIATION SUPPORT: NZ has extended its COVID-19 international aviation support program until March 2022 to ensure passenger and freight services are maintained through a peak summer cargo season. The program was to end this month. Its original budget of $170m will now total $390m.

ASEAN OFFICIALS HIT THE WEBINARS: A series of webinars to review lessons learned from RCEP and other FTAs have attracted more than 250 officials from ASEAN, Australia and NZ as part of their FTA upgrade negotiations. The webinars included goods, non-tariff barriers, rules of origin, customs and e-commerce.

US SUSPENDS DOWN-UNDER MAIL: The US Postal Service has stopped accepting mail addressed to a range of Asia Pacific economies because of the impact of the COVID-19 pandemic on regular transport services. The economies include Australia, New Zealand, Laos, Brunei, Samoa and Timor-Leste.

WTO TO REVIEW JAPANESE COMPLAINT: A WTO Dispute Panel is to be established to consider a complaint by Japan on anti-dumping duties imposed by China on stainless steel products. The duties were imposed in 2019 on stainless steel goods imported by China from Japan, Korea, Indonesia and the EU.

AUSTRALIAN WINE PANEL BID DELAYED: Australia’s bid for a WTO Dispute Panel to hear its complaint on wine anti-dumping duties imposed by China has been delayed until at least October 26. This follows China’s procedural blocking of Australia’s request at last week’s meeting of the WTO Dispute Settlement Body.

NZ MINISTER MEETS USTR: Trade Minister O’Connor met with USTR Tai in Washington DC last Friday. In addition to the bilateral trade relationship and NZ’s final months of hosting APEC, they also discussed digital trade and the upcoming WTO Conference. On Monday, O’Conor met with Swedish Trade Minister Hallberg.