On November 14, 2018, almost a year and a half after the British public voted to exit the EU, the UK and EU reached agreement on the terms of separation manifested in a draft Withdrawal Agreement. This draft text updates an earlier version published in March 2018. Subsequently, on November 22, the EU and UK published the accompanying draft Political Declaration that sets out key principles of the future relationship. On November 25, the European Council endorsed these two texts. This post summarizes the key outcomes with respect to trade in goods, the continued applicability of EU law and European Court of Justice jurisdiction, and dispute settlement during the transition period, as well as the framework for the EU and UK’s future relationship.
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François-Charles Laprévote
Fast-Moving Political Developments Increase the Pressure for Reactive Sanctions Implementation
Over the past few months a number of developments have highlighted the growing pressure in favour of reactive sanctions implementation in the EU and the UK.
New EU chemical weapons sanctions regime
On October 15, 2018, the Council of the EU adopted a new programme of restrictive measures (Council Regulation (EU) 2018/1542). Where necessary to address the use or proliferation of chemical weapons, the EU is now able to impose asset freezes and travel bans on persons and entities anywhere, regardless of their nationality and location, and forbid EU persons and entities from making funds available to them.Continue Reading Fast-Moving Political Developments Increase the Pressure for Reactive Sanctions Implementation
EU Trade Quarterly Summary
This Trade Summary provides an overview of WTO dispute settlement decisions and panel activities, and EU decisions and measures on commercial policy, customs policy and external relations, for the first quarter of 2018.
If you have any questions regarding the above, do not hesitate to contact fclaprevote@cgsh.com or tmuelleribold@cgsh.com.
The Clash of Steel: U.S. Tariffs Imminently In Force, Canada and Mexico Exempt
On March 8, 2018, President Trump imposed new tariffs on steel and aluminum imports into the US. Effective March 23, 2018, a 25% tariff will be imposed on steel articles corresponding to Harmonized Tariff Schedule (“HTS”) codes 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90. In addition, a 10% tariff will be imposed on aluminum articles corresponding to the HTS codes for: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70).
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UK Government Seeks Views from Businesses on Maintaining Existing Trade Remedy Measures Post-Brexit
In preparation for its independent trade remedy framework, the UK government has launched a Call for Evidence on November 28, 2017 to identify UK businesses that produce goods currently subject to EU anti-dumping or anti-subsidy measures. Currently, all trade remedy activities applying in the UK (for example investigations, decisions, and monitoring) are undertaken by the European Commission under the EU’s common commercial policy. Post-Brexit, the UK plans to operate its own trade remedy regime through the “UK Trade Remedies Authority”. (See here for our previous post on the trade and customs bills establishing these powers.)
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Belgium Requests Opinion on Legality of Investment Court System in CETA
On September 6, 2017, Belgium requested an opinion from the European Court of Justice (“ECJ”) on whether the investment protection rules set out in Chapter Eight of the EU-Canada Comprehensive Economic and Trade Agreement (“CETA”) conform to EU Treaties. This request stems from the last-minute deal between Belgium and its regional governments on October 27, 2016, which essentially sought to appease Wallonia’s concerns regarding investor protection and the new Investment Court System (“ICS”) and unblocking domestic opposition to the signing of CETA.
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UK’s Proposals for Future Customs Arrangements Post-Brexit
In a “Future Partnership Paper” released on August 15, the UK presented two options for a customs regime upon its exit from the EU.
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EU Reacts to Impact of Russia Sanctions Bill on European Energy Investments
Background
On August 2, 2017, President Donald Trump signed a bill imposing new sanctions on Russia. Days earlier, the proposed legislation sparked a vigorous reaction in the European Union.
On July 26, 2017, European Commission President Jean-Claude Juncker warned of “unintended unilateral effects that impact the EU’s energy security interests”. In the same vein, the French government opined that the extra-territorial reach of the text appears to breach international law. The German and Austrian governments also issued a joint statement disapproving of the proposal’s encroachment into European energy supply matters.
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Opening Up European and Japanese Markets: What the EU-Japan Trade Deal Means for Businesses
On July 6, 2017, the EU and Japan announced an “Agreement in Principle” on the EU-Japan Economic Partnership Agreement (“EPA”). Negotiations on “the world’s largest, free, industrialised economic zone” began in 2013, and have now culminated in a political agreement which sets out the commitments of both Parties on numerous topics. While parts of the draft text have been published, many issues remain under negotiation. Nonetheless, the EPA provides useful guidance on what European and Japanese businesses can plausibly expect from this deal. A summary of key issues is set out below.
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Anti-Dumping, Non-Market Economy and Chinese Goods – Where Do We Stand in the EU?
Background
Fifteen years ago, China joined the World Trade Organization (“WTO”). To alleviate concerns of cheap Chinese goods flooding international markets at that time, China agreed to allow other WTO members to continue conducting their anti-dumping calculations in a special way, thereby recognizing the concerns of certain members that prices of Chinese goods could be distorted due to state interference. This methodology considered China as a “non-market economy” (“NME”). In a nutshell, this means other countries can disregard Chinese prices or costs, and can use “alternative methods” (external benchmarks, such as hypothetical costs of a third country) to determine the margin of dumping in an investigation. In doing so, authorities will typically end up levying higher anti-dumping duties on Chinese goods.Continue Reading Anti-Dumping, Non-Market Economy and Chinese Goods – Where Do We Stand in the EU?