Trade Clippings April 2021

  • May 10, 2021

Dear Members of the CBA International Law Section, here are the international trade and investment articles and publications of interest for the month of April 2021.This month’s edition has been prepared by Chris Scheitterlein. Chris is an associate working in the area of international trade at McMillan LLP and volunteers with the Communication Committee of the Section. 


Four Years of Brexit Drama End as EU Lawmakers Back Trade Deal Reuters (April 28, 2021)

European Union lawmakers gave their approval to the post-Brexit trade accord with the U.K., marking the final step in the ratification process and the end of four years of political brinkmanship. Members of the EU’s legislature voted to ratify the EU-U.K. Trade and Cooperation Agreement, ensuring that commerce will continue without the chaotic disruption to business a no-deal Brexit once threatened.

S.Korean battery makers agree $1.8 bln settlement, aiding Biden's EV push Reuters (April 11, 2021)

SK Innovation agreed to pay LG Energy Solution, a wholly owned subsidiary of LG Chem Ltd., 2 trillion won (US$1.8 billion) in cash and royalties. The companies agreed also to drop all litigation in the United States and South Korea and not raise further lawsuits against each other for 10 years.

This settlement follows a bitter two-year dispute, in which LG lost sales to SK in a bid for VW orders, then accused SK of stealing trade secrets by poaching nearly 80 of its employees. LG filed a complaint against SK in 2019 at the ITC.

The ITC initially sided with LG after the company accused SK of misappropriating trade secrets related to EV battery technology. It issued a 10-year-import ban but allowed SK to import components for batteries for Ford's EV F-150 program for four years, and VW's North American EVs for two years. "The two companies now can coexist in the global market and compete in good faith," LG Energy Solution said in a statement.

Canada drops wine beef with Australia Australian Associated Press (April 21, 2021)

Australia and Canada have put an end to a long-running trade dispute over wine with restrictions set to be dropped on Australian wine. Quebec is the last remaining province to phase out certain restrictive measures. As part of the settlement, Australia is expected to drop its challenge against Canada at the World Trade Organization.

Press Releases & Governmental Notices

Statement by Minister of Foreign Affairs on the conclusion of the Conference of the States Parties to the Chemical Weapons Convention Global Affairs Canada (April 21, 2021)

According to a statement by Marc Garneau, Minister of Foreign Affairs, the Conference of the States Parties to the Chemical Weapons Convention adopted the draft decision entitled “Addressing the Possession and Use of Chemical Weapons in the Syrian Arab Republic.” The Minister emphasized that this decision underscores the international community’s commitment to hold Syria to account for its possession and use of chemical weapons. 

Canada concerned over the targeting of pro-democracy activists in Hong Kong Global Affairs Canada (April 17, 2021)

Marc Garneau, Minister of Foreign Affairs issued a statement in which he “expresses grave concerns over the targeting of ten of Hong Kong’s most prominent pro-democracy activists for participation in a peaceful assembly.

Statement from Minister Garneau to announce the cancellation of export permits to Turkey Global Affairs Canada (April 12, 2021)

Marc Garneau, Minister of Foreign Affairs has officially cancelled all export permits export permits for military goods and technology to Turkey that were suspended in the fall of 2020. Global Affairs’ review revealed credible evidence that Canadian technology exported to Turkey was being used by Azerbaijan in the military conflict in Nagorno-Karabakh.

G7 foreign ministers’ statement on Ukraine Global Affairs Canada (April 12, 2021)

G7 foreign ministers expressed concerns because of the large, ongoing buildup of Russian military forces on Ukraine’s borders and in illegally annexed Crimea, calling on Russia “to cease its provocations and to immediately de-escalate tensions in line with its international obligations.”

Canada issues advisory on doing business with Myanmar-related entities Global Affairs Canada (April 13, 2021)

The Government of Canada has issued an advisory for Canadian businesses in response to the coup initiated by Myanmar’s military on February 1, 2021, against the democratically elected Government of Myanmar. The advisory recommends that companies active in Myanmar assess their operations, take any appropriate action to comply with Canadian sanctions measures and export controls, and uphold high standards of human rights and responsible business conduct.

Certain Small Power Transformers Canada Border Services Agency (April 15, 2021)

The Canada Border Services Agency initiated an investigation on April 15, 2021 into alleged injurious dumping of certain small power transformers from Austria, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and South Korea. The investigation follows a complaint filed by Transformateurs Delta Star Inc., Northern Transformer Corporation, PTI Transformers Inc., and PTI Transformers L.P. The Statement of Reasons concerning the initiation of the investigation was published on April 30, 2021.

Certain grinding media Canada Border Services Agency (April 30, 2021)

On April 30, 2021, the Canada Border Services Agency made preliminary determinations of dumping and subsidizing with respect to certain grinding media from India. Provisional duties will now be payable on subject grinding media that is released from customs on or after April 30, 2021. The estimated total provisional duties to be paid by AIA Engineering Ltd. were assessed at 32.2% and 89.5% for all other exporters. 

Wheat gluten Canada Border Services Agency (April 7, 2021)

The Canada Border Services Agency made a final determination on March 23, 2021 respecting the dumping of certain wheat gluten originating in or exported from Australia, Austria, Belgium, France, Germany and Lithuania. The CBSA Statement of Reasons concerning the final determination were issued on April 7, 2021, and on April 22, 2021, the Canadian International Trade Tribunal made a finding that subject wheat gluten has caused injury to the domestic industry.

Certain Steel Goods (Safeguard Inquiry) Canadian International Trade Tribunal (April 15, 2021)

The Canadian International Trade Tribunal has decided not to commence an extension inquiry in this safeguard inquiry after it did not receive any extension requests in respect of the Surtax Order by the deadline of April 12, at noon.

Opinions & Editorials

Canada-United Kingdom Trade: Canada Launches Public Consultation on Trade Negotiations with the United Kingdom Blake Cassels & Graydon LLP (April 6, 2021)

The Government of Canada has launched a public consultation regarding upcoming trade negotiations with the United Kingdom (UK). Interested parties are being asked to provide comments on all matters relating to Canada’s bilateral trade negotiations with the UK and/or negotiations toward the UK’s potential membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Canada's Federal Budget 2021 and International Trade Implications Bennett Jones LLP (April 22, 2021)

On April 19, 2021, the Federal Government of Canada unveiled its first budget in two years, promising over $100 billion in new spending intended to propel Canada's economic recovery from the COVID-19 pandemic. Part of the government's recovery plan involves a number of legislative amendments that will affect international trade and domestic trade within Canada.

International Trade as the New Front against Transnational Crime White & Case (April 2020, 2021)

Governments worldwide are sharpening their focus on money laundering executed through international trade. Anti-money laundering obligations on entities beyond traditional financial institutions continue to expand. Companies active in international trade, regardless of where they are located, should take notice as their supply chains continue to come under greater scrutiny.