Australia: Agricultural Export Legislation
The Australian Government announced improvements in Australia’s agricultural export legislation (see previous post) to modernize the systems that support the export of agricultural goods.
The Export Control Act 2020 (the Act) forms the central pillar of the new legislative framework. The Act will be supported by a suite of legislative instruments, the Export Control Rules 2020, and the new legislation will commence on March 28, 2021.
EU-US: Additional Tariffs
On October 13, 2020, the World Trade Organization (WTO) allowed the EU to raise tariffs of up to $4 billion US imports as a countermeasure for subsides to the US aircraft maker, Boeing.
The preliminary list of products included several nut and dried fruit products (see previous post) which could be subject to additional tariffs. However, the EU is committed to seek a negotiated settlement of the dispute. In case both parties do not reach a deal, the EU would apply higher duties on some of the products included in the preliminary list published in spring 2019.
In October 2019, the WTO allowed the United States to take countermeasures against European exports worth up to $7.5 billion, which were imposed on October 18, 2019. Nuts and dried fruits were not included among the products. The EU based corporation Airbus took action concerning the other challenged measures earlier, so the WTO decision of October 13, 2020, addresses the last remaining measures condemned by the WTO.
EU and Airbus: Member States take action to ensure full compliance in the WTO aircraft dispute
The preliminary list of products included several nut and dried fruit products (see previous post) which could be subject to additional tariffs. However, the EU is committed to seek a negotiated settlement of the dispute. In case both parties do not reach a deal, the EU would apply higher duties on some of the products included in the preliminary list published in spring 2019.
In October 2019, the WTO allowed the United States to take countermeasures against European exports worth up to $7.5 billion, which were imposed on October 18, 2019. Nuts and dried fruits were not included among the products. The EU based corporation Airbus took action concerning the other challenged measures earlier, so the WTO decision of October 13, 2020, addresses the last remaining measures condemned by the WTO.
EU and Airbus: Member States take action to ensure full compliance in the WTO aircraft dispute
EU: Tariffs
On October 30, 2020, the EU published Regulation (EU) 2020/1577 Amending the Tariff and Statistical Nomenclature and on the Common Customs Tariff.
The regulation updates, among others, the following tariffs regarding nuts and dried fruits:
The regulation updates, among others, the following tariffs regarding nuts and dried fruits:
HS Code | Product | MFN Tariff 2020 | MFN Tariff 2021 |
0802 90 50 | Pine nuts (Pinus spp.) | 2.00% | 3.20% |
0802 90 85 | Other | 2.00% | 3.20% |
0804 20 00 | Dried Figs | 5.60% | 8:00% |
This regulation enters into force on January 1, 2021.
Regulation (EU) 2020/1577 of 21 September 2020
EU: Political Agreement on Enforcement Regulation
On October 28, 2020, the European Council presidency reached an agreement with the European Parliament on a revised enforcement regulation.
The aim of this revised enforcement regulation is to protect EU's trade interests and rights in the context of the current blockage of the World Trade Organization's (WTO) dispute settlement system. The regulation also ensures that the EU can enforce its trade rights if one of its partners blocks the normal dispute settlement mechanism under bilateral treaties.
This regulation will amend the existing one, in force since 2014, and will provide a common legislative framework for the enforcement of EU’s rights under international trade agreements.
Compared with the existing regulation, the agreement between the European Parliament and the European Council extends the scope of possible countermeasures, currently provided for areas such as customs duties, quantitative restrictions on imports and exports of goods, among others. This extension is accompanied by safeguards aimed to ensure that the most efficient and proportionate countermeasures are used and that national authorities and stakeholders are involved in the consultation process.
Before its entry into force, EU Member States have to approve the agreement by qualified majority.
Trade: EU reaches political agreement on updated enforcement regulation
The aim of this revised enforcement regulation is to protect EU's trade interests and rights in the context of the current blockage of the World Trade Organization's (WTO) dispute settlement system. The regulation also ensures that the EU can enforce its trade rights if one of its partners blocks the normal dispute settlement mechanism under bilateral treaties.
This regulation will amend the existing one, in force since 2014, and will provide a common legislative framework for the enforcement of EU’s rights under international trade agreements.
Compared with the existing regulation, the agreement between the European Parliament and the European Council extends the scope of possible countermeasures, currently provided for areas such as customs duties, quantitative restrictions on imports and exports of goods, among others. This extension is accompanied by safeguards aimed to ensure that the most efficient and proportionate countermeasures are used and that national authorities and stakeholders are involved in the consultation process.
Before its entry into force, EU Member States have to approve the agreement by qualified majority.
Trade: EU reaches political agreement on updated enforcement regulation
Japan: In-Shell Walnuts from US
Since September 16, 2020, Japan allows imports of all varieties of US in-shell walnuts.
According to a USDA GAIN Report, on September 16, 2020, Japan revised the Ordinance for the Enforcement of the Plant Protection Act with immediate effect. This revision allows exports to Japan of all varieties of US origin in-shell walnuts.
According to a USDA GAIN Report, on September 16, 2020, Japan revised the Ordinance for the Enforcement of the Plant Protection Act with immediate effect. This revision allows exports to Japan of all varieties of US origin in-shell walnuts.
USDA GAIN Report: Japan Grants Market Access for All Varieties of US In-Shell Walnuts
UK: Border Operating Model
On October 8, 2020, the UK Government updated the UK Border Operating Model, a guide to how the border with the European Union will work after the transition period.
The transition period with the EU will end on January 1, 2021, and the UK will operate a full, external border as a sovereign nation, meaning that controls will be placed on the movement of goods between the UK and the EU.
In order to give industry extra time to make necessary arrangements, the UK Government has taken the decision to introduce the new border controls in three stages up until July 1, 2021.
The Border with the European Union: Importing and Exporting Goods
The transition period with the EU will end on January 1, 2021, and the UK will operate a full, external border as a sovereign nation, meaning that controls will be placed on the movement of goods between the UK and the EU.
In order to give industry extra time to make necessary arrangements, the UK Government has taken the decision to introduce the new border controls in three stages up until July 1, 2021.
The Border with the European Union: Importing and Exporting Goods
UK-Japan: Trade Agreement
On October 23, 2020, the UK and Japan signed the UK-Japan Comprehensive Economic Partnership Agreement (CEPA).
Both countries reached an agreement on September 11, 2020 (see previous post). The deal is tailored to both economies and has secured bilateral benefits for digital and data, financial services, food and drink, and creative industries, among others. The agreement is subject to the domestic internal procedures of both countries before it can be brought into force.
Both countries reached an agreement on September 11, 2020 (see previous post). The deal is tailored to both economies and has secured bilateral benefits for digital and data, financial services, food and drink, and creative industries, among others. The agreement is subject to the domestic internal procedures of both countries before it can be brought into force.
UK-Ukraine: Trade Agreement
On October 8, 2020, the UK and Ukraine signed a Political, Free Trade and Strategic Partnership Agreement.
The aim of this agreement is ensuring ambitious cooperation in political, security and foreign matters, while also securing continued preferential trade for businesses and consumers. This agreement, when brought into force, will allow businesses to continue trading after the end of the Transition Period. It delivers the same level of liberalization in trade, services and public procurement that businesses currently enjoy under the existing EU-Ukraine Association Agreement.
The entry into force of this agreement is expected when the EU-Ukraine agreement ceases to apply to the UK at the end of the Transition Period. The agreement will be subject to the domestic parliamentary procedures in both the UK and Ukraine before it is brought into force.
The aim of this agreement is ensuring ambitious cooperation in political, security and foreign matters, while also securing continued preferential trade for businesses and consumers. This agreement, when brought into force, will allow businesses to continue trading after the end of the Transition Period. It delivers the same level of liberalization in trade, services and public procurement that businesses currently enjoy under the existing EU-Ukraine Association Agreement.
The entry into force of this agreement is expected when the EU-Ukraine agreement ceases to apply to the UK at the end of the Transition Period. The agreement will be subject to the domestic parliamentary procedures in both the UK and Ukraine before it is brought into force.
UK and Ukraine sign Political, Free Trade and Strategic Partnership Agreement