Trade Clippings March 2021

  • April 08, 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 March 2021.This month’s edition has been prepared by Amy Lee. Amy is an associate working in areas of sales and indirect tax, customs and international trade at Blake, Cassels & Graydon LLP and a member of the Communication Committee of the Section.

News

Global shipping was in chaos even before the Suez blockage. Shortages and higher prices loom CNN Business (March 26, 2021)
On Tuesday, March 23rd, the Suez Canal in Egypt was blocked by a quarter-mile-long container ship named the Ever Given for nearly a week, creating a traffic jam that ensnared over 350 vessels and could take days to clear. The grounding of the Ever Given has delayed shipments of consumer goods from Asia to Europe and North America, and agricultural products moving in the opposite direction. As of Monday, some 367 vessels, including oil tankers and dozens of container ships, were waiting to transit the canal, which handles about 12% of global trade.  The article outlines the implications of this delay.

DG Okonjo-Iweala: WTO can deliver results if members “accept we can do things differently” World Trade Organization (March 1, 2021)
Addressing the WTO General Council immediately after taking office on 1 March, Director-General Ngozi Okonjo-Iweala called on members to “do things differently” to achieve reforms necessary to keep the WTO relevant, starting with swift action to curb harmful fisheries subsidies, and to help scale up COVID-19 vaccine production and distribution. The new head of the WTO noted that high expectations for her tenure can only be met if members are willing to compromise and reach agreements.

Press Releases & Governmental Notices

Canada imposes new sanctions on individuals and entities involved in illegal annexation of Crimea Global Affairs Canada (March 29, 2021)
The Honourable Marc Garneau, Minister of Foreign Affairs, announced new sanctions against 2 individuals and 4 entities, under the Special Economic Measures (Russia) Regulations and the Special Economic Measures (Ukraine) Regulations, in response to Russia’s illegal occupation and annexation of the Autonomous Republic of Crimea.

Photovoltaic Modules and Laminates Canadian International Trade Tribunal (March 25, 2021) 
After an expiry review, the Canadian International Trade Tribunal has continued its finding made on July 3, 2015, in Inquiry No. NQ 2014-003, concerning the dumping and subsidizing of certain photovoltaic modules and laminates consisting of crystalline silicon photovoltaic cells originating in or exported from the People’s Republic of China.

Canada imposes new sanctions in response to deteriorating human rights situation in Russia Global Affairs Canada (March 24, 2021)
The Honourable Marc Garneau, Minister of Foreign Affairs, announced new sanctions against 9 Russian officials under the Special Economic Measures (Russia) Regulations in response to gross and systematic violations of human rights in Russia.  The sanctions are part of a concerted diplomatic effort to bring pressure on senior figures in Russia’s administration involved in the attempted murder of Alexey Navalny, his subsequent prosecution, and the silencing of Russian citizens who protested his treatment with heavy-handed and often violent methods.

Wheat gluten Canada Border Services Agency (March 23, 2021)
On March 23, 2021, the Canada Border Services Agency has made a final determination of dumping concerning certain wheat gluten originating in or exported from Australia, Austria, Belgium, France, Germany and Lithuania.

Minister Ng concludes successful meeting of Ottawa Group on WTO reform Global Affairs Canada (March 22, 2021)
The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, led a meeting of the Ottawa Group where ministers discussed progress on the World Trade Organization (WTO) reform efforts and identified key priorities in the lead up to the 12th WTO Ministerial Conference (MC12) and beyond.  The ministers emphasized the importance of working quickly to resolve the Appellate Body impasse, concluding negotiations on fisheries subsidies, advancing work on the Joint Statement Initiatives, including domestic regulation of services, and e-commerce by MC12. Ministers also agreed to advance efforts on health, agriculture, environment, transparency, and trade and gender.

Canada joins international partners in imposing new sanctions in response to human rights violations in Xinjiang Global Affairs Canada (March 22, 2021)
Canada announced it is imposing new sanctions against 4 officials and 1 entity under the Special Economic Measures (People’s Republic of China) Regulations, based on their participation in gross and systematic human rights violations in the Xinjiang Uyghur Autonomous Region (XUAR). These measures are being taken in coordination with the United States and the United Kingdom, and in solidarity with the European Union.

Canada begins public consultations on joining the Digital Economy Partnership Agreement Global Affairs Canada (March 19, 2021)
The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced public consultations on Canada’s interest in joining the Digital Economy Partnership Agreement (DEPA) between Chile, New Zealand and Singapore, covering rules on digitally enabled trade in a global digital and data-driven economy.  The consultations will inform Canada’s approach to discussions with Chile, New Zealand and Singapore on potentially joining the agreement. All interested Canadians are encouraged to provide their input by May 3, 2021.

Minister Gould and Minister Ng conclude the first Canada-Africa Clean Growth Symposium and announce the Canada-African Development Bank Climate Fund Global Affairs Canada (March 17, 2021)
The Honourable Karina Gould, Minister of International Development, and the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, concluded their participation in the first Canada-Africa Clean Growth Symposium co-hosted by Canada, Senegal and Ethiopia.  Minister Gould announced Canada’s contribution of $132.9 million to establish the Canada-African Development Bank Climate Fund, which aims to enhance women’s economic rights and participation in climate action, and to mobilize private capital to fill the climate investment gap in Africa.

Minister Ng launches public consultations on trade negotiations with United Kingdom Global Affairs Canada (March 12, 2021)
The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced the launch of public consultations on new trade negotiations with the United Kingdom.  These consultations provide an opportunity for Canadians and interested stakeholders to share their views and help define Canada’s priorities in future trade negotiations with the United Kingdom, in the context of both a new, bilateral free trade agreement and the United Kingdom’s potentially joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).  Canadians across the country and abroad are encouraged to participate in the public consultations process until April 27, 2021.

Certain Concrete Reinforcing Bar Canada Border Services Agency (March 4, 2021) 
On March 4, 2021, the Canada Border Services Agency has made a preliminary determination of the dumping of certain concrete reinforcing bar originating in or exported from Oman and Russia. Provisional duties will be payable on the subject goods from Oman and Russia that are released from the CBSA on or after March 4, 2021.

Refined Sugar Canada Border Services Agency (March 1, 2021) 
On March 1, 2021, the Canada Border Services Agency has determined that the expiry of the orders made in Expiry Review No. RR‑2014‑006, continuing, with amendment, its findings made in Inquiry No. NQ‑95‑002, concerning the dumping of refined sugar, originating in or exported from the United States of America, Denmark, the Federal Republic of Germany, the Netherlands and the United Kingdom and the subsidizing of refined sugar originating in or exported from the European Union is likely to result in the continuation or resumption of dumping of such goods.

Opinions & Editorials

Canadian and UK courts engage on whether COVID-19 ‎is a “material adverse effect” in M&A transactions DLA Piper (March 25, 2021)
The article reviews three recent cases decided in Alberta, Ontario, and the UK around whether COVID-19 is a “material adverse effect” (MAE) in M&A transactions.  The article observes that the courts in each jurisdiction have largely applied guidance from the MAE law developed in the United States, and, most notably, in the Delaware courts.

EU, UK, US and Canada Announce Coordinated Xinjiang Sanctions Steptoe International Compliance (March 25, 2021)
The article provides a summary of the a range of coordinated sanctions announced by the EU, the UK, the US and Canada on March 22, 2021 with respect to the alleged human rights abuses in the Xinjiang Uyghur Autonomous Region (XUAR) and the imposition of retaliatory sanctions by China against a group of EU individuals and institutions.

Featuring

Learning From the Huawei CFO Meng Wanzhou Case: What Chinese and Other Non-U.S. Companies and Executives Should Do to Limit Exposure to Criminal Liability in the U.S. Asia Law Portal (March 10, 2021)
This four-part series provides an overview of the extradition case around Meng Wanzhou including a discussion of the assertion of extraterritorial jurisdiction by the US and defenses against it, related geopolitical issues, criminal liability in the US and the role of compliance management systems.  For previous three parts of the series, please see below: 

Part 1: Tracing the Origins of the Case Against Huawei CFO Meng Wanzhou: How Global Banks Extend the Reach of U.S. Extraterritorial Jurisdiction, Directly and Indirectly Impacting the Global Expansion of Chinese Companies (February 19, 2021)

Part 2: The Case Against Huawei CFO Meng Wanzhou: An Assessment of the Complex Matrix of Extraterritorial Jurisdiction, International Extradition and Global Diplomatic Relations (February 24, 2021)

Part 3: The Defense of Huawei CFO Meng Wanzhou: How the Principles of the Rule of Law Extend Fundamental Protections to Non-U.S. Companies and Executives Subject to Extraterritorial Jurisdiction (March 3, 2021)