Cyprus is considering providing relief to industry for monetary penalties or interest related to value-added tax payments, KPMG said in a May 7 post. The measures, aimed at mitigating the effects of the COVID-19 pandemic, would allow certain payments to be deferred for VATs due in May, June and July. Cyprus previously extended deadlines for payments of certain VATs (see 2103040008).

Following the United Kingdom's departure from the European Union, the European Commission does not want to see the U.K. join the bloc's 2007 Lugano Convention -- a pact that recognizes jurisdiction and enforcement of judgment in civil and commercial matters. In a May 4 communication from the EC to the European Parliament and Council, the commission said the Lugano Convention is meant for the internal market of the EU. and because the U.K. is now a “third party without a special link to the internal market,” it does not warrant access to the convention. In its stead, the commission recommends taking the normal course of action in recognizing jurisdiction with Britain and following the framework laid out by the Hague Conventions in the field of civil judicial cooperation.

The European Commission halted efforts to ratify a massive investment deal with China following back-and-forth sanctions over China's human rights violations committed against its Uighur Muslim ethnic minority, The Guardian reported May 4. “We now in a sense have suspended … political outreach activities from the European Commission side,” Valdis Dombrovskis, the commission’s executive vice president, said. The deal, called the EU-China Comprehensive Agreement on Investment, was negotiated in December and secured greater market access for European Union companies in China along with certain questionable concessions on subsidies and labor standards (see 2101250052). “As long as members of the European Parliament are on sanction[s] list,” ratifying the agreement is “impossible,” Michael Reiterer, distinguished professor at Brussels School of Governance, told The Guardian.

The United Kingdom's Department for International Trade published a Notice to Importers to update its import controls guidance. The notice, issued April 1, covers changes to information on antique firearms and end-use certificates, and notes that certain cartridges are no longer defined as obsolete for the purposes of qualifying a firearm as antique.

The European Union finished up two examinations under its Trade Barriers Regulation concerning Saudi Arabia's restrictions on market access to EU ceramic tiles and Mexico's export restrictions on tequila, the European Commission said in a May 4 news release. Following the reviews, the EC said it would engage Saudi Arabia to ensure a “swift and efficient removal” of the kingdom's new technical regulations hindering 75% to 80% of EU exports of ceramic tiles. If engagement fails, the EU could consider taking the issue to the World Trade Organization. In Mexico's case, a measure blocking exports of tequila is under a number of administrative proceedings, so the EC will continue to monitor the situation. The Trade Barriers Regulation allows the EC to review global trade measures that violate international trade rules. Under the regulation, companies, industries, associations and member states may lodge a complaint against a perceived rule violation, prompting the EC to review and potentially act against the violation.

Four months after the United Kingdom left the European Union, customs activity is stabilizing following a hectic period of trade between Britain and the bloc, said Joop Mastenbroek, director of Customs Brokerage North and Continental Europe, West Europe and Middle East Africa at logistics company GEODIS, speaking at a May 4 event hosted by the U.S. Fashion Industry Association about the leading customs challenges post-Brexit. While more exporters and importers are up to date on how to issue the right documentation to ensure smooth customs clearance, large challenges still exist. In the current market scenario, the robustness of government systems under the increased weight of declarations, challenges around products of animal origin, shortage of resources and differing customs procedures by the various EU member states stand as the most challenging customs issues, Mastenbroek said.

A free trade agreement between the United Kingdom and Vietnam entered into force on May 1, the U.K.'s Department for International Trade announced in a press release. The agreement covers 5.1 billion British pounds in trade and secures the elimination of tariffs on 99% of goods after six years. In particular, tariffs will be lifted for U.K. exports of machinery, mechanical appliances and pharmaceuticals, and for Vietnamese exports of phones, garments, footwear and fish. The agreement also insures that U.K. companies have access to public procurement markets in Vietnam, with more opportunity to bid on public procurement contracts.

A strong condemnation was issued by the presidents of the European Council, Commission and Parliament on the imposition of restrictive measures against eight European Union officials, the EC announced in an April 30 press release. The condemnation came following Russia's move to ban European Parliament President David Sassoli, European Commission Vice President Vera Jourova and six EU member states' officials from entering the country in retaliation for sanctions placed on Russia. “This decision, which directly targets the European Union and its Member States, is unacceptable, devoid of any legal justification and baseless,” the joint statement in the release said. “It serves to underline that the Russian Federation has so far chosen the path of confrontation instead of seeking to reverse the negative trajectory of EU-Russia relations.”

The United Kingdom, fresh out of the European Union, conducted its fourth round of free trade agreement negotiations virtually with New Zealand April 12-27, the U.K.'s Department for International Trade announced in an April 30 news release. An outline of the whole agreement was provisionally agreed to, including chapters on Anti-Corruption and Women in Trade, the agency said. Significant progress was also made on the Disputes, Rules of Origin, Goods, Labor and Telecommunications, Digital, Consumer Protection and Environment provisions of the agreement.

Iceland plans to allocate $7.5 million to support the competitiveness of Icelandic sheep and cattle farmers and help mitigate the impacts of the COVID-19 pandemic, the U.S. Department of Agriculture Foreign Agricultural Service said April 27. Along with the funding, Iceland will revise its tariff quotas and review its customs agreement with the European Union to support its sheep and cattle industry. USDA said Iceland's financial support for its farmers “remains among the highest in the world.”