The United Kingdom’s arms embargo against Hong Kong goes beyond crowd control equipment and will cover any item that could be used for “internal repression,” the U.K. said in a July 22 notice. The embargo, announced by Foreign Secretary Dominic Raab July 20 (see 2007210042), covers military aircraft, helicopters, weapons platforms, armored vehicles and lethal weapons, such as machine guns, large-caliber weapons, bombs, torpedoes, rockets and missiles. The U.K. also said the embargo will cover “specially designed components” of those weapons as well as ammunition. The U.K. said it will revise its Hong Kong open general licenses “to bring them in line with restrictions on China.”
The U.K. government followed the U.S. lead in banning Huawei equipment “without any solid evidence and under the excuse of non-existent risks,” a Chinese Foreign Affairs Ministry spokesperson said July 15. The U.K.’s action “blatantly violated” free trade rules and “eroded mutual trust underpinning China-U.K. cooperation,” she said. “China will evaluate this development in a comprehensive and serious manner and take all necessary measures to protect the legitimate and legal rights and interests of Chinese enterprises.” On President Donald Trump’s disclosure July 14 that he personally “convinced many countries” not to use Huawei as a condition for doing business with the U.S., the spokesperson called that “further proof that decisions to ban Huawei are not about national security, but political manipulation.” Trump's disclosure “also shows the world that it is not China, but the U.S., that has been intimidating and threatening others and sowing discord all across the world,” she said.
The United Kingdom announced a temporary reduced value-added tax rate for certain supplies in the hospitality and tourism sector to mitigate the impacts of the COVID-19 pandemic, KPMG said in a July 10 post. The measure, effective July 15 to Jan. 12, 2021, will reduce VAT from 20% to 5% for certain food and nonalcoholic drinks served in restaurants, pubs, bars, cafes and “similar premises” across the U.K., KPMG said. The reduced VAT also applies to take-out food and drinks from those suppliers, and to U.K. hotel accommodations and admission to “attractions” across the U.K.
The United Kingdom July 9 updated its guidance on risks associated with doing business in Kazakhstan. The update made “[m]ajor changes” to the guidance’s political, economic and business, and human rights sections, the U.K. said, and includes several “COVID-19 pandemic related amendments.”
The United Kingdom’s Department for International Trade issued a July 10 guidance on export licenses for a range of U.K. goods after the U.K. officially leaves the European Union on Jan. 1, 2021. The guidance contains links to licenses and further information for exporting animals, agricultural products, chemicals, waste, diamonds and controlled goods. The guidance also contains a section detailing how the U.K.’s new sanctions regime may affect exports.
A spike in coronavirus infections among employees in German slaughterhouses is expected to have short-term impacts on global pork trade and long-term consequences for German pork production, the U.S. Department of Agriculture Foreign Agricultural Service said in a July 5 report. The impacts were compounded by China’s decision to ban pork imports from one of Germany’s largest slaughterhouses (see 2006300012), which was one of the main competitors for U.S. pork exports to China, USDA said. Germany will also likely move forward with long-awaited stricter animal welfare regulations now that the COVID-19 pandemic has “put the slaughter industry in the spotlight,” the USDA said. “Currently, there is just too much pressure on the German livestock industry and especially the pork market.”
The European Commission referred Austria, Belgium and the Netherlands to the European Union Court of Justice for failing to implement the EU’s anti-money laundering regulations, the commission said July 2. The referral includes a “request for financial sanctions,” the commission added. The commission also said the lack of implementation may affect information regarding corporate ownership of certain entities.
The United Kingdom’s Department for International Trade on June 29 updated its guidance on existing trade agreements with non-European Union countries. The guidance now reflects that the U.K. has begun trade negotiations with Turkey and Vietnam. Turkey is part of the EU Customs Union, so any deal between the U.K. and the EU will affect the U.K.’s trading relationship with Turkey, the guidance said.
Huawei received approval to build a $1.2 billion manufacturing and research facility in the United Kingdom, where it will focus on developing technology used in fiber optic communication systems, the company said June 25. Huawei said the plant, which will be located in Cambridge, will be “state-of-the-art” and bring “technology to data centers and network infrastructure around the world.”
The Eurasian Economic Commission plans to extend an export restrictions on sunflower seeds, the U.S. Department of Agriculture Foreign Agricultural Service said in a June 22 report. The restrictions, which will apply to exports outside the Eurasian Economic Union, will be extended through Aug. 31 to stabilize domestic prices for sunflower oilseeds, the report said. The restrictions would allow exports of the seeds on a “permit basis.” The EAEU includes Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. The EEC is its regulatory body.