The United Kingdom and Canada agreed to transitional measures to maintain the flow of goods after the U.K. leaves the European Union Jan. 1, the U.K. said Dec. 22. The two countries signed a memorandum of understanding that will maintain tariff-free trade for companies exporting goods that are eligible for preferential treatment under the UK-Canada Trade Continuity Agreement (TCA), which is expected to take effect early in 2021, the U.K. said. The MOU will also maintain tariff rate quotas and rules of origin for products covered under the TCA.
The government of Canada issued the following trade-related notices as of Dec. 23 (some may also be given separate headlines):
Mexico recently proposed revising its organic import procedures for special certification, including changes to certain regulations, inspection methods and other import processes, the U.S. Department of Agriculture Foreign Agricultural Service reported Dec. 21. The FAS report said “Mexico has not yet notified the World Trade Organization Committee on Sanitary and Phytosanitary Measures of these changes. Notably, agricultural imports into Mexico requiring certificates of origin, such as organics, would be affected.” Industry can submit comments to the National Commission for Regulatory Improvement through Dec. 28.
The Bureau of Industry and Security reduced licensing restrictions for certain exports to Ukraine, Mexico and Cyprus by revising their Country Group designations in the Export Administration Regulations (see 2011230010), according to a final rule released Dec. 23. The rule moves Ukraine from Country Group D to County Group B and adds Mexico and Cyprus in Country Group A:6, making more license exceptions available for each country. The changes take effect Dec. 28.
The U.S. sanctioned eight people and 10 entities for being members of or supporting the Syrian government, the Treasury Department said Dec. 22. The sanctions designate two people and 10 entities by Treasury and six people by the State Department. Treasury also issued three new frequently asked questions related to Syria.
The government of Canada issued the following trade-related notices as of Dec. 21 (some may also be given separate headlines):
China released details for its upcoming free trade agreement with Mauritius, which it said will take effect Jan. 1, 2021, according to an unofficial translation of a Dec. 16 notice. The notice contains technical provisions of the deal, including measures surrounding rules of origin.
The Border Trade Alliance wants the USMCA “technical corrections” fix to leave the treatment of foreign-trade zones out, it said. BTA said it opposes the change “that would prevent goods manufactured within an FTZ from receiving reduced or duty-free treatment” under the agreement that replaced NAFTA and took effect July 1. “USMCA is a trade agreement for the 21st century, but reinstating an old NAFTA-era rule turns back the clock on U.S. manufacturing competitiveness,” BTA Chair Sergio Contreras said. “In keeping with the goal of modernizing U.S. trade policy under USMCA, products produced within FTZs should qualify for duty-free treatment.” The group thanked the six senators who publicly said they oppose the inclusion of FTZ rule of origin changes in a technical fixes bill.
The United Kingdom’s Department for International Trade on Dec. 11 updated its guidance on trading with Japan post-Brexit. The guidance, to take effect Jan. 1, now includes an updated statement of origin value threshold “after Japan notified the UK of their waiver limit” under the two countries’ trade deal.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that he hopes that a technical fixes bill for USMCA can pass this month, but its passage is hung up on whether goods manufactured in foreign-trade zones should be able to benefit from USMCA if those goods meet the rules of origin.