New European Union trade enforcement regulations allow it take protective action over its trade interests if the dispute settlement mechanisms in the World Trade Organiztion or the EU's trade agreements cannot be utilized despite good-faith efforts by the EU. The new regulation also expands the use of possible trade policy countermeasures to include services and intellectual property rights. The countermeasures previously covered only goods. The rules come after a tumultuous four-year period for international trading norms under the Trump administration, which held up appointments to the WTO's Appellate Body (see 1709290010). EU Trade Commissioner Valdis Dombrovskis said the "new rules will help protect us from those trying to take advantage of our openness." The EU will "continue to work towards our first preference, which is a reformed and well-functioning multilateral rulebook with an effective Dispute Settlement System at its core. But we cannot afford to stand defenseless in the meantime. These measures allow us to respond resolutely and assertively.”
The Czech Republic recently waived value-added taxes on certain medical items to help address the continued impacts of the COVID-19 pandemic, KPMG said in a Feb. 9 post. VATs will not apply to “in-vitro diagnostic medical devices” for COVID-19 testing and vaccinations through Dec. 31, 2022. Also exempted are supplies of respirators and filtering half masks, through April 3, 2021.
A month after the end of the Brexit transition period, the Port of Dover in Great Britain reports freight traffic is nearly at the same level as a year ago. In a Feb. 8 news release, the nearest British port to France gave a post-Brexit update, saying that more than 90% of the freight volumes typically recorded this time of year are flowing through the port. The Port of Dover said that if a hauler shows up to the Kent County border with all paperwork ready and a negative COVID-19 test, then it's quickly off to France on a ferry. “I’m really encouraged to see such a positive start to the New Year as we adapt to the new systems and processes involved in a new, post-Brexit transition era,” Port of Dover Chief Operations Officer Sarah West said.
The European Council renewed the European Union terrorist list Feb. 5 for another six months, freezing the funds and other financial assets in the EU of 14 persons and 21 groups and entities. The list also prohibits EU operators from making funds and economic resources available to the blocked parties. The terrorist list has been in place since the attacks of Sept. 11, 2001. Renewal is required every six months.
Ukraine recently established a 24 million metric ton cap for exports of corn for the 2020-2021 marketing year, the U.S. Department of Agriculture Foreign Agricultural Service reported Feb. 5. The export cap was implemented after Ukrainian feed producers lobbied for export limits due to concerns that increasing grain prices “would have a direct impact on the profitability of their businesses,” the FAS said. Although the announcement set an export threshold, FAS said there is a “high probability” remaining corn stocks can be “freely exported” July to September “before the conclusion of the standardized” marketing year.
Following meetings with various European leaders, Indian Minister for Commerce and Industry Piyush Goyal announced high-level India-U.K. and India-EU dialogues on trade and investment. In a joint U.K.-India statement Feb. 8, Goyal and Britain's Trade Secretary Liz Truss announced the launch of an Enhanced Trade Partnership between the two countries. The two met Feb. 6. The move formalizes a deal announced July 24 at the 14th meeting of the India-U.K. Joint Economic and Trade Committee, at which the respective ministers agreed on a road map on trade that would lead to a free trade agreement. The Feb. 8 announcement will serve as a springboard to future negotiations.
The European Union and Japan expanded the number of geographical indications protected under their free trade deal and loosened restrictions on trade in cars and wine, the EU said Feb. 1. The changes, announced on the agreement's second anniversary, will protect 28 additional geographical indications for each country. The two sides also agreed to extend the list of car safety requirements that don’t require “double approvals,” making vehicle trade easier. Japan also further aligned its wine standards to those of the EU, which will allow more EU wine to access the Japanese market. In another change, the two sides said they simplified procedures for obtaining tariff preferences, making it easier for EU companies -- particularly small businesses -- to export to Japan.
Germany’s economics and export control authority will stop issuing paper permits and notifications for most documents beginning March 1, a Jan. 29 notice said, according to an unofficial translation. The agency said it will issue electronic permits and notices for all trade-related documents except for certain temporary export and repeated export permits, transit permits, reexport approvals and rejections, and notices of opposition, which will continue to be issued in paper form. The agency will also issue a second copy on paper for permits if a foreign customs office will not accept an electronic version.
The European Commission sent its 2020 report on export controls of dual-use items to the European Parliament and Council on Feb. 2, detailing the changes made to the export control regime, export control contingency plans for Brexit, activities of the Dual-Use Coordination Group and EU export controls data. The report covers implementation of the regulation during 2019. Of note, the report laid out the changes to the 2019 EU control list, including new controls on dual-use items such as discrete microwave transistors, signal generators with specified “Radio Frequency modulation bandwidths,” and software designed to restore operation of microcomputers after Electromagnetic Pulse (EMP) or Electrostatic Discharge Disruption (ESD); for masks and reticles designed for optical sensors; and air-launch platforms for space launch vehicles.
The European Commission in January approved imports of five types of genetically engineered crops and renewed the authorization for three corn crops used for food and animal feed, the U.S. Department of Agriculture's Foreign Agricultural Service reported Jan. 28. The approvals were off the usual EC schedule and were the ones that remained to be taken up at the end of 2020. The GE crops cover three corn types and two soybeans, USDA said, adding that the imports will be subject to the European Union’s strict labeling and traceability rules. The approvals and renewals are in effect for 10 years.