Trade News Updates
By Margaret Lange
As 2020 is winding down, there is still much activity in the world of international trade. Most of the Section 301 extended exclusions will expire, US goods will be subject to new tariffs in the EU, GSP modifications will be implemented, new marking changes for goods of Israel and Palestine will be implemented and a new major Trade Agreement with fifteen countries has been formed.
Section 301 Exclusion Extensions Expire by the End of the Year
Since December 28, 2018, the U.S. Trade Representative (USTR) has granted over 2,200 product specific exclusions across the four Section 301 tariffs actions taken on over $550 Billion in imports from China. As the exclusions expired, the trade was able to submit comments to request extensions of certain product exclusions. The USTR granted extensions for more than 550 products across all four tranches, most of which will expire at the end of this year:
- Six extended exclusions from Tranche 1 will expire December 28, 2020
- 119 extended exclusions from Tranche 1 will expire December 31, 2020
- 59 extended exclusions from Tranche 2 will expire on December 31, 2020
- 266 extended exclusions from Tranche 3 will expire on December 31, 2020
- 87 extended exclusions from Tranche 4A will expire on December 31, 2020
There are two lists that are extended into 2021:
- Eleven extended exclusions from Tranche 2 will expire March 25, 2021
- Eight extended exclusions from Tranche 3 will expire April 18, 2021
Once these exclusion expire, entries of those goods will be subject to the applicable additional Section 301 duties. For more information on the Exclusions granted, see the USTR page here. Additionally, you can search the status of all exclusions on our website here.
EU Imposes Additional Tariffs on $4 Billion Worth of US Products
In response to the WTO ruling in the long-running aircraft subsidies dispute between the U.S. and the European Union (EU), the EU announced that it will impose tariffs on $4 billion worth of goods imported from the US. Effective November 10th, the EU imposed an additional 15% tariff on large aircrafts, and 25% tariffs on a wide range of non-aircraft goods including certain seafood, alcoholic beverages, coffee, and other consumer goods. A preliminary list can be found here.
Generalized System of Preference (GSP) Modifications
On October 30th, President Trump issued a Proclamation to modify the duty free treatment for certain goods and countries under the Generalized System of Preferences (GSP). The USTR published the details of the enforcement action including the removal of many products from duty free benefits under GSP for Thailand effective December 30, 2020.
Marking of Country of Origin – Israel and Palestine
On November 19th, Michael Pompeo, Secretary of State, announced that the U.S. Department of State is initiating new guidelines to ensure that country of origin markings for Israeli and Palestinian goods are consistent with our reality-based foreign policy approach.
Regional Comprehensive Economic Partnership (RCEP) Formed
Fifteen countries, covering nearly one third of the global economy have formed a new trade pact. RECP, includes China, South Korea, Japan, Australia, New Zealand and ten Southeast Asian countries. Unlike the Transpacific Partnership (TPP), which the United States pulled out of in 2017, the RECP includes China, making it the largest multilateral trade pact in history.