China’s Ministry of Finance said it will halve retaliatory tariffs on $75 billion worth of U.S. imports beginning Feb. 14, according to an unofficial translation of a news release. Tariffs on some U.S. goods will fall from 10 percent to 5 percent, China said, while others will drop from 5 percent to 2.5 percent. The tariffs stem from China’s Sept. 1 tranche of retaliatory tariffs. China released additional details about the cuts in guidance from the State Council Tariff Commission.
Exports to China
In his State of the Union address, President Donald Trump touted a “groundbreaking new agreement with China” without alluding to the work yet to get done in phase two, and said replacing NAFTA was a promise he kept. “Unfair trade is perhaps the single biggest reason that I decided to run for President,” he said, according to a White House transcript. “Six days ago, I replaced NAFTA and signed the brand-new U.S.-Mexico-Canada Agreement into law.” Trump “also promised our citizens that I would impose tariffs to confront China's massive theft of America’s jobs,” he said. “Our strategy has worked. Days ago, we signed the groundbreaking new agreement with China that will defend our workers, protect our intellectual property, bring billions and billions of dollars into our treasury, and open vast new markets for products made and grown right here in the USA.”
The government of Canada issued the following trade-related notices as of Feb. 5 (note that some may also be given separate headlines):
Trump administration officials will meet this month in an attempt to resolve differences in the matter of restricting technology exports to China and Huawei, according to a Feb. 4 Reuters report. But Commerce is also discussing expanding its export control jurisdiction to a broader array of foreign sales containing U.S. goods that go beyond exports to just Huawei, according to a person familiar with the situation. “That is the one that would be a nuclear bomb for business,” the person said, adding that Commerce is discussing expanding its export control jurisdiction to “the maximum possible point.”
China took a “few positive steps” to revise the draft of its export control law (see 2001100047) but should address several key areas of concern for U.S. and Chinese companies, the U.S. China Business Council said in comments released this week. The USCBC asked China to clarify the scope of its export controls and the term “national security,” provide a clearer definition for activities that are “deemed exports,” and consider more relaxed requirements for end-user statements and certificates.
Export Compliance Daily is providing readers with some of the top stories for Jan. 27-31 in case you missed them.
Mauritius has imposed a temporary ban on imports of live animals, live fish and products of animal origin from China, it said in a press release. Implemented Feb. 3 in response to concerns over the coronavirus outbreak, the ban covers live animals and fish; chilled, frozen and dried seafood including fish products such as fish and oyster sauce; chilled, frozen and dried meat; wool; animal hair/bristles; and animal feed including fish feed.
Experts disagreed on whether the spread of the coronavirus will make it impossible for China to reach its purchase commitments, or make it more likely that China will wish to please the U.S., as its economy suffers. But one thing most agreed on -- the disease's impact is another reminder, after the tariff war, that companies should diversify instead of being wholly reliant on Chinese factories. The experts were on a panel at the Washington International Trade Association conference Feb. 4 on the future of U.S.-China trade.
The government of Canada issued the following trade-related notices as of Feb. 3 (note that some may also be given separate headlines):
Indonesia has given its customs officials the authority to stop counterfeit goods at the border, and just in 2020, has already seized $1 billion rupiah, or $73,000, worth of counterfeits that were set for export, according to Iwan Freddy Hari Susanto, charge d'affaires for the Indonesian Embassy. He was testifying Jan. 31 at a hearing on Indonesia's eligibility for the Generalized System of Preferences benefits program, and was describing numerous actions the country has taken to improve protections for intellectual property rights holders.