EU and US Temporally Suspend Tariffs Linked to the Airbus/Boeing Dispute
As previously announced, on March 5, the EU and the US agreed to a 4-month suspension on all retaliatory tariffs placed during the longstanding dispute over aircraft subsidies. The suspension period was deemed necessary for the two sides to eventually negotiate a settlement agreement.
Reciprocal tariffs of around $7.5 and $4 billion on European and US exports were imposed during the last two years, impacting a wide range of products as well as foods such as peanuts and dates, among others.
Following the announcement, on March 11, the implementing acts were published, bringing into effect the suspension of the tariffs as from March 11, 2021, for a four-month period ending July 11, 2021.
The implementing act published by the EU can be found here.
The US’ implementing act can be found here.
Reciprocal tariffs of around $7.5 and $4 billion on European and US exports were imposed during the last two years, impacting a wide range of products as well as foods such as peanuts and dates, among others.
Following the announcement, on March 11, the implementing acts were published, bringing into effect the suspension of the tariffs as from March 11, 2021, for a four-month period ending July 11, 2021.
The implementing act published by the EU can be found here.
The US’ implementing act can be found here.
EU-US: Little Progress over Section 232 Steel and Aluminum Tariffs, Impact on Cranberries Trade
According to recent news from the European Federation of the Trade in Dried Fruit, Edible Nuts, Processed Fruit & Vegetables, Processed Fishery Products (FRUCOM), the ongoing dispute over the Section 232 Steel and Aluminum tariffs between the US and the EU has shown little signs of progress. The tariffs, imposed by the previous US President's administration, were met with retaliatory measures by the EU.
Under the EU Regulation 2018/886, from June 1, 2021, the EU will apply higher tariffs to US goods such as dried cranberries, unless a negotiated solution to the dispute is reached between the US and the EU before then. Presently, dried cranberries originating from the US are imported with 0% duty in application of tariff suspensions by the EU under a special scheme for US originating products of which there are limited alternative sources. From June 1, 2021, US cranberries could face a 25% import tariff under the Regulation, if there is a failure by the EU and the US to resolve the dispute.
Under the EU Regulation 2018/886, from June 1, 2021, the EU will apply higher tariffs to US goods such as dried cranberries, unless a negotiated solution to the dispute is reached between the US and the EU before then. Presently, dried cranberries originating from the US are imported with 0% duty in application of tariff suspensions by the EU under a special scheme for US originating products of which there are limited alternative sources. From June 1, 2021, US cranberries could face a 25% import tariff under the Regulation, if there is a failure by the EU and the US to resolve the dispute.
US: Biden Administration Releases 2021 President’s Trade Agenda
On March 1, 2021, the Office of the United States Trade Representative (USTR) delivered President Biden’s 2021 Trade Agenda and 2020 Annual Report to Congress. Some of the main priorities outlined by the Agenda are:
- Actions aimed to minimize the effects of the COVID-19 pandemic, especially by boosting the vaccination campaign and maintaining the supplies of medical equipment
- Promotion of equitable economic growth by including strong, enforceable labor standards in trade agreements that protect workers’ rights and increase economic security.
- Stimulating global market opportunities for American farmers, ranchers and food manufacturers.
The full report can be viewed here.
A fact sheet outlining key highlights of the report is available here.
A fact sheet outlining key highlights of the report is available here.
US: House Passes Farm Workforce Modernization Act
On March 18, The House of Representatives approved H.R. 1603, the Farm Workforce Modernization Act. The bill contains provisions related to foreign farmworkers, establishes the certified agricultural worker (CAW) status and changing the H-2A temporary worker program.
The bill makes various changes to the H-2A program, such as:
The bill makes various changes to the H-2A program, such as:
- modifying the method for calculating and making adjustments to the H-2A worker minimum wage,
- specifying how an employer may satisfy requirements that it attempted to recruit US workers,
- requiring H-2A employers to guarantee certain minimum work hours,
- making the program available for agricultural work that is not temporary or seasonal, and
- reserving a visa allocation for the dairy industry.
The Act can be found here.
UK Delays Customs Checks on EU Imports by Six More Months
According to a news release published by Euractiv, on March 11 the UK Government will be delaying customs checks on imports from the EU and elsewhere by six months, to January 2022. The move, which is the second six-month delay made by the UK, should ease the burden on traders operating between the UK and the EU.
The EU instead has been imposing full customs checks at the border since January 1, 2021. The extension on checks followed a previous decision by the UK Government to extend the grace periods on customs checks for goods traveling to Northern Ireland, which caused the EU to start legal action over an alleged breach of the Northern Ireland Protocol.
The EU instead has been imposing full customs checks at the border since January 1, 2021. The extension on checks followed a previous decision by the UK Government to extend the grace periods on customs checks for goods traveling to Northern Ireland, which caused the EU to start legal action over an alleged breach of the Northern Ireland Protocol.