The U.K. and India will relaunch talks on a free trade deal in 2025 after failing to reach an agreement in discussions over the last two years (see 2309010034), the U.K. announced this week after a meeting between their two leaders at the Group of 20 summit in Brazil. Business and Trade Secretary Jonathan Reynolds said the U.K. will look to lower Indian tariffs “to help British firms export to this dynamic market.”
U.K. negotiators flew to Seoul this week to begin talks on upgrading a trade deal with South Korea that was negotiated more than a decade ago. The U.K. specifically wants to put in place “digitalised customs procedures,” simplified rules of origin and “reduced or zero tariffs” for exports to South Korea, adding that it wants to take better advantage of South Korea’s “booming import demand.”
The U.K. and Switzerland made “good progress” during a fifth round of negotiations earlier this month on an “enhanced” free trade deal, the U.K’s Department for Business and Trade said Oct. 30. The two countries plan to hold a sixth round in early 2025, the U.K. said, adding that a “stronger trade relationship with Switzerland will contribute to growth, jobs and prosperity in the UK.”
The European Commission and Beijing are still searching for a way to avoid upcoming EU countervailing duties on Chinese electric vehicles, the commission said, even after EU member states voted to approve the measures earlier this month (see 2410040013).
New Zealand last week launched mandatory negotiations with Canada under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to challenge Canada’s dairy tariff rate quotas, saying they are unfairly restricting New Zealand exporters. The country said a panel of arbitrators ruled in favor of New Zealand in September 2023, finding Canada breached its CPTPP obligations “by blocking New Zealand dairy access.” Since then, Canada “failed to comply with the ruling,” New Zealand said.
Former Mexican Ambassador to the U.S. Martha Bárcena said that she has been told that the U.S. will not comply with the panel ruling that said that rollup was understood to be part of the automotive rule of origin (see 2403070067), and she said that is undermining USMCA. She said that's because both the Republicans and the Democrats are fighting for the political support of the United Autoworkers and Teamsters. (The autoworkers' union characterizes rollup as watering down the requirement for North American content in vehicles).
The Office of the U.S. Trade Representative said that negotiators from its office and those from Kenya had a productive round of talks Sept. 16-30, with discussion of text covering "administrative matters; agriculture; customs, trade facilitation, and enforcement; environment; good regulatory practices; inclusivity; and workers’ rights and protections."
The U.K. and Thailand officially signed a new trade partnership last week that will boost British exports, the U.K.’s Department for Business and Trade said. The “Enhanced Trade Partnership” will help British businesses more easily sell to Thailand, the U.K. said, and commits both sides to “identifying opportunities that could be delivered” through a possible future U.K.-Thailand Free Trade Agreement. The U.K. noted that Thailand also recently agreed to accept the U.K.’s vehicle emissions testing standards, which will allow the British auto industry to “save millions” on car exports to Thailand.
The EU’s ongoing countervailing duty probe into Chinese electric vehicles (see 2408200020) has brought the two sides’ industries to a “crossroads,” and Beijing will continue to lobby against the tariffs through negotiations “until the very end,” China’s Commerce Minister Wang Wentao said this week.
The U.K. will officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on Dec. 15 after securing the final ratification required to trigger the country’s accession to the trade deal (see 2312290034), the Department for Business and Trade said last week. The deal, which currently includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, is expected to remove tariffs from more than 99% of U.K. exports to CPTPP members, the country said. The U.K. needed ratification from six countries to join the deal.