Dear International Trade and Investment Committee Members,
Here are the international trade and investment articles and publications of interest for the week of April 28 to May 4. This week’s edition has been curated by Dr. Paresh Pandya.
News
- The Canadian government has announced that effective May 22, 2014 a new version of the Guide to Canada’s Export Controls will come into force. The current version of the Guide is being amended to reflect changes in Canada’s commitments under multilateral export control regimes. There are over 250 amendments adding, deleting and clarifying goods and technology subject to export control and permit requirements. Canadian companies that export or engage in any software or technology transfers from Canada should be carefully reviewing the amendments to ensure they are compliant and availing themselves of any applicable de-controls when the new Guide comes into force.
- An EU-wide ban on mangoes from India has come into force, halting imports into the UK potentially until December 2015.
- A senior Democratic senator said on Thursday he would take the time needed to put together a bill granting the White House power to fast-track trade agreements while Republicans called for swift action.
- Beijing has sought to take the lead in kick-starting the formation of a regional free-trade agreement as a US-led pact, which does not include China, faces uncertainty.
Government Announcements/Press Releases
- On 28 April 2014, India notified the WTO’s Committee on Safeguards that it initiated on 7 April 2014 a safeguard investigation on “not-alloyed ingots of unwrought aluminium”.
- The measures concern the production, supply and transmission of natural gas or electricity, the alleged discriminatory certification requirements in relation to third countries in this sector and the requirement in respect of granting access to natural gas and electricity network capacity by transmission service operators.
- The Honourable Ed Fast, Minister of International Trade, today met with his Small and Medium-Sized Enterprises (SME) Advisory Board to develop next steps in a partnership that is focused on supporting Canadian workers and businesses as they continue to find success in new markets.
- Foreign Affairs Minister John Baird and Frans Timmermans, the Netherlands’ Minister of Foreign Affairs, today issued the following statement at the conclusion of their bilateral visit in Ottawa
- On May 4, 2014, these Regulations were amended to include additional names.
- Senate Finance Committee Chairman Ron Wyden, D-Ore., today outlined his goals for modern trade policy at a hearing with U.S. Trade Representative Michael Froman. Wyden said the rapidly evolving global economy requires a trade approach designed to address contemporary challenges. A key litmus test, Wyden said, will be whether USTR enhances transparency in trade negotiations so the public’s voice has a role.
Commentary and Editorials
- On March 26, 2014, a World Trade Organization (WTO) panel issued its report on a dispute between the European Union, Japan and the United States as complainants and China as respondent over access to so-called “rare earths,” as well as tungsten and molybdenum. The Panel found that China violated its obligations under the General Agreement on Tariffs and Trade 1994 (GATT) and the Accession Protocol by restricting exports of rare earths to manufacturers in other countries, while favoring Chinese competitors. Moreover, the Panel found that China could not invoke justifications under GATT Article XX to justify violation of the relevant provisions of its Accession Protocol and, in any case, China had not satisfied the requirements of Article XX. The Panel decision has implications for China’s right to regulate under the terms of its Accession Protocol as well as the nature of precedent in WTO dispute settlement. These issues will likely be further addressed by the Appellate Body following the United States’ and China’s appeal of the Panel Report.
- Approval of Keystone XL suffers delay after delay. Whether one is for or against, it’s obvious the project has become hostage to the unpredictable forces of American politics.
- Canada and the EU agreed on the key elements of the “Comprehensive Economic and Trade Agreement” (CETA) at an Oct. 18, 2013 meeting in Brussels. These negotiations for a free trade area between the two have far reaching implications for the US-EU trade negotiations – the Trans-Atlantic Trade and Investment Partnership (TTIP) – which are still in a very early stage. And they have significant implications for the U.S. economy and the North American Free Trade Agreement (NAFTA).
- One of the reasons for the recent push for new trade initiatives such as the Trans Pacific Partnership (TPP) is a feeling that the WTO system is not working.