The United Kingdom and Japan made progress toward a free trade agreement during meetings last week and expect to finalize the deal’s details by the end of August. The two sides reached “consensus on major elements” of the deal, Elizabeth Truss, the U.K.’s trade secretary, said Aug. 7. Japanese Foreign Minister Toshimitsu Motegi said “a substantial agreement has been reached in most of the 24 chapters,” according to an unofficial translation of a transcript of an online press conference. Motegi said the negotiations have focused on e-commerce trade, rules of origin and other “market access issues,” adding that the two sides “agreed to aim for a general agreement by the end of August.” The two countries began negotiations June 9 (see 2006090025).
Country of origin cases
The European Union on July 31 issued guidance for its free trade agreement with Vietnam, which took effect Aug. 1. The guidance includes information on proof of origin requirements and how to claim preferential treatment. It said the deal includes a process to simplify customs controls and speed up “physical controls of the goods” and a “commitment to a reciprocal duty relief on repaired goods.”
The Canada government issued the following trade-related notices as of August 3rd (some may also be given separate headlines):
Vietnam recently imposed antidumping duties on “biaxially oriented polypropylene film products” originating in China, Malaysia and Thailand, the Hong Kong Trade Development Council said July 27. The film, typically used in “packaging materials,” will be subject to a duty rate of 9.05% to 23.71% for five years. The products are classified under two Harmonized System subheadings -- 3920.20.10 and 3920.20.91. The decision came after Vietnam determined that the “sales volume, profit margins, market share and production capacity” of its domestic film producers had “declined significantly over recent years” due to cheaper imports from the three countries. Vietnam is, however, offering duty exemptions for imports of the film because some of its producers “lack the capacity” to manufacture it.
The Treasury Department finalized the fee structure for filing certain transactions with the Committee on Foreign Investment in the U.S. and made a “clarifying revision” to the definition of “principal place of business,” according to a final rule released July 28. The fee structure was first outlined in March and April (see 2004280027), and the original definition for principal place of business was outlined in a January rule. The rule takes effect Aug. 27.
Experts disagreed on the utility of the Trump administration approach to World Trade Organization reform, during a Senate Finance Committee hearing on the topic, and senators on the left and right suggested that the negotiated trade rules disadvantage Americans.
The U.S. and the European Union should be able to “come to a convergence” on seven planks of reform of the appellate body at the World Trade Organization, said Ignacio Garcia Bercero, European Union Visiting Fellow, Oxford University and a chief negotiator at the European Commission. Garcia Bercero, who noted he was not speaking on behalf of the European Commission, was a panelist on a WTO Reform webinar hosted by the Washington International Trade Association July 23.
The European Commission recently announced it will allow more time for certain countries to comply with its registered export system, due to the COVID-19 pandemic, a July 20 KPMG post said. Haiti, Madagascar, Senegal and Vietnam have faced “serious difficulties” meeting the June 30 deadline for the application of the system, the commission said. Those countries were granted an extension through Dec. 31. The system, used by European Union exporters in some free trade agreements, allows traders to self-certify the origin of goods.
A Lebanese national was sentenced to 42 months in prison for conspiring to illegally export U.S. drone parts and technology to Hezbollah, the Justice Department said July 20. Usama Darwich Hamade violated the international Emergency Economic Powers Act, the Export Administration Regulations, the Arms Export Controls Act and the International Traffic in Arms Regulations when he tried to illegally export a range of U.S.-origin items, including “inertial measurement units,” digital compasses, a jet engine, piston engines and recording binoculars. During an investigation, the Justice Department said the U.S. discovered Hezbollah was the “ultimate beneficiary” of the exports.
The Canada government issued the following trade-related notice as of July 20: