The European Commission laid out its trade goals for the coming years. In a guiding strategic document Feb. 18, the commission vowed to make its trade agenda more sustainable and capable of tackling modern-era problems. Its trade goals focus on six key areas: 1) reforming the WTO, 2) supporting the green transition and promoting responsible and sustainable value chains, 3) supporting the digital transition and trade in services, 4) strengthening the European Union's regulatory impact, 5) boosting the EU's partnerships with neighboring, enlargement countries and Africa, and 6) strengthening the EU's focus on implementation and enforcement of trade agreements and ensuring a level playing field.
The European Commission opened an antidumping investigation of certain graphite electrode systems originating in China. The investigation is based on a complaint from Graphite Cova, Showa Denko Carbon Holding and Tokai ErftCarbon on graphite electrodes of a kind used for electric furnaces, with an apparent density of 1.5 g/cm3 or more and an electrical resistance of 7 micro ohm meters or less, and nipples used for such electrodes. Complainants “provided sufficient evidence that there are raw material distortions in the country concerned regarding the product under investigation,” and that compared with prices in other international markets, are significantly lower, the EC notice said. “[T]he investigation will examine the alleged distortions to assess whether, if relevant, a duty lower than the margin of dumping would be sufficient to remove injury.”
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.
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.
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.
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.
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.