The U.S. and the European Union would recognize each other’s product testing across a variety of sectors including electronics, toys, machinery and measuring instruments, under a proposed agreement released by the EU on Nov. 22. “The EU proposal seeks an agreement, under which the EU and the U.S. would accept the conformity assessment results of each other’s assessment bodies, certifying products against the legal requirement of the other side. This would enable exporters to seek certification of their products in their originating country,” the European Commission said in a press release.
The lower house of the Japan's National Diet approved the country’s trade deal with the U.S., sending the deal to the upper house for approval, according to a Nov. 19 report from The Japan Times. Japan hopes to ratify the deal before the current Diet session ends Dec. 9, the report said. The deal, signed in October (see 1910070074), is expected to take effect Jan. 1.
A World Trade Organization panel has found recalculated U.S. countervailing duties on hot-rolled carbon steel flat products still don’t comply with WTO rules, according to a page on the WTO website. As amended in 2016 (see 1605050061), Commerce’s redetermination was intended to implement a WTO appellate body ruling from 2014. While the WTO sided with the U.S. on several of India’s concerns, it found some of Commerce’s subsidy calculations were still not WTO-compliant, and took issue with the International Trade Commission’s injury determination. In particular, the WTO found that a U.S. law that allows the ITC to combine aspects of its injury determination across several countries violates WTO rules.
The elimination of tariffs is an important condition for the U.S. and China to reach an agreement, said China Commerce Ministry spokesman Gao Feng during a press conference Nov. 14, according to an unofficial translation of a transcript. If a first phase agreement is reached between the two countries, the extent of the tariff cancellation should fully reflect the magnitude of the deal, Gao said. The two sides are discussing this in depth, and China is willing to work together with the U.S. to resolve each other’s core concerns on the basis of equality and mutual respect, he said.
Outgoing European Union President Jean-Claude Juncker said he doesn't believe there will be tariffs on European autos this month. The U.S. trade representative is supposed to report to Donald Trump on Nov. 14 on whether there have been enough concessions resulting from talks with Japan and the European Union that the domestic auto industry is no longer imperiled by imports from those regions.
The Canadian Society of Customs Brokers, the National Customs Brokers & Forwarders Association of America and the Mexican Confederation of Customs Broker Associations (CAAAREM) signed a joint strategy agreement on Oct. 29, the NCBFAA said in an email to members. The groups agreed to "promote data harmonization and alignment" exchange implementation information about the revised NAFTA and "foster increased compliance with international trade agreements through shared communication with trade chain partners." The associations also agreed to "enhance and raise awareness of the role of customs brokers, including exploration of harmonization of [Authorized Economic Organization (AEO)]/trusted trader programs and mutual recognition arrangements." Broker training and professional development standards will be another goal for the groups in 2020.
Because the U.S. did not fix antidumping calculation methods after it lost a case in 2017 regarding 25 Chinese products, China will soon be authorized to levy tariffs on about $3.58 billion in U.S. goods, the World Trade Organization announced Nov. 1. China will have to formally request the right to retaliate at the next Dispute Settlement Body meeting, scheduled for Nov. 22.
As the U.S. and China look to soon sign phase one of their trade agreement, the two sides are planning another trade call for Nov. 1, China’s Ministry of Commerce said Oct. 31, according to an unofficial translation. The scheduled call comes days after Chile announced it was canceling APEC, the trade summit where President Donald Trump and Chinese President Xi Jinping expected to sign the deal’s first phase (see 1910300037).
Chile will no longer host APEC meeting, raising questions about the status of phase one of the U.S.-China trade agreement, which was expected to be signed during the November summit of the Asia-Pacific Economic Cooperation forum. The country will not be hosting the trade summit due to recent violent protests and social unrest, Chile's President Sebastian Pinera announced Oct. 30, according to Reuters. The summit was expected to feature a meeting between President Donald Trump and Chinese President Xi Jinping after Trump said the two sides were “ahead of schedule” on the agreement’s first phase (see 1910280026). China said the deal’s first phase was “basically completed.”
The World Trade Organization will convene a dispute settlement panel to judge whether India had the right to impose tariffs on apples, almonds, motorcycles and other products (see 1906170053). The panel was approved for formation in Geneva Oct. 29. Under the additional tariffs, American apples are taxed at 70 percent, compared with 50 percent for other countries' apple exports; the tariff on almonds and walnuts increased by 20 percentage points; and chickpeas and lentils have an additional 10 percentage points of duties. Most of these products are imported at low volumes, but India projected that it would collect more than $100 million in tariffs on almonds in the shell, and more than $20 million on apples. India says it is justified because the Section 232 tariffs on steel and aluminum are really safeguards to protect American mills and foundries, not national security measures. India is one of many countries involved in litigation at the WTO over the steel and aluminum tariffs -- others include Norway, Russia, the 28 countries of the European Union and China.