A “skinny deal” to be completed before the United Kingdom crashes out of the European Union on Dec. 31 is seen as unlikely, but experts differ slightly on what that means for business. Robert Hardy, commercial director of Oakland Invicta Ltd., and founder of a Brexit-focused customs consultancy, said that even if there was a “soft Brexit,” all that would do is delay the pain, because presumably the deadline would be pushed out to fill in the details. “Customs paperwork exists in all scenarios. Actually, in a no-deal scenario, there’s less paperwork,” he said, because you don't have to account for rules of origin. “There’s more duty, but I don’t pay the duty, I do the paperwork,” he quipped.
An Aug. 20 Office of the U.S. Trade Representative, Department of Agriculture and Department of Commerce virtual hearing on import competition in seasonal produce will include testimony from two Florida and three Georgia members of Congress, a representative of the office of a third Florida Congress member, Farm Bureau executives, and vegetable and berry farmers. It will also include trade groups and a company that oppose restrictions on Mexican produce, among them the Fresh Produce Association of the Americas, the San Diego Customs Brokers Association, and milk and corn exporters. The hearing is the second of two that were originally scheduled to take place in Florida and Georgia in April.
China’s Guangdong region recently announced measures to speed up export tax rebate processing and to help divert goods intended for export to instead be sold domestically, the Hong Kong Trade Development Council reported Aug. 17. All Guangdong tax authorities were ordered to “increase their assessment efficiency and expedite the processing” for export tax rebates to reduce the handling time from eight to five working days, the report said. The province is also collecting data on taxes and fees to create “business matching platforms” that will drive “products originally destined for export” to be sold domestically.
The U.S. and the United Kingdom completed a “positive” third round of trade negotiations, carried out over the past two weeks ended Aug. 7, and agreed to begin the fourth round next month, the U.K.’s Department for International Trade said in a notice Aug. 12. The negotiations included discussions on technical barriers to trade, rules of origin and trade remedies. U.K. Trade Secretary Liz Truss, in separate discussions, focused on U.S. retaliatory tariffs on U.K. products, including on Scotch whisky, the notice said. Truss said the tariffs are “unacceptable and continued to push for their immediate removal.” The Office of the U.S. Trade Representative did not immediately comment.
The State Department’s 2019 emergency arms sales to Persian Gulf countries (see 1907150033 and 1907300027) did not violate export control laws, but the agency failed to “fully assess risks” the weapons could lead to “civilian casualties” and other “legal concerns,” the Office of Inspector General said in an Aug. 11 report. The report was released days after House and Senate Democratic leaders subpoenaed four State Department officials and accused the agency of stonewalling congressional oversight of the emergency transfers and the firing of former department Inspector General Steve Linick (see 2008030046).
The Canada government issued the following trade-related notices as of Aug. 10 (some may also be given separate headlines):
The president and sales representative for a U.S. electronics company were arrested for illegal exports to Hong Kong and China, the Department of Justice said Aug. 6. President Chong Sik Yu and employee Yunseo Lee used America Techma Inc. (ATI) to allegedly ship electronics components to the region, violating the Export Control Reform Act. Both were also arrested on wire fraud and money laundering charges.
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).
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):