India says they will not join the largest free trade deal – the Regional Comprehensive Economic Partnership (RCEP).

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Yesterday, India’s Prime Minister, Narendra Modi announced India would not join the Regional Comprehensive Economic Partnership (RCEP).

The RSCEP is a proposed trade deal among 16 countries and has been discussed for the past 7 years and the subject of over 28 rounds of discussion. The RCEP was believed to be the “largest trade deal” because both China and India were expected to participate. China, India and 14-other nations in the RCEP would account for 40% of the world’s GDP.

In a public statement, the government of India cited several reasons to withdraw from the RCEP: (1) India wanted stronger wording on rules of origin, (2) change in the base year for the reduction of duties to be 2019 instead of 2014 and (3) for companies investing in India to procure a certain percentage of local input materials.

The remaining 15 countries have vowed to continue efforts to pass the RCEP with India’s involvement.

Do you have any general trade or customs law questions? Contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China leading the way for new trade deal with ASEAN nations.

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This week, the 10 members of the Association of Southeast Asian Nations (ASEAN) are meeting in Bangkok, Thailand and one main focus will be the creation of a free-trade pact that will cover 50% of the world’s population and 40% of the world’s commerce. The ASEAN nations hope to enact the Regional Comprehensive Economic Partnership (RCEP), a trade deal that covers a territory from India to New Zealand.
In negotiation for the past few years, the current US China trade war is pushing the effort to create the RCEP. Will post any updates as available.
Do you have any trade or customs law questions, contact your trade and customs attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Phase 1 of the China trade deal explained.

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Earlier this week, US and Chinese representatives met for the 13th time in ongoing negotiations to reach a trade deal. On Friday, President Trump outlined what has been referred to as “Phase 1”:
1. Suspension of tariff hike set for October 15th that would have increased tariffs from 25% to 30% on $250 billion in Chinese goods.
2. Some intellectual property protections on copyrights, trademarks and piracy (no movement on technology transfers, data flows, cyber security, product standard reviews or the new social credit system.
3. China’s commitment to purchase $50 billion in US agricultural products
The announcement is short on details and more information should be available in 5 weeks and details will be posted as soon as they are available.
If you have any questions how these duties will impact your business, or for any questions on trade with China, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US and Japan reach trade deal.

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Last week, President Trump and his counterpart Prime Minister Abe of Japan reached a trade deal to cut tariffs and increase trade between the two nations.

Part of the deal includes Japan agreeing to reduce or cancel tariffs on American agricultural exports such as beef, corn, pork and fruit – with the US agreeing to reduce tariffs on bicycles, flowers, tea and other industrial products.

At the same time, the agreement prohibits future tariffs on streaming videos, music and video games.

If you have any questions about how the new trade deal with Japan will impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Japan seeks assurance from US on car tariffs.

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Trade representatives from the US and Japan are working out details for a trade deal between the two nations – with both sides hoping to sign a trade deal this week during the United Nations General Assembly in New York.

Previously, Trump has threatened the imposition of tariffs of upwards of 25% on Japanese cars, and the Japanese want a clause added to any trade deal that would cancel any trade benefits if and when the US imposes tariffs on automobiles.

This is the only issue currently delaying the signing of a long awaited trade deal between the US and Japan.

Other parts of the trade deal are expected to include more access for US farmers to the Japanese market, modernization of digital trade rules, internet development, prohibition of cross-border taxation of e-commerce and data localization requirements.

Post Brexit US, Britain trade deal?

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According to the Associated Press, at last week’s visit to London, Vice President Pence indicated to Britain’s Prime Minister Boris Johnson that President Trump would be eager to reach a new trade deal with the UK once the UK leaves the European Union with the AP quoting Vice President Pence: “The minute the U.K. is out, America is in”.
While the US may be eager to join a trade deal, the AP cited British officials who are hesitant to entering into any deals that may favor the US. For example, the EU agriculture policy benefits British farmers, and any trade deal will include US demands for more access for agricultural products.
Another trade issue that will arise post-Brexit is between the UK and Ireland. With the
UK and Ireland belonging to the EU, free trade of people and goods has moved across the border with no problem. However, post-Brexit, this may complicate a new trade deal with the UK. In 2018, the UK was America’s 4th biggest export market with a US trade surplus of $18.6 billion.

US will not impose additional tariffs on Japanese automobiles.

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According to Reuters, President Trump and Japanese Prime Minister Shinzo Abe met last Sunday at the G7 Summit – agreeing that the current duties on cars remain at 2.5% for passenger vehicles and 25% for pickup trucks from Tokyo. Previously, the US did threaten Japan with additional duties of 25% on auto exports to the US under the premise of national security.

U.S. President Donald Trump on Monday said the United States would not imminently impose new tariffs on autos imported from Japan as the largest and third-largest economies continue their trade negotiations. Japan would also agree to greater market access for US agricultural products such as beef and to increase purchases of US corn.