EU-US: Additional Tariffs
On November 10, 2020, the EU applied retaliatory tariffs on certain US origin products as a response to the Airbus-Boeing dispute.
The countermeasures have been agreed by EU Member States –the US has not provided the basis for a negotiated settlement yet. The European Commission said it is willing to settle this dispute with the US and also to agree on long-term disciplines on aircraft subsidies.
The products subject to additional tariffs include, among others:
The countermeasures have been agreed by EU Member States –the US has not provided the basis for a negotiated settlement yet. The European Commission said it is willing to settle this dispute with the US and also to agree on long-term disciplines on aircraft subsidies.
The products subject to additional tariffs include, among others:
| HS Code | Description | Additional Tariff |
| 0802 90 85 | Other | 25% |
| 0804 10 00 | Dates | 25% |
| 1202 41 00 | Peanuts, in-shell | 25% |
| 1202 42 00 | Peanuts, shelled | 25% |
| 2008 19 99 | Roasted nuts, other | 25% |
Background:
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. Previously, in October 2019, the WTO allowed the US to take countermeasures against EU exports worth up to $7.5 billion, which were imposed on October 18, 2019. Nuts and dried fruits were not included among the products (see previous post).
Press release: Boeing WTO case: The EU puts in place countermeasures against U.S. exports
Commission Implementing Regulation (EU) 2020/1646 of November 7, 2020
EU-China: Geographical Indications
On November 23, the European Council adopted a decision on the conclusion of the agreement between the European Union and the government of the People’s Republic of China on cooperation and protection of geographical indications (GIs).
A list of 100 EU and 100 Chinese agri-food GI’s will be legally protected, ensuring mutual respect of agricultural traditions of both parties. Regarding nuts and dried fruits, the following recognition has been granted:
A list of 100 EU and 100 Chinese agri-food GI’s will be legally protected, ensuring mutual respect of agricultural traditions of both parties. Regarding nuts and dried fruits, the following recognition has been granted:
- China will recognize EU’s GI of the following good:
- Pruneaux d'Agen
- The EU will guarantee the Chinese GI of the following products:
- Hongyazi Peanut
- Junan Peanut
- Lincang Macadamia
- Boli Pine Nut
- Neihuang Peanut
- Zhengyang Peanut
It is expected that the agreement will enter into force at the beginning of 2021.
EU-China: Council gives final green light to the agreement on geographical indications
EU-New Zealand: Future Trade Agreement
The ninth round of negotiations for an EU-New Zealand trade agreement was held from November 23-30, 2020.
The outcome of this round of negotiations is a provisional agreement on two additional chapters: ‘Small and Medium Enterprises (SMEs)’ and ‘Capital Movements’. Both parties also held thorough discussions covering the majority of the areas of the future agreement.
EU and New Zealand reach provisional agreement on two more chapters of future trade agreement
The outcome of this round of negotiations is a provisional agreement on two additional chapters: ‘Small and Medium Enterprises (SMEs)’ and ‘Capital Movements’. Both parties also held thorough discussions covering the majority of the areas of the future agreement.
EU and New Zealand reach provisional agreement on two more chapters of future trade agreement
EU-Eastern and Southern African Countries: EPA Negotiations
The third round of negotiations to deepen the existing Economic Partnership Agreement (EPA) with five Eastern and Southern African partners (Comoros, Madagascar, Mauritius, Seychelles and Zimbabwe) was held from November 24-27, 2020.
The parties progressed on the issues already discussed in the first two rounds: customs and trade facilitation, technical barriers to trade, food safety and plant and animal health standards, rules of origin and agriculture. A first text-based discussion also took place on trade and sustainable development, including a presentation by the European Commission of a new article on Trade and Gender Equality.
The next round of negotiations is expected for April 2021.
Commission reports on negotiating round with five Eastern and Southern African countries
The parties progressed on the issues already discussed in the first two rounds: customs and trade facilitation, technical barriers to trade, food safety and plant and animal health standards, rules of origin and agriculture. A first text-based discussion also took place on trade and sustainable development, including a presentation by the European Commission of a new article on Trade and Gender Equality.
The next round of negotiations is expected for April 2021.
Commission reports on negotiating round with five Eastern and Southern African countries
EU: Market Access, Complaint Mechanism
On November 16, 2020, the EU Commission Directorate-General for Trade (DG Trade) launched the Single Entry Point (SEP) and complaints mechanism for the enforcement of EU trade agreements and arrangements.
The SEP is the centralized contact point for all EU-based stakeholders who want to lodge a complaint on market access issues or non-compliance with Trade and Sustainable Development (TSD) or Generalized System of Preferences (GSP) commitments. Its main objective is to streamline internal processes to tackle market access issues and non-compliance with TSD/GSP system commitments, as well as to prioritize better the EU’s enforcement action. However, the SEP does not deal with trade defense complaints (anti-dumping, anti-subsidy or safeguards). For such matters, please refer to the trade defense complaints office.
Market access complaints are open to: 1) EU Member States, 2) entities having their registered office, central administration or principal place of business within the EU, 3) industry associations of EU companies, 4) EU employers’ associations, and 5) trade unions. TSD/GSP complaints are open to the previous entities and to EU citizens and EU NGOs. The complaint forms can be found on the ‘Access2Markets’ webpage.
The SEP is the centralized contact point for all EU-based stakeholders who want to lodge a complaint on market access issues or non-compliance with Trade and Sustainable Development (TSD) or Generalized System of Preferences (GSP) commitments. Its main objective is to streamline internal processes to tackle market access issues and non-compliance with TSD/GSP system commitments, as well as to prioritize better the EU’s enforcement action. However, the SEP does not deal with trade defense complaints (anti-dumping, anti-subsidy or safeguards). For such matters, please refer to the trade defense complaints office.
Market access complaints are open to: 1) EU Member States, 2) entities having their registered office, central administration or principal place of business within the EU, 3) industry associations of EU companies, 4) EU employers’ associations, and 5) trade unions. TSD/GSP complaints are open to the previous entities and to EU citizens and EU NGOs. The complaint forms can be found on the ‘Access2Markets’ webpage.
EU: DG Trade Strategic Plan 2020-2024
The European Commission Directorate-General for Trade (DG Trade) recently published its Strategic Plan 2020-2024.
This plan sets how DG Trade will pursue its agenda in the next five years (2020-2024). DG Trade will pursue its specific objectives under two of the Commission's general objectives: 1) an economy that works for people, and 2) a stronger Europe in the world.
In the current particularly challenging environment, the EU’s trade policy aims to make more progress on:
This plan sets how DG Trade will pursue its agenda in the next five years (2020-2024). DG Trade will pursue its specific objectives under two of the Commission's general objectives: 1) an economy that works for people, and 2) a stronger Europe in the world.
In the current particularly challenging environment, the EU’s trade policy aims to make more progress on:
- Strengthening international cooperation and coordination in favor of rules-based trade.
- Gradual and reciprocal opening of markets, effective implementation of trade, and investment agreements and enforcing EU rights.
- Strengthening and extending rules for trade and investment which support open markets and reflect EU values.
- The promotion of sustainability and equitable development.
- Establishing a level playing field and protecting EU companies and citizens from unfair trade.
EU-UK: Channel Tunnel Rail Traffic
On December 2, 2020, the Council’s Permanent Representatives Committee (Coreper) agreed on a mandate to ensure the continuation of the Channel Tunnel rail traffic at the end of the transition period.
Coreper agreed on a negotiating mandate for discussions with the European Parliament on a proposal aimed at ensuring that rail traffic can continue in the Channel Tunnel from January 1, 2021.
According to the draft regulation, the safety authorization issued to the infrastructure manager of the Channel Tunnel would remain valid for two months after the end of the transition period defined in the withdrawal agreement. Moreover, certain safety certificates and licenses, which have been issued under EU law to rail companies established in the UK and using the cross-border infrastructure, should be extended for nine months from the date of application of the regulation.
By temporarily extending the validity of these safety authorizations and certificates, the measure gives French authorities more time to arrange the future binational administration, so that railways can continue to operate in the Channel Tunnel after January 1, 2021.
Channel Tunnel rail traffic at the end of the transition period
Coreper agreed on a negotiating mandate for discussions with the European Parliament on a proposal aimed at ensuring that rail traffic can continue in the Channel Tunnel from January 1, 2021.
According to the draft regulation, the safety authorization issued to the infrastructure manager of the Channel Tunnel would remain valid for two months after the end of the transition period defined in the withdrawal agreement. Moreover, certain safety certificates and licenses, which have been issued under EU law to rail companies established in the UK and using the cross-border infrastructure, should be extended for nine months from the date of application of the regulation.
By temporarily extending the validity of these safety authorizations and certificates, the measure gives French authorities more time to arrange the future binational administration, so that railways can continue to operate in the Channel Tunnel after January 1, 2021.
Channel Tunnel rail traffic at the end of the transition period
RCEP, the World's Largest Trading Bloc
On November 15, 2020, Australia, China, Japan, New Zealand, South Korea, and the 10 ASEAN (Association of Southeast Asian Nations) countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) signed the Regional Comprehensive Economic Partnership (RCEP).
This Partnership will represent the world’s largest trading area, as the total population, economic volume and trade of the 15 RCEP members account for 30% of the global total. It is expected that the RCEP will eliminate about 90% of tariffs between members.
It is also expected that this Partnership will promote international cooperation against COVID-19, support free trade and multilateral trading system, keep the region’s supply chain stable, and boost regional and global economic recovery and development.
The RCED will enter into force when the 15 countries finished their corresponding domestic approval procedures.
RCEP: Asia-Pacific countries form world's largest trading bloc
This Partnership will represent the world’s largest trading area, as the total population, economic volume and trade of the 15 RCEP members account for 30% of the global total. It is expected that the RCEP will eliminate about 90% of tariffs between members.
It is also expected that this Partnership will promote international cooperation against COVID-19, support free trade and multilateral trading system, keep the region’s supply chain stable, and boost regional and global economic recovery and development.
The RCED will enter into force when the 15 countries finished their corresponding domestic approval procedures.
RCEP: Asia-Pacific countries form world's largest trading bloc
UK-Canada: Trade Agreement
On November 21, 2020, the United Kingdom and Canada secured an agreement for a continuity trade deal.
This agreement rolls over the provisions of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and shall give certainty for bilateral exports of goods and services. Several agricultural products will continue to benefit from zero tariffs.
In addition to this, both countries agreed to start negotiations in 2021 on a new UK-Canada trade deal, with the potential to go further in areas such as digital trade and environment provisions, among others.
UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year
This agreement rolls over the provisions of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and shall give certainty for bilateral exports of goods and services. Several agricultural products will continue to benefit from zero tariffs.
In addition to this, both countries agreed to start negotiations in 2021 on a new UK-Canada trade deal, with the potential to go further in areas such as digital trade and environment provisions, among others.
UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year
UK-Kenya: Trade Agreement
On November 3, 2020, the United Kingdom and Kenya finalized negotiations on a trade deal. The agreement is a translation of the terms previously agreed between the EU and the East African Community (EAC) and includes clauses to allow other East Africa Community states to join in the future.
Both countries will continue to benefit from duty-free access. The deal is expected to be formally signed once it passes bilateral revisions.
UK and Kenya secure a trade agreement
Both countries will continue to benefit from duty-free access. The deal is expected to be formally signed once it passes bilateral revisions.
UK and Kenya secure a trade agreement