The European Council said Dec. 12 it "adopted a decision on the signing" of the EU-Kenya Economic Partnership Agreement, which will provide "duty-free, quota-free EU market access" to all imports from Kenya. It also will lead to the "gradual opening of the Kenyan market to imports from the EU." The agreement will enter into force after the council signs it, and after it's approved by the European Parliament.
Asian countries in the Indo-Pacific Economic Framework and businesses that export to those countries had low expectations for IPEF, and trade experts said it will take years to see if IPEF will have any commercially meaningful outcomes.
The EU this week ratified its free trade deal with New Zealand (see 2307100014), setting up the agreement to take effect after New Zealand’s ratification, which the bloc is expecting in the first or second quarter of 2024. The deal is expected to cut about 140 million euros, or about $150 million, a year in duties for EU companies, the EU said, including by eliminating all tariffs on EU exports to New Zealand. The bloc specifically said EU farmers will have “much better opportunities to sell their produce,” including shipments of pork, wine and sparkling wine, chocolate, sugar confectionery and biscuits. New Zealand exports of dairy products, beef, sheep, ethanol and sweetcorn also will benefit from lower EU duties through tariff rate quotas.
The U.K. and South Korea last week agreed to officially update their free trade agreement, which is expected to include a new rules of origin chapter, improved customs procedures and more. The two countries will hold the first round of negotiations Jan. 22 in Seoul, and “further rounds of negotiations are to occur regularly thereafter,” the U.K. said. “We look forward to significant and rapid progress.”
The U.K. Department for Business and Trade Nov. 21 released its approach to negotiating a free trade agreement with South Korea, outlining the results of the government's call for input on the trade negotiations and details covering goods market access, rules of origin and customs and trade facilitation. Responding to input on trade remedies, the government said it will make sure the U.K. is able to impose trade remedies "as appropriate" along with maintaining trade remedy provisions that "support market access" in line with World Trade Organization commitments.
A USMCA dispute settlement panel ruled in Canada’s favor in a much-awaited second decision on Canada’s dairy tariff rate quotas, according to a report released by the panel on Nov. 24.
A joint statement by the leaders of the Indo-Pacific Economic Framework countries said the trade pillar has made progress, and the White House said they will continue negotiations "to facilitate trade, advance workers’ rights through strong and enforceable labor standards, strengthen environmental protections, align our regulatory procedures, promote a fair and inclusive digital economy, deepen our technical assistance and economic cooperation, and advance inclusivity in our trade policy."
The trade pillar of the Indo-Pacific Economic Framework, which already was being criticized for not being ambitious enough, is not going to be finished as quickly as the pillars run by the Commerce Department on tax and corruption, supply chains and climate, the administration acknowledged as Asian leaders meet in San Francisco.
Australia and the EU were unable to finalize a free trade agreement, Australian Trade Minister Don Farrell said in an Oct. 30 statement after a meeting with EU trade negotiators during the Group of 7 summit in Osaka, Japan. Farrell said he came to Osaka "with the intention to finalise a free trade agreement with" the EU, but "unfortunately we have not been able to make progress." He added that FTA talks will continue and is "hopeful that one day we will sign a deal that benefits both Australia and our European friends." FTA talks have continued for over five years between the parties (see 2307110050).
The Commerce Department and the Office of the U.S. Trade Representative said the fifth negotiating round for the Indo-Pacific Economic Framework, held in Malaysia Oct. 15-24, made progress "towards high-standard outcomes" in trade, clean economy and fair economy pillars. "Officials also continued discussions on next steps for the proposed IPEF Supply Chain Agreement (Pillar II) following substantial conclusion of negotiations in May and public release of the text on September 7th," their readout said.