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):
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.