The Philippines and South Korea expect to agree to a trade deal by mid-2020 as the two sides have made “significant progress” on trade in goods, according to a Dec. 11 report from the Hong Kong Trade Development Council. The two sides are close on a deal regarding the Philippines' export of bananas, garments and auto parts and South Korea’s export of pharmaceuticals, petrochemicals and auto parts, the report said. Agreements have also been reached on rules of origin, and the two sides are “confident” the deal will be completed soon, HKTDC said.

Hong Kong Customs recently seized about $6.4 million worth of smuggled frozen meat en route to China, the U.S. Department of Agriculture's Foreign Agricultural Service said in a report released Dec. 6. Customs authorities seized the shipments, which weighed 540 metric tons, in Hong Kong waters after they were smuggled onto four fishing boats off of a Hong Kong pier, the report said. The fishing boats did not have refrigeration facilities, USDA said, and the meat was composed of “high-value beef products” from “various countries,” including the U.S. and Europe. The agency called it the “largest detection of smuggled meats both in terms of value and volume in the past decade.” The meats included cuts of beef such as “shanks, ribs” and “round,” but no pork.

Vietnam is planning to introduce tax measures to support its domestic auto industry, including reducing import tariffs for certain auto parts and accessories, according to a Dec. 9 report from Customs News, the customs agency’s mouthpiece. The country plans to introduce the changes in December to create “more favourable conditions and incentives for enterprises and industries supporting automotive manufacturing and assembly.” The proposed changes would eliminate import tax rates on certain auto parts, the report said.

The U.S. and Vietnam signed a Customs Mutual Assistance Agreement meant to “further strengthen bilateral cooperation on security and the facilitation of lawful trade,” CBP said in an emailed Dec. 9 news release. “This agreement is a critical step forward in our economic and security partnership with Vietnam,” CBP Deputy Assistant Commissioner for International Affairs Erik Moncayo said. “The CMAA will enable the U.S. and Vietnam to more effectively combat terrorism and transnational crime while facilitating increasing volumes of lawful commerce.” The U.S. now has CMAAs with 82 countries, it said. In recent months, Vietnam has been trying to crack down on country of origin fraud and transshipment schemes that have become especially more frequent since the ramping up of U.S.-China trade tensions (see 1908280043).

Vietnam’s Noi Bai Customs is preparing to strengthen customs inspection and enforcement of imports and exports during the Lunar New Year toward the end of January, according to a Dec. 9 report from Customs News, the agency’s mouthpiece. Customs traffic through Hanoi's Noi Bai International Airport border gate has “increased sharply” in preparation for the new year, the report said, and officials plan to tighten inspections.

China’s Ministry of Finance announced new and amended tariffs for imports of certain “technical equipment,” China said in a Dec. 6 press release, according to an unofficial translation. The changes will exempt customs duties for certain imports starting Jan. 1, 2020, and will levy import tariffs on other goods starting July 1, 2020.

China stood by its position that tariffs must be reduced if it reaches a phase one trade deal with the U.S., despite recent comments from President Donald Trump (see 1911080042) that the U.S. has not agreed to lift any tariffs. “China believes that if the two parties reach a first-phase agreement, tariffs should be reduced accordingly,” a China Ministry of Commerce spokesperson said Dec. 5, according to an unofficial translation. The spokesperson said the two sides “have been maintaining close communication.”

Japan and South Korea agreed to hold an export control policy dialogue Dec. 16, Japan’s Ministry of Economy, Trade and Industry said Dec. 5. The two countries will discuss “circumstances and challenges” of “critical technology control,” the implementation of both countries' export control system and other topics yet to be announced. The meeting will feature the director general of Japan’s Trade Control Department and the director general of South Korea’s International Trade Policy. The consensus on a meeting date was the result of a “preparatory” meeting held by the two sides Dec. 4 (see 1912040012). The two countries have been locked in a trade dispute (see 1908120036) since July.

Japan’s minister of Economy, Trade and Industry urged World Trade Organization members to find a solution before the dispute settlement body ceases to function Dec. 10, according to an unofficial translation of a Dec. 3 press conference. The minister called the body “one of the pillars … [of] the multilateral free trade system.”

China approved its Wuwei Customs Supervision Area in the Gansu Province for imported timber, according to a Dec. 4 report from the Hong Kong Trade Development Council. The facility was approved to import eight varieties of “bark-free boards,” the report said, including white birch, larch, Scots pine, Chinese pine, fir and spruce, which must be transported in sealed containers. Chinese customs may announce additional customs areas approved for imported timber, the report said.