The United Kingdom could enter the Comprehensive and Progressive Agreement for Trans-Pacific Partnership relatively quickly, former trade officials said. While items still need to be addressed in the negotiation process, which began in September (see 2109280018), they said the U.K. shouldn't face too many hurdles and most members support the U.K.’s accession.
Australia, New Zealand and Thailand officially ratified the Regional Comprehensive Economic Partnership Agreement, paving the way for a range of tariff and trade benefits with 12 other countries in the Asia Pacific region. The deal is scheduled to enter into force Jan. 1, 2022. Thailand submitted its ratification Oct. 28, the Bangkok Post reported Nov. 1. Australia and New Zealand ratified it Nov. 2, Australia’s foreign ministry said. The large trade deal will expand market access for RCEP member countries and includes provisions on intellectual property, e-commerce, competition and more (see 2011160028).
South Korea and the Philippines recently finished negotiating a free trade deal and expect to sign the agreement in February, the Hong Kong Trade Development Council reported Nov. 1. South Korea will lift tariffs on 94.8% of Philippines‑sourced products, and the Philippines will cut tariffs on 96.5% of South Korean goods. The two countries had been close to a deal since 2019 (see 1912110023).
Assistant U.S. Trade Representative for the Western Hemisphere Daniel Watson and Andrés Cárdenas Muñoz, Colombia's vice minister of foreign trade, directed their customs and trade facilitation teams to have another discussion on lessons learned and future plans "especially with regard to the digitalization of customs procedures," according to a USTR readout of the Oct. 22 meeting.
U.S. Trade Representative Katherine Tai said she talked about "ongoing efforts to address global overcapacity in the steel and aluminum sectors and shared challenges posed by non-market economies" when she met with her European Union counterpart on the sidelines of the G-20 meeting in Sorrento, Italy. The EU did not issue its own readout of the meeting, but Valdis Dombrovskis tweeted, "Met [the] USTR, Ambassador Tai, to continue our discussions on finding a settlement on the Trump steel & aluminium tariffs #232. The work continues." He has previously said that an agreement on Section 232 tariffs on steel and aluminum has to be reached by early November in order to prevent retaliatory tariffs from doubling on Dec. 1. Those retaliatory tariffs have hurt the export of American spirits.
Correction: Anna Ashton, vice president of government affairs for the U.S.-China Business Council, analyzed U.S. Trade Representative Katherine Tai's Oct. 4 China remarks (see 2110040049) during a virtual event hosted by University of Pennsylvania professor Neysun Mahboubi.
Australia and India on Oct. 1 officially resumed negotiations on a Comprehensive Economic Cooperation Agreement (CECA), which is expected to boost trade and improve trade rules over standards, rules of origin, and sanitary and phytosanitary measures (see 2108020009). The two countries said they hope to reach an interim agreement by December and complete negotiations on a full deal by the end of 2022.
European Union Trade Commissioner Valdis Dombrovskis told reporters that because of the work that needs to happen within the EU to get it done before retaliatory tariffs are scheduled to double, the U.S. and the EU need to reach an agreement by the beginning of November. Tariffs on the retaliation list are supposed to double on Dec. 1. Dombrovskis said this on Bloomberg TV; he also suggested to reporters that the import and export monitoring that was part of the removal of steel and aluminum tariffs on Canada and Mexico is something that the EU is open to.
A panel of trade experts said managed trade doesn't have to be a dirty word, but that the conflation of national security and economic security is dangerous. The Washington International Trade Association decided to host a discussion on managed trade after an essay was published by Edward Alden called, "Free Trade Is Dead. Risky ‘Managed Trade’ Is Here."
Taiwan has formally asked to join the new Trans-Pacific Partnership, a few days after China asked to join the trade pact, a Taiwanese wire service reported.The trade agreement was originally designed to counter China's influence in Asia, and has been ratified by Australia, Canada, Japan, Mexico, New Zealand, Peru, Singapore, and Vietnam. It is now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.