The United Kingdom on Oct. 8 published a draft of the tariff schedule and tables of tariff rate quotas that will take effect Oct. 31 if the U.K. leaves the European Union with no transition deal in place. “These documents are drafts. Final versions will be uploaded with the legislation, which is subject to Parliamentary approval,” the U.K.’s HM Revenue & Customs said. The U.K. also updated its guidance on non-preferential, most favored nation rates of duty after a no-deal Brexit. “If your goods are not listed on this page, you will not have to pay customs duty (tariff) when importing them into the UK,” the updated guidance says.
The United Kingdom’s HM Revenue & Customs on Oct. 7 updated its guidance on procedures for trading between Northern Ireland and Ireland after a no-deal Brexit. Beginning the day the U.K. leaves the EU, currently scheduled for Oct. 31, importers and exporters will have to file declarations for controlled or licensed goods between the U.K. constituent country and the EU member state, including for goods subject to excise duty, such as alcohol, tobacco and certain oils, HMRC said.
The Congressional Research Service released a report Oct. 3 on the U.S.-Japan trade agreement, detailing the scope of the two sides’ initial agreement and potential topics of future talks. The report also explains the increased U.S. market access for agriculture exports and issues Congress may consider in the coming weeks -- in light of the Trump administration's "decision to pursue a limited scope trade agreement with Japan in stages," while also considering tariff actions under Section 232 -- such as which industry sectors the U.S. trade representative should prioritize in future talks and what role, if any, Congress should have in the negotiations.
The U.S. and Japan officially signed their initial trade deal during a brief signing ceremony at the White House on Oct. 7, setting up a potential Jan. 1 effective date. The text of the new deal is now posted to the Office of the U.S. Trade Representative's website. So is the text of a concurrent deal on digital trade.
The United Kingdom and Tunisia signed a trade continuity agreement Oct. 4 to ensure the countries can trade under current terms after a potential no-deal Brexit on Oct. 31, the U.K. Department for International Trade said in a press release. The agreement would continue "tariff-free trade of industrial products together with liberalisation of trade in agricultural, agri-food and fisheries products," the UKDIT said. The deal would continue trade after Brexit on the terms of the association agreement currently in place between the European Union and Tunisia.
The government of Canada issued the following trade-related notices as of Oct. 4 (note that some may also be given separate headlines):
Brazil added another 147 items to its list of foreign capital, information technology and telecommunications goods exempt from import tariffs under its Ex-Tarifario regime, according to an Oct. 3 report from the Hong Kong Trade Development Council. Tariffs will be reduced to zero, from 16 percent or 14 percent, the report said, and many of the additional goods “could potentially be imported” from China and Hong Kong. The additions include 136 capital goods and 11 IT and telecom goods and will be exempt from tariffs through Dec. 31, 2021, the HKTDC said. Brazil added 281 products to its Ex-Tarifario regime in August (see 1908120042).
Uncertainty over trade policy and African swine fever continue to overtake agricultural markets, causing “volatility across the industry,” CoBank said in its quarterly U.S. rural economic review, released this month. But there were two bright spots for U.S. exporters, CoBank said: the renewed Chinese purchases of U.S. agricultural products and the initial trade agreement between the U.S. and Japan, which will allow the U.S. ag industry to regain competitiveness in a “key export destination.”
Many things about the U.S.-China trade war have not turned out as experts expected, panelists said at the Washington International Trade Association Oct. 2. Chad Bown, a trade economist at the Peterson Institute for International Economics and former White House economist, said that 18 months ago, people would have not expected there to be 15 percent to 30 percent tariffs on more than half of Chinese imports, with nearly all the rest slated for tariffs by December, and yet, the economy is doing OK. "Markets haven't panicked," he said. But Bown said he's not that surprised that the country hasn't seen a massive effect from the trade war, since the tariffs in place the longest were on inputs, and because, compared to the size of the entire economy, "we don't actually trade all that much."
In the Oct. 2 edition of the Official Journal of the European Union the following trade-related notices were posted: