Both Asian countries and American businesses had hoped that the Indo-Pacific Economic Framework could be a step on the road to lowering tariffs, trade experts said during a webinar on the future of IPEF, but now they're wondering if there will be any economically significant effect at all from talks about trade facilitation, green transition and supply chain resilience.
The U.S. is likely to continue using export controls, investment restrictions and other economic policy tools against China this year, particularly as the upcoming presidential election draws closer, trade and economic policy experts said this week.
Cordell Hull, former acting undersecretary for the Bureau of Industry and Security, joined Amazon Web Services this month as head of trade and economic security policy, according to his LinkedIn announcement. Hull led BIS during the last year of the Trump administration (see 2011190018) before joining WestExec Advisors as a geopolitical risk consultant.
China again extended its Section 301 retaliatory tariff exclusion period for 12 U.S. agricultural products, including certain shrimp, whey, fishmeal, alfalfa and hardwood products, USDA’s Foreign Agricultural Service said in a recent report. The exclusions, which were set to expire Dec. 31, will continue through July 31. Beijing originally imposed the tariffs in retaliation for Section 301 tariffs announced by the Trump administration on certain Chinese goods.
British cheese makers looking to export to their products to Canada now must check that their Canadian importer has access to an import license for "non-EU sources," the U.K.'s Department for International Trade said. As of Jan. 1, the U.K. moved from Canada's tariff-rate quota for EU member states to non-EU sources as part of a 2021 trade continuity agreement between the two nations. As a result, U.K. cheese exporters that don't have an importer with a license for non-EU sources will be subject to the full tariffs on cheese.
U.K. exports of chocolate, gin, whiskey, sparkling wine and other “festive treats” increased “significantly” last year after the country’s signing in July of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (see 2307170023), the Department for Business and Trade said Dec. 28. The agency said those goods are being “ordered en masse” by CPTPP countries, especially Singapore, Japan, Mexico and Malaysia. Exports of Scotch whiskey to Singapore have risen by 31% and to Malaysia by 43%, the U.K. said, while sparkling wine exports to Japan have increased by 140%
The free trade agreement between China and Nicaragua was scheduled to take effect Jan. 1, China's Ministry of Commerce announced, according to an unofficial translation (see 2308310020). The ministry released the FTA's schedule of preferential tax rates, which includes zero percent tariff rates for Nicaragua's main exports, such as beef, shrimp, coffee and cocoa. The deal also sets out tariff quotas of 50,000 tons of sugar each year, with a duty rate of 15% beyond the 50,000 ton limit, while tariffs on Chinese exports to Nicaragua will be "gradually reduced and eliminated."
The Federal Maritime Commission finalized several changes to its rules for carrier automated tariffs, including one that would bar carriers from charging a fee to access their tariff systems and others that aim to increase transparency around certain “pass-through” charges assessed to shippers. The FMC also abandoned a proposed change that would have required the documentation for a broader range of containers to include the name of all non-vessel operating common carriers with touchpoints to that cargo, a proposal that faced strong opposition from multiple trade groups and logistics companies.
The Market Choice Act, which would end fuel taxes while imposing a carbon tax, was reintroduced in the House of Representatives this month by Reps. Brian Fitzpatrick, R-Pa., and Salud Carbajal, D-Calif. The bill, an acronym for "Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act," would require domestic producers to pay a price for carbon, and also would place a tariff on imports if those countries don't have equivalent carbon taxes. It would provide a rebate to manufacturing exporters and sectors that process ores, soda ash and phosphate. It wouldn't cover mining and fossil fuel extraction.
The EU's new anti-coercion instrument entered into force Dec. 27, the European Commission announced. The tool allows the bloc to impose tariffs and place other trade restrictions in response to economic coercion (see 2310230012). The commission said it will take stakeholders' views into account when imposing retaliatory action, adding that any actions taken under the tool "are consistent with the EU's international obligations and fully grounded in international law."