World Trade Report 2023
The WTO recently published its annual World Trade Report. This year’s report examines the role of international trade in addressing some of the most pressing challenges of our time: maintaining peace and security, reducing poverty and inequality, and achieving a sustainable economy.
The report analyses the benefits of re-globalization as well as the risks of fragmentation of the multilateral trading system. Moreover, it raises concerns about the proliferation of trade tensions and skepticism towards international trade on the part of policymakers. In particular, the report points out the rising use of subsidies by governments, which has resulted in a sharp increase in the number of countervailing measures undertaken by WTO members.
China: Appeal of WTO Ruling on Section 232 Retaliatory Tariffs
In September, China notified the Dispute Settlement Body of the World Trade Organization of its decision to appeal a ruling in a case regarding China’s retaliatory tariffs imposed in response to US Section 232 tariffs on steel and aluminum. The move will allow China to maintain its retaliatory duties in the absence of a final decision.
EU-Mercosur: Trade Negotiations Restarted
Representatives of the European Union and Mercosur met in Brazil in early October to try to reconcile their positions on a potential trade deal, according to Reuters. Negotiations had been on hold since 2019 due to EU concerns over deforestation and Mercosur’s slow response to an EU proposal on environmental safeguards. According to a spokesperson for Brazil’s foreign ministry, new rounds of talks will take place on a weekly basis in advance of the lead negotiators’ scheduled meeting in Brasilia on October 30.
EU: Call for Feedback on Draft Regulation on Imports of Organic Products
The European Commission has called for feedback on a draft Commission implementing regulation on the recognition of certain control authorities and control bodies for the purpose of importing organic products into the Union. The EU imports organic products from a list of non-EU countries and from a list of control authorities and control bodies recognized for the purpose of equivalence. The proposed regulation would introduce changes for some control bodies in Bolivia, Canada, Chile, Honduras, Israel, Italy, Japan, Korea and the US. The deadline for comments is November 17, 2023.
Kenya: Proposed Legislation Aims to Transform Cashew Sector
Kenya’s National Assembly Committee on Agriculture and Livestock has begun the process of reviewing a legislative proposal that seeks to provide regulation for the production, processing, marketing, grading, storage, collection, transportation and warehousing of coconut and cashew nut. The proposed bill, known as Coconut and Cashew Nut Bill 2023, also seeks to establish the Coconut and Cashew Nut Board of Kenya, a body with the pivotal role of overseeing the regulation, production, grading, storage, auctioning, marketing, research and development of coconut and cashew nut.
Kenya-EU: Trade Agreement Sent to Council for Signature and Conclusion
On September 28, the European Commission sent its proposals for the Council’s signature and conclusion of the EU-Kenya Economic Partnership Agreement (EPA). The EPA foresees asymmetric removal of tariffs, meaning that the EU would fully liberalize access to its market immediately upon application of the EPA and Kenya would open its market gradually to imports from the EU, benefitting from transitional periods. Once the Council gives its approval, the EU will be able to sign the EPA, which would then be sent to the European Parliament for consent.
Tanzania: Cashews Produced in Southern Regions to Be Transported Through Mtwara Port
Tanzania Ports Authority (TPA) has begun implementing directives issued by President Samia Suluhu Hassan to ensure cashew nuts produced in southern regions of the country are transported through Mtwara Port starting in the 2023/24 season, according to the Tanzanian newspaper Daily News. In September, President Samia promised to allocate more budget to improve Mtwara Port in a bid to make it the country’s largest water gateway and an economic engine for the region.
UK: Proposed Changes to Official Controls
The UK food safety authorities have proposed amendments to Retained Regulation 2019/1793, which sets rules concerning the temporary increase of official controls applicable to certain food and feed of non-animal origin entering Great Britain from the countries listed in that Regulation. This is due to the risk of contamination by aflatoxins, pesticide residues, dyes, preservatives, pentachlorophenol and dioxins by microbiological contamination. The proposed changes would affect peanut paste from Bolivia, China, the US, Egypt, Gambia, Ghana, India and Sudan; peanuts and peanut products from Brazil; and hazelnut and hazelnut products from Türkiye. The proposed date of adoption is January 29, 2024.
UK-US: UK Signs MOU with Washington State
In late September, the UK announced the signing of a Memorandum of Understanding with the US state of Washington to boost trade and investment. This MOU is the sixth of its kind and reflects the UK’s state-level strategy to promote trade with the US.
US-EU: Joint Summit and Tariffs Dispute Update
A Joint US-EU Summit took place in Washington, D.C., on October 20, 2023. Recent announcements by both sides had raised hopes that this meeting would yield a key announcement on the longstanding trade dispute stemming from the Section 232 tariffs on EU steel and aluminum, which affects imports of US peanut butter and cranberry products into the EU. However, no permanent resolution was reached at the summit to settle this longstanding trade dispute. A joint statement reiterated both parties’ commitment to finding a solution but did not clarify where negotiations stand, adding: “We look forward to continuing to make progress on these important objectives in the next two months.”
USA: USDA Announces Appointments to American Pecan Promotion Board
In late September, the U.S. Department of Agriculture announced the appointment of seven members to serve on the American Pecan Promotion Board: Phillip Arnold (Fairacres, NM), Brycen J. Salopek, (Las Cruces, NM), Larry Salopek (Bowie, AZ), Deborah E. Walden-Ralls (Sahuarita, AZ), Steve Zaffarano (Stockton, CA), Romulo Garza (San Antonio, TX) and Larry Don Womack (Deleon, TX).