As countries seek to acquire needed supplies of ventilators, masks and other protective gear, the deputy director for trade and agriculture at the Organization for Economic Cooperation and Development said that nationalizing production of these goods is not the answer for the next pandemic. Julia Nielson, who was speaking on a Washington International Trade Association webinar April 2, said, “I don’t think nationalization of supply has ever meant security of supply.” She said that countries may need to consider the inventories they hold, and redundancies in where they get goods, but that given the way this pandemic is spreading in waves, relying on one country, even your own, could be risky.
The U.S. may consider lifting sanctions on countries significantly impacted by the COVID-19 pandemic, Secretary of State Mike Pompeo said. While Pompeo said the U.S. provides exemptions for exports of humanitarian goods, he suggested the Trump administration will review its sanctions regimes. “Would we ever rethink it? Of course,” Pompeo said during a March 31 press conference. “We’re constantly trying to make sure we have our policies right.”
The European Union will suspend certain import duties and customs penalties, and is “strongly” encouraging traders to only apply for “essential customs declarations,” due to the COVID-19 pandemic, the European Commission said in a March 30 guidance. In the guidance, the EU presented measures intended to ease burdens for European customs agents, postal operators and couriers, who are “struggling to cope” with trade operations, especially the large number of imported e-commerce goods. The measures also ease time pressures on customs officials and industry by extending deadlines for approving customs declarations.
Export Compliance Daily is providing readers with some of the top stories for March 23-27 in case you missed them.
The Trump administration should be doing more to restrict sales of emerging technologies to China, lawmakers said in interviews earlier this month. Senators commended the administration for increasing foreign direct investment restrictions (see 2002260042) and going further than previous administrations in confronting China’s unfair trade practices, but said they will continue pushing for tighter restrictions.
The COVID-19 pandemic may lead to an increase in electronic trade documentation as both governments and industries are increasingly forced to communicate online, said Kevin Shakespeare, director of stakeholder engagement at the Institute of Export and International Trade. Although there has already been a global shift toward online customs and trade procedures, the coronavirus spread may cause that process to speed up, Shakespeare said during a March 26 webinar hosted by the institute.
The deadline for customs payments to the Canada Border Services Agency will be extended due to the COVID-19 outbreak, the agency said in bulletin on March 27. “The timeframe for all payments due to the Agency (duties and taxes on regular imports, re-assessments, penalties, etc) is extended to June 30, 2020,” it said. “This also includes charges on the statement of account of March due on April 1. The CBSA will change the due date automatically, there is no need for companies to apply for the extension.”
The COVID-19 pandemic may hinder the United Kingdom and the European Union from striking a deal before the Brexit transition period ends in December, potentially creating export control confusion for companies, according to a trade lawyer. The U.K. has formed sanctions regimes for its official departure from the EU, but the two sides have not made much progress on export control regulations, which could have substantial impacts on supply chains, said Ross Denton, an export control lawyer with Baker McKenzie.
European Union countries should closely monitor attempts to acquire European medical goods and technology through foreign direct investment and should increase investment screening tools, the European Commission said March 25. The EU’s “openness to foreign investment” needs to be “balanced by appropriate screening tools … now more than ever,” the commission said in guidelines to EU member states. The commission urged member states to be “vigilant” and “use all tools available … to avoid that the current crisis leads to a loss of critical assets and technology.”
Trade restrictions created as result of the coronavirus COVID-19 crisis will change trade years from now and may lead to fewer international shipments in the medical arena, panelists said on a webinar March 26 hosted by the Washington International Trade Association.