The free trade agreement between China and Serbia will take effect July 1, China's Ministry of Commerce announced, according to an unofficial translation. The ministry said the deal will scrap tariffs on 90% of goods, of which over 60% will be eliminated July 1. The deal also includes chapters on "rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, dispute settlement, intellectual property protection, investment cooperation, competition, etc.," the ministry said.
The EU extended its steel safeguard measure until June 30, 2026, the European Commission's Directorate-General for Trade announced. The measure imposes tariff rate quotas "above which a 25% duty is levied on imports." The TRQs were imposed in response to the U.S. Section 232 measures.
The gaps in trade policies between the U.S. and Europe, despite their agreement on the problems, and the difficulty of improving trade relations with major developing countries were grappled with this week by a panel of experts from the U.S. and Europe.
The Federal Maritime Commission recently reminded carriers about the requirements they must meet to maintain their status before the commission as a vessel-operating common carrier (VOCC), warning they may face penalties if they fail to meet those requirements. The FMC said carriers publishing automated tariffs as VOCCs must “operate at least one vessel in common carriage in the foreign commerce of the United States to maintain their status.” Companies offering common carriage but that don’t operate at least one vessel are considered non-vessel-operating common carriers, the commission said, and must follow the licensing, registration and financial responsibility requirements for NVOCCs. “Operating as an NVOCC and failing to meet all relevant requirements may result in a civil monetary penalty.”
Cote d'Ivoire liberalized 1,080 tariff lines on EU goods under the EU-Cote d'Ivoire interim economic partnership agreement, retroactively effective from Jan. 1, the European Commission announced this week. The new tariff cuts cover "mechanical and electrical machinery, as well as appliances, plastics, and chemical products," the commission said. The number of liberalized tariff lines under the deal is now 3,385, or about 55% of total tariff lines. The final two tariff liberalization moves are set for 2026 and 2029, which will lead to reductions to around 88% of tariff lines.
Saudi Arabia’s customs agency has begun recognizing ATA carnets, tariff exemptions used by more than 80 countries around the world for certain temporarily imported goods, according to an unofficial translation of a notice this month. The announcement will help the country improve its “flexibility of customs procedures for goods by reducing the requirements for using an international customs document” for temporary imports.
A Costa Rican court on June 4 restored lower 3.5% to 4% tariffs in the country on imports of milled and rough rice, overturning an April court ruling that had put higher 35% tariffs in place (see 2404250057). The decision “dramatically erodes” preferential access for U.S. rice exports under a tariff-rate quota negotiated in the Dominican Republic-Central America Free Trade Agreement, the Foreign Agricultural Service said in a June 12 report. “Earlier hopes for higher U.S. rough rice exports to Costa Rica in 2024 evaporated before a single shipment could reach Costa Rican ports.” However, FAS doesn’t expect the “stunning reversal to be the final word in this political tug-of-war,” as the lower tariffs “pose an existential threat to the majority of Costa Rican rice producers.”
The Biden administration announced June 12 that it is taking additional measures to degrade Moscow's war machine, including sanctioning more than 300 entities and people in Russia and other countries and implementing several new export restrictions, including adding five entities and eight addresses to the Entity List.
Ahead of a possible EU decision this week on tariffs for Chinese electric vehicle imports (see 2310040012 and 2403150047), Beijing warned Europe about imposing increased duties, saying it won’t “sit idly by.” China “urges the EU to end the investigation as soon as possible to avoid undermining China-EU economic and trade cooperation and the stability of industrial and supply chains,” a Foreign Ministry spokesperson told reporters June 11. If it doesn’t, “we will take all necessary measures to firmly safeguard our lawful rights and interests.”
The Group of 7 nations are working on a deal that would allow all members to use seized Russian assets to support Ukraine’s war effort against Russia, said Daleep Singh, a National Security Council official. He said the countries haven’t agreed to terms yet, but the U.S. hopes to make progress when the G7 nations meet in Italy next week.